Pros and Cons of Establishing an In-House Ad Agency

There have been several ads promoting books and reports on this
subject, or included as part of the contents in several mail
order books stating:

"SAVE UP TO 17% ON ALL YOUR ADVERTISING"

It's legitimate, practical and effective, but like so many other
promises, there are pros and cons involved. The pros are fairly
obvious. By setting up your own advertising agency and placing
your advertising under your agency name, most magazines will
allow you the standard 15% agency commission plus and extra 2%
cash discount. If your annual ad budget is $5,000 this amounts to
a saving of $850 a year, which is a considerable piece of change.

The negative side to this operation involves the initial cost of
establishing your new agency, which isn't very difficult, but it
might be considered time-consuming. To initiate an agency you
will have to have a name for it other than your regular business
name. Example: If your company name is Nationwide Electronics and
your name is John Smith, you could call your agency John Smith
Advertising or The J.S. Advertising Agency, The agency address
will have to be different than your company's, but this can be
resolved by renting a post office box the ad agency and using your
home or office address for the other. Next you will have to open
a separate checking account under the agency name because all
advertising payments will be issued thru your agency, and you
will probably be required to register your agency with your
County Clerk as a new business.

Once these details have been taken care of, you're ready to begin
placing ads. You'll have to have insertion order forms printed
with your agency name and address, and a separate form must be
prepared for each ad in each publication. When your advertising
schedule involves only a few publications, this will not be a
problem, but if you expand into 50 to 100 different magazines, it
can really cut into your time. Of course, if business gets large
enough, you can always hire a secretary to take care of that
chore.

Copyright 2004 by DeAnna Spencer

This article may be reproduced freely on the Internet as long as the resource box remains intact.

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DeAnna is the publisher of the ezine, Prospecting and Presents.
Subscribers get one free ad per week.
Subscribe today by visiting http://www.pnewsletter.com
To thank the publishers/webmasters that use my article, I offer
one free solo ad. Simply fill out the contact form on my contact
page listing the url it was used on or sending me a copy of the
ezine it was used in. Once I confirm the location of the article,
then we can make arrangements for the solo ad.
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table border=0 width= valign=top cellpadding=2 cellspacing=7trtd width=80 align=center valign=topfont style=font-size:85%;font-family:arial,sans-serifa href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://jp.techcrunch.com/archives/20081015technorati-acquires-adengage-advertising-network/cid=1258167783ei=m5X2SO2BNY_u6gP7zpmWCQusg=AFQjCNEzXHngy-60K8vrXo8xg4hwrKLaygimg src=http://news.google.com/news?imgefp=_9RLN5zvcUIJimgurl=www.techcrunch.com/wp-content/uploads/2008/10/technoratimedia.jpg width=68 height=80 alt= border=1brfont size=-2TechCrunch/font/a/font/tdtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.readwriteweb.com/archives/technorati_acquires_adengage.phpcid=1258167783ei=m5X2SO2BNY_u6gP7zpmWCQusg=AFQjCNEX6ObJVQNXG5yrxEdstu6yiC9YAgTechnorati Acquires AdEngage - Launches Self-Service bAdvertising/b b.../b/abrfont size=-1font color=#6f6f6fReadWriteWeb,nbsp;CAnbsp;-/font nobr7 hours ago/nobr/fontbrfont size=-1Blog search engine Technorati today announced that it has acquired AdEngage, a small, Los Angeles-based online badvertising/b network. b.../b/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.techcrunch.com/2008/10/15/technorati-acquires-adengage-advertising-network/cid=1258167783ei=m5X2SO2BNY_u6gP7zpmWCQusg=AFQjCNGfQSmyeIGVVT4kqkac--Ou51uN0wTechnorati Acquires AdEngage bAdvertising/b Network/a font size=-1 color=#6f6f6fnobrTechCrunch/nobr/font/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.socaltech.com/adengage_acquired_by_technorati/s-0017952.htmlcid=1258167783ei=m5X2SO2BNY_u6gP7zpmWCQusg=AFQjCNEUmeYViiJDDC50wqE2Q6dTG6v61QAdEngage Acquired By Technorati/a font size=-1 color=#6f6f6fnobrsocalTech.com/nobr/font/fontbrfont class=p size=-1a class=p href=http://news.google.com/news?sourceid=navclientie=ISO-8859-1rls=GGLG,GGLG:2005-22,GGLG:enncl=1258167783hl=ennobrall 4 news articles/nobr/a/font/div/font/td/tr/table
table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.sfgate.com/cgi-bin/article.cgi%3Ff%3D/c/a/2008/10/14/BU1G13H3UQ.DTLcid=0ei=m5X2SO2BNY_u6gP7zpmWCQusg=AFQjCNGIofPQbYNY-pQtN5McELJ4eAdB7ADon#39;t be too quick to cut back on badvertising/b in tough times/abrfont size=-1font color=#6f6f6fSan Francisco Chronicle,nbsp; USAnbsp;-/font nobr20 hours ago/nobr/fontbrfont size=-1When the economy is faltering, badvertising/b is often the first thing in the marketing budget that gets cut. This is true whether the business is Coca-Cola or b.../b/font/div/font/td/tr/table
table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.brittnewstribune.com/articles/2008/10/15/news/news07.txtcid=1258252267ei=m5X2SO2BNY_u6gP7zpmWCQusg=AFQjCNH16Yk_hX2oYMbV7LkrU1jVNsJ3VAEnough already of all the negative political badvertising/b/abrfont size=-1font color=#6f6f6fBritt News Tribune,nbsp;IAnbsp;-/font nobr4 hours ago/nobr/fontbrfont size=-1If badvertising/b in general took a page from political badvertising/b in particular, I think it would clinch it for me. I would never watch television again b.../b/font/div/font/td/tr/table
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