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Old August 20, 2002, 06:09 AM
osirus
 
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Default Newspaper distribution at gas stations

I have this idea to market my real estate investment business. My idea is to start a free monthly, home seller classified ad sheet to be distributed in news racks located at gas stations. Let me make something clear. My goal is not to make this a profit center. My sole reason for doing this is to use this as a advertising tool for my real estate investing business. In fact, I plan on completely subsidizing the classified ad sheet cost with revenue generated from my real estate investment business.

The foundation of my distribution plan is to construct wooden newsracks in which the ad sheets are to be placed. My real estate company‘s advertising signs will be placed on the sides of the newsracks. I always assumed that the free publications that I now see given away at gas stations were done as a courtesy by the gas station owners and the publishers never had to pay the gas station owners for allowing them to place their newsrack at the gas stations. It quickly dawned on me that I have no basis for this assumption.

My questions are this:

1. What is the typical arrangement, if any, between freely distributed classified ad sheet publishers and gas station owners? Does the publisher pay the gas station owner some sort of royalty or rent for allowing placement of newsracks on the property? If so , is there a typical formula for figuring the royalty and or rent.

Any help is appreciated.
 


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