What do you think of this business idea? How easy/hard would it be to sell ad space?
April 7, 2010 by
Filed under Ideas for Business Events
Imagine an 8 page+ (free newspaper) that is distributed in 10s-100s of place. Ad space is $40 weekly for the smallest ad, which is 3×3″. Ad space can be used for publicity, coupons, event announcements etc. In a city of 200k, 600k copies would be distributed to gas stations, fast food locations, bus stations etc.
There are brief editorials throughout the paper to keep a reader glued/interested.
What do you think? I’m thinking about buying a franchise of one of these companies at a modest price of $8.5k.
Would this be easy to sell? I think it’s CHEAP advertising compared to listing in the newspaper, and more copies are distributed.
The weekly print bill would be appx $700. 63 3×3 ad’s can fit in an 8 pg paper.
A great idea if the paper is able to be distributed by the gas station, bus stop, fast food locations etc……..Job adverts is the biggest thing for newspapers but anyone who gets a free deal or use of a good coupon will definately pick up the paper.
In Australia, we get free daily newspapers distributed in the city, there’s always advertisements, and news stories (although I read the same news article on the net). One of the distribution locations is the central train stations, these newspapers practically travel everywhere as ppl leave them on trains. There’s advertisements from local small businesses, and yeah ppl seem to enjoy reading the newspaper (who deosn’t get bored on public transport). Little tidbits of information/facts (interesting) keeps me reading. I don’t take notice of the advertising but its what makes the money for the mags right.
Something you should consider looking into is their circulation counts, return on investment, return of advertisers. If an advertiser only advertises once, and there’s alot of advertisers do that, it will tell you if the paper has a sustainable client base and hence profitable. What are the expenses vs the profit proportion. Your returns in the investment, etc/ Things to consider to ensure your 8.5k is not lost.
in New York city there are at least 2 papers that use this model… but they all have daily costs in excess of $8500 so i don’t see how you can get it for so cheap and also print, distribute, deliver etc…
the daily ones here in NYC are Metro and AM New York
Although it sounds like a good idea, I suggest you look for a business/franchise in which you have more knowledge and/or experience.
Furthermore, are you passionate about the newspaper ad business? Your passion will be essential when things get tough (which is inevitable in ANY business)
Have you been self employed/run your own business before?
If not then look at the level of support that this franchise will give you.
Have you considered a home business? The start up costs are minimal.
Check out my YouTube video for my experiences with various home businesses http://youtube.com/watch?v=i5ZMgycKRPQ