HOW TO SET UP YOUR OWN IN-HOUSE ADVERTISING AGENCY

With the high prices of placing ads today, why not save money? There's no special secret to writing and placing advertisements in magazines, tabloids and newspapers. And why not claim the discount given to advertising agencies? If you handle your own advertising correspondence, work with layout artists and write your own ads, it's well worth your while to set up your own in-house ad agency and save a ton of money.

Even if you don't create your own ads, you can profit from setting up your own agency and placing the ads that bring sales directly to you. If you have somethings to sell - especially by mail order - advertising is they way to make that product reach people. Although advertising agencies produce excellent ads of all types and sizes with every demographic appeal, they also charge for it. That's why they're ready to claim the fifteen percent discount usually granted for placing ads.

You can learn how to create and design your own ads - with no background in copywriting or art. And, you can set up your own ad agency to place these ads where THEY'LL MAKE MONEY FOR YOU. Do you have a product that you're ready to sell? Now's the time to find out the best angles to use and the tricks of the trade to putting money in your pocket.

STARTING YOUR BUSINESS
Do you have a mail order business? Maybe you sell clothing, camping supplies, or information through ads to the mail order trade. Perhaps you've run classified ads for years and are ready to branck out into larger display ads. Not only small home businesses, but larger mail order companies and hundreds of major advertisers everywhere set up their own in-house agencies to produce and place ads. Even magazines create in-house departments under another name to get the agency discount.

What might set advertising agencies apart from homemade operations is the appearance of the letterhead and the ad form. They must look sharp and professional.
Start with a name for the ad agency you want to establish. It can be anything, but must be different from the name of the company that will be using the space. Then register the name with the county clerk. Check first to be sure you're not using a company name already in business.

Desiging letterhead is easier than you think. You don't have to create an elaborate or clever logo - the initials of the company will do. You can choose the mark - the special type style - at a printers, or use one of dozens of press-on letter styles available at art supply stores. Using photo offset, an instant printer can run off a thousand sheets at a very low price. If you go to a printer, check and compare the total printing costs. Typesetting can be expensive and there's a minimum charge. You may want to wait to get all your typesetting and printing done at the same time - letterhead, ad form, ad copy and any sales literature you may be preparing. Investigate ways to get by with the lease expense.

Establishing your own ad agency is so easy that the most important part is the form you send in when you place ads. Although there are no federal restrictions for in-house ad agencies, some publications may quibble. If your form looks as good as the rest, you'll have no problems.
The following page is a representation of a sample ad order form. Just copy this form and have your company design or logo printed on top. You can choose a color paper to have the forms run off on - they'll be more noticeable. Then all you do is send in a copy of the ocmpleted form with your check and final artwork for your ad - and claim a big discount for being your own agency.

NAME OF ADVERTISING AGENCY

Address
To the publisher of: __________________________________________________
Order number: ___________________ Date: ____________________________

Please publish advertising of:
For (product):Space to be ordered within one year from ______ through ____________

Space ____________________________________________ Times ___________
Dates of Insertion:

Position ______________________________ Copy ________________________
________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Rate Less agency commission _______________________________ on gross
Less cash discount ____________________________________________ on net

Mail all invoices to:
Accepted for publishing on
PLEASE SIGN AND RETURN TO AGENCY

THE INSERTION ORDER FORM
The following will describe what the various terms on the insertion order form mean and how to fill them in. Space indicates what type of space you are buying: classified or display. If you want display space, indicate the size. Fill in the number of times you want the ad to be repeated. It will run in the number of consecutive issues you indicate. Then fill in the actual dates of insertion for the ad.

The position of the ad can be an important factor in selling. Although you rarely can be guaranteed a certain position in the publication, ask for it anyway. You'll probably get at least the nest best position. If you are running a short ad that will be printed by the publication, you can type out the copy in the instructions space at the bottom. The key designates the address code you'll use to analyze responses.

For example, you can use a letter to indicate the name of the publication, and a number for the month of issue. Insert this key in the address, perhaps as a department division or suite number. When you get inquiries or orders with that key, you'll know which ad pulled the response.

HOW TO DETERMINE RATES
Every publication that solicits advertising has a rate card. This card is available from the advertising coordinator, who is the contact for the publication and can be very helpful in assisting you. The best way to get a rate card is to write for one or call if the publication is in your city. The rate card has the general information you'll need for placing your ad. It should indicate the total circulation with a breakdown of subscriptions and newsstand buyers. Keep in mind that most publications have two to three readers for every one purchase.

The advertising rates may be broken down a number of ways, depending on how the publication sells space. Display rates may be sold by the column-inch or lines. Or, they may be broken up into fractions such as a half-page or quarter-page. Some publications have a minimum size space ad, so keep this in mind when designing the ads for certain publications. The rate card will tell you the amoung of discount you are entitled to as an ad agency. It will also give you the deadlines for placing the ads for the next issue and the issuance date, the actual day the magazine comes off press and goes to the newsstands and to subscribers.

If you have any questions concerning the type of space you need or the actual rate, just ask the advertising coordinator.

TAKE YOUR 15% DISCOUNT
As an advertising agency, you are entitles to a fifteen percent discount on the ad space, unless the publication grants only lower discounts. The easiest way to subtract a 15% discount is to multiply the rte charge by .85. Immediately, you have the exact figure for placing the ad.

TAKE ANOTHER 15%
Many publications realize that the mail order businesses don't operate with a high capital for placing ads. Because of this, they offer a fifteen percent discount for mail order display ads. To compute the fee for two discounts - fifteen percent for mpute the fee for two discounts - fifteen percent for mail order and fifteen percent for the agency discount, simply multiply the total rate charge by .70. This will give you the fee.

TAKE YET ANOTHER 2%
Whether you are an ad agency or not, you are entitled to take a two percent discount for sending your check with the order. Most publications offer this discount to discourage billing and encourage cash sales. To figure out the two percent cash discount, Multiply the total rate charge by .98 - after you have already taken the other appropriate discounts. That will give you the total you will pay for placing your ad.

WHERE TO PLACE ADS
The rule of thumb for placing ads, especially for mail order, is to look through the publications catering to the same product you are selling, and do the same. Although advertisers are always looking for new and innovative ways to sell products, they usually stick with the proven ways of selling. What are you selling? Where are the logical places these products are sold? Go there and place your ads where people will look for your products.

There is no reason you can't hit a successful ad campaign the first time, but more often, you'll find it necessary to spend some time testing different ads, different display sizes, and even different lead products. Testing is the name of the game, and if you're careful, you don't have to go for broke, but can build a sound winner. A number of significant successful companies have made a fortune from advertising an appealing product and delivering a good deal. There is no reason why you can't too.

BUYING SPACE
There are two types of advertising space in a publication - display space and classified ads. How you use ad space is entirely up to the type of appeal that will sell the product best, and the financial budget you are working with. Don't shortchange classifieds. A small, well-written classified ad can bring hundreds of responses on a continual basis.

Often, classifieds are used in a two-step approach of first placing an ad that has no price mentioned and soliciting the reader's response for free information. Then it is followed up with a sales letter or brochure - some kind of sales literature - that gives the pitch for the product. Classifieds are the least expensive ad to place. People who run mail order businesses find them to be the best dollar-for-dollar investment in advertising. Look at the classifieds section of the publications you are planning to place ads in. If your product could be sold with a classified ad, you should start there.

If you have actual products to sell, display ads are your better bet. You'll probably need an illustration to show the product - something to catch the eye. You can also include a line or two about sending for a catalog if that item doesn't appeal enough, but has captured interest.

TO BE CONTINUE........