Alyssa Martina: Revenue & Distribution

By Bud on October 2, 2007 TrackBacks (1) Comments (2)

Alyssa Martina discusses Metro Parent's revenue model which like almost all periodicals is based entirely on advertising. However, the free distribution model is different from many periodicals and actually lowers her cost of distribution by avoiding the retail shelves and mailing. The free distribution model is audited to ensure advertisers they are reaching the right target audience in the right numbers.

Like this? Let us know with a $5 donation, so we can do more

Filed under: Alyssa Martina | Defining New Markets | Ferndale, MI | Metro Parent Publications | Publishing

In this 9 minute segment (download iPod compatible, 47MB), Alyssa Martina discusses Metro Parent's revenue and distribution models. Like almost all periodicals, Metro Parent's revenue model is based on advertising. Advertisers are concerned with two things: (1) How many people you distribute to; and (2) Who those people are. News stand sales and subscriptions are actually loss leaders in the industry and mainly serve to help tabulate the two items advertisers are interested in.

At Metro Parent's inception, Alyssa determined that it could not afford the loss leader strategy required for traditional distribution channels, so she opted to go with the free-controlled distribution approach pioneered by alternative magazines (e.g., The Boston Phoenix). She places her magazines where parents are most likely to congregate, quality supermarkets and libraries. An independent agency monitors both the number of magazines distributed and where they are placed (BPA Worldwide is one such agency).

It's interesting to contrast the different distribution strategies announced by this site's participants in the publishing industry. Alyssa depends on physical placement so that her shoppers just pick the magazine up. Lou Rosenfeld, discerning that his audience is among the most digitally capable, relies on electronic word of mouth. His revenue model depends on selling packaged information in the form of books while Alyssa's depends on verified delivery of advertising messages. In future segments, we will examine how Alyssa is moving into the world of digital media.

1 TrackBacks

Listed below are links to blogs that reference this entry: Alyssa Martina: Revenue & Distribution.

TrackBack URL for this entry: http://michiganinnovators.org/cgi-sys/cgiwrap/fpgibson/MI/mt41/mt-tb.cgi/54

» Free Distribution from Andrew Clarke

I just got done watching Alyssa Martina's interview on Michigan innovators. It actually isn't a bad idea. If u have advertising backing u up and paying for space in your periodical you are still making money. Both sides become happy... Read More

Tracked on October 4, 2007 1:13 PM

2 Comments

Dan McDougal on November 17, 2007 5:06 PM
Alyssa Martina: Revenue and Distribution Alyssa Martina of Metro Parent’s discusses the publications revenue model. Metro parent’s revenue model is based on advertising, like most magazines except for literary and artistic magazines. Metro Parent’s distribution is based on a free, qualified, controlled, audited method verses news stand distribution. There is not any profit involved in the news stand price paid for a publication. The money spent is a loss leader, a method of tracking readership. There are many costs associated with traditional newsstand distributorship. Metro Parent’s avoids these additional costs though their free distribution methods. Metro Parents hires an auditing company to verify their distributorship. The auditing company obtains verification from the printers, distribution, and copy return rate. Metro Parent’s distributors must file reports, fill out forms, and are audited. Post cards are sent to distribution locations in order to verify that the publication is being received. All this is so Metro Parent’s has credibility and can provide proof of readership to advertisers. Metro Parent’s is distributed in high quality places such as Whole Foods and libraries. These are areas where parents tend to go. Dan McDougal
William Larkins on November 18, 2008 11:40 AM
Ms. Martina talks about advertising and how it has made her company so successful. She talks about how she doesn't just rely on printed publications to get word out about her magazine. She said she has tried to give a multi dimensional approach. She tried to appeal not only to parents but to children and grandparents. She has young editor and writers who do articles in her magazine. She uses channel 4 segments to try and make a connection with her readers and her viewers. She has added a blog section to her website so she connects even further with the community. She did this to make the community more tight nit and personal. I like her thoughts on the web model and how at this present time am not enough to sustain itself. I would like to know how the internet aspect of this company has come along since its start 20 years ago. Do you find it a "must have" in your business or do you think your business can still flourish without the internet/webpage aspect.

Leave a comment

From Our Readers

Subscribe by Email

Enter your email address:

Financing Innovation

Early Stage Innovation

Network Businesses

From the EMU Google Partnership

From our Bullpen

From the New Enterprise Forum