How to Make a Fortune in Small Town Billboards Montrose CO

How to Make a Fortune in Small Town Billboards Many people think that only big cities can launch profitable billboard operations. And they are completely mistaken. Some of the finest, most profitable billboard plants in the U.S. are in small towns. As long as you adjust the economics of your billboards to meet the realities of advertiser budgets in towns as small as 1,000 population, then there is no reason you cannot attain financial security and independence as a small town billboard owner/operator. Assume Lower Advertising Rents   Most small town advertisers do not have huge budgets, since a smaller population means lower sales volume. In smaller markets, advertisers will be unwilling to pay more than $200 to $300 per month for a billboard. Don’t argue with them. Use that budget as your roadmap to success.   Once you have established the going rate in that small market, the new target revenue will influence all of your other strategies.   Do Not Allow Ground Rents To Exceed 20% of Revenue   Going back to our example of $200 per month advertising rents, then you cannot pay more than $40 per month in ground rent, which equals about $500 per year. While that may sound embarrassing to a big city dweller, remember that the property owner in a small town pays greatly reduced costs as well, such as property tax. So $500, in relative terms, may mean as much to that property owner as $5,000 would in the city.   Build Only What The Economics Dictates   In some small towns, the income and expense numbers will limit you to a wooden sign that’s 8’ x 24’ in size (six sheets of plywood across on three wooden telephone poles). There is nothing wrong with that. Hopefully, the economics will allow for the construction of 12’ x 24’ “30 sheet” structures – which are a standardized size of the large billboard companies. Never build a sign structure that does not cash flow based on the lower ad revenues. Sometimes, development never catches up and the ad rents may remain at those levels for decades.   Remember That You Can’t Burn Any Bridges   Small towns have fewer advertisers than big cities. So you cannot afford to alienate anyone. Listen to what advertisers have to say, and always remain pleasant and thoughtful. If they turn you down today, that does not mean they’ll do so tomorrow. If there are 50 advertisers in your town, then you need all of them as potential customers. And when you do get one up on the sign, be sure to make sure the lights are working and that they are 100% happy. Remember about small town gossip. You want your reviews to always be favorable.   Like All Outdoor, It’s All In Volume   If you assume that one double-sided structure at $200 per month ad rents yields $3,000 per year of net income, then 30 of them would earn you around $100,000 per year. I know...

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