OWN THE MESSAGE

Coffee News licensees enjoy uniquely local advantages for a stand-alone or add-on business

When Paul Bayer became a real estate agent, he wanted to find a way of building his name and awareness in the local community. He got talking to the local owner of Coffee News, a free publication funded by local advertising which is distributed around cafés, waiting rooms and other businesses.

When she mentioned she was moving on, he could immediately see the synergy with his real estate work. What better way to start his new sales career than by owning his own effective marketing tool?

‘I saw the value in having something that the community loved to read which, at the same time, would build up my network with local businesses,’ says Paul. He bought the Hibiscus Coast territory for the publication and his idea quickly paid off.

‘I was building my real estate business at the same time, so it was a very busy couple of months for me! The first round of deliveries was so interesting. I walked into most businesses in suit and tie, looking like a real estate person, and quickly learned that most owners were more approachable when I held a copy of Coffee News next to my face as a point of recognition when I introduced myself. This quickly became a fast way to build friendships and trust with a hyper-local network that no other real estate salesperson had access to.’

And with Coffee News also generating income, Paul reckons he’s on to a winner.

Paul Bayer

Reaching local people

Coffee News was founded in 1988 by Canadian advertising psychologist Jean Daum as a way for small-to-medium businesses to promote their products and services. Its quick-read format of entertainment, trivia, comical stories, horoscopes, positive news and local events is now enjoyed by millions in nine countries around the world.

‘Coffee News was launched in New Zealand in 2001, and I became Head Licensee for the publication here in 2021,’ says Rudy Kokx. ‘While many of our 21 licensees here run their operation as a stand-alone business or a side-hustle to the day job, Paul’s approach was different. As a business broker myself, I know the value of effective marketing – and I could also see the value for people like Paul of being a well-known part of the local business community.

‘When you start out in real estate, mortgage broking, insurance or many other sales-based careers, you’ll find lots of experienced competitors with bigger marketing budgets than you can possibly afford. That makes it hard to establish a steady cashflow to pay the bills.

‘Well-established agents might spend $8-10,000 a year on advertising or marketing. But what if, instead of paying for your advertising and marketing, you own a marketing machine that gets you out talking to people, connects businesses, reaches a wide demographic (including the ones not glued to social media) – and generates a steady cashflow for you to offset the ups and downs of sales? That’s what Paul understood, and it’s enabled him to make money from his own marketing rather than just spending it.’

Simple to operate

Coffee News is simple to operate. Editorial content is created by a central team of writers and provided in a standard template each week. Licensees buy the right to an edition covering a specific area, set up distribution outlets in the area, and sell the 32 available advertising spaces in the double-sided publication to local businesses – usually for a minimum 4-month term. Any local business is a potential advertiser, especially service businesses, from lawn mowers to lawyers, carpet cleaners to car mechanics.

The adverts themselves are compiled and inserted in the template for each issue according to a standard template, and printed. This can be organised by the licensee direct or arranged by the Coffee News support office. The licensee then delivers the issue to the outlets in their area, creating the opportunity to build relationships, meet people and make new contacts.

‘The financial rewards are dependent on the number of advertisers each issue,’ Rudy explains. ‘One area would be a rewarding part-time business, while three areas would be more of a full-time commitment.

‘Income depends on the number of adverts sold and the price achieved. With all 32 adverts sold at the recommended minimum price of $40 per week, gross income would be $1,280 per week. After deducting direct costs including fees, printing and petrol, licensees can achieve a gross profit of $1,000 per week ($52,000 per year). Once established, most work 5-10 hours per week in the business to generate this income.’

A worthwhile investment

‘For $8,000 +gst you can own your own Coffee News licence,’ Rudy says. ‘That includes full initial training, 80 display stands, our best-ratepossible for printing and sales collateral. There are no licence or design fees for the first three months, there’s ongoing mentoring, and you’ll also have access to the worldwide resources of the Coffee News College website.

‘With Hawkes Bay, Blenheim/Nelson, New Plymouth, Papakura and Manukau having been granted in the last six months, we still have new areas available in Wellington, Hamilton, Whanganui, Gisborne, Taupo, Invercargill, Queenstown and Timaru, as well as existing areas in East Auckland and Dunedin.

‘If you’re looking for a way to make your name in your local business community and establish your own successful small business, contact me now.’

Advertiser Info

Coffee News

www.coffeenews.co.nz

Contact Rudy Kokx

P 021 421 346

rudy@coffeenews.co.nz