Launching an advertising agency from home without any initial investment is entirely achievable. The core concept involves selling advertising space in your publication – whether it’s a daily, weekly, or monthly edition. This publication, resembling a collection of handbills, will feature advertisements and, optionally, articles. The key is to secure payment from advertisers *before* their ads are placed. This upfront payment covers production (printing) and distribution costs, with the remaining balance becoming your profit. Following your startup plan, distribute your publication accordingly. By leveraging advertisers’ finances, you can effectively launch and operate a profitable advertising business without using your own capital.
**Publication Size & Scope**
First, brand your publication with a memorable and professional name. Determine the layout and number of pages. A starting point could be three A4 pages, folded horizontally to create an A5-sized publication. Display your publication’s name and telephone number prominently on the front page. Define your distribution area and include it near the publication’s name. As you expand, you can create separate, similarly named publications for different areas.
Decide on the number of copies to distribute. The more copies distributed, the more appealing advertising becomes for businesses, leading to greater exposure and potential business. Obtain quotes from at least three printers to compare printing costs.
**Distribution Strategies**
Employ various distribution methods, such as handing out publications at street corners, busy malls, community centers, and door-to-door in neighborhoods.
Calculate the cost per copy for distribution. As distribution can be physically demanding, consider hiring school kids or part-time workers. A fair price is around three cents per successfully delivered publication. Implement random checks to ensure proper delivery. This method tends to be the most cost-effective.
**Pricing for Profit**
To calculate advertising rates that ensure a substantial profit, work backward from your costs.
Your total costs include printing and distribution (including fuel and miscellaneous expenses). Adding these gives you your total operating costs. Calculate one-third of the total operating costs; this represents your desired profit. Add this profit to your total operating costs. The resulting figure is the total revenue needed from advertising fees. Divide this amount by the number of page sides (e.g., twelve A5 sides). This provides the cost for one A5 side of advertising space. Dividing that figure by four will give you the price for one-quarter page ad. Base your advertising fees on this quarter-page rate. Offer discounts for larger ad spaces to incentivize bigger bookings.
Remember: advertisers pay upfront. These payments fund operating costs and your profit. This allows you to launch and run the business with zero capital.
**Acquiring Advertisers**
This is crucial. Regularly review newspapers and note the details of small businesses or individuals advertising in the classifieds. Track recurring ads over several days. Contact these repeat advertisers and offer your services.
**Collecting Ads and Preparing for Print**
The final step is collecting advertisements and payments from advertisers, then delivering the ads to the printer. Explain your publication’s layout to the printer, who will handle typesetting. After the publication is typeset, proofread carefully for errors before printing. If an advertiser has a complex logo, request a sample for the printer to scan and clean up.
You might need to assist some advertisers in drafting their ads as a service. Establish a firm deadline for ad submissions. If space remains, extend the deadline slightly, but avoid delaying the overall schedule.
Notify advertisers when the publications will be ready and detail the distribution plan. Provide advertisers with a copy of the publication for their records.
Begin distribution as planned once the publications are printed.
**Conclusion**
The initial process might seem challenging, but it becomes significantly easier with experience. Advertisers will gain confidence in your business and capabilities. As you gain traction, you might find that space books up quickly, requiring you to defer some advertisers to the following week.