The Costs of Running a Magazine
‘Why does it cost so much?’ is a frequently asked question about Works That Work. In this blog post we break down the costs of producing the magazine.
We recently conducted a readers’ survey. Aside from providing valuable feedback about our content, the survey uncovered a common concern: a significant number of people consider the magazine expensive.
Certainly, in some places €16/US$20 for print and €8/US$10 for the digital edition may be the price of a couple of drinks, but elsewhere in the world it can be a significant sum, especially when other magazines cost a fraction of that price. But try this: open one of those other magazines and count how many of its pages are advertising and how many pages are content. If you discover that the magazine is more than half advertising, don’t be surprised; the industry average is 54%, which says a lot about where the publishers get their money (and therefore, whose interests they must serve). In most cases, that advertising accounts for over 95% of the publisher’s income.
As trivial or as radical it may seem, WTW is a magazine made for its readers. Readers finance it, publicise it and help to distribute it. That’s why we consider our readers our investors and strive to be completely transparent with them. We restrict advertising to 5% of our pages, and it contributes 12% to our income. Which means that you, the readers, contribute 88% to our budget, including our loyal magazine patrons. We like that!
Where does that money go? Each issue of WTW costs over €30,000 to put out. With an average print run of 4,000 copies per issue, the cost of getting the magazine from the drawing board to your doorstep works out to roughly €8.50 per copy. Content (articles, photography, editing, proofreading and design) accounts for 23% of that cost, while production (printing, binding, plate-making, pre-press, paper) accounts for 13%, and delivery (shipping, handling, packaging materials) for another 18%. There is 45% left as a possible profit when we sell the magazine for the full price online, although as it currently stands, if we sell out the whole print run we break even on the issue. When we sell the magazines in shops, the situation is different. A traditional magazine distribution pockets 60-80% of the magazine price (yes, the distributor charges more than all the authors, photographers, editors, designers and printers put together), that’s why we prefer to work with our system of Social Distribution, providing