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    | By Metro Mirror Team  
      
        
        How to Start an Ad 
        Agency? LIFE IS NOT SIMPLE ANYMORE. 
          There used to be a time when the true worth of a product was measured 
          by its efficacy and durability. This is no longer necessarily true. 
          It's not just the quality, which is paramount in establishing or enhancing 
          the market presence of a product: it's packaging and presentation. There 
          are very successful products in the market today with no apparent need 
          and yet people buy them ferociously. The reason- Advertising. It does 
          not matter if there is no demand for a particular product, proper advertising 
          can not only create the demand for the product, it can also ensure that 
          product becomes a household name. Whereas before a product required 
          advertising to increase it's sales, today it requires for it's survival.   Advertising is the wave 
          of the future. There are more Ad Agencies sprouting up today than any 
          other form of business. People now prefer to be better informed about 
          the product choices in the market and who better to tell them that than 
          the very people making that product - through their advertising agency, 
          that is. The demand for quality advertisements and related functions 
          hold a lucrative and promising alternative for those looking for an 
          independent career option. But be warned, advertising 
          is not for everyone. Creativity is an obvious essential and along with 
          that you must possess a charming personality as well as being good with 
          finances. Keep in mind that a professionally designed ad is far more 
          complex than a pretty face with a slogan. Do you fit the bill? You 
          do, if you have a flair for creating new ideas and themes. You also 
          need to be able to market your agency or products and must possess a 
          knack for effectively convincing a prospective client to come to your 
          agency. You need not possess any prior qualification to go into advertising 
          though, if you are interested, a lot of professional institutes offer 
          short-term courses, diplomas and degrees in advertising. Once you have decided that 
          advertising is the career for you, the next step is the creation of 
          an office. Initially, if your finances are limited, you can even begin 
          at home. Once that is settled, you can start by designing brochures 
          and leaflets for small clients. You need not even employ any people 
          for that. But, if you are starting an agency (whether individually or 
          on a partnership basis) dealing with the releasing of ads and also designing 
          part of it, then you will require artists, visualisers, copy writers, 
          media managers, studio managers, an art director and a DTP operator. 
          A client service executive may be required if you don't want to handle 
          the clients on your own. Thus, you have to necessarily organize a small 
          team to get started. If the finance for all this is a problem for you 
          at the moment then consider commissioning freelancers for at least some 
          of the functions. Your initial investment won't be much, provided you 
          have a small place to start your business. But, it is advisable to keep 
          a kitty of about Rs. 2,00,000/- for the various salaries, stationary, 
          and other incidental expenses in the first few months when there may 
          not be any income generated.   Your growth depends exclusively 
          on your own hard work and determination. Always be on the lookout for 
          new business opportunities. Try to keep a good number of contacts in 
          the media business with people who are willing to recommend you to the 
          clients. Don't concentrate on multinationals from the beginning; instead 
          try to establish a good rapport with the small scale sector. SSI units 
          like spices, handicrafts, instrumentation; resellers, etc. are far better 
          in the beginning because they prefer new or small agencies. The larger 
          agencies either reject them or their budgets. As in any other business, 
          team-work is one of the single most important factors in determining 
          the success or failure of a company. You must strive to bring together 
          ideas to develop into a Unique Selling Point (USP) that'll lead a particular 
          campaign. If the ad has been properly designed, even a poorly created 
          product will sell, bringing your agency into the limelight. Don't relax 
          after tasting the initial success and your business will increase by 
          leaps and bounds. You have to continually prove your dependability and 
          trustworthiness to your clients to get their trust and of course their 
          billing. |   
    | As far as earnings are concerned, 
        an ad agency always retains or earns 15 percent of the total amount spent 
        on the release of an ad from the client.This gives rise to another situation where caution 
      must be exercised. |  Remember though, not everything 
  in the ad world is as glamorous as it may seem; you have to be on your toes 
  every time even if it sometimes means defeat. You may put in long hours to land 
  an account and nothing may come out of it. You must learn to take a 'no' and 
  sometimes how to convert a 'no' to a 'yes'. You will be required to sell any 
  thing and everything but be very cautious in selecting your clients. You may 
  end up getting a bad name if the company you designed the ad for is taking the 
  public for a ride. Such companies may show illegal or falsified documents to 
  prove their credibility. The ad agency may not be directly implicated in such 
  scams but you could definitely get a bad name for your agency. And in a business 
  based on mutual trust and understanding, a bad name could be disastrous.  As far as earnings are concerned, 
  an ad agency always retains or earns 15 percent of the total amount spent on 
  the release of an ad from the client. This gives rise to another situation where 
  caution must be exercised. The company may not pay you at all. To avoid this 
  risk, it is beneficial to get an accreditation, by the Ins (Indian Newspapers 
  Society). Once you get the accreditation, you are assured of your 15 percent 
  commission, as there is always a deadline for the concerned company to pay up 
  before the ad is actually published. To acquire this accreditation; the agency 
  has to have an annual turnover of Rs. 50 lakes which is not too difficult to 
  achieve for small agencies. There aren't any government formalities to be fulfilled, 
  but the accreditation will also help in getting you bigger clients as the superiority 
  and reliability of your agency will be, in most cases, assumed.  Among the major risks, only two 
  are worth mentioning. First as already mentioned, sometimes clients don't pay 
  up. The second risk is that sometimes even after the ad has been designed according 
  to the ideas and instructions of the client; they tend to reject them even though 
  there are no major drawbacks with the ad. This will, obviously, discourage the 
  whole creative team. It is totally unfair, but it happens and you'll have to 
  learn how to deal with it. This will require very delicate handling and should 
  be trusted only with an experienced client service executive.  If you do not want to involve yourself 
  in this whole affair immediately, you can also start initially by specializing 
  only in the production, releases, creation or the marketing of ads. Whatever 
  type of an agency you may choose to start, you must always remember that, to 
  get the trust of your clients, you must not only be more creative than the competitors, 
  you must also be able to deliver on time the services required of you. |  |