Costs Archives - TODAY INDIA

Reducing Operating Costs for Your Startup Is Essential for Longevity

Cash flow management is already a challenge for startups, but COVID-19 is not making matters better. With unemployment rising and people spending less money on certain goods or services, startups are likely to suffer during this time. However, reducing operating expenses can help a startup stay afloat until operations are back to normal.

Reducing overall operating costs can certainly impact your bottom line, especially as the impact of COVID-19 is felt. Also, reevaluating the budget and allocating funds to different operations can keep essential parts of your business going. Keep reading to learn more about how to reduce the operating expenses for your startup while staying productive during COVID-19.

Review your budget with a new lens

When you created your budget for the year, the coronavirus was not likely to be on your mind. And, with updates and changes happening so fast over the last several months, 2020 can feel like one big game of catchup. Now that shelter-in-place ordinances are lifting and people are venturing back out into the world, it is a good time to reevaluate your operating budget.

Revenue projections are likely in need of an update, and your outlook for 2021 is different now than it was a few months ago. From lower sales numbers to higher churn rates, the priorities of your budget need to be evaluated. However, it is important to avoid simply slashing your budget. Wisely evaluating the numbers may indicate that some areas of your business are actually improving during this time.

Renegotiate contracts

The impact of COVID-19 is being felt across the country. If your business has shifted, it is likely that others connected to you have done the same. You may be able to renegotiate terms or contracts during this time to give yourself some breathing room. From reducing office costs to eliminating subscriptions, there are some measures you can take to prevent waste.

Office Space

If your company has shifted to remote work, you are likely paying for empty office space. Your landlord may be willing to negotiate your terms due to the unprecedented circumstances. In some cases, shelter-in-place orders may prohibit you from working in the office altogether. Review your contract to see if there are any provisions for a situation when the office space is not usable.

Subscriptions

Your startup likely has multiple active subscriptions. Whether you rely on monthly professional services, like IT support, or SaaS licenses to run your business, there might be some room for cuts. Try negotiating with your partners or vendors to reduce subscription costs. You may have licenses that you are no longer using or termination fees that can be renegotiated.

Deferred Payments

In cases where you cannot reduce operating costs in numbers, ask for deferred payments. Lengthening the payment cycle can improve your cash flow temporarily and get you through a rough patch.

Eliminate nonessential tools

When you reevaluate your budget, you may find that it is skewed in one area. Go line by line to review the various tools and services used by your business, determine which are essential and which items can be cut. Reviewing financial statements is a great way to visualize where your budget is going, instead of assuming. You may have duplicate tools, tools that are no longer in use, or items that can be replaced with a less expensive alternative.

Cut Unnecessary Licenses

Reviewing all the tools and services used by your team could also highlight which services have too many licenses. Are all licenses being used, or can some be eliminated? Also, you may be paying for additional functions that you could go without, at least for the time being. Dropping your subscription tier or reducing the number of licenses could help lower operating costs.

Cut Out Paper

While it may seem small, going paperless can help your bottom line. Businesses spend quite a bit on paper, printers, and ink every year. If your team is working remote, there is even less reason to use paper. When you return to the office, you can continue the habits formed during quarantine to reduce the overall paper usage of your business.

Stay flexible

Things are likely to continue changing as we learn more about COVID-19 and its overall impact. There may be unlikely opportunities to reduce your operating expenses over time. The unpredictability of COVID-19 combined with the changing nature of startups makes it important to stay on your toes. You may find yourself considering new or innovative ideas that you would not have previously thought of.

Evaluate More Frequently

Periodically evaluating your budget and outlook can help you stay more agile and flexible. As your startup changes and evolves, your operating costs need to follow. Set up more frequent evaluations to stay on top of your operating costs and adjust as needed.

Pause large investments or projects

For many startups, cash flow is limited. COVID-19 is putting major purchases and projects on hold until businesses can stabilize. Instead of considering these pauses as losses, pay attention to the money you are saving and the cash you are making available.

New Equipment

Were you planning to upgrade everyone’s laptops this year or purchase a new phone system? COVID-19 may not be the right time to make major investments like purchasing new equipment. Instead, stick to only buying what is necessary. Look for refurbished or second-hand items when possible to save on operating costs.

Marketing Initiatives

Unless your marketing initiatives are seeing a positive ROI, it may be time to pause big projects. Instead of rolling out previously scheduled campaigns, reevaluate your marketing calendar to determine what will move the needle for your business. If your customers are pushing off on buying decisions, now might not be the time to invest in sales and marketing.

