Signs of the Times: Advertising - Slow Payments May Indicate Business Downturn
Advertising plays a big role in supporting newspapers, magazines and online publications and networks. When there’s a slowdown in the economy businesses cut back in advertising, may become slow in paying, or don’t pay. After all, the ad has run, now why jump to pay if there are other more pressing bills to keep their company going.
This is not to say advertisers intentionally cut back or slack off paying. Their cash flow simply decreases if sales of products and services are off. They may wish to advertise and involve themselves in promotions, but the money isn’t there to allocate. If they’re on a 30-day credit, that 30 days may extend to 45, 60 and even beyond.
This happened when I was a newspaper reporter…advertising was one of the last bills pay and one of the first items to cut when a company had a slowdown for any reason. My time at the newspaper was decreased to parttime simply because the newspaper didn’t have the revenue coming in to keep up with all its bills and employees’ pay.
If you have a home business that depends on others advertising on your blog, web site, or publication, you need to keep alert when advertisers put you off or start getting slow to pay.
If you’re on an affiliate program, keep up to date regarding payments. If someone owes you payment for freelance work, make sure you know when payment is due. If you’re subcontracting, don’t let the contractor get behind on paying you, as happened with my husband once.
Do you have experiences to share regarding your business being affected by advertising or a slow economy?
Related Post: Signs of the Times to Watch for in Your Home Business
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(c)2008 Mary Emma AllenTags: advertising, business concerns, business finances, business slowdown, cash flow, home-+-biz-+-notes, home-business, Mary-+-Emma-+-Allen