magazine business model

Successful business models for magazine media

Last modified on January 23rd, 2019

As well as having the necessary business acumen, publishers and editors must be passionate about their titles. Mary Hogarth explores key strategies for a sustainable magazine. 

What makes a magazine successful? Passion, innovation and a sound business sense are my three essentials. Because without these three, publications are likely to be soulless with little hope of a reasonable ROI .

Although passion and innovation are essential qualities particularly in editors, publishers need to know how to achieve a positive cash flow. They must also be astute at planning and devising strategy.

These aspects all play a part in the success or failure of a title, be it a print or digital concept. That said, when it comes to business models caution is advised – because, as with most aspects of publishing, one size does not fit all.

Each magazine publisher has its own unique perspective. Therefore, publishers must tailor their business strategy accordingly and regularly review practices if publications are to be sustainable for the long haul.

This article will explore how to build sustainable titles in terms of planning, cash flow, developing the right business model and building revenue streams.

Without attention to detail a magazine will surely fail when it comes to achieving a balanced cash flow.

Generating sufficient revenue to meet all expenditure can sometimes be a juggling act. But income generation is only part of the problem. Sometimes problems arise because of bad debt or poorly managed accounts.

A careful approach to planning and early intervention is key. It is crucial to identify potential problems that can have a negative impact on accounts, then develop appropriate action plans to deal with them.

Using these six tactics can help to minimise poor cash flow and achieve sustainability.

• Encourage prepayment: offer incentives for pre-payment on advertising space
• Sell a series: when selling advertising space, incentivise your sales team to secure series bookings with pre-payment
• Build up subscription sales: magazine subscribers pay in advance which equals cash in the bank
• Timely payments: have systems so payments come in promptly, penalise late payers and don’t delay dealing with bad debts
• Avoid income eaters: such as monthly payments for those added extras that aren’t essential
• Keep it lean: monitor all expenditure and when necessary be prepared to make cuts.

A successful model

Having a realistic business plan is the key, providing a road map for the journey ahead. An astute publisher will not only have identified the end goal but also mapped out how to get there, with key markers to achieve along the way.

Though once developed, a business plan must be regularly evaluated as circumstances can quickly change.

After a decade of disruption following the evolution of digital content, the old model of advertising plus copy sales no longer works. To survive publishers have had to be more innovative when it comes to revenue.

There are numerous ways to expand magazine publishing from events to building a brand around a membership model .

Research pays dividends when creating or changing a business model. An individual approach is also crucial. What works for one publisher will surely fail for another, so first invest in research then evaluate the data and consider the impact of change on your current audience.

Take a holistic approach before making any big changes.

And when strategies or the business model becomes less effective? First, take a breath. While it is wise to take immediate action to stem losses, rash decisions must be avoided. Instead take a steady, methodical approach to identify areas of poor performance, then adjust your strategy accordingly.

Multiple revenue streams

An essential part of good cash flow is having a reliable stream of revenue. Those publishing houses that have developed a strong membership, subscription model or multiple revenue streams will be more financially stable.

Increasing revenue streams is another good measure to ensure a more stable cash flow. However, these must be relevant to the business model as well as the readers and offer clear value.

Potential revenue streams are likely to include some – or all – of the following:

• Brand extensions; such as digital editions, sister publications, books, events, conferences, courses and festivals
• Advertising sales: incorporating an innovative strategy and selling online plus print advertising as one package
• Sponsorships/promotions and services: facilitating strategic partnerships or third-party sponsorship of in-house events, plus selling design and content packaging services.
• Copy sales: digital/print magazine sales on the newsstands, subscriptions, along with in-house back issue sales and direct sales to partners/advertisers if appropriate
• Memberships schemes: will help cash-flow and is also likely to increase audience reach and reader loyalty
• Online content/paywalls : using a micro-payment system to sell additional content
• Product licencing: from selling the rights to content to be repurposed in an existing title to licensing the brand in terms of merchandising – particularly suited to specialist titles such as gaming magazines.

Remember that every title has its own identity – and this must be reflected in any brand extensions.

So, to successfully diversify first identify potential areas for added value, then test these with the appropriate market research. Only then can you create additional and relevant revenue streams, which have been specifically tailored to your business model.

The last word

Independent media consultant, trainer and lecturer David Bostock says creating viable business models is the biggest challenge for publishers.

Today business models must be different for each title. In the past decade, I have seen the industry move from a brand/magazine centric to a reader-centric business model – and readers are different in every market, a fact sometimes overlooked. To be sustainable, publishers must build a profitable business model around the consumer and their needs – and for advertisers too, particularly where they see value. Often that value can be found in consumer as well as B2B data. In consumer magazines, publishers have a deep understanding of their readers, but the data backs it up. And because data is available marketing and advertising directors now want proof of facts and figures so when approached by advertising sales team they will respond with: ‘this is who you tell me your reader is now show it to me – and I want to be able to contact all your readers too’. It is essential to realise that there isn’t a one-size-fits-all model. You can’t just copy a rival title’s strategy and assume it will work, every magazine has a unique value proposition. Certainly, it’s a lesson I’ve learned the hard way, so I always advise clients to focus on their readers – to talk to them and observe their habits to find out what they want.

My thoughts

While a solid business model and good cash flow management are crucial, a strong team is also key. Take time to find the right editor – someone who has a passion for the magazine, then build your team.

A like-minded team who communicates and bonds can achieve great things with very few resources. I know, because years ago I was fortunate enough to have had the privilege to be part of such a team.

This article is based on the fourth chapter of my latest book, Business Strategies for Magazine Publishing published by Routledge and available from Amazon.

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Magazine Business Plan Template

Written by Dave Lavinsky

Magazine Business Plan

Over the past 20+ years, we have helped over 1,000 entrepreneurs and business owners create business plans to start and grow their magazine companies. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a magazine business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Magazine Business Plan?

A business plan provides a snapshot of your business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your business plans.

Why You Need a Business Plan for a Magazine Business

If you’re looking to start a new magazine business, or grow your existing magazine publishing company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the revenue growth of your business in order to improve your chances of success. Your business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Magazine Companies

With regards to funding, the main sources of funding for a magazine business are personal savings, credit cards, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financial projections are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business.