Utilize Free Trial Periods

If you absolutely must purchase a new service or equipment, take advantage of free trial periods. Ensure the vendor is the right partner for you by testing their product or service ahead of time. In some cases, vendors will negotiate on the trial period if you are serious about buying.

Reduce payroll

Finally, reducing payroll can help lower operating costs. Many startups see this as a last resort because it greatly impacts your operational capacity as well as the individual lives of employees. However, in some cases, it is a necessary measure.

Implement a Hiring Freeze

You can make steps towards reducing operational costs by implementing a hiring freeze. Avoid filling positions unless necessary. Your team may be stretched thin, but you can avoid eliminating current positions this way.

Contract Out

Instead of hiring for new positions, contract out when possible. For example, you may need financial guidance during COVID-19. You can contract with a freelance CFO to work part-time at a lower cost than hiring an executive-level position. Firms like K-38 Consulting provide services from top-notch financial advisors, and you only pay for services when you need them.

The Facts About Business Internet Costs

The whole thing about internet pricing does not make any sense to most businesses. That too often includes those who should understand it the best. The computer support staff, in house “computer guy”, or IT cadre. But the key person needing an education is the decision maker. That person who will ultimately decide what solution your company will choose. This is for “them”.

Remember that complex network services are like a Trojan horse. If the boss lets a “solution” in because the price looks good….. the staff is left to deal with the consequences.

Be careful… you’re being tempted by the siren song of price. Woooooo ~~~ low price. Woooooo ~~~ higher speed. Uhhhh Ohhhh ~~~ long term contract. Uhhhh Ohhhh ~~~ bad service, support, maintenance and billing! And Uhhhh Ohhhh ~~~ time to update your resumé.

You understand for example that a T1 connection usually has a very stringent SLA (Service Level Agreement), one that cable and DSL does not. With the number of T1 circuits in existence and the number of years that they have been available, (and the number of abandoned smart jacks at customer sites), You’re apt to be frustrated that it is significantly more expensive to install a T1 than it is to install a DSL circuit.

You might even believe that if the actual physical costs (barring any repeating for long distances) are basically the same as DSL, then if you relax the SLA, why can’t T1 circuitry be used to deliver internet where DSL does not go?

You’re also likely to be confused because you can get a business 15/3 circuit from a cable provider for about $150/mo and the same circuit at home is about $80. Therein is another trap. Don’t get off track trying to compare a business grade line with a residential circuit. That’s like comparing apples and watermelons.

Is the higher cost of a T1 circuit (or DS3 bandwidth and so on) a matter of state mandated tariffs? Is it a matter of the ISPs protecting their profits with an air of exclusivity?

No….. now you’re buying into the conspiracy theory excuse.

This can be especially migraine inducing if you business is one of those bandwidth orphans, stuck out in Boonieville, Any State USA. You cannot use satellite without cutting down big trees. You cannot get reasonable cell phone coverage even if you are willing to live with the 5Gb limit. You have no WiFi and there is no DSL. All you have available is dialup at 45K. Now that would really suck.

We have been waiting for over three years for BPL (bandwidth over power lines) which apparently is still a work-in-progress. For example sake let’s say you may have been quoted say $850 last year for a full T…. with some less competitive prices above $1000.

You may also that we are bouncing signals off of satellites, trying to run IP over high power electric lines and bouncing wireless signals off of multiple towers, when the answer to rural internet coverage may be sitting on a little circuit board in the Demarc room.

Now that’s really reaching…. and too simple a argument. The facts just don’t support that line of reasining.

I can see where you might also think that the problem with bandwidth in the boonies is of our own making.

But here’s the “education” you need to get through all of that cloud cover. Facts…. not excuses and conspiracy theories.

DSL and cable are shared services. Bandwidth is shared in the residential neighborhoods, and is often oversold. Thus many customers are paying for a limited resource, and the low retail price is the result. Even the facility into your residential location is shared…. cable shares the TV connection, and DSL rides on an analog voice grade line.

The flip side is that T1 is a dedicated service (as is DS3 Bandwidth and Business Ethernet for example). The circuit is engineered as a digital circuit, special repeaters might be required if you’re far from the central office, and you don’t share your bandwidth with other subscribers.

If you want to talk about businesses getting thrown under the bus, simply talk to any independent bandwidth consultant who make a living rescuing frustrated DSL and cable customers with T1 service (or any other dedicated bandwidth solution). Certainly not every DSL and cable customer is disappointed, but there are enough of them to support a thriving industry.

