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.

Hi Osirus,

It's an interesting idea. I'm not familiar with how it works with the gas stations. However, I think what you need to consider is - what do the gas stations get out of it?

I can think of a few ways this might work....

If the newsletter or sheet was something which seemed "valuable" to customers, then the gas station might be willing to distribute it for free, since their customers might see it as an "added bonus" for buying their gas at that station. So that's one way it might work.... This is how Nickel News works, which is distributed for free to cafes and restaurants....

Another way things could work is if the gas station charges something for it. That way, they make a small profit every time someone wants one. In this case, you might be able to sell it to the gas station, and they sell it on to their customers, with an agreement that you'll buy back any unsold copies.

I'm not sure how it works in general, but those are a couple of ideas how it could work....

I hope that helps somewhat. :)

- Dien Rice


Discover Gordon Alexander's wise words - subscribe to the SeedZine (click here)

There's a book called Tabloid Marketing Magic written by a couple of people who launched a real estate business using newspapers.

Check it out here:
http://www.westsounddesign.com/consumerpubs/

-Phil Gomez

> There's a book called Tabloid Marketing
> Magic written by a couple of people who
> launched a real estate business using
> newspapers.

> Check it out here:
>
> http://www.westsounddesign.com/consumerpubs/
> -Phil Gomez

Phil:

Have you personally ordered and used "The Tabloid Marketing Magic" advertisied at http://www.westsounddesign.com/consumerpubs/tabloid.html ?

Was it all that it promised?

No, I have not used it myself and I didn't mean to give that impression. It was recommended by someone on this board some time ago.

It just seemed very closely aligned with your objectives, so I thought you should know about it.

-Phil

> Phil:

> Have you personally ordered and used
> "The Tabloid Marketing Magic"
> advertisied at
> http://www.westsounddesign.com/consumerpubs/tabloid.html
> ?

> Was it all that it promised?

One idea would be to create an ad section in your newspaper. Then if the gas station is not willing to distribute them for free tell them you will give them a free ad in the paper. Doesn't really cost you anything and you could get your paper in the stations that way. Then when your paper gets some exposure you will find it easier to place them in the stations. My experience dealing with convenience stores is this: they always want something in return. They have SO many people wanting to put things in their stores..... The only ones I have dealt with that didn't want something in return I personally knew the owner/manager.

Hope this helps... Ron




http://www.PalmettoClassifieds.com

> One idea would be to create an ad section in
> your newspaper. Then if the gas station is
> not willing to distribute them for free tell
> them you will give them a free ad in the
> paper. Doesn't really cost you anything and
> you could get your paper in the stations
> that way. Then when your paper gets some
> exposure you will find it easier to place
> them in the stations.

I like the free ad thing! It is an excellent idea!

My experience dealing
> with convenience stores is this: they always
> want something in return. They have SO many
> people wanting to put things in their
> stores..... The only ones I have dealt with
> that didn't want something in return I
> personally knew the owner/manager.

> Hope this helps... Ron

In your experience in dealing with conveniece stores:
1. Is there any particular tip or strategy that should be used to pitch the convenience store owner about my publication? Is it just a matter of talking to them about it?

2. Also, is there a formal agreement involved?

Thank you for the previous response.

This is my experience from the mid 80's... Some things may have changed but here's what I use to do....

Usually I would buy something from the store.... gas, drinks or whatever. Then while checking out I'd ask who the manager/owner is and when the best time to catch them is. Depending on the answer I may come back or meet with them then. It's just a judgement call. If they look too busy then don't bother them. You wouldn't believe how many people just pop in and "demand" to see them to sell them something.

One trick I used and still use in business today is this: I always tried to find somebody I knew well (a friend, coworker, somebody from church, etc...) that actually knew the store owner and/or manager. And I would get my friend to call them or stop by and tell them I would be visiting them soon. That way it made my cold call a slightly warm one.

Early morning and late afternoons are best. Just introduce yourself and give them your spill. See what your success rate is and adjust your presentation from there. Because you are wanting "floor" space in their establishment, like I said before you may have to offer some incentive to get it. Be patient and learn from their reactions.

As far as an agreement in writing goes I would contact a lawyer. You know I hate to say that but I'm very leary of store owners. Not saying they are bad people but what if someone tripped and fell over your paper rack and sued the store and you. Regardless of what the agreement said I would carry liability insurance. That would give the store operator piece of mind and also cover you. I'm not a lawyer so always consult an atty.

Hope this helps..

God Bless...
Ron




http://www.PalmettoClassifieds.com

> This is my experience from the mid 80's...
> Some things may have changed but here's what
> I use to do....

Thank you for your advice.

"Many" yars ago I watched a guy start up a similar "Ad Paper". It was only ads in categories and the paper was sold at gas stations and convenient stores. He went on to build a huge operation and then sold it to a larger firm who let it die. But during the first few years he made a bundle using 2 techniques;
1) Sell the ad paper for 25cents and give the location 10cents on each one (15cents if it's a good location)
2) Now...here's the "trick" he used to get TONS of ads;
The ads were FLAT FEE (ala EBAY) based on the price of the item AND....watch this...people did NOT have to pay for the ad UNTIL the item sold...or six weeks, whichever came first. When the item sold, the owner of the item would receive a bill for the Flat Fee.

Now...one question you may have is..."What will get people to pay AFTER the item is sold?"

Each ad had a "phone number" for readers to call and the ad was run UNTIL THE AD WAS PAID!

SO...if someone chose not to pay for the ad...they would CONTINUE TO RECEIVE CALLS!

So...to stop the calls....they paid for the ad!

The system worked very successfully for years.

There's a similar "Ad Paper" in the Boston area. The thing is huge and I think it's based on the same premise. You might want to check the Chamber of Comm in Boston or look in Boston Yellow Pages under "Advertising - Publications"

Don Alm


Some of my Proven "Ideas".