DOG FRIENDLY Magazine Budget

Assumptions:

Size: 32 pages

Frequency: 4x/year

Circulations: 50,000; 35,000 subscription-based and 15,000 single-copy

Subscription price: 1-year = $7.00, 2-year = $10.32, 3-year = $11.88

Cover Price: $2.95

Advertising rate: $2,000 (full B/W ad); CPM: $40

Ad-to-Edit ration: 40:60 (12 ad pages and 20 editorial pages)

Net Annual Revenues

Advertising

Per issue:

40% of 32 pages = 12 full-page ads @ $2,000 each = $24,000

Per year:

$24,000 (per issue revenues) x 4 (number of issues per year) $96,000 (gross annual revenues) - 14,400 (less 15% advertising discount/ commission)

TOTAL: $81,600 (net advertising revenue)

Circulation

Subscriptions:

15,000 x $7.00 = $105,000 (annual)

*The only issue we have here is how to calculate the subscription revenues for all three types of subscription plans. We wouldn’t know how to calculate for the two-year and three-year subscriptions until after the first year of publication. Should we drop the other two plans and stick to a one-year subscription option in order to have more concrete figures?

Single-copy sales:

10,000 (copies sold per issue) x $2.95 (cover price) $29,500 x 4 (issues per year) $118,000 - 59,500 (less 50% distributor/wholesale/dealer fees) $59,000 (net annual single-copy revenues) TOTAL: $105,000 (subscription) + $59,000 (single-copy) $164,000 (net circulation revenues) Total Annual Revenues Advertising $81,600 Circulation + $164,000

TOTAL: $245,600



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