You need to understand that the cost of the physical plant is irrelevant. Only the price to you is relevant. And the price to you for an internet T1 is almost always dependent ONLY on the distance from your central office to a carrier POP (Point Of Presence)…. and almost never dependent on the distance from your location to the local central office.

DSL rides on an analog voice grade line. T1 is a dedicated service. The circuit is engineered as a digital circuit, special repeaters might be required if you’re far from the central office. Irrespective of SLAs and oversold/dedicated upstream bandwidth, the wires for T1 and DSL are configured differently.

I can’t speak for the ILECs costs to themselves when they sell a T1, but any CLEC is going to pay $X for an unconditioned copper pair for DSL, and $Y for a conditioned loop (or loops, depending on how it’s delivered) for dedicated circuits.

On top of that, DSL gets terminated in a DSLAM which is, compared to traditional TDM “telco” equipment, way, way cheaper. Old school telco gear for terminating T1, T3 and OC circuits is an entirely different world with insane pricing, and one hopes, reliability. This stuff is built to meet certain standards and it’s all for 5-9’s reliability, which the DSL gear simply is not.

Then there’s the install and maintenance, which involves possibly installing repeaters, picking the appropriate technology (e.g. traditional T1, DSL-based solutions – yes many T1s ride “DSL”, but not the cheap stuff), circuit planning and possibly new construction, in some cases dropping a fiber Mux in the building.

Ongoing you are paying for the reliability of the line and a totally different tier of people to service it.

This is just the circuit itself, I’m not even getting into the handoff to the ISP and any oversubscription issues. Even Frame/ATM services over T1 where you are agreeing to go on a “shared” medium is going to be more than cable or DSL due to the underlying T1 line connecting you to the provider.

But one thing which is a HUGE factor in price is the fact that since it’s a “business-grade” line, the provider’s SLA’s require their Techs to respond to outages “within x hours” (usually 4 hrs). Meaning if you run a business and your t1 goes out at 11pm, an ILEC tech will be on-site (or at the cross connect box) by 3am. ILEC’s build that cost into the monthly price…. whereas shared/best effort services (e.g. DSL, cable) say “within 24-48 hrs” to fix it (if you’re lucky), and you’re on the same dispatch queue as the kid down the street who is complaining because his porn is downloading slow.

Keep in mind that the cost of copper and the equipment to support the digital circuit (Dedicated Bandwidth) is nothing compared to the cost of rolling a truck after-hours with a line tech to your location to fix the issue. AND, if it’s a problem outside your Demarc (which is usually the case), you don’t pay for the fix. It’s the ILEC’s issue…. meaning “someone* did pay that guy to go out there, just not you.

The bottom line is this.

If you’re serious about your business internet needs and understand the importance of having top notch customer service to go with it, you need to go with a carrier with a reputation for great customer service. Dedicated Bandwidth is a very cost effective solution for any company who understands the difference from DSL and cable. Simply be aware that the lowest price rarely means the best service or quality. Because in the internet connection world, more often than not, you get what you pay for.

Zero Cost Methods To Boost Your Business Marketing And Cut Your Costs Using Your Website

I Offer These Ideas As A Business Website Owner Who Uses Them

Think of this article as a letter from a friend who maintains a website for his own business, and wants to share with you some time/cost-saving methods he employs – at zero cost – to get more value from his website.

The Following Tools/Methods Can Make Using Your Site Easier/Less Expensive

In considering the resources featured here, you should keep in mind the fact that your ability to use them on your website may be determined to some extent by the type of web hosting package/functions you have purchased from your host. For those whose web hosting packages do not permit the easy use of these tools, I describe the very useful alternative of Remotely Hosted CGI Scripts and Resources towards the end of this article.

DISCLAIMER: Please note that I provide descriptions of the resources featured in this article for your information only. I cannot guarantee they will meet your requirements in any way.

There are many other scripts that do similar work available on the net. I have only described these ones because they are the ones I use – or have used.

If you choose to download and use them on your website, you will be doing so at your own risk. I have however used them all at least once, and currently use most of them/have done so for over 2 years – which is why I can recommend them.

1. Automated Website Membership Subscription Management

Resource: Membership Manager LITE

Source: [http://www.membership-manager.biz]

Membership is a feature that allows visitors to your website become members by completing a simple registration web form. Registered visitors will subsequently be able log in to restricted areas of your website using login details they would have specificed when signing up. You can even have two or more levels of membership(for instance Free/Basic and Paid/Premium).

Using this feature, you can enable your website provide member specific content like special offers, articles, email newsletters, and other interactive content. Offering membership on your website will definitely set it apart from many others which do not.

