VIDEO TRANSCRIPT
[00:00:00] Welcome to this exclusive digital display insider video where I'm going to reveal the crucial model that you can elevate you and your business from just average to extraordinary. Let's dive in and explore how the right model can be a game changer for you and your mobile advertising world. So I want to get started with the the exclusive model that we referenced in this week's newsletter.

And I just wanted to talk about the differences between the exclusive and the shared advertising models. Now the exclusive model this is defined as a model where you're just advertising one client at a time on the truck. And that client's typically going to have. Use of the truck for either a day, a week, or multiple weeks into multiple months.

This is the most common model used by most everybody in the industry today. And, honestly, it's [00:01:00] probably the easiest one to get into. There's a lot of differences, and this is the world that I lived in for eight of our ten years doing this business. And I completely understand why it's attractive and why you want to get into it.

Some of the easier things about this model is you're only dealing with one client at a time and so every job is unique to that specific campaign and it can just from a management standpoint, it's easier to manage with a very small staff of, just one or two people whatever your growing company might be.

Now, this exclusive model is typically going to operate regionally and so under this model, you need to plan on. Typically, driving up to three to five hundred miles to do a job a lot of times you can work with brokers that are getting the job and then looking for someone to fulfill it. And it'll be pretty common for you to work with either brokers or large national agencies under this exclusive [00:02:00] model.

Some of the drawbacks to it is it can be very unpredictable. The. It can be feast or famine. And so you can go weeks or months just packed solid. It seems like you might need to order more trucks because there's more demand for your business than what you have trucks for. And then you can go right into a month where you have very little business.

And so it's just a constant roller coaster up and down. If this doesn't bother you, then this model is probably okay. But if you're someone who needs. consistency and predictability, then you're going to have a lot of stress under this model because, like I said, it very much goes in seasons that are not really predictable and it's, it just seems like it's feast or famine all the time.

The other big downfall to this business the bigger the company that you're working with, especially these large fortune 500 companies, is their pay terms. And just think of it from the standpoint of, You're not working directly for the Budweiser or the T Mobile or these big national brands.

You're working for an agency that's been [00:03:00] contracted by sometimes two, three, four different agencies above them. And so when the actual advertiser pays their invoice at 30 to 60 days, then that's got to flow through multiple layers before it gets to you at the bottom. And every layer that flows through is going to have at least a 30 to 60 day turnaround time from when they get paid to when they issue payment.

And our average pay term with these large national brands was almost six months almost 180 days. And so you need to be able to have. Enough cash flow to operate for four to six months if you're going to be working with these large National contracts and for a lot of companies, especially when you're getting started.

That's a pretty big Issue to overcome and so just something to keep in mind as you're looking at this now, let's look at The shared model is going to be more of a localized Model where you're working with multiple business businesses in your local community and so these would be Regional businesses or your all the way down to your local Just mom [00:04:00] and pop locations.

And so I shared a model. It's going to be more similar to a traditional digital billboard And the fact that it's running a multiple ads on a rotation, and then you're driving a pretty specific route. And so it does limit your ability to go out of town. And that's where it becomes very difficult to combine a exclusive and a shared model, because once you commit to that shared model, then you're committing your trucks to run a route on a very specific basis.

And I tell people that you really need to pick and choose one or the other. My personal opinion I'll share with you at the end of this video, which I think is the best, but one of the big benefits to the shared route model is, Once you have it up and going it's a lot. It's very consistent.

It's very predictable And it runs more what everybody wants in their business, which is monthly recurring revenue. And so yes, you're going to have attrition Yes, you'll need to be Constantly selling and bringing on new clients, but you don't have the wild ups [00:05:00] and downs like you do in The exclusive model, it's going to be much more much more flat and just less volatility in your income every month.

And so the downside to that though, is in order to get to that point, you do have to sell a lot of people and get it on. So it takes a much longer runway to get up and going. And so you just need to plan for that in the beginning, but overall it can set you up for a lot better success. As far as which one I think is the best one.

I'll tell you that we transitioned our business two years ago from being exclusive on the national stage. We operated in over 30 states on a given year to working locally in our Omaha, Nebraska market. And I can tell you that the per truck revenue has gone up, profitability has gone up, and the stress level has come down because.

It's again, it's just much more predictable and at the end of the day it The success of your business [00:06:00] rests on your ability to go out and sell the business So once you have a good stable model in place Then, at that point, it's just your ability to sell it. Now, I will say for those of you starting up, creating a shared model that is profitable and scalable is very difficult.

It, there's a lot of nuances that go into this. You have, what's your route going to be? How much are you going to charge for it? How many customers are you going to put on the truck at a time? All the nuances within that, anything that's not quite right there can set you up to for it to not work or not work to its best ability.

And for us, it took us nearly 2 years of trial and error to get that figured out. And that's on top of 8 years of experience already in this industry. And it is a very difficult thing to figure out. If you can get a playbook from someone or shortcut that whole process by hiring someone to come in and teach you how to do it.

So all you have to do is just go out and sell. You can literally shave [00:07:00] off two to three years of learning curve and start making money much quicker because you're not trying to figure out the business and sell, you're just going out and selling it. And that is something to consider when doing this.

If you don't have the funds to bring in a consultant. Pay for that shortcut, then you may want to look at the exclusive model and run that temporarily until you can get into a shared model. As far as other differences the biggest one, like I mentioned, is revenue with the shared model.

