A scenario to increase my cash flow problems

...are they legit?

In response:

I'll start with Don first.

Sounded like a lecture to me, Don...but I forgive you. I know you couldn't hold back giving the benefit of your experience and I appreciate your concern.

However...I, myself, have been in sales (generally as a top producer) for over 20 year, with thousands of sales calls under my belt, so I'm pretty confident in my ability to weed out the BS.

As I stated, I've already completed five campaigns but this is the first time I've gotten the excuse of, "my ad budget is already spent". And because of the touristy nature of the town and the fact that the tourist season is now over, this all leads me to believe that this it is a legitimate reason.

In addition, all of the other campaigns I've done have been for individual locations with ads selling for an average of four or five hundred dollars. Big difference when grouping six locations and asking for 1800 bucks. Rationally, they're getting a deal, but while 4 or 5 hundred might be easily absorbed, 1800 is harder to come up with...especially after the prime tourist season is already over.

In other words: I've been there, talked to them, gauged their response, and weighed the outcome.

As for restaurant placemats and the like: These are things I see as having little value to the advertiser and, for the cost, not worth the paper they're printed on. Not to disparage anyone who's thinking about or already doing this...it's just not something I could believe in and, because of that: sell.

I believe in value for value. And if my clients are spending their hard earned money on one of my ads, it had better bring in a justifiable return on that investment. I can honestly say that I can't think of a single better advertising vehicle, dollar for return, for those select client that I target, than what I offer. This is why I'm not terribly concerned about clients failing to make good on their payments. If the occasional client falls off, there are others waiting and willing to replace them.

Next, Bozo:

Thank you for you thoughtful response.

I only used Accounts Receivables Factors as an example to show that something similar is already being done.

A 20% annual return is low "compared" to what a Factor might get. However, it's quite high compared to what the average, and vast majority, of investors are getting.

I just thought that someone might have an idea that I hadn't thought of. Maybe something like those people who buy Land Contracts at a discount (just thought of that one). Anyway, my ads scenario is simply an investment vehicle much like the two above. And, if thought of in those terms, maybe an idea might start to percolate with someone that I could use.

On to Skip:

Thanks for responding, Skip. I'm pretty flexible about how I handle payment tailored to the client. But right now it's just a matter of me and my time.

What I want to do is to streamline the process so that when I start to hire salespeople they'll be able to go through an area quickly (especially touristy areas) no matter the obstacles (like off season). I don't think that short term payments do this. However, I'll keep it in mind for those times when it might come in handy.

Again, Thanks.

.....
"In addition, all of the other campaigns I've done have been for individual locations with ads selling for an average of four or five hundred dollars. Big difference when grouping six locations and asking for 1800 bucks. Rationally, they're getting a deal, but while 4 or 5 hundred might be easily absorbed, 1800 is harder to come up with...especially after the prime tourist season is already over."

and....

"I believe in value for value. And if my clients are spending their hard earned money on one of my ads, it had better bring in a justifiable return on that investment. I can honestly say that I can't think of a single better advertising vehicle, dollar for return, for those select client that I target, than what I offer."

Shane....now you've REALLY got my curiosity up. Would you mind sharing where your Ads are going to warrant...$400 or $500 and $1800 if grouped?

Thanks,
Don Alm

Sorry, Don. Not giving it away.

I've already got competitors out there, I don't need more.

However, I will say that it's something that has already been posted on this forum. It's just that I made a bit of an improvement over what everyone else is offering.

How do I know it's an improvement?...because I've replaced two similiar displays which were entrenched in the locations already. The location simply liked mine better.

The point for anyone reading this, is that anyone can create a business, just look around, read these forums, pick your target, and do it.

Which is not to say that it will work the first time. I tried a marketing concept out on oil change places, it showed them how by making incremental (small) increases in four seperate areas of their business, they would increase overall revenues by 30% or more. They all loved it! The problem (at least in Michigan) is that no could afford it (minimum $5000 to get started.)

Yes, I was dissapointed at the time, but then I tried something else and it struck a nerve.