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Under the new registration scheme, you should be exempt from paying the first year fee if you generate less than £5k/year in revnue. You can indicate this on the registration form. Please call or email should you have any queries about this.
ReadyMadeTelecom – 0844 736 2685 – info@readymadetelecom.co.uk
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Registration Scheme information (originating from PPP website http://www.phonepayplus.org.uk/Registration-landing-page.aspx)
Under the new Code of Practice, all organisations operating within the premium rate market must register with PhonepayPlus.
In order to register with PhonepayPlus, you will need your organisation details, including contact details of one user and the details of at least one person who is responsible for compliance under the Code of Practice for your organisation. This will get you past the initial registration form, after which you can add further details from your account pages.
Please note that the registration fee is currently £100 + VAT and the Scheme will only accept payments by Credit/Debit card (cards accepted are Visa Debit, Visa Credit, Mastercard and Visa Electron)
Please use this link to register.
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PhonepayPlus Registration Scheme opens
27/04/2011
PhonepayPlus, the UK regulator of premium rate telephone services (PRS), today opened its new industry Registration Scheme.
The new PhonepayPlus Code of Practice was published on 30 March and comes into force on 1 September 2011. The Code requires that all Network operators and providers operating PRS in the UK are registered with PhonepayPlus. Details of how the Code rules on registration are being implemented can be found in this Notice to Industry.
PhonepayPlus has opened registration now in order to give all providers and their clients enough time to register their organisations before the Code of Practice and Registration Scheme come into force. Advice on who is required to register and what information needs to be submitted can be found here.
Network operators and providers who meet certain criteria and who wish to assist their clients with the registration process will be able to take advantage of a bulk upload service for pre-registering 50 or more organisations. Although these clients must still complete their registrations themselves, bulk uploads will help by significantly reducing the amount of time clients will need to take to complete registration.
PhonepayPlus will be launching this bulk upload service shortly, with further details outlined in the Notice to Industry. We will announce the process for submitting bulk upload requests in due course.
Further functionality of the Registration Scheme, including the registration of premium rate services to populate the Number Checker information service and the ability to carry out due diligence checks on existing and prospective business partners, will be released in the coming months, with relevant advice and information published at that time.
The registration fee for the first year of the Scheme (commencing 1 September 2011) is set at £100 +VAT. Registration is renewable on an annual basis from the date the registration fee is paid. However, no extra cost will be incurred by organisations who wish to register early, with the following discounted rates in place during the pre-enforcement period:
The following exemptions apply for the first year of operation (from 1 September 2011):
Organisations are obliged to ensure that information relating to their registration remains complete and accurate. It will be a breach of the Code of Practice to provide incomplete or inaccurate information on the Registration Scheme.
To assist the industry, there is further advice and information available during the registration process as well as on the PhonepayPlus website. There is also a Registration Helpdesk available on 0844 264 1222*.
*Calls provided by BT will be charged at up to 2p per minute. Mobile and other providers’ charges may vary and are likely to cost more.
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NOTICE TO INDUSTRY – LAUNCH OF THE REGISTRATION SCHEME IN SUPPORT OF THE 12TH EDITION OF THE PHONEPAYPLUS CODE OF PRACTICE
Issued on 27 April 2011 by PhonePayPlus
FOR THE ATTENTION OF ALL THOSE INVOLVED IN PROVIDING PREMIUM RATE SERVICES FOR THE PURPOSES OF SECTION 120 OF THE COMMUNICATIONS ACT 2003
Background
A Notice was issued by PhonepayPlus on 30 March 2011 to inform all those who provide premium rate services for the purposes of section 120 of the Communications Act 2003, that the 12th Edition of the PhonepayPlus Code of Practice (“12th Code”) had been published and approved by Ofcom on 30 March 2011, and would come into force on 1 September 2011.
The Notice of 30 March 2011 drew particular attention to certain requirements of the new Code, including the requirements to register organisations and premium rate services with PhonepayPlus and a requirement not to contract with other Network operators, Level 1 and Level 2 providers unless they are registered with PhonepayPlus.
