Impressive income, flexible schedule, plenty of time off
and freedom from an annoying boss…for successful newspaper
publishers, all this is captured in one, all-important word:
RENEWALS
Advertising renewals is the key to the dream life in the
world of newspaper publishing. Renewals work like this:
new advertisers typically sign a contract to place their ad
in a predetermined number of issues. Once those issues have
been published, the advertiser needs to decide if she will
continue the ad campaign. If she does, then she renews her
contract.
For example, let's say that your new client Dr. Jones
decides to advertise with you in three consecutive issues.
Dr. Jones pays the contract rate for those three issues and
hopes for an acceptable response so that her business will
grow. As the papers circulate, you are pleased to discover
along with Dr. Jones that her phone is ringing; new
patients are taking advantage of her services. Dr. Jones
is very pleased because her business is growing and she is
making a difference in people's lives.
What is the likelihood that Dr. Jones will renew her
advertising contract? Barring unforeseen circumstances, it
is a virtual certainty. After her initial three issues Dr.
Jones informs you that she not only plans to renew, but
would like to receive a slightly better rate by signing on
for six issues this time. You fax over the contract.
Notice that in order to generate new revenue for your
business, you didn't have to spend time prospecting a new
client. Multiply this phenomenon by even a small factor
and you've got the business of your dreams. It doesn't take
many clients like Dr. Jones to create a business that is
self-sustaining and even self-growing.
If you have a high renewal rate for your publication, you
enjoy ongoing business without needing to spend the time
prospecting new customers. For each issue, you accept
renewals and replace those clients who drop out with an
equal or larger number of new clients who have seen your
publication and want to get involved (incidentally, the
most effective marketing vehicle for a newspaper is the
newspaper itself).
Why do some publications enjoy high renewal rates? Because
their advertisers are happy, simply put. This usually means
they are making a return on their investment. Several key
factors make this possible:
Relevant, Readable Editorial
For a newspaper to become popular, readers must value it's
content. Publications that are full of boring or irrelevant
material do not last. A good publication will create
demand among local readers who grow to anticipate each new
issue. When readers benefit from the editorial content,
they will want to support the publication by using the
products and services offered by advertisers.
Effective Distribution
It doesn't matter how good your editorial or ad content is
if you can't get your publication into the hands of not
only readers, but the right readers. The most common
mistake many small publishers make is misunderstanding the
science of proper distribution.
Under typical circumstances, publishers waste up to 40% of
their circulation because they don't distribute properly.
Effective distribution is CRITICAL to success, paying
dividends well beyond the additional effort requited to do
it well. Give away gold if you like, but if people don't
receive the news, they won't show up.
Unprecedented Value
Most publications simply sell ads to their clients. What if
in addition to ad space, you were able to offer several
additional (and very effective) ways for your clients to
promote their business at no additional cost to them? Not
only are they motivated to maintain their ad, but you've
also given them additional reasons to keep their business
with you. Adding on real value to your service makes you an
indispensable resource to your clients.
Applying the above principles effectively creates a very
interesting scenario in which a full-time income on a
part-time or very flexible schedule is an actual
possibility. Getting there requires a certain tenacity and
plenty of hard work, mixed with a healthy dose of technical
support and critical industry knowledge.
For those who catch the vision, the life of a publisher is
a dream come true.
----------------------------------------------------
Mike Bundrant is the Founder of Healthy Times Newspaper, a
national franchise opportunity. Healthy Times can be found
at:
http://www.bestnewspaperfranchise.com
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