One nifty CGI script I have found quite useful to easily and securely offer membership on my websites is called Membership Manager. This programs uses HTACESS browser based login authentication(regarded as the most secure form of password protection on the Internet) to protect your restricted members-only directories from unauthorised access.

Membership Manager, comes in two variants – LITE(Free) and PRO.

A. It allows the owner to use a control panel to administer user accounts of members (who will also be on their automated newsletter mailing list).

B. The members have login ID and Password of their choice automatically used in creating a website membership account for them when they signup.

C. Paid Subscription Management is possible. If someone has paid for one year access, you can setup a 1 year member account access to a password restricted members area on your website where some premium content may be accessed.

D. Also, the system at the expiration of the 1 year subscription period, automatically disables the appropriate member’s account – and notifies the member and the owner.

E. In the PRO version, members can automatically retrieve lost passwords using a link provided on the site.

You can download the 30kb zipped folder containing the LITE version of the script from [http://www.membership-manager.biz] and follow the very useful installation instructions provided in the accompanying “Setup Instructions” HTML file.

2. Dynamic Website Contact Forms

Resource: All Purpose Form Handler

Source: http://www.BigNoseBird.Com

This is an amazingly flexible/customisable script that allows a user to quickly implement HTML based forms on different parts of a website. It is configured by information you provide in the form itself, giving the user a unique advantage of making the script handle data submitted in the web forms in a variety of ways without changing knowing ANY Perl programming or having to change the code/script.

The following can be done in any combination using forms that call the SAME script:

A. Web form completed by the user submits an e-mail to a specified person(s) – say the website owner – and CC to say other employees(e.g. marketing manager), or even another email address used by the owner.

B. The EXACT text of the title that appears in the subject line of the email the script sends to the site owner, can be specified in the code for the web form. This makes it very easy for you to know which contact form on your website was used to send you EACH message you receive.

C. The script sends the data submitted via the web form to a file for easy import into a database program. You, the owner will be able to locate the file(s) on your server in the cgi-bin.

D. The script automatically sends a response to the person who submitted the form. The content of the response can be varied for each web form. This is made possible by creating a text file(given a unique filename extension) to contain your message whose name you then place in the form code, so it is used by the script.

E. The order in which the data submitted via the web form appears in the email received by the website owner can be specified in the code for EACH web form.

F. The completion of required fields can be enforced by specifying such fields in the code for individual forms.

G. To increase user-friendliness, code for each form can be modified to call a unique “Thank you” or an “Oops!” page after the form is submitted.

How I Use It: I have found this script extremely useful in determining quite accurately what people who visit my website are interested in. For instance, on my website, I created a separate contact form(all outwardly similar) for EACH of the different services I offer, providing links to each web form from the body of text/web copy where the service is described. This way, I am able to quickly establish, from the title of the email sent by the script, exactly which service the enquirer was considering when s/he decided to contact me.

3. Tell-A-Friend Automated Website Referral Form

Resource: BigNoseBird.com’s Birdcast Site Recommendation Script

Source: http://www.BigNoseBird.Com

This is a very simple, yet powerful script that you can use to help promote your site. Easy to install, and to customize. It has a number of very useful features including the following:

1. Name/Email Address fields that can be duplicated for an unlimited number of target recipients per recommended page.

2. A multi line text entry area for the user to send a personal note with the e-mail.

3. Automatic page recognition (i.e. the script inserts the full url of the page being recommended in the e-mail that is sent).

4. Automatic Return to sending page (i.e. the script returns the user to the recommended page when upon successful submission of the form’s contents.

4. Domain validation. An editable line of code in the script allows the website owner specify whether this feature is enabled or disabled on installation. You would enable it to prevent it being used from any other website/domain other than yours i.e. protection against off-site abuse (Also available in the all purpose form handler script described above).

5. E-mail address and page capture log. Once the script is in use, you will be able to periodically check a log file of date/time, calling page and e-mail information automatically generated and updated by the script on your server. This can be quite useful if you want to know who is referring what page on your site and to whom.

4. Form For File Upload From Web page To Server

Resource: Upload Lite

Source: http://www.perlscriptsjavascripts.com/perl/upload_lite/index.html

This script works via a file upload form to allow anyone upload files to a folder on the website server. When this happens, the owner of the site automatically gets an “Upload Notification” email with a download link(s) which can be clicked to instantly download the file(s). The website visitor, who uploaded the document is in turn taken to an upload success confirmation page that you can customise. For instance, on my website the confirmation page displays a “Thank You – Your submission has been accepted” message.