Personal savings is the other most common form of funding for a new magazine business. Venture capitalists will usually not fund a magazine business, but they might consider funding a one with a national presence, but never an individual location. This is because most venture capitalists are looking for millions of dollars in return when they make an investment, and an individual location could never achieve such results.  With that said, using a savings account and bank loans are the most common funding paths for magazine businesses.

Finish Your Business Plan Today!

How to write an effective business plan for a magazine business.

If you want to start a magazine business or expand your current one, you need a business plan. Each of the key components of a magazine publishing business plan are detailed below:

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of business you are operating and the status. For example, are you a startup, do you have a digital magazine business that you would like to grow, or are you starting an online magazine business?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the magazine industry. Discuss the type of business you are operating. Detail your direct competitors. Give an overview of your target audience. Provide a snapshot of your marketing strategy. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of business you are operating.

For example, you might operate one of the following types of magazine businesses:

• Entertainment magazine : this type of magazine business focuses on topics such as arts, culture, fashion and leisure
• Academic and professional magazine: this type of magazine business focuses on subjects like finance, health, or science
• Home and living magazine: this type of magazine is devoted to cooking, home decorating, etc.
• Business magazine: this type of magazine typically focuses on business people, companies, emerging business or technology trends, etc.
• Digital magazine: this type of magazine is accessible via an electronic device, whether it be a smartphone, tablet, or computer. An internet connection is required to access or download the content, but once downloaded, it is available for viewing offline.
• Online magazine: this type of electronic magazine is similar to a digital magazine, but typically comes with fewer features. An internet connection is required to access the content.

In addition to explaining the type of magazine startup you will operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of customers served, number of positive reviews, number of annual subscriptions, etc.
• Your legal business structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the magazine industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the magazine industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy, particularly if your research identifies market trends.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section:

• How big is the magazine industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your magazine business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: advertisers, consumers of varying ages and with varying interests, and authors.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of magazine business you operate. Clearly, business people would respond to different marketing promotions than teens, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve. Because most magazine businesses primarily serve customers living in their same city or town, such demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other magazine businesses.

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes social media platforms, other reading material, or alternative leisure activities. You need to mention such competition as well.

With regards to direct competition, you want to describe the other magazine businesses with which you compete. Most likely, your direct competitors will be house flippers located very close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What interest or niche do they specialize in?
• What formats are their publications available in?
• How often is the magazine published?
• What is their pricing strategy (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide better articles, features, and/or photos?
• Will you provide more opportunities for guest authors?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a magazine business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type of magazine company that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to printed magazines, will you offer a digital version?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.

Place : Place refers to the location of your magazine company. Document your location and mention how the location will impact your success. For example, is your magazine business located near a distribution center, or in an area known as a “hub” for the content you specialize in, etc. Discuss how your location might be ideal for attracting and retaining customers.

Promotions : The final part of your magazine marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Advertising in local papers and magazines
• Reaching out to local websites
• Social media marketing
• Local radio advertising

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your magazine business, including selling ad space, creating quality content, finding contributors, designing each issue, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to land your 10 th major magazine advertising account, or when you expect to have 5,000 subscribers, or when you hope to reach $X in revenue. It could also be when you expect to expand your magazine distribution to a new city.  

Management Team

To demonstrate your magazine business’ ability to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally you and/or your team members have direct experience in managing magazine businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in publication or marketing or successfully running small businesses.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you publish one issue per month or four? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your magazine business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a magazine business:

• Location build-out including design fees, construction, etc.
• Cost of equipment and supplies
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your office location lease or the wireframe for your digital publication.  

Putting together a business plan for your magazine business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the magazine industry, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful magazine business.  

Magazine Business Plan FAQs

What is the easiest way to complete my magazine business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily complete your Magazine Business Plan.

What is the Goal of a Business Plan's Executive Summary?

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of magazine business you are operating and the status; for example, are you a startup, do you have a magazine business that you would like to grow, or are you operating a chain of magazine businesses?

Don’t you wish there was a faster, easier way to finish your Magazine business plan?

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Other Helpful Business Plan Articles & Templates

Anatomy of a Magazine: What You Need to Know

The anatomy of a magazine encompasses various elements that collectively define its structure and appeal. This begins with the cover, which is the first engagement point, featuring eye-catching visuals and headlines. Inside, the table of contents guides readers through diverse sections. Feature articles form the core, providing in-depth coverage of specific topics, while regular columns and editorials offer varied perspectives.

Table of Contents

High-quality photography and graphics enhance the visual appeal, and advertisements are strategically placed. The layout, balancing text and visuals, is crucial for readability and aesthetic appeal, culminating in a back page often reserved for impactful content or ads.

Anatomy of a Magazine: A Brief Overview

Magazines have long been a staple in the publishing world, offering a blend of information, entertainment, and visual appeal. They serve multiple purposes – from in-depth analysis of current events and trends to showcasing creative endeavors in fashion, lifestyle, and technology. Their structured format, combining text and visuals, creates a unique reading experience that captivates diverse audiences. The anatomy of a magazine layout plays a crucial role in shaping this captivating experience.

The Basic Structure of Magazines

At the heart of every magazine is its layout, the anatomy of which is both an art and a science. A magazine’s layout encompasses the arrangement of content on the page and the overall design philosophy guiding each element’s placement. This structure determines the reader’s journey through the magazine and ensures a logical, cohesive, and engaging experience. Understanding the anatomy of a magazine layout is essential for creating visually appealing and influential publications.

The Cover: The cover is the magazine’s first impression, designed to grab attention and convey the essence of the edition’s content. It typically features striking images or graphics, a prominent title logo, and teasers for significant articles. The cover sets the tone and expectations for what’s inside, making it a critical component of the magazine’s anatomy.

Inside Pages: Following the cover, the table of contents lays out the magazine’s structure, offering a roadmap to the articles, features, and regular sections. Feature articles form the backbone, providing detailed coverage of specific subjects. At the same time, shorter pieces like news snippets, interviews, and opinion columns offer variety. The layout balances text with visual elements like photographs, illustrations, and infographics, enhancing reader engagement and comprehension.

The Evolution of Magazine Formats

Magazines have undergone significant transformations in their format and distribution, adapting to changing consumer habits and technological advancements. This evolution has not only impacted their content but has also brought about profound changes in the anatomy of a magazine layout.

