To:  All Publishers

We are writing to inform all AWN members of various fiscal changes we are making in the sales cooperative in order to prepare the organization for a very difficult national advertising picture for 2009.

As a result of the decline in sales revenue in 2008, and potential further erosion of advertising revenue in FY 2009, HanzlikMedia Management offered several solutions with the objective of advancing the representation competency of AWN, while at the same time more responsibly deploying AWN’s financial resources.   These proposals work alongside several Strategic Plan initiatives that were introduced by HanzlikMedia earlier in the year.

The AWN Executive Committee convened a small task force in November to look closely into the budget issues facing AWN and the various initiatives that would affect revenue directly.    As a result, AWN’s primary vendor and operating hub, Hanzlik Media reduced operating fees 33% in 2009 and the AWN marketing/ operational budgets were also reduced in 2009 to keep in check with the projected reduction of revenue.

Additionally, the following modifications to the AWN sales structure were approved by the AWN board of directors, effective January 1, 2009:

1)    Sales Commissions paid by publications receiving print advertising through the AWN network will be increased from 18% to 20% across-the-board.

2)    Sales Commissions paid to ad sellers will be adjusted down to 8% of net with a bonus of 4% net paid to sellers where active selling has been documented.

3)    AWN house accounts will be optimized heavily with additional empowerment given to HanzMedia sales staff to manage these accounts.

4)    Placement Agencies will be considered “house accounts” going forward.

We’re continuing to develop the AWN Strategic Plan initiatives for 2009 with more emphasis on ad sales, a strong operational foundation and the introduction of new collaborative advertising efforts that can benefit all publishers.  You will be hearing more about these initiatives in the near future, but in the meantime, if you have any questions or comments about any of the changes we have described, feel free to respond to either of us, or anyone on the board

Sincerely,

Mark Hanzlik
Executive Director
mark@awn.org

Brian Hieggelke
President
brian@newcity.com