Possible uses: The owner can invite job applicants to upload their applications and resumes using this form. A magazine publisher could have contributors/writers send in their write-ups(in various possible electronic formats(.pdf, .doc, .rtf etc) from any location in the world so long as Internet PCs are available.

How I Use It: On my Excel Heaven Custom Workbook Automation Mini-site, an upload form is provided to enable clients upload workbooks they want me to automate for them using Excel Visual Basic.

5. File Mailing (Alternative to direct downloading)

Resource: MailFile

Original Source: http://www.command-o.com

Latest Version Available At: http://www.FreeScripts.com

MailFile lets you require visitors to submit their name and email address in order to retrieve a file(s) from your site. It is a CGI script that works via a form which allows visitors to choose(by clicking checkboxes) specific documents from your site to be sent to the email address they specify in the email address field of the form.

When the form is submitted, the visitor is taken to a “File(s) sent!” page while the selected file(s) is sent to the visitor via the email address s/he provided. Apart from the fact that this method prevents third-party linking of your files, you also get to use the retained names/email addresses to build a mailing list with which you can follow up visitors for possible sales.

The script can also be useful when you want to give your busy visitors a time saving alternative to downloading.

Corporate visitors to your site, whose mails are stored on the company mail servers will find this particularly useful.

Here’s why. Assume a busy executive – with only 5 minutes left to attend an important meeting – discovers your site’s offering of five interesting PDF reports totaling 13 MB in size.

S/he can easily choose to use the MailFile web form’s checkboxes to select the files and click the “Send File(s) To Me” button. All the selected files will be delivered to his/her mail box on the company’s servers, and s/he would be able to return to view them without going back online at a later time or date.

There is no limit to the number of files that can be sent using this form. Additional checkboxes only need to be added to the form, and the appropriate filenames included in the form code.

Similar Resource: File Mailer

Source:
http://www.downloadfreetrial.com/scripts/php/file_upload_&_download4.html

Related Resource: Attachment Mailer
Source: http://www.perlscriptsjavascripts.com/perl/attachment/index.html

6. Get Your Target Audience Discussing On Your Site – Discussion Boards/WebLogs

You can install a discussion board(where people can register and discuss various topics in “discussion forums”) on your website. You can also use it to provide first level user support/problem solving services to customers.

For instance an IT/Telecoms company can invite customers to post questions or requests for help regarding problems they have with specific products/services supplied or supported. Answers will then be provided by the appropriate personnel online saving time/cost of going out – until it becomes absolutely necessary to visit the client physically to resolve the problem.

Some web hosts offer a discussion board as part of their hosting package. Most of the popular ones are however FREE to download/install, (being open source), two good examples being: PHPBB at http://www.phpbb.com and YaBB(Yet another Bulletin Board) at http://www.yabbforum.com . I have successfully installed and used phpbb in the past, and found it quite user-friendly.

Web Logs: My website host offers an easy-to-install phpbb board in my control panel, which I intend to install on my website in future. I however do not currently use a discussion board on my website, due to my decision earlier this year to discontinue its use, in line with a modified strategy. In its stead, what I use is a web log. I like to think of a Web LOG as a dynamic website which functions as an online diary allowing the owner make postings on any subject of interest, which her visitors can in turn read, and post comments on/responses to.

My personal web log facility is provided as part of my website hosting package. In hunting for a web host, you might look out for a similar feature, if you consider it relevant to your purpose. You can however get a more or less equally functional but FREE blog to use at http://www.blogger.com.

7. Automated Business Marketing CDROM Promos

CDROM promos are a one-time expense, and they cost a fraction of what a decent newspaper advert does, while offering more targeted impact to the “right” prospect for a longer period. They are less expensive and you can mass produce them. I personally recommend the use of auto-run business marketing CD ROMs as an offline complement to other business marketing efforts/resources.

You can get excellent software for creating auto run business marketing CDROM presentations from a variety of sources on the net. One that I have used, and can heartily recommend that you try is CRE:8 MULTIMEDIA. This software enables you to create very impressive auto-run business marketing CDROM presentations quickly and easily. It has a very user-friendly visual interface, and easy-to-understand HELP documentation that enables users begin producing professional looking presentations in minutes. You can download a FREE 21 day trial from http://www.presentware.com.

8. Article Syndication

Article syndication is an excellent way to attract new visitors to your website, while at the same time boosting your credibility as an authority in your area(s) of expertise.

One place you can post your articles and be reasonably sure(if they offer useful real-world relevant information and are well written) of widespread syndication is http://www.ezinearticles.com.

