What will I be doing?

The "shopper" is an advertising publication that has been around for nearly 50 years but had its heyday between 1965 and 1975. This publication sprang up around the country, challenging newspapers for advertisers. It did so by offering free circulation and low-cost ads. In fact, the classified ad rate was often 5 cents a word, hence the name "nickel ads" that many of the shoppers picked up.

Inflation has increased ad rates to 10 to 25 cents a word, but the concept is still profitable: low-cost, high-circulation advertising. If you have experience selling or producing print advertisements, developing a shopper for your town or region may be a lucrative home-based business for you. Once you publish the shopper, you will have to see to its distribution, either by mail or by displaying it at local stores so customers can help themselves to it.

What will I need to start?

To attract readers, most newspapers limit advertising to less than 50 percent of the available space. Shoppers don't use the same limit. In fact, many shoppers are 100 percent advertising. Others use a feature story on the front page to draw readers to the advertising-filled pages.

The greatest skill you'll need to publish a shopper is salesmanship. You will make most of your money from the commercial display ads in the publication. Small classified ads bring income, but the expense of gathering and billing for them eats up most of the profit. Learn to sell display ads and your shopper has a greater chance of success.

You will also need a computer and some desktop publishing programs for the design and layout of the ads. If your budget is small, consider starting as many of the early shoppers did: simply cut ads from newspapers and sell placement in your shopper to the advertisers. The layout work is done for you. The classified ads can be produced with a typewriter with carbon ribbon.

You'll also need a printer. Smaller shoppers can be produced on a photocopy machine or quick-print press. Larger shoppers are published on newsprint by a web press (sometimes by the competing newspaper!).

Who will my customers be?

Customers for your shopper advertising will be small businesses and individuals wanting to sell or buy products and services. Most frequent advertisers are used-car dealers, second-hand stores and small discount stores.

You can get classified ads by calling up those who advertise in the local newspaper's classified section and telling them your circulation and ad rates.

How much should I charge?

Advertising is sold by the column inch. A shopper may have four to six columns of classified ads on a page. A column inch is one column wide and one inch high. A page with five columns of 15 inches has 75 column-inches per page. If your customer's ad is two columns wide by 5 inches high or 10 column-inches, and your rate is $4 a column-inch, the ad will cost $40.

You can calculate your column-inch rate by figuring costs, but you will also need to compare it with the rate the newspaper and other shoppers in the area charge the same advertisers.

How much will I make?

Your printing bill will take one-third to one-half of your income. A home-based shopper publisher will typically have a net income of 30 to 50 percent of gross income. So to earn a net income of $30,000 a year you'll need a gross income from advertising of $60,000 to $90,000 a year.

How can I get started?

First, study your potential competition. Pick up local newspapers, shoppers and any other publications that carry local advertisements. Study the publications and ads carefully. Contact the publications to find out what advertising rates are. Calculate income for an issue.

Second, talk with potential advertisers to find out whether they would support another publication. Are they willing to sign a contract in exchange for a discount? If so, you may find the cash you need to start.

The SIC code for shopper publications is 2741-09.

How can I use computers to increase profits?

Shoppers are popular because they save readers money. That means the publisher must also save money to make money. Computer publishing progams have streamlined publishing, making it easier for one person to take the ad, enter it into the computer, publish it, bill it, and collect money using a single program.