Am I insane for entering the magazine (print) industry?

[djs13]

I've been toying with this idea for the past three months and I've been doing alot of research on the industry to figure out if it's viable. Basically, my idea is to start a magazine in a particular niche that isn't directly being tapped. I've been reading about magazine start-ups and I think this type of company is very "boot-strapable" since my savings isn't much more than $5k. It would rely mostly on magazine subscriptions taken from its web site, which is okay because the research I have done has shown most magazine sales are actually subscriptions opposed to newsstand sales.

I don't want to get too into this idea, but would rather ask your opinion on the print industry. Newspapers are consistently failing and the magazine industry isn't exactly booming. But my idea is more of an outlet to my niche. For example, I'm not really interested in just making a magazine, but instead using the magazine as a tool.

Newspapers have been failing lately, but I think there is a difference between reading news and reading a magazine for its ideas. I go to two web sites on a daily basis to get information on local/national news, but there aren't many web sites that could replace my magazine subcription to GQ.

I realize I could charge user-subscriptions for an online web site, but I don't think selling internet content as an unproven website would create profits. I do however plan to sell an online version of the magazine, probably in Amazon Kindle format or something similar along with the print version.

Although this has been my current idea, I don't plan on making my fortune in the print industry. I do think the print industry will be in worse shape in a decade or two, but if I can create a successful magazine now this will help me springboard into my next venture.

What do you think?

 

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[DeletedUser394]

The magazines that I read all receive subsidies from the Government (not sure if they do that in the US, but that's something to look into).

If nothing else, a magazine would help position you as an expert in whatever niche you are talking about.

I like your idea of having online content as well.....as you know there isn't much money left to be made in the magazine print industry :smilielol:

Most magazines (with the exception of the big players in the industry) lose money (hence the need for subsidies).

I would think it incredibly hard to get the paid readership needed to keep the magazine afloat.

It's a really bad sign when there's a website dedicated to dead magazines

http://www.magazinedeathpool.com/

 

[EastWind]

yes, i think you are insane for evening attempting to do this.

 

[GlobalWealth]

There is potentially an opportunity here, but it would not be something I would consider doing. I have 2 friends that run magazine publishing companies and they are struggling, alot. Subscriptions rarely, if ever, cover the cost of even production. Ad revenue is the income producer. Think from an outsider looking in...would you spend 10's of thousands running a print ad that may get a 50,000 ciruculation, or would you rather spend hundreds on online ads that get millions of eyeballs? Ad revenue is falling hard and print adverstisers are dying, quickly. Even the big magazines are shifting toward online paid content. Do you think you know better than them? Also, when you consider a niche magazine, you would need to have a significantly higher subscription fee as it will be tougher to generate significant revenue through a narrow adverstising focus. Considering how easy it is to find information online, would you pay $20 for a monthly subscription of a print magazine when you could likely find it online for free?

I am sure there is opportunity in print magazines, but to me it just seems too difficult to make money in this arena. I could tell you both of my friends would sell their businesses right now if they could find a buyer.

 

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[MJ DeMarco]

If you have an awesome idea for a magazine, then the idea should transfer to online as well. Magazines are dying unless they are somehow merged with online content. Would you start a typerwriter company in the 80's when word-processors started hitting the scene?

Why not pursue the idea, but start it as an online magazine?

 

[kurtyordy]

it depends on the dempographic you are targeting. a good portion of the 40+ group still like to feel what they read. under that, best look at web.

 

[Bond]

Maybe you could switch the idea to a web based magazine because with the new tablet devices that are coming in, magazines could have an opportunity to be big players online if the devices get accepted (sell).
Checkout those demos of what can be done:

[ame=http://www.youtube.com/watch?v=ntyXvLnxyXk]YouTube - Sports Illustrated - Tablet Demo 1.5[/ame]

[ame=http://www.youtube.com/watch?v=ZxXlqtg2rik]YouTube - Time Inc Tablet Mag[/ame]

[ame=http://www.youtube.com/watch?v=BLc-8gT2eKg]YouTube - Wired iTablet Concept App[/ame]

 

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[mtnman]

Insane? For doing something that's dropping like flies left and right? Why yes sir, yes you are.

Looking into it to see how you can work an angle? Do work.

 

[Bond]

Here's another conceptual video you may look: Digital Magazines: Bonnier Mag+ Prototype | Bonnier AB

I think that print magazines are going to disappear eventually. The problem is that as more people goes digital, it's hard to go back and pick a magazine to read because it will be static content. Users will be so involved with dynamic content that they'll feel the print magazine doesn't bring them the experience they're used to.

Maybe in certain niches one can succeed with a print magazine. You have to look at the demographics and see if they fit the profile (prefer print over digital).
Just my 0.02 euro cents...

