A scenario to increase my cash flow problems

Originally Posted by Shane

I've got a scenario in mind that I'd like to put in place.

A little background:

I've got an ongoing business (since spring) selling captured audience advertising, mostly to the restaurant and recreational industries. By "captured audience", I mean people who WILL be taking advantage of these establishments.

Each location accommodated 5 or 6 advertisers, generating between $1500 and $2000, with initial fulfillment costs of about 10 to 15 percent.

Generating the advertisers is a no-brainer. My presentation takes about 60 seconds, and because of the fact that most have partners they have to discuss expenditures with a partner, it takes two or three visits to get a yes or no answer.

I've done five of these so far.

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Question: What is the "Ad Media" or "Ad Product" you are selling ads in or on?

Comment: My experience has been that if this in an "Advertising" program...similar to placing ads on restaurant menus or Placemats... Advertisers will stop paying after they do not see a swarm of new customers coming to them as a result of your "Ad Program"....so a "monthly payment" won't work (my opinion)

Comment: "Factors" won't be interested in this unless you have an "AitTight Contract with a Clause that allows them to take the advertisers business if they don't make payments. Plus..."Factors" want, pretty much, a "Guaranteed Return"...or...they want a HUGE ROI...otherwise, why bother. These people are NOT "gamblers". They want "sure things"!

So...charge a "yearly or semi-yearly" fee and collect it in 3 payments;
1) 1/3 Deposit on Acceptance
2) 1/3 On Proof
3) 1/3 on Delivery

And...the prospects who told you to "See Me In The Spring"....forget 'em! IF you want to waste your time and visit them "In The Spring"...guess what they will tell you then? Yup. "See me after April 15"! After Tax Day they will tell you..."Whoops! We spent our entire Ad Budget! See me in the fall!" etc.

Don Alm