About this Notice
This Notice is to inform all those who provide premium rate services (PRS) for the purposes of section 120 of the Communications Act 2003, that the Registration Scheme which providers must use to register, and which they can use to perform checks on other registered parties, has been launched on 27 April 2011 to allow for registration ahead of the 12th Code of Practice coming in to force. In addition, this Notice is to draw attention to the provisions of the 12th Code relating to registration, and how PhonepayPlus will interpret those provisions.
Requirement to register
This is a requirement by virtue of paragraph 3.4.1 of the 12th Code which provides that:
3.4.1 – Before providing any premium rate service all Network operators, Level 1 and Level 2 providers must register with PhonepayPlus subject only to paragraph 3.4.3 below [exempt services]
For the avoidance of doubt, all Network operators, Level 1 and Level 2 providers who intend to provide premium rate services from 1 September 2011 onwards must register with PhonepayPlus by that date. This is with the exception of those who provide “exempt services”, as set out later in this Notice.
In any corporate group structure, any and all companies within the group which are themselves Network operators, Level 1 providers or Level 2 providers, as defined by the Code, will be required to register.
The definitions of Network operator, Level 1 provider and Level 2 provider are at paragraphs 5.3.4, 5.3.8(a) and 5.3.8(b) of the 12th Code respectively. PhonepayPlus has also published a General Guidance Note on the ‘Definitions of those involved in providing PRS’ which can be viewed on its website.
Notice of registration fee for 2011/12
Payment of a registration charge is a requirement of paragraph 3.4.7 of the 12th Code which provides that:
3.4.7 PhonepayPlus will make a reasonable charge for such registration and for annual renewal of registration. PhonepayPlus will set the amount of the charge, giving reasonable notice to interested parties. All Network operators, Level 1 and Level 2 providers who wish to register must pay the charge
In order to register during the financial year 2011/12, registrants are required to pay a fee of £100+VAT. In future years, this fee may vary up or down, according to numbers of registrants and other relevant factors. PhonepayPlus will issue notice of any future changes to the fee as appropriate. The accepted methods of payment are UK credit and debit cards.
Exemptions from a requirement to register
Paragraphs 3.4.2 and 3.4.3 of the Code state:
3.4.2 PhonepayPlus may identify particular categories of premium rate services in respect of which registration will not be required (‘exempt services’). PhonepayPlus will provide public notice of any such exempt services and will publish a full list of exempt services from time to time
3.4.3 Network operators, Level 1 and Level 2 providers who provide only exempt services are not required to register with PhonepayPlus
PhonepayPlus hereby draws attention to the following services and providers who are exempt from the requirement to register with PhonepayPlus:
Exempt services
Exempt Network operators, Level 1 and Level 2 providers
This exemption is initially for a 12-month period from 1 September 2011.
In addition, the following types of organisation will be required to register, but will not be required to pay a registration fee:
For the avoidance of doubt, “organisations who earn less than £5,000 in total revenue from premium rate services” relates to Level 2 organisations whose gross outpayments received from one or more Level 1 providers to whom they are contracted is £5,000 or less during the annual period from the date of their registration to the due date of renewal of their registration.
To qualify for exemption, a provider must provide the registration number(s) of one or several registered premium rate providers from whom they receive outpayments, so that PhonepayPlus can verify the claim for exemption from the requirement to pay a registration fee.
Providers whose premium rate revenue exceeds £5,000 during the year they are registered will be required to update their registration status from “exempt” to “payable” by contacting PhonepayPlus in the first instance. Upon receiving contact from a provider, PhonepayPlus will update their registration and request payment of the fee from the date the organisation declared itself to be earning revenue over £5,000. The registration will then be valid for 12 months from this new date.
These exemptions from the requirement to pay a registration fee are initially for a 12-month period from 1 September 2011.
