Sunday, January 15, 2006
Mistakes Catholic Radio Groups Make When Starting A New Station
Lately, I've been reading about Catholic Lay groups all over the country actively persuading a radio station for their town or city. While I think this is fantastic, many well meaning folks are making classic mistakes that are costing thousands of dollars.
As a 40+ year veteran broadcaster, I am concerned that well-meaning, hard working, and inspired catholic groups are "clueless" when it comes to radio and how the process works, yet are too proud and too concerned about "chest thumping" about what we've accomplished. In some cities, there are even rival Catholic groups, that rather than joint together in their efforts to get a station up and running, will actually compete with each other for facilities, endorsements, and even the blessings of the local diocese.
What kinds of mistakes are being made and at what cost. Let me look a a few of the bigger ones first:
Mistake number #1. Not getting professional help when attempting to purchase a station. Many well meaning groups will approach the owner of a local station with "I represent a group of Catholic businessmen looking to start a Catholic station. Would you be interested in selling your station?" The answer is ALWAYS yes. That is, as long as you are willing to over pay for it!!!! Over 50% of ALL AM radio stations in the United States and Canada LOOSE money. Most owners can't GIVE AWAY their AM stations, let along sell them for a profit. That is, unless those rich CATHOLICS are interested.The correct approach is to hire a Media Broker. Then the broker will approach the owners of potential stations and inquire whether they might be interested in selling. The potential buyer (the Catholic group) remains anonymous! Once it is determined that they are interested in selling and the proper price is established, then and only then, does the seller know who is interested. In several deals I have looked at, Catholic groups over pay by up to 100%. That's right, they pay double what the station is worth!
Mistake #2. Would be Catholic Radio owners consider the purchase of a station the END when it is actually only the Beginning! Raising the unnecessary money to purchase the station and get it on the air is only the beginning. You have to have the additional money for capitol improvements and the necessary money to operated the station the first year and EVERY year their after. If the group raises 600,000 thousand to buy a AM daytimer, they must then have the needed money to improve the facility (and they all need improved), and run the station, paying for staff, programming, promotion, marketing, and necessary maintenance. It is these ongoing expenses that will make or break a station. I've seen two Catholic stations in my area come and go for lack of operating money.
Mistake #3. Wishful thinking is not a strategy! Many Catholic station operators confuse wishful thinking with praying for success. You are never going to wish a station successful. It takes a plan. A well thought out strategic marketing plan is a must. How are we going to raise the necessary money to operate? What facilities upgrades are needed? How do we merge our web site to the radio station? What about fund raising? Are we going to sell commercials? Underwriting? What about local programming. Planning NOT prayer, is necessary to make this happen. Not to say that prayer isn't necessary or even mandatory, but so is strategic planning.
Mistake #4. You can't have an impact where you can be heard and you can't raise money when potential donors can't listen. Often times Catholic groups are buying AM stations that lack the coverage area to impact an entire diocese or even an entire county of city.One operator told me, Look at this coverage map I got from the old owner. They cover three counties!". Never believe a coverage map! The coverage map is the best possible coverage that station could ever reach if everything was engineered correctly and the facility was new, the ground system was new and you could turn back the clock and return to a time when the number of facilities was less. The 3mvm coverage area is closer to reality (that's the smaller of the two circles on the coverage map), and even then cut that back by 25%.Here is the dilemma that is caused. The Catholic station will set up fund raising efforts throughout the diocese. All goes well and people are excited about the new station and will support it worth a check. That is, until you get to the parish that is just outside of the REAL coverage area. Then you will hear, "but it doesn't come in here." Or could you turn up your power? The money doesn't come. And the "reach" of the station limits where you can fund raise.
Mistake #5. Raising money to buy the station and even operate it the first year is EASY compared to raising the money necessary to sustain the station over many years. In business we talk about "cocktail party money". That's the money that every one is willing to invest when you're project is still a ways off and you're trying to gauge the interest. But things have way of changing ONCE the station becomes a reality. Now those same people that said they would help, have given their money to another cause, are tapped out, just send a nice check to Hurricane relief or the missions etc. The apologize, but they just don;t have it for the new Catholic station. And that's the EASY part! Once the station is on the air, people will give. That is, ONCE! When you go back the second or third year, their response is,"I have already given to Catholic radio." And indeed they have. But that was to get on the air, now we need the money to continue.So what then makes the money come in in years two through forever.
The answer is PROGRAMMING! consistent, high quality, compelling, local programming, pure and simple, will keep the donations coming in. And that means that just running the entire schedule of programming from EWTN won't get the job done. Sorry to say, with all due respect to EWTN, it really is a prescription for failure.The programming must be consistent, day in and day out year in and year out. It must be high quality. Simply rebroadcasting a television program (even a good one) doesn't often make the transition to radio well. It must be compelling. Both the subject matter and the way it is presented have to be something that will hold the listeners attention. And it must be local! Not every show, but a few MUST be local. They must be hosted by local people and discuss local topics.
Radio, especially in this age of new media choices, is a tough business. It's not for the weak of heart. And it is not for amateurs. That is why we at Nick Anthony & Associates are offering to help.
In 2006, we'd like to help as many Catholic stations not only get on the air by stay there. And to do so we are making our services available to Catholic stations and prospective stations for a fraction of what we would charge to commercial stations.We'd like to hear from groups that could use our help. We would be happy to do an initial consultation, over the phone, free of charge. We can explain what we do and how we can save you're group several times the money that our consulting agreement will cost. Why not take advantage of our free offer. Call our office at: 330-864-2268 to set up a time to talk. Or e-mail us at Catholicradio@nickanthony.com.