Other options you can pursue of course exist, such as visiting and manually posting articles to different websites offering related content to yours or using automated article submission services – some of which are FREE.

You can also contact publishers of e-zines and online newsletters, who deal with target audiences similar to yours, offering your FREE articles for publication in their media or on their websites, in exchange for exposure.

9. Website RSS Feeds

RSS, stands for “Really Simple Syndication” or “Rich Site Summary”. It is an XML standard that is used by content owners(e.g. newsletter/website publishers) to distribute content to their target audience. Many companies today have RSS feeds that announce latest content updates made to their websites.

Visitors to your site can use either the content aggregator built into their My Yahoo! Page, or other RSS news reader software to retrieve and read the feeds.

Important Notes About CGI/Perl Scripts

Some of the tools I have described in this article are third party CGI/Perl scripts(files with .cgi and .pl filename extensions), which you may need to clear with your web host before using on their servers. The installation of these scripts requires some basic familiarity with server types, setting of file permissions(via CHMOD’ING), Perl scripting among others.

CGI Scripts Installation : Usually, to run CGI/Perl scripts, all you need is any executable folder ( cgi-bin ). Some of the scripts can even run in any folder. I suggest however, for ease of management, that you use a cgi-bin.

CGI Scripts Configuration : All the scripts require you to configure them before uploading to your server, though some have additional settings that will have to be specified AFTER uploading usually via a control/admin interface or panel. You can re-configure, re-upload and overwrite the scripts as may be necessary.

Typically you would open the script in a text editor(I use notepad, and sometimes wordpad, when text wrapping is a problem in the former). If an edit facility is provided in your web host’s control panel/file manager interface, you can also use this to make /save changes you want online post-installation. This latter option makes it unnecessary to re-upload the modified script.

CGI Scripts Upload: If your host has provided you a file manager interface in your control panel, you will be able to use that to upload the scripts. Alternatively there are a good number of nifty FTP – File Transfer Protocol – tools like CuteFTP(http://www.cuteftp.com), and SmartFTP (http://www.smartftp.com)

These FTP clients work in “auto” mode by default, making it unnecessary for you to have to set them to upload your scripts in ASCII mode, and your images or pre-complied programs in Binary mode. I suggest you refrain from changing their default settings except you know what you are doing.

Keep in mind however that whatever manner of upload you employ, you will still need to set file permissions(via CHMOD’ING) for the scripts and the files/folders they will be located in or working with.

Find Someone To Do It – If Necessary

Even if you cannot spare the time to learn to do it yourself, you can easily find someone appropriately skilled to do it for you. Also, your website host should be willing to provide you any information you may be required to verify/obtain in order to successfully install the scripts.

Can’t Run CGI/Perl Scripts On Your Site? Here’s An Alternative That Works!

Remotely hosted CGI scripts/resources(some of which are FREE) are available for those who may find they cannot use some of the tools described here directly on their websites. One very good service, that I used for over a year prior to purchasing a complete hosting package, is offered by Black Fire Networks at http://www.bfndevelopment.com.

Not only do they provide you access to free, customisable, remotely hosted scripts, but they actually do so with ZERO advertising. So, if you have designed you website, but lack access to a cgi-bin via your web hosting package, this service might just be for you. Among other things, you will be able to make your website dynamic, so it has a more professional”feel” to it, without spending any additional money.

Summary – Use A Combination Of Methods On Your New Or Existing Website

The best part of all the tools, features and strategies/methods described here is that you can have them integrated – at ZERO cost – into an existing site or added to a new site from the start. Either way, you get to maximise the potential value you expect from the website.

To get the best results in today’s marketing, one will often need to use a combination of methods. Using your business website in conjunction with a well thought out marketing strategy, facilitated in implementation by custom, value adding automation/features will increase your chances of marketing success, while ensuring you do not spend more than you need to.

This article’s recommendations can be summarised in form of the points outlined below.

a. Ensure “action-inducing”/”response-generating” web copy is written on your website, to effectively communicate the unique benefits you offer.

b. Develop and implement a web marketing strategy to ensure you maximize returns on your investment, by (i) making more of the right kinds of people visit your site (ii) seamlessly integrating your offline and online marketing efforts in such a way that they complement one another.

c. Make it easy to implement your web strategy for the long term, by incorporating zero/low cost automation tools on your website, and adopting value-adding features/methods. Examples include email marketing, article syndication, and information product publishing(ebooks etc).