Information required from those who register
Paragraph 3.4.4 of the 12th Code provides that:
3.4.4 Registration will require the provision of such information as PhonepayPlus may from time to time require for the purpose of efficient and effective regulation of premium rate services
It will be the responsibility of all organisations who register to:
Information which is mandatory for those registering is as follows:
Private limited companies (including those with charitable status), public limited companies, foreign companies (i.e. those who are registered outside the UK):
Partnerships and foreign partnerships (normal or limited liability):
Trusts:
Sole traders:
Public/’Third” sector organisations (including bodies, agencies and authorities):
Pre-registration by one organisation on behalf of another
Any party within a premium rate value-chain, in the period leading up to the 1 September when the 12th Code comes into force, may pre-register organisational information about other organisations subject to the following conditions:
It remains the responsibility of organisations who have been pre-registered by other organisations to validate the information provided, ensure the registration contains all mandatory information and make payment where required to do so.
Updating of information
This is a requirement of paragraph 3.4.5 of the 12th Code which provides that:
3.4.5 Information provided to PhonepayPlus for the purposes of registration must be updated as soon as is practicable
Organisations are obliged to ensure that information relating to their registration remains complete and accurate. PhonepayPlus will not validate every entry on the database due to the operational costs of doing so, but may monitor the completeness of registration data. Non-compliance with the requirements of registration may result in informal or formal procedures, as appropriate, being initiated.
It will be a breach of the Code to provide incomplete or inaccurate information on the Registration Scheme. In the event of any investigation into the registration status of an organisation, PhonepayPlus will consider the extent to which registration details are complete and accurate.
Where registered parties perform due diligence checks on other registered parties using the database, it is their responsibility to ensure that the information on which they are relying is complete and accurate.
Renewal of registration
This is a requirement of paragraph 3.4.6 of the 12th Code which provides that:
3.4.6 Registration must be renewed annually or at intervals determined by PhonepayPlus
Registration renewal notices will be sent to the regulatory contact stored on the Registration Scheme in advance of the renewal date. Renewal of registration and payment of the annual fee, where appropriate, must be made without delay. For the period 2011/2012, eligible organisations must register by 1 September 2011.
De-registration
Paragraph 3.4.10 of the 12th Code which provides that:
3.4.10 A registered party which is not providing any premium rate service or is providing only exempt services may de-register at any time but their details will continue to be held by PhonepayPlus for a reasonable period
PhonepayPlus hereby gives notice that organisations that de-register will not be offered a full or partial refund of any registration fees paid.
Due diligence and risk assessment checks using the Registration Scheme
Paragraphs 3.3.2 and 3.4.8 of the 12th Code provides that:
3.3.2 In connection with the provisions of premium rate services which are not exempt services (see paragraph 3.4.2 below), Network operators, Level 1 and Level 2 providers must only contract with other Network operators, Level 1 or Level 2 providers which are registered with PhonepayPlus
3.4.8 All breaches and sanctions imposed under this Code (this edition and any previous editions) on any Network operator, Level 1 or Level 2 provider will be linked to that Network or provider’s registered details together with any relevant information arising from adjudications concerning associated individuals or any other relevant information which is publically held
Once the database has been populated, and before commencement of the requirement to register on 1 September 2011, registered providers will be able to search the information provided by other registered providers on the database. It is the obligation of the organisation using the database to undertake sufficient checks to be satisfied that the information on which they are relying is complete and accurate.
Should there be an investigation into a breach of paragraph 3.1.3 of the 12th Code in relation to a failure to assess and control the risk which a client had presented, a record of any check performed, or otherwise, will be used as evidence.
What a due diligence or risk assessment check will display
In addition to information about a registered party and its director(s), the database will also make available to anyone who performs a check any breaches that an organisation has had on record over the previous three years (for breaches regarded as “serious” by a PhonepayPlus Tribunal) or five years (for breaches regarded as “very serious”).
As organisations register with PhonepayPlus, any relevant breaches will be matched against their record on the database. Organisations that have not registered, but which have breaches against them in the relevant period, will show up on the database where a due diligence check is performed.
PhonepayPlus will also match information of individuals who are associated with previous breaches of the Code to their current and new organisation’s record, so that future potential business partners are fully aware of the individual’s track record and can then undertake effective risk assessment before doing business with them.