As a 40+ year veteran broadcaster, I am concerned that well-meaning, hard working, and inspired catholic groups are "clueless" when it comes to radio and how the process works, yet are too proud and too concerned about "chest thumping" about what we've accomplished. In some cities, there are even rival Catholic groups, that rather than joint together in their efforts to get a station up and running, will actually compete with each other for facilities, endorsements, and even the blessings of the local diocese.
What kinds of mistakes are being made and at what cost. Let me look a a few of the bigger ones first:
Mistake number #1. Not getting professional help when attempting to purchase a station. Many well meaning groups will approach the owner of a local station with "I represent a group of Catholic businessmen looking to start a Catholic station. Would you be interested in selling your station?" The answer is ALWAYS yes. That is, as long as you are willing to over pay for it!!!! Over 50% of ALL AM radio stations in the United States and Canada LOOSE money. Most owners can't GIVE AWAY their AM stations, let along sell them for a profit. That is, unless those rich CATHOLICS are interested.The correct approach is to hire a Media Broker. Then the broker will approach the owners of potential stations and inquire whether they might be interested in selling. The potential buyer (the Catholic group) remains anonymous! Once it is determined that they are interested in selling and the proper price is established, then and only then, does the seller know who is interested. In several deals I have looked at, Catholic groups over pay by up to 100%. That's right, they pay double what the station is worth!
Mistake #2. Would be Catholic Radio owners consider the purchase of a station the END when it is actually only the Beginning! Raising the unnecessary money to purchase the station and get it on the air is only the beginning. You have to have the additional money for capitol improvements and the necessary money to operated the station the first year and EVERY year their after. If the group raises 600,000 thousand to buy a AM daytimer, they must then have the needed money to improve the facility (and they all need improved), and run the station, paying for staff, programming, promotion, marketing, and necessary maintenance. It is these ongoing expenses that will make or break a station. I've seen two Catholic stations in my area come and go for lack of operating money.
Mistake #3. Wishful thinking is not a strategy! Many Catholic station operators confuse wishful thinking with praying for success. You are never going to wish a station successful. It takes a plan. A well thought out strategic marketing plan is a must. How are we going to raise the necessary money to operate? What facilities upgrades are needed? How do we merge our web site to the radio station? What about fund raising? Are we going to sell commercials? Underwriting? What about local programming. Planning NOT prayer, is necessary to make this happen. Not to say that prayer isn't necessary or even mandatory, but so is strategic planning.
Mistake #4. You can't have an impact where you can be heard and you can't raise money when potential donors can't listen. Often times Catholic groups are buying AM stations that lack the coverage area to impact an entire diocese or even an entire county of city.One operator told me, Look at this coverage map I got from the old owner. They cover three counties!". Never believe a coverage map! The coverage map is the best possible coverage that station could ever reach if everything was engineered correctly and the facility was new, the ground system was new and you could turn back the clock and return to a time when the number of facilities was less. The 3mvm coverage area is closer to reality (that's the smaller of the two circles on the coverage map), and even then cut that back by 25%.Here is the dilemma that is caused. The Catholic station will set up fund raising efforts throughout the diocese. All goes well and people are excited about the new station and will support it worth a check. That is, until you get to the parish that is just outside of the REAL coverage area. Then you will hear, "but it doesn't come in here." Or could you turn up your power? The money doesn't come. And the "reach" of the station limits where you can fund raise.
Mistake #5. Raising money to buy the station and even operate it the first year is EASY compared to raising the money necessary to sustain the station over many years. In business we talk about "cocktail party money". That's the money that every one is willing to invest when you're project is still a ways off and you're trying to gauge the interest. But things have way of changing ONCE the station becomes a reality. Now those same people that said they would help, have given their money to another cause, are tapped out, just send a nice check to Hurricane relief or the missions etc. The apologize, but they just don;t have it for the new Catholic station. And that's the EASY part! Once the station is on the air, people will give. That is, ONCE! When you go back the second or third year, their response is,"I have already given to Catholic radio." And indeed they have. But that was to get on the air, now we need the money to continue.So what then makes the money come in in years two through forever.
The answer is PROGRAMMING! consistent, high quality, compelling, local programming, pure and simple, will keep the donations coming in. And that means that just running the entire schedule of programming from EWTN won't get the job done. Sorry to say, with all due respect to EWTN, it really is a prescription for failure.The programming must be consistent, day in and day out year in and year out. It must be high quality. Simply rebroadcasting a television program (even a good one) doesn't often make the transition to radio well. It must be compelling. Both the subject matter and the way it is presented have to be something that will hold the listeners attention. And it must be local! Not every show, but a few MUST be local. They must be hosted by local people and discuss local topics.
Radio, especially in this age of new media choices, is a tough business. It's not for the weak of heart. And it is not for amateurs. That is why we at Nick Anthony & Associates are offering to help.
In 2006, we'd like to help as many Catholic stations not only get on the air by stay there. And to do so we are making our services available to Catholic stations and prospective stations for a fraction of what we would charge to commercial stations.We'd like to hear from groups that could use our help. We would be happy to do an initial consultation, over the phone, free of charge. We can explain what we do and how we can save you're group several times the money that our consulting agreement will cost. Why not take advantage of our free offer. Call our office at: 330-864-2268 to set up a time to talk. Or e-mail us at Catholicradio@nickanthony.com.
