Financials: 4 Places to Evaluate and Improve Your Magazine’s ROI

Jim Zielinski, niche magazine financial guru, has been sharing with us how to gauge your magazine’s profitability. He’s covered where to start,  and understanding where you are now.

Improve ROI by looking at these 4 key areas

Improve ROI by looking at these 4 key areas

Now that you’ve made a financial profile of your magazine and figured our where to cut costs, it’s time to gauge your ROI. At our recent Niche Magazine Conference, we learned  from Jim 4 key areas to focus on for increased ROI.

Here are Jim’s 4 key areas to investigate and evaluate to improve ROI for YOUR niche magazine:

1.  Audience development:  Use premium content to get users to register.  This gets names which can be used for lead generation.  Clean up your reader files to reduce excess distribution of controlled circulation issues.

2.  Production:  There is quite a lot here. If you have not re-bid your print contract for several years (3+) then you are leaving money on the table.  Since 2009/2010 prices have dropped dramatically.  For example, re-bidding a 5 year only contract can yield savings of 15% – 20%.

3.  Trim Size:  Everyone looked at this in the last downturn.  Being able to reduce means less paper is used, and postage is lower.

4.  Co-mailing:   This yields a savings of between 5% and 10%. Many publishers don’t want to try this for fear it will delay getting the magazine out, but that isn’t necessarily the case.  Ask your printer to do a “co-mailing study” for you.  Printers such as Quad, Donnelley, and Brown have excellent equipment to use for co-mailing.  Other printers may or may not do this for you.

There are many more cost-saving measures you can do. Which ones work best for you? Share with us on Facebook or Twitter.
19afd32About Jim: Jim gave us a presentation for the 2013 Niche Magazine Conference and we learned that attendees definitely wanted us to post more cost-cutting ideas for niche magazine publishers.
Now: Jim Zielinski is founder of Zielinski Financial Advisors, LLC, an independent financial consultancy. The firm’s focus is on acquisitions, bank financing, profit and performance improvement, and preparing your company for sale.
Past Life: Jim worked in banking and equity investing at Chase Manhattan Bank, N.A. and Bankers Trust Company for over 20 years.In 1997, Jim became CFO for Hanley Wood, LLC, a business to business media company, where he was an owner, director, and executive directing the financial affairs of the company until its sale in 2005. Jim is a member of the Board of Managers of Virgo Publishing, LLC, Athletic Business Publications, and MedTech Media.


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