Bab 98: Advertisers

"One is an energy drink company. They are willing to sponsor 10 million for the concert, their request is that billboards of their products must appear on the stage side during the concert, and Miss Ling has to advertise it for them.

The other is a Phone Manufacturer, they are willing to sponsor 5 million, they want the ringtone copyright of all the songs by Miss Ling.

The final one is Huaxia Central Television, they are willing to sponsor 70 million yuan, in return for the live broadcasting rights of the concert."

In fact, the so-called "sponsorship fee" was just an eloquent term for receiving bribes. The sponsors just slipped money into the organizer's pocket, provided that the organizer could satisfy the sponsors demand.

Many transactions were carried out in the name of "sponsorship". If the transaction was carried out in the name of sponsorship it would allow the company to write it off as a tax deduction. It would allow the expenses to be deductible because they were considered part of the cost of doing business.

Zhang Xiaohua thought for a moment and said: "Tell the drink company, we are up for their offer but they will need to add 5 million more to the deal."

Xu Fengnian nodded and said: "I think there should be no problem. I will negotiate with their spokesman."

Zhang Xiaohua continued: "Tell the Phone company that there are still many companies that are willing to buy the ringtone copyright of Ling Ming's songs and ask them for 3 million more, otherwise we will sell to other companies."

"But there is no other company!" Emma whispered.

Xu Fengnian smiled and explained: "This is called 'virtual competition'. We can create hypothetical companies in order to increase competitiveness and force the other party to increase the price. Although it's a bit risky if we push too hard or get caught out, it has a great effect if managed well."

Emma, hearing his words, turned bright red from embarrassment and playfully stuck out her tongue.

"As for Huaxia Central Television, this will be more troublesome. I'm gonna have to rely on you to subtly reject their offer, try to leave things on good terms." Zhang Xiaohua said. He had heard of this HCTV, it was currently the most popular TV station in the country, so he couldn't afford to offend them.

"Why?" Xu Fengnian was puzzled.

HCTV's offer was more than good, 70 million yuan just to buy the live broadcast rights of a concert.

"If the fans can watch the concert at home for free, then who will buy the CD?" Zhang Xiaohua said with a smile.

"You want to sell the recording of the concert?"

Zhang Xiaohua nodded and said: "With the popularity of Ming'er, this concert is definitely a must see event, tickets will probably be sold out the instant they go up, that leaves lots of people who aren't able to see the concert. It's a large market just waiting for us to exploit."

Xu Fengnian made a bitter face: "But HCTV offer shows their sincerity. They want to cooperate with us, the station is too influential. If we refuse them, they will definitely feel someway about it and if they take a negative stance against us, it is gonna be bad for the company."

Zhang Xiaohua smiled disapprovingly: "Don't we have a promotional video of the concert? Just give them that video for free, let them broadcast that. It's a little evasive, but just try your best to smooth things over with them."

"This method should work," said Mi Jia.

"I'll go to the station in person when I have time. I have a little bit of friendship with the director of the station. Since we are giving them the video free of charge. It should help smooth things over." Xu Fengnian sighed.

Zhang Xiaohua then turned to look at the newly appointed HR Manager Qiu Ze and asked: "I asked you to send some staff to help the Zhou Yi a few days ago. How is the matter going?"

Qiu Ze said calmly: "I have sent seven people over to Zhou Yi, all of whom are high-school teachers in various fields. Also he said to report back that he has completed the tasks you assigned him."

Zhang Xiaohua nodded with satisfaction and his face relaxed.

"Everyone has worked hard recently. I hope that everyone will continue to work harder. As long as you regard the company as your own home, I will treat you like family." In order to improve the morale, Zhang Xiaohua spoke up to provide encouragement.

Zhang Xiaohua smiled lightly and continued the meeting.

"Manager Xu, I'll have to trouble you to send someone to talk to the person in charge of the Tianhe Stadium to discuss renting the entire stadium from tomorrow until the 3rd of next month. Then alert Zhou Yi afterwards so they can start to put the stage together in there."

"No problem, I will get someone on it as soon as possible." Xu Fengnian responded quickly.

"Manager Mi, how much did the company spend this month?" Zhang Xiaohua asked. Since the sales of Ling Ming's second album finished, the company had no source of income this past month, money had only flowed out.

Mi Jia opened her document and read out: "Building a school, acquiring Sparrow Records plus the purchase of various equipment and building materials for the concert, as well as the various equipment needed for the office and then counting the plans to rebuild the record factory. The total expenditure of the company is 97.5 million yuan. The income is zero yuan."

"Oh...more than I expected." Zhang Xiaohua shook his head and smiled. Fortunately, in order to promote the entertainment culture, the state had stipulated that newly opened entertainment companies wouldn't have to pay taxes for the first three years, otherwise they would be in trouble.

"Manager Mi how much revenue would the company bring in if all the tickets for the concert were sold out and you added the sponsorship fee of the drink company, the copyright fee to buy the ringtones, and the sales of the concert recording?"

In order to calm the hearts of the employees, Zhang Xiaohua asked Mi Jia to make a small calculation.

In fact, Zhang Xiaohua was very clear about this income situation. He had already calculated the accounts thoroughly, but if the financial manager said it, it would be more powerful.

Mi Jia immediately took out the calculator and concentrated.

A few moments later, she reported: "If all the tickets are sold at the price previously set by boss, the income from the sales will be 35 million. Adding that to the sponsorship from the phone and energy drink companies, it goes up to 58 million. As for the concert recordings, if we assume that 1 million copies will be sold out at the unitary price of 100 yuan, the total revenue of the company will be approximately 158 million yuan."

"150 million yuan, um, barely okay." Zhang Xiaohua intentionally repeated the number and then laughed: "Well, that's all for today's meeting, you have all been doing great so far, keep it up. Ling Ming's concert is imminent, I don't want any mistakes. Okay, disperse."

"Show off!"

Watching Zhang Xiaohua walk off to his office, Yuan Datong muttered.

"Showing off is needed sometimes." Xu Fengnian laughed.

"What do you mean?" Emma asked.

Xu Fengnian pointed at the accounts sheet on the table and explained in a preaching tone: "The higher the company's income, the better off the company is. The wealthier the company, the better employee welfare is and this is an important source of motivation for the employees. With the proper motivation, they will work harder to create a brighter future for the company, so they can gain more benefits themselves."

"So if the boss doesn't show off how much the company is making, it will leave the employees in doubt, stuck up on the losses and unaware of the gains. They will start worrying for the future, and worried employees tend to get less work done..."

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