If you are starting a radio station, you ought to know all your possible sources of revenue.. (This holds true even if you want to start a community radio station  or a christian radio)

Any project which is not built on the pretext of  viable economic inflow of income is not sustainable in the long run. Thus having an income plan is essential for starting a radio station.

This post talks about a very simple but very effective method to build an income plan for starting a radio station business.

Income for a radio station primarily comes from 2 sources.

1. Revenue from broadcasting advertisements

2. Revenue from subscriptions and contributions

Revenue from broadcasting advertisements constitutes around 90% of a typical commercial radio station total revenue stream.

Contributions and donations form a major portion of revenues for a community or a christian radio station.

Revenue from broadcasting advertisements

If you plan to start commercial FM radio station, you will have to plan out  policy for broadcasting advertisements on your radio station.

The rates you would charge for broadcasting advertisements on the radio station would be the first thing to be decided. These rates are generally designed in terms of time of broadcast of advertisement or in terms of number of times relayed per hour.

As regards fixing this rate you will have to study the rates being offered by other radio stations in your city.

You can contact any radio station in your area posing as a potential advertiser to find out the rates.  They will be more than glad to tell you about all their plans and schemes for their advertisers. This will then form your back bone for devising your own income plan.

Revenue from subscriptions and contributions

Community radio stations on the contrary will have to rely on their donors or from subscriptions from the members of the community for which you want to start radio station. To decide at the subscription rate payable per month by each individual, you will first have to estimate your monthly expenses and divide it by the number of subscribing community members.

Now while I take your leave, you should take up this exercise to contact any radio station in your area over the phone or in person and collect their advertisement plans and scheme details earnestly.

More on this in the days to come..

If you are really interested in starting a radio station, you can begin with this book of mine titled: ” A step- by step guide to start a radio station “ which  available for instant download at just USD 9.97.

The e-book literally handholds even a total new comer, as it takes him through the entire process of starting a radio station in very simple and easy to understand steps.

Get your copy now!

P.S: You can also download a FREE book titled “Essential Financial Planning for starting a radio station”. This book explains all that you need to know about financial planning for starting a radio station.