PhonepayPlus will also match directors and owners who register as being responsible for more than one provider, so that when that director’s or owner’s organisation is in breach of the Code, this information will be shared on the database. Before such information sharing takes place, PhonepayPlus will offer individuals the chance to validate the connection before it takes an evidence-based decision.
Trial period during which information about ongoing investigations will be displayed on the database
For an initial six-month trial, commencing from 1 September 2011, any checks will also display ongoing investigations into the party against whom the check is being performed. An “ongoing investigation” would, for this purpose, be characterised as follows:
Registration of services
Paragraph 3.4.12 of the 12th Code provides that:
3.4.12 Numbers
(a) Level 2 providers must provide to PhonepayPlus relevant details (including any relevant access or other codes) to identify services to consumers and must provide the identity of any Level 1 providers concerned with the provision of the service
(b) PhonepayPlus will include all such details on the PhonepayPlus Register and those details will be available to be checked directly by consumers
(c) Whenever the information provided under sub-paragraph 3.4.12(a) above changes, the updated information must be provided to PhonepayPlus within two working days of the change
It is the responsibility of the Level 2 provider to ensure each of their services is registered on the database by 1 September 2011. This is to ensure that consumers can immediately check the identity of any service by entering a search on the database against the number or other access code, and obtain a customer care number in respect of the service.
The facility that relates to searches against numbers or other access codes, known as the Number Checker, will be introduced during the period of pre-enforcement to allow for the registration of services by 1 September 2011. The date that the Registration Scheme will be open for the registration of services to populate the Number Checker will be notified in due course.
Each organisation in the value-chain for a premium rate service, (excluding affiliates who would not be defined as a Network operator, Level 1 or Level 2 provider), must register as a provider before any service is provided to consumers.
Providers must register a service within two working days of it being provided to consumers.
Mandatory information when registering services
The mandatory information required for the registration of each service is:
In addition, the facility will exist to allow providers to populate further information on a voluntary basis in order to assist their consumers. This includes:
Any party associated with the delivery of a service can register that service and can assign themselves data ownership – i.e. the ability to amend or supply additional data. In effect, this allows Level 1 providers to register services on behalf of their Level 2 clients. For the avoidance of doubt, the Level 2 provider retains primary responsibility for ensuring services registered by another party comply with Part Two of the 12th Code.
Customer care numbers do not necessarily have to be operated by a Level 2 provider, provided there is a mechanism for receiving and considering consumer complaints as set out at Rule 2.6 of the 12th Code. The Level 2 provider will remain responsible for the operation of its customer care arrangements in compliance with the Code.
Where a service operates on a shared mobile shortcode, the Level 1 provider may choose to designate themselves as the customer care provider. The Level 2 provider retains responsibility for ensuring customer complaints and enquiries are handled in compliance with the Code, but the Level 1 provider will be responsible for ensuring that these complaints are quickly passed on to the Level 2 provider.
Enforcement
PhonepayPlus will continue to monitor premium rate services, and perform other such checks as are necessary, to ensure that the 12th Code is complied with. This will include monitoring of the Registration Scheme to ensure that it is being used in compliance with the Code of Practice.
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As an existing Ready Made Telecom client, you will need to validate the confirmation of your registration when it arrives.
RMT will pre register you in the scheme unless you notify us that you do not wish to be registered. If you generate less than £5,000.00 per year from your premium rate account you only need to be registered on the scheme, you will not be required to pay the registration fee for the first 12 months. It looks as though you will be required to pay the yearly registration fee after the first 12 months.
RMT plans to register the services in your account on your behalf.
Please call or email if you have any further questions. Email questions to info@readymadetelecom.co.uk or call us on 0844 736 2685
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First published by PhonePayPlus 31/03/11
New Code and Registration Scheme
What? Who? When? How? Why?
What?
In 2011, PhonepayPlus – the UK regulator of premium rate telephone services (PRS) – will introduce a new Code of Practice that regulates our industry and a mandatory, industry-wide Registration Scheme.
These changes will affect you as our client, so please read the following information carefully.
