What is an acceptable rate for managing billboards? Can you charged based on the advertising amount that you get for the billboards?
In my opinion…you should get 10 to 15 percent of the billing.
15% of the gross revenue is pretty much the standard. That being said, you may have to adjust that number up (or down) based on the revenue of the sign. You are not going to want to manage a billboard that rents for $200 per month for just 15%, and a sign in Los Angeles that rents for $20,000 per month is going to be lower than 15% (unless you are a really good negotiator).
who are some companies that manage billboards? I might intertain the idea if someone is interested in managing my boards for me. This would save me in collecting the revenue and help with getting more per month in revenue too.
There are not many people who manage billboards, outside of extremely high revenue signs in big cities that can allow for hefty fees. Everyone that I know manages them personally. If a sign rents for $500 per side per month, and assuming two sides and a management fee of 15%, there would only be $150 per month in management fee income, from which the manager would have to market, drive to meetings, spend time on the phone, etc. – not enough to attract anyone. You’d have to manage 20 faces just to make $18,000 per year. And a management company would tend to focus on only the highest revenue faces, so your sign would be empty constantly. Only the sign owner cares enough to manage it right.
Well I was thinking of trying to start an management company in the mid atlantic region and it sounds like there might be some opportunities. If people are willing to pay 15% of small fees that could add up if you can get a few mid sized clients.