Rethinking Revenue

Copyright 2012 Sabatier Consulting

Revenue Mix From big to small; few to many

Less Dominance More Variety

Past was characterized by few

dominant revenue streams

Now, many smaller lines to

make up for decline in traditional

standard bearers

Revenue Mix

Less Dominance More Variety

”In India, revenues are not down but the sources are undergoing a

change as there is more contribution from non-subscription-based areas.

While advertising (currently about 70% of revenues), sales and

subscription may contribute a large portion together, events, innovations

and digital presence are contributing more," said Ashish Pherwani,

associate director, Ernst & Young.

Whether this will be enough to sustain magazines, going forward, is

unclear. "With the cost levels going up, consolidation is the only way

forward for the magazine industry."

Difference sources of potential

revenue should be considered

− Use a disciplined development

method as a guide to assess

opportunities

Revenue Mix

Two questions …

• Is it real? Will somebody actually

pay to buy what you offer? Can

your team produce it and sell it?

• Is it worth it? Is there revenue to

move the meter? Is there any

margin when fully costed? Does

selling it provide an intangible

benefit?

Revenue Mix

TOOL #1: DATA

TOOL #1: DATA

It is data from which you can learn,

build, scale back, adapt revenue

generating programs and services to

your ministry and publishing

organization.

TOOL #1: DATA

How Well Do You Know Your Readers?

Your reader database can fuel revenue

What demographics do you have on file

and how recent is the data?

How much segmentation can you do and

what does it reveal about readers?

TOOL #1: DATA

How Well Do You Know Your Readers?

Reader (active, prospective and lapsed)

research can guide development of

products and services

What do you know about what your readers

need, want and even “wish” for and

whether those needs are being met by your

publication (or competitors)?

TOOL #1: DATA

How Well Do You Know Your Members?

What type of historical data and reporting is

accessible to reveal what worked in recent

years; what was tested as a new program or

service and how that might be improved

upon?

− Some great programs and services have been

built from learning through testing and yes,

making mistakes.

TOOL #2: A PLAN

TOOL #2: A PLAN

Create a plan and be prepared to ramp

up quickly if the product or service takes

off.

TOOL #2: A PLAN

Take a disciplined and consistent

approach when planning

What is the concept?

What is the value proposition?

What is the size of the potential market?

How will we price and market it?

TOOL #2: A PLAN

Take a disciplined and consistent

approach when planning

How much revenue, expenses and profit do

you anticipate and within what time frame?

What will be your benchmark for financial

success?

TOOL #2: A PLAN

A plan can help you manage

expectations with internal stakeholders,

partners (if applicable) and readers

Helps keep communication focused on

what’s important

Helps you execute on time and hopefully on

budget

TOOL #3: TECHNOLOGY

TOOL #3: TECHNOLOGY

Technology offers the ability to drill down

[segment] and serve various segments

and micro needs.

TOOL #3: TECHNOLOGY

Ability to store reader data and preferences

Ability to store, archive and repurpose

content

Ability to streamline work flow

Ability to serve readers online / virtual

Ability to foster community and engagement

Data can help you generate, improve and

alter ideas for revenue programs

A concise plan can help you maximize

value for your readers and

revenue for the organization while

attempting to minimize risk.

Technology facilitates collecting data

and serving content in the most efficient

and effective manner possible.

: TOOLS SUMMARY

THE BRIDGE

The bridge between tools and creating

sustainable products and services is

Content

Revenue generating ideas...

Memberships [segments of your market]

Microsites

Subscription-based newsletters -

electronic

Special advertising sections

And More…

Forums: exclusive articles, tools,

message boards

Annual conference coverage

Awards programs

Custom research

And More…

eBooks

Seminars – live & virtual

Podcasts

Special events

And More…

Knowledge center – online learning

Data

List rental

Single copy sales

Principles for Development

Synergy

Quality

Value

Repurpose

-Choose projects carefully

-Build the right controls

Start Small!

Start with freelancers on a few

projects, then build up if successful

- Mitigated financial risk

- Provided insight into market demand

- “Wins” made the sales process

easier

- Gave time for feedback from our

readers

Summary

• Develop new revenue from advertising and

client sponsorship

• Double your reach

• Promote subscriptions among hard-to-reach

markets

• Provide important outreach among an

underserved market