Billboards are timeless.
Even with the rise of digital technology, they remain a successful advertising strategy.
However, you probably never imagined that a solopreneur can make $30,000 a month from it (part-time!).
But it’s from Chris Brown Good signs and wantmore.org has done in the last ten years.
Chris took early retirement at age 42 and currently owns about 30 billboards around Bentonville, Arkansas.
Tune into episode 608 of The Side Hustle Show to find out:
- how to find billboards for sale
- find places where you can post
- how to fill that ad space
- how passive he is when he starts work
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Stumbling Against Billboard Side Rush
After college and struggling with debt, Chris also just got married.
Only when making a profit $8 an hour In an unstable pharmaceutical job that could get him fired at any time, Chris realized something wasn’t working with his finances and set about building wealth and getting out of debt.
After passing the same crappy billboard every day, he sensed an opportunity.
He searches for a property owner, makes an offer, and buys the derelict billboard (plus the land) for $75,000.
Maybe he got lucky because the owner was on the brink of bankruptcy, but they both benefited.
With a prime location between neighborhoods and schools, he priced each ad at $600, for a total of $2,400 a month.
It has become profitable and a true passive income stream as some advertisers have stayed for over a decade.
Increase: More billboards, more upfront costs
With the success of his first billboard, Chris found it difficult to continue growing his inventory.
Chris’s next project involved the construction of a two-story billboard structure on a 3-acre commercial site he acquired.
Between the purchase price of the land and the construction costs, the total initial price tag was around $200,000.
However, Chris can already create 8000 dollars Billboard has rental income from 8 monthly advertising spaces.
“That math works pretty well all day,” Chris says of the sweet potential earnings, even after factoring in the large upfront investment required.
Why Billboards Are Limited Commodities
While the initial costs of building or purchasing billboards can be high, billboard owners enjoy a huge advantage—there is a very limited supply of these advertising assets.
This is due to scarcity Law on improvement of highways It was passed by Congress in 1965. The act severely restricted the installation of new billboards along federal highway systems.
“About a hundred years ago, billboards weren’t banned anywhere,” Chris explained. “You could put them anywhere you wanted, which made them worthless.”
So when you have a lot of supply, the demand goes down because there isn’t much price to discover for it.
Of course, the same legislation has made it much more difficult to get approval for erecting new billboards these days. The permitting process requires overcoming many regulatory hurdles federal, state, county and municipal levels.
Attracting Advertisers and Maximizing Billboard Revenue
One of the simplest ways is to simply post your phone number or website on any empty billboard, saying “Here’s your ad!” is to stick with something like a call to action.
“People are going to drive by these signs, they’re going to see them. And by default, they’re going to call or ask if they have a business or want to run one.” Chris said.
Placing temporary banners or vinyl wraps makes it easy for any interested business to find out about available inventory.
Pricing Models: Terms, Traffic, and What’s Available
For pricing, a typical billboard rental is at least 12 months to cover the initial costs of printed vinyl wraps and installation. Chris noted, “Some are as short as 1 to 6 months, just depending on the location.”
The most important factors affecting monthly rates are traffic numbers and the number of advertising faces already active in a given area.
Even if the raw traffic count is less than in more congested areas, you can get higher prices on a billboard that’s the only one for miles on the highway. This is a classic game of supply and demand.
State highway counts are public data points used to estimate the number of potential impressions. Again, factors such as commercial density and competitive inventory affect pricing.
Also, the industry standard is for advertisers to pay printing and installation costs separately.
Static and Digital Billboards: Pros and Cons
There are also key differences between traditional static billboards and the newer digital/LED displays.
Static billboards are basically large-print vinyl wraps that display the same ad 24/7 until the lease expires or the advertiser changes. They have low ongoing maintenance costs, but require reprint costs with any new creative ad updates.
Digital billboards typically rotate different ads on a loop that repeats every 6-8 seconds.
This allows for more ad inventory for digital signage compared to static signage.
However, initial and operating costs for digital signage are higher with large LED screens for power and maintenance. Advertisers can get away with shorter lease terms on digital displays instead of annual commitments.
“Personally, I like the old static science best. I don’t care; they’re always up as long as they don’t get blown over by the wind,” Chris said of choosing between static or digital billboards.
Increase in Shareholding in Billboard Ownership
While the monthly cash flow from billboard rentals is attractive, the real wealth-building potential lies in their capital growth. income generating assets.
The big national operators like it Lamar Advertising and Foreign media regularly acquire independent billboards at valuations ranging from 7-12 times the annual revenue stream.
These big players are always looking to grow their network through mergers/acquisitions. So, when any individual or group decides to sell a billboard asset, they can command high prices from potential buyers.
Let’s say you have some billboards that bring 100 thousand dollars every year after expenses and all are paid. This means your billboard business will be worth $700-1.2 million!
Techniques/Tools
You might be surprised, but Chris keeps his operations pretty low-tech and streamlined.
No fancy proprietary software or complicated system required.
In most cases, they use basic spreadsheets to track everything – advertiser contact, contract dates, revenue reports, and all the basics.
One of the notable tools used by Chris LandGlideuses for real estate and scouting possible new locations for billboards. This app shows you “who has what, where, lots of lines, all that kind of stuff.”
It essentially maps county parcel data and property records in an easily accessible mobile interface.
Ideal billboard spots are visible from neighboring properties, road, etc. The spatial exploration process is key as it requires careful evaluation.
A (Mostly) Passive Day in the Life of Chris
With so much complexity in zoning, permitting and new construction logistics, you’d think managing a portfolio of billboards was a full-time operation.
According to Chris, today is actually relative passive apart from some basic administrative work.
“It’s been a bit boring,” Chris said.
On most weeks, he only spends about 5 hours on the core tasks of managing the billboard business. Responding to inquiries from potential new advertisers, managing contract renewals and the like.
Mistakes or surprises along the way
Chris expressed his surprise that more people don’t value consistency and long-term investment approaches and instead prefer quick-money schemes.
Everyone wants an overnight success story, but these are the extreme exceptions, not the rule.
In fact, shortcuts can delay your financial freedom even further.
Building real wealth takes time and consistent effort, small actions make a big difference over ten years.
What’s next for Chris?
Chris’s goal for this year is to double the number of billboard faces in his portfolio in the next two years and launch a new coaching course called Billboard Academy.
This will be a chance for him to pull back the curtain and give people a proven plan they can follow.
“I want to help others create wealth, get out of the rat raceand achieve that financial freedom.”
So stay tuned for that as it’s coming over the next few months.
Interested students can get Free preview on Chris site. There, visitors can download a free guide that introduces the passive income potential of billboard ownership.
Chris also hopes that his entrepreneurial story can inspire others to take control of their own lives and financial futures, just as he came from humble beginnings.
His non-profit organization Good signs combines the principles of entrepreneurship and giving back.
Chris’s #1 Tip for Side Hustle Nation
“It’s about who you are, not who you are.”
Episode links
Download Your Free Bonus: 25 Other Unconventional Rental Ideas
25 Other Non-Traditional Rental Ideas
What else can you rent out for profit? Here are some ideas!
Enter your email to download the full list now:
You’ll also receive my top tips and weekly newsletter. Opt out anytime.
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