I have some questions about how a few things work in the billboard business.
1.) In a ground lease contract, should the royalty to the landowner be a percentage of the gross revenue for the sign or a fixed payment? It seems that each has poitive and negative features. The percentage payment reduces the risk to the billboard operator if they are unable to rent the sign for a period and it allows the landowner to benefit if the rent increases. The fixed payment establishes a known income stream for the landowner (with little or no upside in the short run) but it puts the billboard owner on the hook even if the sign goes unrented or if rental revenue is low. Just wondering how things are typically structured?
2.) I have read your material on building low cost wood signs as a way to get into the billboard business at a low cost. However, I was wondering if there are safety regulations that cover signs? For example, do walkways below the sign face need a tie-off point or railings like I see on some of the fancy ($$) monopole units? Also, what is your experience with submitting plans for wood signs? Do you just draw a sketch with dimensions and specs and have an engineering consultant to the wind load calculations for submittal with the permit materials?
3.) How is the production of artwork coordinated with a sign customer? Do you have a third party vinyl graphics company work with the customer or does the billboard owner need to invest in software, etc. to produce graphic art that is then taken to a printer. Just wondering how that part of the business can be handled by someone who is just starting out.
Thanks for your time in advance!