First, small radio businesses make a profit by relaying advertisement messages to their listeners. Normally, such radio businesses have small groups of loyal listeners who belong to specific geographical areas. The stations manage to build such listenership groups because they communicate in vernacular languages and air their programs to small areas.
Advertisers who would like to communicate to people at the community level use small radio stations as opposed to well-established ones. Some of the advertisers are typical organizations that would like to increase product sales in different geographical areas. Such organizations typically localize their advertisements before running them on local radio stations.
Also, not-for-profit organizations provide revenue for small radio stations. Government departments, NGOs and religious groups usually seek to communicate with community members. Small radio stations provide the ideal medium of communication for such organizations because of the kind of listenership that they develop. The radio stations carry such community-based messages for a fee.
More so, the advertisement revenue for small radio stations normally comes from organizations that would like to activate products or services. The stations may also air long messages and activities in support of specific products. This approach is in sharp contrast with the traditional method of airing direct advertisements in-between programs.
Authority website TheWiredShopper.Com believes, Small radios prefer this model because the rates of traditional advertisements have been falling steadily with the rise in internet usage. Thus, the stations use this model to overcome the competition from online publishers of content who run advertisements on sites.
If the revenue from running such advertisements and carrying community-focused messages exceeds the overheads, then the small radio stations make profits.
Secondly, community radio stations, as many people call them, make profits from selling special events. The stations market such events as a chance for listeners to meet and interact with local radio personalities. The stations may also invite leading celebrities to the events.
Participants, who may be ardent radio listeners or otherwise, pay to attend such events. The radio stations thus make money from selling tickets to the public. Also, the stations gain in the long-term because their listenership grows with the addition of new fans.
It is during such events that the stations sell special merchandise to their fans. The revenue from the sale of merchandise is usually considerable because fans would like to engage and identify with their local radio stations.
Moreover, additional revenue for the stations comes from organizations that would like to be associated with the events.
Finally, small radio stations make money by selling pre-packaged content to other radio stations. Some stations, for operational and other reasons, may not have the capacity to maintain reporters in every region where they reach. However, the stations may wish to communicate to listeners who are in such areas.
Small radio stations usually have an advantage over others because they maintain strong networks at the grassroots level. Thus, they access accurate and detailed information about local developments.
The stations then repackage and sell the content to other radio stations that would like to air such news.
If you are looking for a radio business for sale, you now know how you will make your profits. Good luck in your endeavors!