Traditional Print Magazines: Traditionally, magazines were exclusively print-based, with physical copies distributed through subscription or retail. Flipping through glossy pages is a tactile delight. High-quality print images offer a strong visual impact. Both have been key to the charm of print magazines for a long time. Print layouts are carefully designed, considering factors like column width, font choice, and the interplay of text and images on a physical page.

The Rise of Digital Magazines: The digital era has revolutionized the magazine industry. Digital formats offer new possibilities in layout design, such as interactive elements, embedded multimedia content, and hyperlinks. These enhancements provide a more dynamic and engaging reader experience. Digital magazines also offer advantages in distribution, reaching a global audience instantaneously and often at a lower cost than print.

The anatomy of a magazine layout is a complex and evolving field. It encompasses a multitude of design decisions that collectively impact the reader’s experience. From the traditional print magazine to its modern digital counterparts, understanding the anatomy of a magazine layout is vital to creating compelling and engaging content that resonates with readers in an ever-changing media landscape.

Exploring Anatomy of a Magazine: Types of Magazines

The magazine industry, diverse and dynamic, caters to various interests and demographics. Understanding the structure of a magazine is critical to appreciating the nuances between different genres. Each magazine presents unique content and style tailored to its specific audience, from fashion to business. Additionally, comparing print and digital formats reveals how the same structure adapts to different mediums.

Magazine Genres and Their Structures

Fashion Magazines: Fashion magazines, known for their glossy pages and vibrant photography, focus on the latest trends in clothing, accessories, and beauty. They often feature high-profile photoshoots, designer interviews, and fashion event articles. The structure of fashion magazines is visually driven, with large images and minimal text, creating a visually stimulating experience that mirrors the creativity and glamour of the fashion world.

Lifestyle Magazines: Lifestyle magazines cover various topics, including health, travel, food, and personal development. Their structure is more varied, combining feature articles, how-to guides, and personal stories. The layout, an integral part of the structure of a magazine, balances text and imagery to engage readers in a conversational and relatable tone, mirroring the diverse aspects of everyday life.

Business Magazines : Business magazine s cater to professionals and entrepreneurs, offering insights into the corporate world. These magazines prioritize content over design , focusing on detailed articles, industry news, and analysis. The structure is more text-heavy, with charts, graphs, and infographics supporting complex topics, reflecting the informative and analytical nature of the business sector.

Print vs. Digital Magazines: A Comparative Analysis

Content Structure: The structure is fixed in print magazines, with a linear flow that guides the reader through the content. The layout, once printed, remains constant, providing a tangible experience inherent to the structure of a magazine. Digital magazines, on the other hand, offer a flexible structure. They can include interactive elements like videos, animations, and hyperlinks, making the content more engaging and immersive.

Audience Reach and Accessibility: Print magazines have a physical limitation in distribution, reaching a finite audience based on circulation numbers and geographical reach. Digital magazines break these boundaries, accessible globally with just an internet connection. This broad reach allows digital magazines to cater to a more diverse audience, potentially influencing the structure of a magazine to be more inclusive and varied.

Exploring the anatomy of a magazine across different genres and formats reveals the versatility and adaptability of this medium. Whether in print or digital form, the structure of a magazine is carefully crafted to resonate with its intended audience, delivering content in an engaging and relevant format. Understanding these structures becomes essential in appreciating and producing quality magazine content as the magazine industry evolves.

Anatomy of a Magazine: Design and Layout

In magazine production, layout and design are not just aesthetic choices; they are integral components that define the magazine’s identity and influence reader engagement. The parts of a magazine layout work in harmony to create a visual narrative that complements the written content. Carefully orchestrating images, texts, and spaces makes a magazine visually compelling and easy to navigate.

Standard Layout Templates

Cover Page: The cover is the most critical part of a magazine layout. It is the first point of contact with the reader and, hence, needs to be striking. A typical cover includes several vital parts of a magazine layout, such as the magazine’s title logo, a captivating main image, headlines teasing the content inside, and the issue date and number. The cover layout aims to intrigue and invite the reader into the magazine.

Table of Contents: Following the cover, the table of contents is a guide listing the articles, features, and departments in the issue. This section is typically structured to be user-friendly, often incorporating thumbnail images and page numbers for easy navigation.

Feature Articles: Feature articles are the main content of the magazine and constitute essential parts of a magazine layout. These pages are where layout designers can genuinely showcase their creativity. The layout here may vary significantly depending on the content but usually combines text, images, pull quotes, and sidebars engagingly. The goal is to keep readers interested and seamlessly guide them through the article.

Regular Departments and Columns: These sections have a more consistent layout across issues, helping readers familiarize themselves with the magazine’s structure. The layout here is generally more straightforward and more text-oriented but still maintains the overall style of the magazine.

Typography and Color Schemes

Typography: Typography in magazine layouts is not just about readability but also an essential part of a magazine layout’s design. The choice of fonts can set the magazine’s tone – professional, playful, or edgy. Headlines, subheadings, and body text all require different typographic treatments, and the interplay of these typographic elements is one of the critical parts of a magazine layout that can significantly impact the overall look and feel of the publication.

Color Schemes: Color schemes in magazines are crucial in setting the mood and highlighting essential parts of the layout. Colors can draw attention, indicate sections, and maintain a consistent theme throughout the magazine. The choice of colors should complement the images and text, creating an aesthetically pleasing and coherent visual experience.

The anatomy of a magazine’s design and layout is a complex and thoughtful process. It involves strategically arranging various parts of a magazine layout, including typography and color schemes, to create a visually engaging and reader-friendly publication. The layout and design are crucial. They are as important as the content. These elements significantly contribute to a magazine’s success. They help connect with its audience.

Anatomy of a Magazine: Crafting the Magazine Narrative

The journey of a magazine from a mere concept to a tangible publication is intricate and multifaceted, encompassing the content and anatomy of a magazine cover. It starts with brainstorming sessions where editorial teams discuss themes, potential stories, and overall direction. This phase sets the groundwork for the entire issue, determining the tone, content, and target audience.

Editorial Process: From Concept to Publication

Planning and Content Development: Once the concept is solidified, editors and writers begin fleshing out individual articles and features. This process involves extensive research, interviews, and collaboration among writers, photographers, and subject matter experts. The goal is to ensure that each piece not only stands on its own but also fits within the broader theme of the issue.