Do the above, by adopting a suitable mix of the specific tools, methods and strategies featured in this article, and you should be able to clearly achieve one or more of the following: INCREASED sales and/or REDUCED expenses on marketing/advertising – which in turn will help you record reasonably stable or INCREASING profits.

Newspaper Advertising Costs – 8 Factors To Consider

Calculating and comparing newspaper advertising costs can quickly get complicated. Once you’ve tracked down a newspaper advertising rates card, you’re then faced with the delightful challenge of making sense of it all. There’s no “one size fits all” to make our lives easy. Instead, newspaper advertising costs depend on a number of factors, some of which you might find surprising. To answer the question, “How much does it cost?”, the answer would be: “It all depends.”

8 factors that affect newspaper advertising costs (within the one publication) are:

type of ad
size
day of the week
section or lift-out
page position within a section
left hand side VS right hand side
colour VS black and white
annual spend/expenditure commitment

In this article, I’ll discuss the 8 factors that determine newspaper advertising costs in Australia. I’ll also provide an example of how much it would cost to place a display ad in The Courier Mail (a Queensland newspaper). As you’ll see, newspaper advertising costs can quickly add up. If you’re on a tight budget, as many of us are these days, knowing what most affects the cost, allows you to cut back where you can.

#1 Type of Ad – Display VS Classifieds VS Inserts

The first factor that decides the cost of a newspaper advertisement, is the type of ad. Most Australian newspapers offer a number of different types. Display advertisements appear throughout a newspaper, and may use colours, illustrations, photographs, or fancy lettering to attract the reader’s attention. These provide a great deal of creative control over the content of the ad, without being limited to just text. They also aren’t grouped according to classification, unlike classified ads. Display advertisements are typically charged at a rate per single column centimetre. In other words, the height in centimetres and width in columns determines the cost of the advertising space. On the other hand, classified ads are typically charged based on ‘lineage’ or per line.

Another form of advertising offered by most major newspapers are ‘inserts’ – separate advertisements that are placed inside the newspaper, and can have more than one page. Inserts are usually charged at a rate of per 1000 per number of pages. For the purposes of this article, we’re going to limit our discussion to display advertisements.

#2 Size Matters

The second factor that contributes to the cost of newspaper advertising, is size. As mentioned above, display advertisements costs are calculated based on their height in centimetres, and width in columns. Most newspapers have their own standard sized advertising spaces, which your ad needs to fit into. Some newspapers offer non-standard sized spaces, such as a ‘U’ shaped ad around the edges of an open paper, but be prepared to pay a higher price for irregular sizes and shapes.

Let’s look at the standard sizes available in The Courier Mail, as an example.

“Small Page Strip”, 6cm high by 7 columns wide, the minimum casual cost per day (based on a Mon-Fri Casual rate of $AU58.51) is $AU2457.42.
“Medium Page Strip”, 8cm high by 7 columns wide, the minimum casual cost per day is $AU3276.56.
“Quarter Page Strip”, 10cm high by 7 columns wide, the minimum casual cost per day is $AU4095.70.
“Horizontal Half Page”, 20cm high by 7 columns wide, the minimum casual cost per day is $AU8191.40.
“Full Page”, 38 cm high by 7 columns wide, the minimum casual cost per day is $AU15563.66.
“Vertical Half Page”, 38cm high by 4 columns wide, the minimum casual cost per day is $AU8893.52.
“Vertical Third Page”, 38cm high by 3 columns wide, the minimum casual cost per day is $AU6670.14.
“Vertical Quarter Page”, 38cm high by 2 columns wide, the minimum casual cost per day is $AU4446.76.
“Portrait Half Page”, 28cm high by 5 columns wide, the minimum casual cost per day is $AU8191.40.
“Portrait Third Page”, 20cm high by 4 columns wide, the minimum casual cost per day is $AU4680.80.
“Portrait Quarter Page”, 20cm high by 3 columns wide, the minimum casual cost per day is $AU3510.60.

Here you can see that the cost of a standard size display ad can range from at least $2457.42 per day for a small page strip, and up to at least $15563.66 per day for a full page advertisement. That’s an awful lot of money to invest in a single page, that will only be published on one day. Most of us simply don’t have that kind of cash to throw around, so you’d really need to know what you were doing. This example demonstrates how much the size of a display advertisement affects the price.

#3 Day of the Week

The third factor that contributes to the cost of a newspaper advertisement is the day of the week on which the advertisement is published. Typically, newspaper circulation is greatest on the weekends, and so the advertising rates for major Australian newspapers are adjusted accordingly. In our example of The Courier Mail, the rates are cheaper on a weekday, more expensive on a Saturday, and most expensive on a Sunday. For the most basic display ads, Saturday ads are 25% dearer than Monday – Friday ads, and Sunday ads are almost 90% dearer than Monday – Friday ads.