 

[Gymjunkie]

Yeah, the tablets will change mags I think.. iPhone is just a start and preview of what they can be.

BTW, if you decide to go with online magazine version, lemme know! I would be interested in joining!

 

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[MJ DeMarco]

I think the only way magazines will survive is if they are interegrated into the web type model; heavy user interaction, commenting, etc. Magazines are uni-directional -- the publisher controls content. Web magazines are bi-directional, users and publisher share content. If you can make your magazine bi-directional, it would have a chance. MHO.

 

[Rem]

It is a tough market but if you print what people want, you can still do it.

Just be warned that if you tap into a new niche that hasn't been tapped before, expect competition to start popping up and they may beat you to the punch or go online and offer it for free. If you were so confident it was something people would read and it is the only thing out there like it, then when you go to launch it.. do it quickly and cover all areas; internet, print, you name it.

 

[Kung Fu Steve]

I hear the quickest way to make a small fortune is to start with a large fortune and create a magazine :smilielol:

 

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[BurnBright]

Your niche must be large enough to attract advertising dollars and a large enough subscription base. Try to list companies that would like to target your market and would buy full page ads if you have a hard time doing this I would reconsider doing it in print and focus on a online version. You also need to figure out a way to target your potential subscribers and attract writers. It will only cost your time to forecast your development costs and projected revenues that way you can see if it will become a viable venture or just a hobby/job. If you read about Felix Dennis his big wins came from starting magazines in new growing markets(computers/kung-fu) or by targeting an untapped large one(young mens entertainment with Maxim)

People prefer to read on paper and not on LCD screens so if you plan on having long articles offline is still best. Until the time that the new screens like those from Pixel Qi - Home or e-ink become widely used the new tablet computers will only be a gimmick and they will still have a cost problem. Very few people have kindles which will make it hard to target a small niche. Digital delivery is the way of the future but it is uncertain what that future will be. I myself have a hard time paying for subscriptions to online content. At the moment I only pay for the WSj and I might not renew it.

 

[hatterasguy]

Its a bad idea. Do it for fun if you want but I wouldn't expect to make anything. Covering your costs is probably all you can hope for.


I get some nich Mercedes mags and its pretty pricey. I think I pay $100 a year for Mercedes Enthusiast.

Their are some fantastic classic European car mags but they all cost $$$.

 

[Bond]

One more article about this issue:

Can the Skiff save the magazine industry?

 

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[djs13]

Your niche must be large enough to attract advertising dollars and a large enough subscription base. Try to list companies that would like to target your market and would buy full page ads if you have a hard time doing this I would reconsider doing it in print and focus on a online version. You also need to figure out a way to target your potential subscribers and attract writers. It will only cost your time to forecast your development costs and projected revenues that way you can see if it will become a viable venture or just a hobby/job. If you read about Felix Dennis his big wins came from starting magazines in new growing markets(computers/kung-fu) or by targeting an untapped large one(young mens entertainment with Maxim)

People prefer to read on paper and not on LCD screens so if you plan on having long articles offline is still best. Until the time that the new screens like those from Pixel Qi - Home or e-ink become widely used the new tablet computers will only be a gimmick and they will still have a cost problem. Very few people have kindles which will make it hard to target a small niche. Digital delivery is the way of the future but it is uncertain what that future will be. I myself have a hard time paying for subscriptions to online content. At the moment I only pay for the WSj and I might not renew it.

Thank you for the advice! I agree with almost everything you said. My niche is pretty large but its a growing market so its still small enough to not have been touched by corporate giants. There are websites/magazines/online magazines which cater to my market, but I plan on targeting them in a more direct way.

Felix Dennis is one of my favorite entrepreneurs and I also read his book. In his book, ("How to Get Rich") he even says that he wouldn't suggest his own child to enter the magazine industry.

But the reason why the magazine industry appeals to me is because I can bootstrap the printing and marketing costs in the beginning. I can even secure advertising sales before it goes to print. Furthermore, a magazine is based on content, design and photos - all things I can control. Not that they won't take time and hard work, but in the beginning I could help write articles to get through my boot-strap phase.

I also believe people prefer to read on paper and I don't think its just a thing for older people. I'm 18 with perfect vision and I still prefer a hardcover book over the Amazon Kindle.

Everyones advice was very helpful and I appreciate it. I'm thinking about the possibility of an online magazine (with the new tablet devices as pointed out by Bond), but I certainly don't think an online paid subscription site would prosper.

 

[MrPink]

Found has a magazine that started relatively recently, but at the moment is not making much (any) money. The idea is really good so I guess that depends on the niche you are thinking about getting into.