Editing and Design Integration: As articles are written and refined, the design team begins to work on the layout. This step is crucial in the anatomy of a magazine cover and the interior pages. Designers consider how text, images, and white space interact on each page to create a visually appealing and coherent narrative. The layout must be reader-friendly, guiding the audience through the content logically and engagingly.

The Importance of Storytelling and Narrative

Storytelling in magazines goes beyond the written word; it’s about creating a narrative that resonates with the reader. Engaging narratives are crafted to evoke emotions, provoke thoughts, and connect with readers personally, even extending to the anatomy of a magazine cover. This storytelling aspect turns a collection of articles and images into a cohesive magazine.

Cohesiveness and Flow: The narrative flow of a magazine is essential. Each article or feature should transition smoothly to the next, maintaining a consistent tone and style. This flow keeps the reader engaged from cover to cover, weaving individual pieces into a complete story.

Role of Photography and Graphics

Enhancing Content with Visuals: Photography and graphics are not just embellishments in a magazine; they are integral to storytelling. High-quality images can capture the essence of an article, offering visual narratives that complement the text. In the anatomy of a magazine cover, the imagery is often the focal point, setting the tone for the entire issue.

Conveying Complex Information: Graphics, such as infographics and charts, are critical in giving complex information in a digestible format. They break up text-heavy pages, adding visual interest and aiding reader comprehension.

Crafting the magazine narrative is a complex process involving careful planning, storytelling, and design. From the anatomy of a magazine cover to the final page, each element must work harmoniously to create a compelling and cohesive publication. The editorial process, narrative flow, and visual elements all contribute to engaging the reader, making the magazine not just informative but also an enjoyable experience.

Anatomy of a Magazine: Critical Components

The cover page is often viewed as the magazine’s face. It is vital in drawing in and engaging readers. In analyzing the anatomy of a magazine cover, several vital elements and parts of a magazine cover emerge as essential.

Visual Appeal: A compelling cover image is paramount. The visual must grab attention, whether it’s a celebrity portrait, a striking graphic design, or a captivating photograph. This image establishes the issue’s tone. It frequently tempts readers to pick up the magazine.

Headlines and Teasers: The headlines and teaser text on the cover, which are important parts of a magazine cover, are critical in conveying the issue’s content at a glance. Compelling headlines are catchy, provocative, or intriguing, prompting readers to delve into the magazine for more. Teasers, meanwhile, offer a sneak peek into the main features and articles inside, carefully crafted to pique interest.

Branding: The magazine’s title or logo is another crucial element in maintaining brand consistency and recognition . The title’s placement, size, and design contribute significantly to the overall impact of the cover.

Impact of Feature Articles on Readership

Feature articles are often the heart of a magazine, providing in-depth coverage on various topics. While residing inside the publication, these articles can significantly influence readership by offering unique perspectives, comprehensive reporting, and engaging storytelling, complementing the essential parts of a magazine cover that entice readers in the first place.

Content Quality: The quality of content in feature articles is paramount. Well-researched, well-written, and topical features can establish a magazine’s reputation for excellence and expertise, attracting a dedicated readership.

Visual and Narrative Integration: Features often integrate compelling visuals and narrative elements, such as personal stories or investigative reporting, to enhance reader engagement and convey complex ideas more effectively.

Role of Regular Columns and Departments

Regular columns and departments provide consistency and familiarity, key to maintaining reader interest.

Voice and Personality: Regular columns often carry a distinct voice or personality, whether an editor’s note, a celebrity column, or a subject matter expert. These pieces create a personal connection with readers.

Variety and Relevance: Different departments, such as news briefs, interviews, or opinion pieces, cater to varied interests, ensuring that there is something for every reader. This variety keeps the content fresh and relevant.

Integration of Advertisements and Promotional Content

Advertisements and promotional content are vital to a magazine’s financial health. Still, they must be integrated thoughtfully to avoid detracting from the reader experience.

Strategic Placement: Ads should be strategically placed to flow seamlessly with the magazine’s content, such as alongside related articles or in designated sections.

Relevance and Quality: Advertisements relevant to the magazine’s audience and maintaining a certain quality standard can add value, providing readers with information on products or services that interest them.

The critical components of a magazine, encompassing everything from the layout and typography to the parts of a magazine cover and the integration of advertisements, work together to create a cohesive and engaging publication.

Each element, be it a feature article, a regular column, or a well-placed ad, plays a role in defining the magazine’s character and maintaining reader interest. Understanding and effectively executing these components, including the various parts of a magazine cover, are critical to a magazine’s success and longevity.

Anatomy of a Magazine: Production and Distribution

Printing Processes for Print Magazines: The production of a print magazine is a sophisticated process involving various printing techniques, which are integral parts of a magazine, contributing to the final product’s quality and appeal.

Offset Lithography: Offset lithography is a commonly used printing method for high-volume magazine production. This method transfers ink from a plate to a rubber blanket onto the printing surface. It is renowned for producing consistent, high-quality images and text, making it ideal for detailed and colorful magazine pages.

Digital Printing: Digital printing is often preferred for shorter runs or specialized editions, which can be essential parts of a magazine’s production strategy. This method is more cost-effective for smaller quantities and allows for greater flexibility in personalization and modifications between issues. Digital printing is also faster, reducing the time from design to distribution, further contributing to the efficiency of various parts of a magazine’s production process.

Gravure Printing: Gravure printing, known for its exceptional quality, is used for high-end magazines with extensive circulation. This process engraves the image onto a cylinder. It is particularly effective for reproducing photographs and complex artworks. These artworks often have depth and texture.

Distribution Channels and Strategies

Print Magazines: The distribution of print magazines involves several channels. Traditional retail distribution includes newsstands, bookstores, and other retail outlets. Subscription models are another critical channel. Magazines are delivered straight to subscribers’ homes or offices through this channel. In addition, some magazines are distributed through promotional channels, such as being offered in airlines and hotels or as part of membership packages.

Digital Magazines: Digital magazines have transformed distribution strategies, offering broader reach and flexibility.

Online Platforms: Digital editions are often distributed through the magazine’s website, digital newsstands, or apps designed explicitly for magazine reading. These platforms allow for instant access by subscribers and one-time purchasers alike.

Email Distribution: Many digital magazines also utilize email for direct distribution, sending new issues or links to subscribers.