Who?
The new Code states that no one can operate a PRS without registering with PhonepayPlus and that you cannot do business with others in the PRS market unless they are registered. This means that if you currently have a contract with us, whether as a client or supplier, the likelihood is you will be required to register. The ONLY exemptions, for an initial 12-month period, are as follows:
0871/2/3 services will be exempt from the requirement to register;
Registered charities engaged in PRS activity and PRS Providers with annual PRS revenue of less than £5,000 will be required to register on the Scheme, but are exempt from paying registration fees.
When?
The new Code of Practice is published on the 30th March 2011. Both the Code and Registration Scheme will come into force on the 1 September 2011. The new Code of Practice requires providers of PRS to register on the new Scheme. If you are contracted with us, this means you need to register by 1 September 2011.
To help everybody in the PRS industry manage this transition to the new Code, the industry Registration Scheme is planned to be open for pre-registration in April and remain open until the end of August. We may pre-register you as one of our clients but you will still need to confirm this registration and pay the fee before 1 September 2011.
How?
PhonepayPlus has aimed to make registration a quick and easy process through the PhonepayPlus website – www.phonepayplus.org.uk. You must first register your organisation and pay the registration fee with a credit card or debit card.
Registration will be valid for one year from when you register and pay the registration fee. The registration fee is set at £100 (+VAT) in the first year, with discounts for ‘early bird’ registration as follows:
• £50 (+ VAT) for pre-registrations in April and June
• £80 (+VAT) for pre-registrations in July and August
If you are pre-registered by us as our client, you will still be responsible for paying the registration fee when you confirm registration, unless you are exempt for paying the fee because:
• You are a charity registered with the Charity Commission for England and Wales, or the equivalent in Northern Ireland and Scotland
• Your revenue is les that £5,000 per year – to quality for this exemption PhoneypayPlus will request your outpayment details from any provider who pays you outpayments for verification purposes.
Once completed you will then be required to register all of your services so that consumers are provided with an almost 100% positive response to number checks.
Following the registration of your organisation, PhonepayPlus will notify industry when service registration opens.
To help smaller providers, PhonepayPlus will offer a free bulk upload service, to industry providers with 50 or more clients, to pre-load basic data to the Scheme. Client organisations will receive an email asking them to validate their registration and pay the fee.
Similarly, for organisations with more than 50 services to register, PhonepayPlus will allow bulk uploads of these services using a downloadable spreadsheet available on the registration homepage.
We will be taking advantage of this service and PhonepayPlus will set deadlines for submission of clients details in April – June – please do not ignore the request to validate your registration when its arrives.
Registration is quick and easy and the required information is as follows:
For organisations:
• Company details – organisational name, address, Companies House number (if applicable)
• Director details – full name and date of birth
For services
• The PRS number by which consumers access the service
• Identity of the next party in the value-chain
• Your customer care telephone number (non-PRS number)
• The identity of the company providing customer care
Why?
As an industry, we have lobbied for a registration scheme that makes our industry more accountable and more transparent, improving consumer confidence and allowing the regulator to focus enforcement action where consumer harm is occurring. The new registration scheme will allow all of us to do better due diligence on other providers and to provide consumer with the best services possible.
Find out more at www.phonepayplus.org.uk
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First published by PhonePayPlus in a newsletter 31/03/11
PhonepayPlus, the UK regulator of premium rate telephone services (PRS), yesterday published its new Code of Practice for the PRS industry. The new Code, widely consulted on with industry and other stakeholders, marks a significant departure from previous Codes and is designed for the digital age.
The new Code of Practice is built around very clearly defined consumer outcomes, such as pricing transparency, good customer service and respecting consumers’ privacy, especially important in the online age. For the first time, PhonepayPlus will directly regulate every part of the PRS value-chain, ensuring that all providers share responsibility for delivering good consumer outcomes, while allowing the regulator to better target that minority of providers who cause consumer harm. The new Code also helps support innovation in the market by allowing providers flexibility in how they comply with the Code, so that they might adapt their services to take full advantage of digital technology, including social networking and smartphone apps.