It is going to be. Much more predictable once you get up and going and versus the volatility of exclusive And as far as which one is right for you, that's where I highly recommend talking to an expert I offer these discovery consulting packages where I'll ask you a bunch of questions and make a recommendation based on you and your situation in your market because this isn't a one size fits all Plan what's right for me isn't necessarily going to be right for you and Denver, [00:08:00] Colorado or Los Angeles but I can tell you from Experience that for the most part a lot of these things are true But if you don't have certain things in place Then a shared model isn't going to be right for you, even though I believe that is the best model overall to run this business there are a lot of situations where an exclusive model is going to be better for you because of your situation what your Goals are and what your expectations are.

So it really comes down to answering a series of questions. To then determine which one's going to be best for you a couple of questions that have come in Since I started doing this newsletter and these are questions that are pretty common Is I just want to answer these and I do appreciate the feedback that i've been getting you know that I want to grow this community and for only being a couple weeks in it's the engagement is going great I'm, very happy with it.

And so Keep asking me your questions. You can either ask me privately or drop your comments in in the video here and I will address those and respond to [00:09:00] those. So I know you have questions don't hesitate to reach out and ask and I'll be happy to answer those. So, one of these is how much do I charge advertisers on either the exclusive or the shared route?

What I'll say is for the exclusive model, the pricing is generally more universal across the country. Most operators charge a pretty close range. And something that we get into in the consulting packages of really exactly how much to charge. When it comes to the shared route model though, that is very market specific.

And that's part of our process where we will sit down with you, help you identify what your local market is, what the market can bear, And what's already expecting compare that to what you need to make in order to run a profitable business And then we can help you actually set your pricing for the suite of services that you're going to offer specifically So that's where I talk about, you know Someone getting into this business with no experience running billboard trucks with no experience in advertising It can be a very expensive learning process if you don't hire help [00:10:00] Because you're going to be throwing crap against the wall and it's going to continually cost you money, not only in actual mistakes, but it's going to cost you in lost revenue that you could have been earning had you paid a little bit upfront to get that better return on the backend.

I highly recommend whether it's me or someone else in this industry that is willing to be open and teach you these things, hire an expert that has experience in this. You don't make a lot of the mistakes that most of us have made. Learning the business. Another question is how do I convince local businesses to advertise on my truck instead of using traditional billboards?

That's a great question because this is still a relatively new medium in the advertising world, especially out of home. And there's a lot of just relationships and a lot of different things you need to overcome. Now, from a factual standpoint. Nielsen Ratings has done studies comparing traditional billboards to mobile billboards, mobile digital [00:11:00] billboards, and the results are phenomenal in our favor.

In every category that was measured, mobile digital billboards outperform traditional billboards by significant margins. And there is an educational piece that comes to this. Now, decisions aren't always made off pure facts. And there are some downfalls that this industry has had to overcome.

But we're actually starting to make big strides in that. The biggest one is impressions. How do you collect impression data so they know that, If they spend X dollars with you, how many people are going to see that ad and what kind of return are they getting on their money? And the technology is just now really starting to catch up with that.

We've got some partnerships that we've just been using over the last year that has shown huge progress in giving us accurate data. And so again, these are all things that from a consulting standpoint, we can help you shortcut and get, but it is important for you to be able to give your customer impression data And not get it from sources that aren't giving you accurate data because there are a lot of options out there on the [00:12:00] market today that a lot of operators are using that just isn't accurate data and So the accuracy is just as important as being able to Supply it all together, but really when it comes down to it is just being able to show them that The benefits of using you instead of traditional and I even tell customers I'm, not trying to get you to stop using traditional billboards.

I just want you to add this in because We can go where traditional billboards can't, and we can give you coverage where those other billboards can't or where it would require multiple billboards to cover a geographical area where we can cover it with one truck. And there's just a lot of different ways that you can go about showing them the value that we provide versus our traditional counterparts.

Let's see. I'll do one more question here. Let's see here. How do I determine which model is right for me between exclusive and shared? And I touched on this earlier, but again, this is going to be specific to not only your market, but what your situation is. Are you doing this full time or [00:13:00] part time?

What market are you in? What are your expectations out of this? Are you just looking to get some, secondary income or is this gonna be feeding your family? Or are you a business that's using this as a tool instead of paying, renting billboards from other companies, you're gonna use this as a tool, you're getting direct benefit out of it.

And then you're just trying to cover your cost. All those different things play into this. And so that's where I would say book a call. I can help you figure it out within a one hour call, and that will really save you a lot of time and money in trying to figure this out on your own. I hope this information was helpful for you and with every issue that comes out of digital display insider, we're going to do one of these mobile or one of these bonus videos.

And we'll just take the main topic and dive deeper into that. And please answer, ask questions. I know just the questions that you have about this, ask them in the comments and I will do my best to answer those in a timely fashion. And until then, if you do want to schedule a call, if you're furthering your journey and you're [00:14:00] in the process of actually starting this business, you can go to jerryteeter.

com forward slash consulting. And from there you can book a time directly with me where we can do a video call and you can ask whatever questions I'll be a complete open book to you and we will help you Get going on your journey so you can limit your risk and start making money a lot sooner So thank you for watching Thank you for being part of this community and we'll look forward to talk to you on the next episode

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