This pattern may vary though, depending on the circulation of a particular publication. For instance, The Age is most expensive on a Saturday. To illustrate how much of a difference it makes – a small page strip ad in The Courier Mail on a weekday would be at least $2457.42, and the exact same ad run on a Sunday would be at least $4637.64.

#4 Different Sections or Lift-Outs

Most newspapers are divided into different sections and many have lift-outs – and this is the fourth factor that determines newspaper advertising costs. Different sections attract different readers and different volumes of readers, and so the advertising rates are adjusted to reflect this. For example, an advertisement placed in the CareerOne (Employment) lift-out in The Courier Mail, costs 2% more than the general section. The rates for CareerOne, also vary depending on the day of the week, as mentioned above. Some examples of other sections that may have different rates include: Adult Services, Funeral Notices, Real Estate, and Business.

#5 Page Position Within a Section

The next factor that can significantly affect the price of a newspaper ad, is the page number on which the ad appears, within a certain section. The most expensive part of the paper is typically the front section, which might include the first 10 or so pages, and is referred to as the “early general news” or EGN for short. In our example of The Courier Mail, page 2 in the EGN section attracts a 60% loading. Similarly, the first 11 pages have at least a 50% markup. This type of loading is common practice across Australian news publications. Now let’s say we wanted to place a small page strip ad in The Courier Mail on a weekday, on page 3 in EGN, the cost would be at least $4054.74.

The first few pages and back pages of other key sections of the paper, such as Business, also attract a higher loading. For The Courier Mail, the very back page attracts a 65% markup. You can see how the page position of an advertisement can have a substantial influence on the price.

#6 Left Hand Side VS Right Hand Side

The next factor is also related to position of the ad, but relates to which side of an open newspaper the ad appears in. You might be surprised to know that, in some publications, an ad that appears on the right hand side of an open paper, will cost more than one that appears on the left hand side. This is to do with the way readers actually read a newspaper, and where their attention is focused. This factor may also be tied to the page position of an ad, and which section it appears in. For example, in The Courier Mail, for ads on pages 12 to 21, a right-hand side ad costs 5% more than a left-hand side ad.

#7 Colour VS Black and White

Another factor that substantially affects the price of a newspaper advertisement, is whether the ad features colour, and how many colours. Colour ads are more expensive than monochrome or black and white ads. Some newspapers may distinguish between multi-colour advertisements and those that only feature one added colour (called “spot colour”). For example, The Courier Mail charges 30% more for multi-colour display ads, and 20% more for ‘spot’ colour display ads. Remember, that this is combined with any positional loading.

So let’s say we wanted our small page strip ad in full colour in The Courier Mail on a weekday, on page 3, that would be calculated as: $2457.42 + 30% colour loading = $3194.65 + 65% positional loading for page 3 = $5271.17

You can see here how the cost of our ad has more than doubled after we’ve factored in the colour, and position of the ad.

#8 Annual Spend/Expenditure Commitment

Now here’s a factor that also affects the price of your newspaper ad, but this time it’s a decrease, with a catch, of course. If you have the budget, and are prepared to commit to spending a certain amount annually, usually by entering into a 12 month contract, then you may be entitled to a discount. However, the discount depends on how much you’re prepared to spend. For example, to qualify for a 4% discount on The Courier Mail’s advertising rates, you need to spend at least $38500 per year. If you’re a small business owner, chances are you’re not working with this kind of budget, so bye-bye discount.

Just in case you’re curious, businesses that annually spend at least $2.3 million with the Courier Mail, receive a 13% discount. In my opinion, this form of discounting simply highlights how biased mainstream advertising is towards big business. Where’s the discount for all the struggling small businesses? But that’s another story.

Summary:

To sum up, those 8 factors again, and how they’ll affect the cost of your ad:

type of ad – display VS classifieds VS inserts – rates based on different measurement units
size – pay more for bigger ads
day of the week – weekends are more expensive
section or lift-out – early general news (EGN) is more expensive
page position within a section – front pages and back pages cost more
left hand side VS right hand side – RHS is dearer
colour VS black and white – pay more for full colour
annual spend/expenditure commitment – get a discount if you spend up big

Now that you know what affects the price of a newspaper advertisement, you’re better prepared to decide where and how you want to spend your advertising dollar. If newspaper advertising seems beyond your budget, then it might be worth considering more cost-effective alternatives, such as online advertising.