All the ads combined (at best) bring in $17.50 per month revenue and (at worst) either:
- Cost us hundreds of dollars in postage and increased printing fees when we have to increase the page count to accommodate added content
- Or, we have to drop content.
The Math:
- We make $960 per year from advertising, assuming all advertisers actually pay us.
- We print 12 issues per year so $960/12 = $80 per month revenue
- We pay $1500 per month (printing+postage+pizza)
- We typically print 24 pages
- $1500/24 = $62.50 cost per page
- $80-$62.50 = $17.50 best case scenario profit per month.
Options:
- Continue as we are
- Have an understanding with advertisers that they are buying 12 adds, not 12 months of ads and that any given months ads may be dropped for space considerations.
- Have an understanding with advertisers that they are buying 12 months of ads and that any given months ads may be dropped for space considerations and we will not issue refunds.
- Drop ads and use the space for other content, perhaps including a list of local bike shops on a space available basis.
- Embrace advertising as a revenue stream, raise rates, make it worth our while.
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