What is the billboard business?

A billboard owner effectively rents land, builds a billboard structure, and then rents the advertising space. The difference between the advertising revenue and the costs of operation, which are essentially the rent for the land and the cost to install and light the ad, represent the profit. The industry is very old, having its origins with the Egyptians and, in the U.S., having been in continual operation since around the 1850s.

Who else is doing it?

The billboard business is very lucrative. Ted Turner built his empire from a beginning stake in a billboard company in Atlanta. John Kluge is a billionaire billboard veteran, and there are several others in the Forbes 400, including Artie Moreno.

There are many individuals in the U.S. that own billboards, ranging from one unit to thousands of units.

How does it work?

The billboard industry is effectively regulated by the government, which designates where billboards can be built along the nation’s highways. City streets fall under a different set of local ordinances. Once you have learned the rules, your job is to find legal locations for billboards to be built.  The other part of  your job is to negotiate an acceptable ground lease with the landowner on these legal locations.

Then you determine the size and height to build the sign and, after construction, you rent the advertising space on the sign – normally on a one year lease.

So how can you make $100,000 a year doing that?

The billboard business has several niches. One of the best right now is to focus on wooden signs in emerging markets. These wooden-telephone-pole-type structures cost about $6,000 to build, but generate around $3,000+ per year in net income. To make $100,000 per year, you’d need to build 30 of these in your spare time. How hard is that to do? Not that hard. There are individuals who have amassed a hundred or more of these in their spare time. All it takes is the effort to learn how to do it and then to find the sites.

Of course, you control how much effort you put in. If you are not trying to replace your day job income, you could build just a few to pay for your kid’s college or leave them a nice legacy.

How fast can I start doing this?

As fast as you can learn how to do it.  Step one is to learn the ordinances in your state. You may also have to get a state license – which is not as hard as it sounds. Normally there is no test or school required, just the payment of a small fee.

You might also look at a listing of already-built structures for sale on sites such as www.outdoorbillboard.com.

Conclusion

If you want to replace an income of up to $100,000, or just build the world’s most profitable hobby business, you need to investigate the billboard business. It’s been a winner for thousands of Americans for over a century.

Naming your billboard company can be one of the most decisions you will make. A good name seems to lead to success, and a bad name normally guarantees failure.

So how do you correctly name your billboard business?

It needs to be, essentially, just one word.

Since the beginning of time (or at least the 1920s), billboards have been identified by a one-word name placed beneath the advertisement and centered from left-to-right. This one-word nameplate is called the “shield”. And it is placed on what is called the “skirting” of the sign.

So any good name for a billboard company should initially revolve around one word that is favorable for a shield. For example, your company could be named The Arkansas Company, and your shield would say “Arkansas”. Or, with that same shield, the company could be called Arkansas Outdoor Advertising. Or Arkansas and Associates Outdoor. But the essential part of the name is that one word that will go on the shield.

That one word needs to set the right tone.

You want a name on your shield that is strong and gives off a positive impression. You will soon be known as the “guy from __________” by your landowners and advertisers – so make sure that you pick a name you would want to be described as and identified with. Using a name that is already known and trusted by the general population is always a good one. For example, my first billboard company was called “Chase”, which I used to gain some of the respectability of the bank by that same name. Since a billboard guy is always in the field, and meetings are never held at this office, your clients will only know you by your company name, and a favorable impression will increase your odds of success.

Never use your name.

When you are trying to start a billboard company, it is very important to appear bigger than you really are, to give your clients reassurance that you will be able to deliver on your promises financially. There is no better way to appear like a small-time operator than naming the company after yourself. Your clients will immediately know, after meeting you in the field, that if the name of the company is the same as your last name, then you are a one-man band, and not a bigger concern. Yes, there are exceptions to this rule – look at Foster & Kleiser, Lamar and Eller Media. But most of the household names are not last names , such as Clear Channel, CBS, and Fairway. Other than ego, there is no business advantage to using your name, but a lot of negatives, so it doesn’t make any sense to go that route if you want the best odds for success.

Make sure the name is easy to pronounce.

In the course of your career, you will be saying that name a thousand times a day “this is John Smith from Fargo Outdoor”, so make sure that it does not wear you out. It should be a couple syllables and no tongue twisters. If you cannot say the name ten times in a row, quickly, without screwing up, then find something easier. You clients will have as much trouble with saying the name as you will.

Conclusion

A good billboard company name gives a positive first impression, is easy to pronounce, and suggests that the company is larger than it really is. Since it is a competitive world out there, you need every advantage you can get – and there is no greater initial advantage than a good name.

So think carefully before you print those business cards or paint that first shield. Name yourself for success and you will be glad you spent the time and thought doing so.