Social Media and Content Marketing: Online social networking platforms and content marketing strategies are being used more and more frequently. They distribute and promote digital magazine content. This approach broadens the reach and engages readers through interactive content like videos and social media posts.

The production and distribution of magazines, whether print or digital, are critical components and parts of a magazine’s lifecycle. Each aspect, from the choice of the printing process to the selection of distribution channels, impacts the magazine’s accessibility, appeal, and success. Understanding these processes is essential for publishers to effectively reach and engage their audience in an increasingly competitive media landscape.

Anatomy of a Magazine: The Magazine Business Model

Different Revenue Models: The financial backbone of magazine publishing lies in its diverse revenue models, which are integral to the structure of a magazine article. Each model is critical in sustaining the magazine’s operations and ensuring its longevity in a competitive market.

Subscriptions: Subscription revenue is a traditional and reliable income source. By paying for periodic delivery, subscribers provide a steady cash flow, which helps in forecasting future revenues and budgeting for production costs. Subscription models can vary, offering different periods (monthly, quarterly), bundled packages, or digital-only access, catering to changing reader preferences.

Advertisements: Advertising is a significant revenue stream for magazines. The structure of a magazine article often includes strategically placed ads that align with the magazine’s content and appeal to its readership. Magazines charge advertisers based on factors like page location, size of the ad, and circulation numbers. The shift towards targeted advertising, especially in digital formats, has enhanced the value proposition for advertisers seeking to reach specific demographics.

Sponsored Content: Sponsored content, also known as native advertising, has become increasingly popular. This model integrates content paid for by an advertiser but matches the magazine’s editorial style. It provides value to readers while subtly promoting a product or service, making it a lucrative option for magazines and advertisers.

Analyzing Market Trends

Remaining keenly aware of market trends is essential for the magazine’s survival and expansion, and it’s a vital aspect of the structure of a magazine article. Trends can include shifts in reader preferences, advancements in digital technology, changes in advertising practices, and broader media consumption patterns.

Digital Transformation: Digital transformation represents a significant trend. It affects magazine operations and revenue generation. Digital platforms have introduced new revenue models like paywalls, premium content access, and interactive advertising.

Customization and Personalization: The trend towards customization and personalization has led magazines to tailor content and ads to individual reader preferences, leveraging data analytics and reader feedback.

Identifying Target Audiences

Identifying target audiences is foundational in the magazine business model and is crucial to the structure of a magazine article. Understanding the audience influences the content, advertising strategy, and overall branding.

Demographic Analysis: Magazines conduct demographic analyses to understand their readers’ age, gender, interests, and other characteristics. This information helps shape editorial content, design the magazine layout, and select appropriate advertisers.

Reader Surveys and Feedback: Regular reader surveys and feedback mechanisms provide insights into reader preferences and behaviors. This information guides content creation and helps in refining the editorial calendar.

Market Research: In-depth market research, including competitor analysis and industry trends, aids in identifying potential new audiences and untapped market segments. This research supports strategic planning for growth and diversification.

The anatomy of a magazine’s business model is multifaceted, encompassing various revenue streams, market trend analysis, and audience identification. The structure of a magazine article, its content, design, and advertising all play into this business model. Understanding and adapting to the dynamic media landscape is crucial for magazines to thrive and maintain relevance in an increasingly digital world.

Anatomy of a Magazine: Digital Trends and Innovations

The digital era has brought about transformative trends in the publishing industry, significantly impacting the parts of a magazine article and the broader magazine landscape. These innovations change how content is created and consumed and open new avenues for reader engagement and revenue generation.

Interactive Content

One of the most significant trends in digital publishing is the rise of interactive content, which is transforming traditional parts of a magazine article. Unlike traditional print articles, digital platforms allow for the inclusion of interactive elements like videos, animated infographics, and clickable links within articles. This interactivity enhances the reader’s experience, making content more engaging and memorable. Magazines leveraging these features can provide a more immersive and dynamic reading experience, setting them apart in a crowded digital space.

Personalization and Customization

Digital platforms have enabled unprecedented levels of personalization and customization in magazine content. Using data analytics and reader input, digital magazines can tailor content to individual preferences, presenting articles and topics that align with each reader’s interests. This personalization extends to advertising, where ads can be specifically targeted based on user behavior and preferences, increasing their relevance and effectiveness.

Social Media Integration

Social media integration is another critical trend that influences various parts of a magazine article. Magazines now routinely use social media platforms to extend their reach and engage with readers beyond the traditional magazine format. Articles are often shared across social media, encouraging broader dissemination and discussion. Additionally, some digital magazines incorporate social media content directly into their articles, using tweets, Instagram posts, or Facebook comments as part of their storytelling.

Mobile-First Design

With the increasing use of smartphones and tablets for media consumption, a mobile-first design approach has become essential. This approach involves designing digital magazine content primarily for mobile devices, ensuring optimal readability and navigation on smaller screens. Such a design strategy improves user experience and caters to a growing demographic of mobile users.

Virtual and Augmented Reality

Emerging technologies are impacting digital magazines. Virtual and augmented reality (VR and AR) are key examples. By incorporating VR and AR elements into articles, magazines can offer immersive experiences, such as virtual tours or augmented reality-enhanced images, providing a novel way of interacting with content that print cannot offer.

E-commerce Integration

The integration of e-commerce is a growing trend in digital magazine publishing and influences various parts of a magazine article. Magazines are incorporating direct shopping links within their digital articles, allowing readers to purchase products or services related to the article’s content. This not only adds convenience for the reader but also opens up new revenue streams for the magazine through affiliate marketing and partnerships.

The digital revolution in the magazine industry is marked by innovative trends reshaping traditional parts of a magazine article. From interactive content and personalization to social media integration and new technologies like VR/AR, these trends drive the evolution of digital magazines. As the industry adapts to these changes, we expect to see even more creative and engaging ways of delivering magazine content to a diverse, digitally savvy audience.

Anatomy of a Magazine: Social Media and Online Content

The digital era has significantly reshaped the traditional anatomy of a magazine spread. As social media platforms and online content continue to rise, magazines swiftly adapt to meet the changing media consumption landscape. This transformation is evident in two key areas: the impact of social media on magazine content and distribution and the adaptation of magazines to the burgeoning realm of online content and evolving reader preferences.

