Tonya M. Fleetwood

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Paper:"Circulation Analysis - Intimate"
Year in School: College Junior
Class:Magazine Publishing
Date written:Fall 2002

In order to make Intimate a success there needs to be a business plan laid out. This will list the publication’s strategy and approach and helps attract investors.

To earn money, money will need to be spent. The direct costs in creating Intimate the first year are half because of advertising and subscription sales. Advertising accounts for 12 percent, subscriptions 31 percent, and single copy sales 9 percent. That is a little over half of the total expenses. Other costs are editorial, accounting for 12 percent, production at 18 percent, distribution at 5 percent, and administrative and operating costs at 3 percent. As far as where the first issue will go, I think it is safe to assume that 20 percent will come from single-copy sales, 35 percent from direct mail, and 45 percent will be promotional freebies.

Since Intimate does not feature messy cover lines, newsstand sales will not be the primarily source for moving the magazine. Most of the profit will come from subscriptions. In the beginning, there will be several promotional freebies given away. For the first few months, the magazine would be heavily promoted. A mailing would be sent out prior to the release of the first issue. The letter would be sent to subscribers of other related magazines (information I would get from a list kit). I would get this list kit from an agency or a publishing house. Included in this mailing would be a lift device. These types of devices engage the reader with a minimal amount of activity and have been proven to be effective.

Other ways of getting the magazine promoted would be to have a few advertisements hung up in appropriate places. Some places would be near newsstands or in the subway. I could hand out flyers on the street, place ads in newspapers, and try to get a buzz by word of mouth. The Internet would also be a resourceful outlet. Incentives may also be used. The magazine could be in shrink-wrap, including a free gift. A contest could even be used. Another method that could be used would be offering free issues. The offer could be for one free issue. If the reader likes it, they simply pay the subscription amount for the rest of the issues. If they do not like it, then they put ‘cancel’ on the bill and owe nothing.

A media kit would also be assembled to send out to the proper people. In the media kit, I would include the premiere issue of Intimate, the advertising rates (including all possible configurations of costs and sizes), the circulation, and average sales information. Demographic and psychographic information would be included as well. A preview of upcoming editorial would be incorporated, maybe with some samples. I would also want to include a letter from the editor. This would put a name to Intimate, along with a real signature. Any newspaper articles or reviews written about the magazine would be included also.

Intimate will be a magazine that comes out every month. This gives more lead-time for story development, as well as a smaller staff and production costs. Since the Audit Bureau of Circulation cannot audit a magazine until it has been in business for a year, the rate base must be projected. The rate base for Intimate will be anticipated at 75,000. This way the magazine is being more realistic than giving a higher circulation estimate. The newsstand price for Intimate will start out smaller than what is ideal. However, smaller is more realistic in the beginning. The newsstand price will set off at $3.95 and will gradually become more expensive.



Go to Documents index Paper:"Circulation Analysis - Intimate" Year in School: College Junior Class:Magazine Publishing Date written:Fall 2002 In order to make Intimate a success there needs to be a business plan laid out. This will list the publication’s strategy and approach and helps attract investors. To earn money, money will need to be spent. The direct costs in creating Intimate the first year are half because of advertising and subscription sales. Advertising accounts for 12 percent, subscriptions 31 percent, and single copy sales 9 percent. That is a little over half of the total expenses. Other costs are editorial, accounting for 12 percent, production at 18 percent, distribution at 5 percent, and administrative and operating costs at 3 percent. As far as where the first issue will go, I think it is safe to assume that 20 percent will come from single-copy sales, 35 percent from direct mail, and 45 percent will be promotional freebies. Since Intimate does not feature messy cover lines, newsstand sales will not be the primarily source for moving the magazine. Most of the profit will come from subscriptions. In the beginning, there will be several promotional freebies given away. For the first few months, the magazine would be heavily promoted. A mailing would be sent out prior to the release of the first issue. The letter would be sent to subscribers of other related magazines (information I would get from a list kit). I would get this list kit from an agency or a publishing house. Included in this mailing would be a lift device. These types of devices engage the reader with a minimal amount of activity and have been proven to be effective. Other ways of getting the magazine promoted would be to have a few advertisements hung up in appropriate places. Some places would be near newsstands or in the subway. I could hand out flyers on the street, place ads in newspapers, and try to get a buzz by word of mouth. The Internet would also be a resourceful outlet. Incentives may also be used. The magazine could be in shrink-wrap, including a free gift. A contest could even be used. Another method that could be used would be offering free issues. The offer could be for one free issue. If the reader likes it, they simply pay the subscription amount for the rest of the issues. If they do not like it, then they put ‘cancel’ on the bill and owe nothing. A media kit would also be assembled to send out to the proper people. In the media kit, I would include the premiere issue of Intimate, the advertising rates (including all possible configurations of costs and sizes), the circulation, and average sales information. Demographic and psychographic information would be included as well. A preview of upcoming editorial would be incorporated, maybe with some samples. I would also want to include a letter from the editor. This would put a name to Intimate, along with a real signature. Any newspaper articles or reviews written about the magazine would be included also. Intimate will be a magazine that comes out every month. This gives more lead-time for story development, as well as a smaller staff and production costs. Since the Audit Bureau of Circulation cannot audit a magazine until it has been in business for a year, the rate base must be projected. The rate base for Intimate will be anticipated at 75,000. This way the magazine is being more realistic than giving a higher circulation estimate. The newsstand price for Intimate will start out smaller than what is ideal. However, smaller is more realistic in the beginning. The newsstand price will set off at $3.95 and will gradually become more expensive.