How do magazines make money?

How magazines make money?

There are many ways in which magazines can generate money. They have different ways in which they can do this in order to grow their magazine audience and their brand.

Circulation and Subscriptions

Magazine companies usually have the address so they can renew magazine subscription when it’s due. They can also pitch any other magazines they may produce that they think could be of interest to the customers. Meaning they could make the money.

The magazine company must pay the newsstand company for providing space to sell its magazine. Magazines make far more money from subscriptions since they cut out at least one of the intermediaries and get their product directly to the consumer.

Classified Advertising

On the back pages of most magazines, you will see a classified section with want ads. Magazines sell want ads by the word or the line, and the ads can be quite expensive in popular magazines with a large circulation. Even moderate magazines with smaller circulations command large prices for their want ads if they target a specific area or group of people.

 

Other Advertising

The single best way that a magazine makes money is by allowing advertisers to use its unused space throughout the magazine, including the covers and inside front and back cover. It is normal for a full-page back cover ad to run several thousand dollars or more in popular magazines with national coverage. Not only does the magazine make money with this form of advertising, it also fills up the pages by placing ads in space on pages around the story lines. The magazine looks better and its revenue increases

 



 The structural triangle shows the factors that form the base model when media producers try to sell their product. The three different main factors of the triangle make up the ways in which a magazine can grow and become better known within the industry.