Impact of Social Media on Magazine Content and Distribution

Social Media as a Distribution Channel: Magazine content distribution has become increasingly reliant on social media platforms. Platforms like Instagram, Facebook, and Twitter allow magazines to reach broader audiences, engage with readers in real-time, and enhance brand visibility. The visual appeal of platforms like Instagram aligns perfectly with the aesthetics of magazine spreads, allowing for a seamless integration of content. Understanding the anatomy of a magazine spread can help optimize its presentation on these social media platforms.

Reader Engagement and Feedback: Social media has transformed readers from passive recipients to active participants. Reader comments and shares on social media provide instant feedback, influencing future content creation. This interactive dynamic has led magazines to tailor their content to what resonates most with their audience, creating a more reader-centric approach.

Influencer Collaborations: Collaboration with social media influencers is another significant change. Magazines now often feature influencers, understanding their power to reach and engage niche audiences. These collaborations can include interviews, guest articles, or social media takeovers, blending the magazine’s voice with the influencer’s.

Adapting to Online Content and Changing Reader Preferences

Digital-First Strategy: As readers increasingly prefer online content, many magazines have adopted a digital-first strategy. This involves prioritizing digital platforms for content distribution, often before it appears in print. Digital platforms offer greater flexibility in content format, such as incorporating videos, interactive graphics, and hyperlinks. Understanding the anatomy of a magazine spread is crucial in optimizing its transition to the digital realm.

Customized Content and Personalization: Online platforms enable magazines to offer personalized content. Using data analytics, magazines can tailor their content to individual reader preferences, a stark contrast to the one-size-fits-all approach of traditional print media.

Responsive and Interactive Design: The rise of online content has led to a focus on responsive design, ensuring magazine content is accessible and visually appealing across various devices. Interactive elements like polls, quizzes, and embedded social media posts make online magazine content more engaging.

Multimedia Integration: Online platforms have opened up new possibilities for integrating multimedia elements into magazine spreads. Audio clips, video interviews, and animated infographics enrich the storytelling experience, making it more dynamic and immersive.

The anatomy of a magazine spread has evolved significantly in response to social media and online content. This evolution reflects a shift towards more interactive, personalized, and multimedia-rich content, meeting the changing preferences of today’s readers. The magazine industry will likely see continued innovations and adaptations as the trend persists.

Anatomy of a Magazine: Evolving Landscape

The exploration of the anatomy of a magazine, particularly in the context of its front cover and overall structure, reveals a dynamic and evolving landscape. From the critical components like cover design, feature articles, and regular columns to the intricate production and distribution processes, magazines are a complex blend of art and business. Understanding the significance and evolution of the parts of a magazine’s front cover is just one aspect of grasping the intricacies of this multifaceted industry.

The Cover Page: The parts of a magazine’s front cover play a vital role in attracting readers. It encapsulates the essence of the entire issue, combining compelling imagery with engaging headlines and teasers. This section sets the tone for what readers can expect within the magazine, making it a pivotal element in its appeal.

Feature Articles and Regular Columns: Feature articles offer in-depth coverage of various topics, significantly influencing readership. They are complemented by regular columns and departments, which provide consistency and foster reader loyalty. Together, they form the core content that defines the magazine’s character.

Production and Distribution: The production process, from choosing the appropriate printing method for print editions to adopting a mobile-first design for digital formats, highlights the magazine’s adaptability. Distribution strategies have evolved, with digital platforms offering global reach and instant access.

Digital Trends and Innovations: Digital trends, such as interactive content, personalization, and social media integration, have revolutionized the magazine industry. These innovations have transformed the reader experience and opened new revenue generation and audience engagement avenues.

Insights into the Future of Magazines in the Digital Age

Potential Challenges: The digital age presents significant challenges for magazines . The constant need to innovate in a rapidly changing digital landscape can be daunting. Some critical challenges magazines face are adapting to evolving reader preferences, competing with a plethora of online content, and finding sustainable revenue models in the face of declining print sales.

Opportunities for Growth: However, the digital era also offers unparalleled opportunities. Reaching a global audience is a distinct advantage. Experimenting with various formats and interactive elements is another. Leveraging data analytics for personalized content is also a key benefit. Magazines can harness these opportunities to create more engaging, relevant, and accessible content for their readers.

Embracing Change and Innovation: The future of magazines lies in their ability to embrace change and innovation. This includes exploring new technologies like augmented reality, harnessing the power of social media for broader engagement, and continuously adapting to the preferences of a digital-savvy audience.

As the magazine industry navigates through the digital age, its success will largely depend on how well it adapts to the changing landscape. The anatomy of a magazine, especially the parts of a magazine’s front cover, will continue to evolve, reflecting the industry’s response to these changes. Understanding the significance and evolution of the parts of a magazine’s front cover is essential in shaping the future of this dynamic field.

Magazines that can balance traditional publishing strengths with digital innovations are likely to thrive, turning potential challenges into opportunities for growth and reinvention. Understanding the intricacies of the parts of a magazine’s front cover is just one aspect of this dynamic transformation.

What are the critical components of a magazine’s cover page?

The critical components of a magazine’s cover page include an eye-catching main image or graphic, the magazine’s title logo, engaging headlines and teaser text for articles within the issue, and issue date and number. The cover is designed to attract attention and set the tone for the magazine’s content.

How do feature articles impact a magazine’s readership?

Feature articles significantly impact a magazine’s readership by providing in-depth coverage on specific topics. They are vital in establishing the magazine’s reputation for quality and expertise, attracting and retaining a dedicated readership through engaging, well-researched content.

What role do regular columns and departments play in a magazine?

Regular columns and departments provide consistency and familiarity for readers. They often carry a distinct voice or perspective and cover various topics like news briefs, interviews, or opinion pieces, helping maintain reader interest and ensuring there’s something for every reader.

How are advertisements and promotional content integrated into magazines?

Advertisements and magazine promotional content are strategically placed to flow seamlessly with the editorial content. They are chosen for relevance to the magazine’s audience and are designed to maintain its overall aesthetic and quality standard.

How have digital trends influenced magazine publishing?

Digital trends have significantly influenced magazine publishing by introducing interactive content, personalization, social media integration, mobile-first design, and e-commerce integration. These innovations have transformed how magazines create and distribute content, engage with readers, and generate revenue.

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The definitive guide to making a digital magazine

Digital magazines are making a comeback. 

