Pros and Cons of Establishing an In-House Ad Agency

There have been several ads promoting books and reports on this<BR>subject, or included as part of the contents in several mail<BR>order books stating: "SAVE UP TO 17% ON ALL YOUR ADVERTISING" It's legitimate, practical and effective, but like so many other<BR>promises, there are pros and cons involved. The pros are fairly<BR>obvious. By setting up your own advertising agency and placing<BR>your advertising under your agency name, most magazines will<BR>allow you the standard 15% agency commission plus and extra 2%<BR>cash discount. If your annual ad budget is $5,000 this amounts to<BR>a saving of $850 a year, which is a considerable piece of change. The negative side to this operation involves the initial cost of<BR>establishing your new agency, which isn't very difficult, but it<BR>might be considered time-consuming. To initiate an agency you<BR>will have to have a name for it other than your regular business<BR>name. Example: If your company name is Nationwide Electronics and<BR>your name is John Smith, you could call your agency John Smith<BR>Advertising or The J.S. Advertising Agency, The agency address<BR>will have to be different than your company's, but this can be<BR>resolved by renting a post office box the ad agency and using your<BR>home or office address for the other. Next you will have to open<BR>a separate checking account under the agency name because all<BR>advertising payments will be issued thru your agency, and you<BR>will probably be required to register your agency with your<BR>County Clerk as a new business. Once these details have been taken care of, you're ready to begin<BR>placing ads. You'll have to have insertion order forms printed<BR>with your agency name and address, and a separate form must be<BR>prepared for each ad in each publication. When your advertising<BR>schedule involves only a few publications, this will not be a<BR>problem, but if you expand into 50 to 100 different magazines, it<BR>can really cut into your time. Of course, if business gets large<BR>enough, you can always hire a secretary to take care of that<BR>chore.<BR> Copyright 2004 by DeAnna Spencer This article may be reproduced freely on the Internet as long as the resource box remains intact. $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$<BR>DeAnna is the publisher of the ezine, Prospecting and Presents.<BR>Subscribers get one free ad per week.<BR>Subscribe today by visiting <A target="_new" href="http://www.pnewsletter.com">http://www.pnewsletter.com</A><BR>To thank the publishers/webmasters that use my article, I offer<BR>one free solo ad. Simply fill out the contact form on my contact<BR>page listing the url it was used on or sending me a copy of the<BR>ezine it was used in. Once I confirm the location of the article,<BR>then we can make arrangements for the solo ad.<BR>$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$<BR>Note to publisher/webmaster: Feel free to remove the part about the solo<BR>ad when you get ready to publish the article.