PhonepayPlus’ Chief Executive, Paul Whiteing, commented:
“The result of over two years’ development, including in-depth consultation with industry and consumer stakeholders, our new Code of Practice is designed to be fit for the future. We are in a fast-moving age for communications, where we are seeing more and more innovative use of micropayments, including PRS, in the digital arena. 2010 saw an explosion in virtual goods, with the market driven by social networking sites expanding by over 400%. We are seeing more and more innovations in the PRS market, from virtual jukeboxes in bars and clubs to charity badges for phones.
“As the market for PRS and other micropayments expands, our new Code of Practice, with its clear focus on what matters to consumers, will be flexible enough to deal with innovations in the digital and micropayment worlds as they happen. We are proud of the new Code of Practice and look forward to working with the PRS industry to build and sustain consumer confidence in these exciting new markets.”
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It’s really easy to get started in the premium rate industry. There are now loads of readymade services out there for you to get started with. These are the best option for people who are new to the business as they are low risk, low maintenance and easy to get started.
Firstly you should find a reputable Premium Rate provider. There are absolutely loads of services to choose from so be prepared, I will let you have some insider information on the most popular services.
Here are the types of services in order of popularity:
I would recommend you start your premium rate number portfolio with at least one live service. Normally you will need to complete a registration form and sign a standard contract, detailing the terms and conditions of the business. Be wary of companies that do not have contracts and strict processes. A good detailed contract is normally a sign that your provider takes this business seriously, will protect your interests and give good guidance.
Payments
Some companies charge simple one off payments and some have a monthly payment system, make sure you get all the information and choose the set up that works best for you. You should either be able to pay for your new premium rate services on their website or over the phone with a credit or debit card. And the majority of companies can have your services set up and ready to advertise within 72 hours from receiving your payment and documentation. You will normally have to provide the premium rate company with details of your bank account so you can have the revenue paid directly into your account. Most companies make their payments this way; however some will use PayPal or other similar system. Not many companies send cheques out now.
Advertising and Promotion
Once you have received your number(s), you need to think about advertising and promoting your new premium rate services. While you are waiting for your services to be made live and ready to use, get in contact with some advertising companies, agencies or try publications direct. Some of the places you can advertise are local newspapers, national newspapers, glossy magazines, free ads and on the internet. You may even choose TV advertising (this may be cheaper than you think too!). Whether you choose adult or non adult services you will need to go through most of the same companies to get your services advertised. Most of the advertising houses cater for adult and non adult publications although some only specialise in adult publications. You can do an easy search online for advertising agencies and get in contact to find out what their adverting costs and packages are. We can also advise on this if required.
If you are not happy creating the adverts / artwork yourself, you can ask the advertising agency to add it to your package, most of them will do it for free, so it’s worth asking, although some will charge you for this service. Alternatively your premium rate number provider may be able to offer you print ready adverts that you can just plug your number into and submit them directly to the magazine or newspaper.
When you get your numbers through from your company, check them. I know this may sound really obvious but just make sure they are working and the numbers are mapped to the correct service. Once you are happy that the numbers are live and correct you can give all the information to your advertising company to get the advert made into proofs. Please ensure you advertise all the correct terms and conditions on your promotional material as it is strict requirement from PhonepayPlus (formerly ICSTIS) regulations.
Make sure you check your advert proofs properly, as once they go through for printing, cannot be amended. And it will be a complete waste of time if something in the advert is wrong. The same applies to advertising in the newspaper; make sure you see your proof.
So now your services are live and your advertisments are out there, you are well on your way to generating your first month’s revenue. Now all you have to do is sit back and wait for the calls to come in.
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1. Ensure you have all the correct terms and conditions advertised with your number. To comply with PhonepayPlus (formerly ICSTIS) regulations you are required to include certain information with your advertisements. This is very important and getting it wrong can result in a fine being levied by the regulators.
3. If you are just putting together an advert to put on another site, then make sure it stands out and your number is really clear. Include a call to action with the number like call this number! Or call now! Again, ensure that all PhonepayPlus guidelines are adhered too.