To most readers, this might sound strange. for many years, digital magazines have represented some of the worst aspects of digital publishing..

Many digital magazines feel like a poorly implemented afterthought, and are hard to find, clunky to read, and visually uninteresting.

Usually, digital magazines read like a print magazine, but worse. 

The good news is that this is changing. Publishing and marketing teams are increasingly investing in high quality content, which has helped drive a resurgence in digital magazine publishing. You can learn more about the rise of digital magazine platforms in our guide.

These teams are focusing on building immersive reading experiences natively on the web. They’re a far cry from the all-too-familiar ‘web PDF’ feel of many digital magazines. A great example comes from Imperial College, London . 

After nine months of publishing digital stories, Imperial saw 142% higher average unique pageviews and 50% higher average time on page. 

In this guide, we’re going to give you ten tips on how to make a great digital magazine — and get great results. We even practice what we preach. You can read about how Shorthand killed its blog and launched a magazine .

First things first, though: What is a digital magazine?

What do the BBC, Tripadvisor, and Penguin have in common? They craft stunning, interactive web content with Shorthand. And so can you! Publish your first story for free — no code or web design skills required. Get started.

What is a digital magazine?

A digital magazine — otherwise known as an online magazine or, once upon a time, an e-magazine — is a magazine that has been published digitally using the web or an app.

Unlike print magazines, digital magazines can include links, more high-resolution images, video, audio, and web animations. They can also take advantage of cheaper and potentially wider distribution than print magazines.

Digital magazines have been embraced by a diverse array of organisations, from corporates and universities, to non-profits and more traditional magazine publishers.

If you're looking for examples, check out this collection of excellent digital magazines .

Types of digital magazine

Digital magazines have been around since the dawn of 'digital' itself, and have passed through a range of stages since that point, from floppy discs to Flash (RIP). 

Today, there are five main methods for creating a digital magazine. The model you choose will depend your readership, budget, marketing strategy, and business model. 

An embedded PDF magazine

We've all experienced clicking through to an online magazine and seeing — with a sigh — that it has been published as an embedded PDF .

There are a range of services that allow PDFs to be embedded in a website, and organisations in a rush to create a 'digital' version of their magazine often use this method first.

The result is often a flip-book style copy of a print magazine, or a link to a PDF file. 

Unfortunately, embedded PDFs — and PDF files in general — make for a terrible digital user experience. They're especially poor on mobile devices. They don't give reliable analytics; they're also not usually accessible; they aren't great with SEO; and they generally won't perform as well as the alternatives.

Conclusion:  We know content teams sometimes love PDFs, but they simply aren't suitable for modern digital audiences. We've published more about their limitations in our article on the decline of the PDF .

An apple or android app

The next option for creating a digital magazine is to build a magazine app. The great thing about apps is that they make for a great experience on mobile, including iphones, ipads, and android devices. They also have built in distribution though the App Store and the Google Play Store. 

However, the cost of building a bespoke app is prohibitive for most content teams, and the generic app templates — which are cheaper — won't always meet your needs. If you are interested in building an app, you also need to be sure that you can have a rock-solid strategy for getting that app in front of your readers.

Conclusion : Apps can look amazing, but they are very expensive to create and maintain. It can also be difficult to get your app to stand out from the crowd. 

A Kindle e-magazine

With the rise of Amazon's Kindle, many traditional publishers opted to distributed electronic versions of their magazines using the Kindle news stand. These magazines are very easy to read on Kindle devices, and make for a great reading for those tired of reading on brightly-lit screens. 

Unfortunately, Kindle e-magazines are extremely limited in their functionality. You won't be able to include many images, and many readers won't experience them in colour. 

Conclusion:  This is a good model for established magazines that publish very 'writerly' content. But the visual experience is poor, and the audience is generally limited to Kindle power users. 

A collection of posts published to a CMS

For those wishing to simply get their magazine content online, a simple option is to use your existing CMS and publish each post to a unique URL path. With a landing page representing that magazine's 'table of contents' and cover, readers can navigate your magazine in the same way as they would any other content on the web. 

Your magazine, though, is typically different than short-form content published to your blog. Generally speaking, magazine articles have more attention — and resources — paid to their production. This results in higher quality content, which is intended to have a greater impact than ordinary blog or news articles. 

For this reason, many content teams are reluctant to publish this content using the vanilla visual presentation of their CMS. 

Conclusion : This is a good option for content teams looking to simply get their content on the web as quickly as possible, though it is unlikely to match the impact of more visually impressive and immersive content.

A digital publication of visually immersive digital stories

The final option is to create a digital publication of visually immersive stories. These stories typically have a distraction-free visual presentation, with high-resolution media. They also often use advanced visual storytelling techniques, such as scroll-based animation. 

The benefits of immersive storytelling include higher time-on-page, lower bounce rates, and better click-through-rates and conversions. You can read more about these benefits in  Shorthand's case studies . 

Immersive digital stories are usually built using a digital publishing platform. There are a range of factors to consider when choosing a platform, which we've outlined in this post,  An introduction to digital storytelling platforms .

Conclusion: Immersive digital storytelling is fully responsive and accessible, and is a great way to get better results from your magazine content. Some platforms have plans that allow unlimited stories, which makes it easier to scale your digital magazine content production.

Why create a digital magazine?

There are 6 key reasons why you might wish to create a digital magazine

1) You want to move away from print. Print magazines are great, but they're also expensive to produce. Also, younger generations increasingly engage primarily — and even  solely  — with digital products.

2) You want to supplement your print magazine. Sometimes, print is perfect for much of your existing readership, especially if they are predominantly from an older generation. In this case, many organisations create a 'digital edition' of the print magazine, which can sometimes act as a lead-generator. This is a good way to boost your reach without alienating an existing print readership.

3) You're launching a new magazine. Unless you have a strong distribution channel in place, your best bet from launching a new magazine is to go digital-first.

4) You want to ensure unlimited access. Print is a great format — but it can't easily scale. If you want your content to be seen by as many people as possible, digital is best approach. As many legacy publishers have discovered the hard way, it's hard for a print article to go viral on social media. 

5) You want to generate revenue. As the last two decades of media have shown us, the best way to generate revenue from digital content is to create 'premium' content for subscribers. Pricing for a digital magazine subscription can vary hugely depending on your niche. Regardless, people aren't going to pay for content that looks and reads as everything else on the web. Read more about generating revenue from content in our guide to content monetization .

