The
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QUANTIFYING
THE
POTENTIAL
OF
NEW
NEWSLETTERS
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Profitability determinants: A paid-subscription newsletter juggles three different figures that will determine if it has even a chance of becoming profitable. They are:
- Universe size
- Subscription price it can command
- Editorial costs to produce it
Circulation and financial models need to be created to see if you should proceed to testing. The Newsletter Group has found a number of "can't miss" newsletter ideas that are actually "can't succeed" -- due to an unfavorable combination of the above factors. Don't waste precious resources testing an idea before knowing it at least has the potential to be profitable.
- Research ideas with potential subscribers
- Research lists to find:
- The best prospects, and
- The size of the prospect universe
- Creating circulation models, including "What if" scenarios
- Creating complete financial models
- Creating business plans used to attract funding
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