4. Write unique content for your web page or advert, don’t just copy someone else. It makes a difference.
5. Make sure your web page has META keywords and a META description; this will enable the search engine spiders that crawl the sites to define your site and index it more quickly.
6. Use good pictures and make your pages easy to navigate. People want to be turned on enough to call the number and then come back o your site or advert for round two. Why not try to get them to put the number in their mobile or make a note for them to write it down somewhere.
7. Generally, the dirtier the better when it comes to advertising adult premium rate services on the web. People will come back if you have good content, good pictures and an easy to use website.
8. Links, links, links. When it comes to promoting your website, you will need to spend some time link building, ideally go for sites that are directly related to yours, or one the same theme. If you are promoting an adult phonesex site for example, why not start submitting your website to adult directories, there thousands out there, so get your site listed on all of them. It will take time and effort and can be quite a boring job but it is well worth it in terms of your website promotion.
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If you’ve ventured into the print advertising scene in the past, or you are a current advertiser. You’ve no doubt found out how easy it is to waste your budget and lose money quickly. However, at the same time, print advertising can be a very profitable method of promotion, with a quick turnaround on investment. Many people are making small fortunes through their print advertising operations.
Below are some of the main points to consider when using print advertising as a method of promotion:
Effective tracking of campaigns – using multiple numbers of the same service to track variations in ad design and places of publication. Sometimes something as simple as a change of headline text can switch an ad campaign from a loss to a profit. We are happy to provide multiple numbers for use in different campaigns.
Negotiation with the publishers – advertising salesmen will generally offer you their book price from the start, which they will expect you to negotiate downwards. I would half the initial cost straight away. Once you build a rapport and they know you are a serious advertiser, they will generally be accommodating. Ask them for “late space” deals, which all publications have available when their deadline is approaching.
Making use of residual effect – basically, most publications have a long tail effect. This is especially apparent with adult magazines, which can produce income for up to 2 years from date of publication. The more adverts you have out there, the larger the base level of residual income, you are creating. Over time, this makes your advertising efforts more likely to turn a profit when taking into account your overall portfolio.
Thinking outside the box – there is clearly a lot of competition in the print industry from very established players. You may find that publications such as FHM actually have exclusivity deals with other providers and will not allow the advertising of adult services. It’s important to look at how you can do things differently. Most people will follow the crowd. All you need to do is get a copy of the daily sport and you will see thousands of similar ads. What is going to make your advert or proposition different and unique? Sometimes it is possible to “spin” an existing idea or service to appeal to a different audience, for example.
Economies of scale – let’s take the daily sport, for example. In terms of £ per column inch cost, we found that this figure could be drastically slashed by buying a half page and then splitting it up into smaller advert units. This space could even be resold (as an agency would do) to recover the cost. You could resell a quarter page, probably cheaper than from the sport direct, and recoup enough money to effectively make the other quarter page “free” for you. This is obviously easier said than done but you get the idea.
Advertisement Size – In terms of visibility, we normally recommend quarter pages or larger in publications. The smaller ads tend to get lost in the competition. We found the better % returns on investment came from the larger sized adverts. They are also normally discounted in terms of £ per column inch, and therefore obviously better value.
Run length – most publications offer further heavy discounts for booking space in advance. If you book space for the next 12 months, you can expect a much better deal. You can also then normally negotiate the better positions. i.e. inside covers, top right pages, etc etc
Payout rates of services – This one goes without saying. Getting the best possible payout rates for your services can actually be the difference between making and losing money for some people. Across the industry, payout rates vary wildly. Bluewave Media offers competitive payout rates and can almost always match or exceed your current supplier rates. If you are considering allocating a budget to print advertising, please feel free to contact us to see if we can improve your payouts for you.
The main point you should take away from this article is that print advertising is not necessarily the “get rich quick” solution that many people think it is. It can however, produce extremely impressive results, if you can get the various factors correct and working for you.
We have strong links with several agencies who specialise in premium rate advertising. Please contact us on 0844 736 2685 for details.