rethinking revenue sabatier
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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