MarketingProfs Know-How Exchange : Marketing a niche magazine effectively

Do you have a website?

here are a couple of ideas...

1) use your magazine to promote other businesses that are capable of producing money.
examples:
Trade Show, Software, Marketing Research, website membership etc.

2) save on production cost by offering an electronic version to people as a convenience...

3) dont pay for writers.. get submissions for free from consultants who work in this industry.

Good Luck

You really only have four possibilities: 1) Charge more 2) Cost improve 3) Live with it 4) Stop.

You say that the advertisers and subscribers want classy and don't want to pay. What have you done to find this information? Have you raised prices and people dropped off? Or have you asked them, "Hey, how do you feel about paying more?" If I were selling you this answer - and right now it's free and I said, hey, how about paying me $400 for it? What would you say? "Yes, I'd be happy too. But could you make it $1000?" Who's your competition? What do they charge? If they are charging higher rates, then I'd ask you why you don't think you can. What would happen to your subscriptions if you made it "free?" If this increases your subscriptions, could you charge more for the advertising for a higher readership? If you tell me the competition doesn't produce as good quality, I'd tell you that your advertisers and subscribers apparently don't care because they are buying.

That brings me to point 2. So cost reduce. Find a cheaper printer. Find cheaper ways to mail. Find ways to knock down your overhead costs. Find alternatives to "classy" that are cheaper. For instance, make it an eZine.

Or, point 3 - just put up with the hand to mouth if publishing the mag gives you satisfaction. Not everything in life has to be about making a profit to be rewarding. If you are living a comfortable standard of living and are happy...then keep going....

Or, 4 - stop and go do something else that is rewarding in the way you'd like it to be.

For your situation, you need to look hard at the needs of you subscribers and understand your value proposition. You need to look at the competitive offerings (not just magazines, but online offerings, manufacturer brochures, etc. Figure out how they are satisfying the subscribers' needs and where they aren't. Make your magazine offering such that it satisfies the needs better than the competitive offerings and delivers value the subscribers and advertisers are willing to pay for. What are the needs of the advertisers and how can you deliver better to them? These are the areas in which to work.

I hope this helps.

Wayde

Close the doors NOW or sell it NOW.
I have had three national magazines that I have sold. If they are not willing to pay...take it away from them. Save yourself time and money..close the doors...UNLESS...you can convince someone it has potential, and sell it to them.

Show them that you have made "some" money from it...and you are sure they could do better...

If this is not an option...cease production...OR go all online...no printing costs.

I hit the send button too quickly, sorry.

I have revised my answer...CLOSE THE DOORS.

You can not deny Wade's responses.
All of my mags were niche.
TV (50,000 copies per week)
Fishing (45,000 sold per month)
Motorcycle (Free Mag in dealerships - sold out every month).

Only the last one was hand to mouth break-even every month. But, what do you expect for a free rag.

You will not be able to educate your advertisers that the value is any higher than they believe it is, and create a success of your rag.

Unless you can pick up on distribution 3x-4x what it is now, they won't care. If they believe a $1000 ad w/fair CPM is only worth $400...it's worth $400. They won't pay $450.

You don't have the time and/or $$$ to educate them. It is a dead-end deal for you.

If I were the owner, with the experience in publishing that I have...I would definitely close it out. If the next issue is ready to go out, make an announcement...FP/4c, that this is the last publication of...YOUR MAG...

Send a copy to each of your advertisers with a personal letter telling them they are losing their industry visibility.

See how many call you and say "No No, please don't go." If you get 3, I'd be amazed. But, if those that call you, ask why...tell them...Hey, you guys think that all this visibility is only worth $400...it's worth $1000, and you know it.

But, I'd keep the mag open with a 50% increase in prices, and throw in a FREE link, increased distribution at trade shows, something.

If you have nothing...than, that's it. If they agree to 50%, hey...you have more profit, and you increase it again next year, due to cost of ink, gas, production...keep it going up for next two years, about 12%, that will give you about 75% increasse in two years.

If you can't do this...cut the cord.

I know...sounds brutal. But, mag biz is, as Mick Jagger said: "To be livin' in this town, you must be Tuff, Tuff, Tuff, Tuff, Tuff, Tuff, Tuff!!!"


Randall
WMMA

Sounds like the business plan was flawed. Anyway, here is a new one. And go to the website at www.subscriptionsstrategy.co.uk because publishing is what I advise on:

1. Re-launch with less frequency, say as a quarterly, to buy time.

2. Get an expert direct marketing person to create a powerful subscriptions offer (don't try to do this yourself unless you have the experience)

3. Get an expert advertisement sales person to sell ads into the magazine (don't try to do this yourself unless you have the experience)

The subs income should pay for the printed copies and delivery via the web. Charge around the same for both forms of delivery. Your ad revenue will be your profit.

The reason most new publishers give for not doing any of the above is they 'can't afford' the personel or marketing costs. The logic that they go under without it seems to escape them. The alternative to the extra investment is either to fold, or to offer those experts a piece of the equity.

That should sew your problem up. Best of luck: I know how anxious you must be!

Peter Hobday,

With my European point of view, with both activities in writing and advertiser, I may I give you some support.

Professional still need good paper magazines written by writers, and not consultant, to keep a objective and analysed articles for barometer and offer comparison of the market. When I write an article on a solution, I figure out I push suppliers to competition and to give the best of them or to improve their offer presentation for next article, not as a consultant.

As an advertiser, it is true that it is more and more difficult to pay for paper ads due to the lack of direct mkt ROI.
But complementary visibility offers in package are always welcome.
For example: a paper ads took over in a banner inserted in monthly subscriber e-newsletter + a banner in web site, offered with package discounts works.
Other big source of revenues as you are in a niche market, why don’t create The “Yearbook directory” of this market. If you get the main suppliers all the other ones will ask to come into at any price ( competition is the best engine in sale ).

It is true magazine industry is a hard tuff, but I’ am convinced that is worth it as “all on-line time” will pass and come back too.

Jerome B.

Thanks for all the answers...I am quite enlightened!

As mentioned by Peter Hobday, relaunching of the magazine with low frequency would be a good idea but unfortunately I dont have the funds to sustain two marketing people, 2 editorial staff, 1 designer, accountant for three months...as the operating cost is quite high. I am may not as well get that much of revenue to pay them up.

The second point is that I have maintained high level of editorial content which infact has been duplicated by other new magazine under the same category and thus playing their cards on Low price good editorial. If I reduce my frequency, I may need to shelve some of the people.

Another problem that has been recently found out is that other competing magazines (almost 2 of them) have increased their frequency from bi-monthly to monthly but they dont care about editorial much. Also, their printing quality is not at par with my publication. And it seems that this concept is gaining grounds with advertisers 'only' a quite a lot.

Delivery via web is becoming a bit difficult as the targeted jewellers/readers are not very tech savvy. I had tried the web way but it didn't work out.

As Jerome rightly said that paper magazines produce less return and may be because of this my advertisers are willing to pay an amount which is 80% less than my card card.

Now I wonder what kind of innovative idea I can integrate so that I can give better value to my advertisers.

thanks once again...

Hello Everyone,

I am closing this question since there has been no activity in over a week.

Thanks for participating!
Carrie (Production Editor)