6) Brand storytelling for your product or service. The final reason to create a digital magazine is to create content that will help you sell your product or service. Immersive brand storytelling is a great way to educate and entertain potential leads as you drive them through your sales funnel. Learn more about brand storytelling .

Now that we've covered the basics, let's move on to the remainder of our guide with ten tips on how to make a successful digital magazine.

1. Make it easy to read

Too many digital magazines are little more than PDFs, optimised for modern web browsers.

While these publications successfully mimic print magazines — including the ability to horizontally ‘flip’ through pages — they generally have a poor reader experience. 

Why is this? The first generation of digital magazines were, in effect, derivative versions of print titles. Rather than repurpose their magazine for online readers, publishing teams went with the easiest solution, which was to simply export a PDF of their magazine into an online magazine builder. 

While this makes sense for busy publishing teams, it has produced a swathe of magazines that can be frustrating to read. 

One solution is to build your magazine content using software designed and engineered to make the most of the modern web. Modern digital storytelling platforms allow publishing and marketing teams to create great reading experiences — without requiring you to hire a web designer or developer. 

The University of Queensland have long published Contact Magazine, and have produced some amazing digital stories. One favourite of the Shorthand team is Fear vs Reality , covering research into shark encounters in Australia. The piece makes great use of video, photography, and animated maps — all beautifully rendered on whatever device the reader happens to be reading on. 

2. Put the ‘digital’ in digital magazine

The classic magazine layout — a few dozen or more pages, stapled together in the middle — is a great format for print. But let’s face it: it’s a terrible layout for digital. 

If you’re looking to make a digital magazine, don’t try to mimic the behaviour and layout of print. 

Instead, embrace the norms of web publishing. Publish each piece of content to its own URL. Interlink as needed. Incorporate high-resolution images, video, and data visualisations. Animate natively in the browser. Create interactive infographics and other interactive marketing elements. Ensure quick page loading. Optimise for all viewports and devices. 

It’s already a long list, and we were just getting started. Unfortunately, none of this can be done — or done well — with an uploaded PDF. 

3. Embrace quality

A digital magazine is not a blog. Typically, magazine stories have progressed through an editing and quality-assurance process — particularly feature stories. A designer may have also worked on illustrations and other visual assets. 

A magazine publication is also much more of an ‘event’, with hard deadlines and — depending on the title — dedicated marketing campaigns attached. 

This emphasis on quality should extend to its publication on the web. A digital magazine should have a ‘premium’ look and feel, with text cleanly presented and easy to read. Images should be high resolution, and optimised for all browsers and devices. Ideally, feature stories should also incorporate scroll-based animation techniques to maintain the attention of the reader.

While magazine content doesn't need to be longform, there are some reasons to go long, which we outline in our guide to longform content .

4. Avoid developer & web design bottlenecks

One reason why so many digital magazines are published as PDFs or flipbooks is that alternatives have been simply much too expensive. Bespoke web templates require both developers and web designers to be on hand, which is not always possible in publishing and marketing teams. 

The good news is that some digital storytelling platforms use flexible ‘content blocks’ or templates, which will allow you to build great and visually impressive magazine stories — without hiring a developer. This makes it much easier (and cheaper) for your team to build stories that look amazing on the web.

Shorthand is the leading digital storytelling platform.

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5. Animate your stories

Don’t sell your stories short. As we’ve argued throughout this guide, digital magazines aren’t just print magazines that happen to be on the internet. Make the most of cutting-edge web technologies for your magazine, including those that empower non-developers to implement compelling storytelling techniques. 

One technique used by the world’s best digital storytellers is scroll-based animation effects. For example, in a little bit of magazine inception, the social enterprise magazine Pioneer's Post animates their story on The Big Issue magazine with several pairs of static images. It's a very simple technique for adding life to stories, and can be created and implemented without writing any code or learning any animation programs. It can be just as easily applied to graphs, maps and photos as to illustrations, as we outline in our guide to data storytelling .

6. Work from themes & templates

Digital magazines have the potential to suck up an inordinate amount of time, particularly with designers beavering away on layouts in software like InDesign. 

When building content for the web, though, it’s best to work with pre-existing templates and themes. This will make it possible to reliably produce great-looking stories with your brand identity — including colours, fonts, logo, and more — automatically applied, and automatically fully-responsive. 

Image captions

7. Don’t build an app

A few years ago, it seemed like nearly every publisher was building an app — for better or worse. To put it mildly, not all of these investments paid off. The rise of ‘app overload’ meant that most apps on most devices are never opened. 

The lesson is clear: unless you’re the New York Times, most people aren’t going to download your app just to access your content. And even if they do, they probably won’t open it more than once. 

Done well, app development is expensive — and, done poorly, it’s a major reputational risk for your brand.  

These days, publishers can tell amazing stories natively in the browser. Digital storytelling platforms can automatically optimise stories — including their visual assets — to look amazing on phones and tablets. This is good for SEO, and it’s great for your readers. No app required! 

Web content can also live behind a paywall, which means you can publish great digital content online and keep your existing subscription model. 

8. Don’t start with a PDF

Desktop design software isn’t necessarily fit for purpose for the production of digital magazines. If you have design capacity, focus your efforts on designing stories within the parameters of an existing storytelling platform. 

This will automate many of the fiddly things — like responsive design — and enable a more impressive reading experience. Crucially, this experience will be optimised for readers on the web, and won’t just be a print-afterthought. 

9. Automate the hard stuff

Our final tip is important for publishing and marketing teams working on a budget. Digital publishing is tricky to get right. Standards are rising, browsers are becoming more powerful, and readers are accessing content on multiple devices and screen sizes. 

Unless you have a developer and web designer permanently on hand within your team, it’s best to let specialist storytelling platforms handle the backend magic — along with all the tech wizardry that goes into handling browser and software updates. This will save you money in the long run, and ensure that you can focus your efforts on the creative side of publishing amazing stories for your digital magazine.

Ready to get started? Publish your first story free with Shorthand, and learn more about how your amazing magazine stories can be published natively on the web. 

10. Reward yourself

Job well done..

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Magazine Trends in 2021 and Beyond: A Conversation with Mr. Magazine

The impact of the pandemic and shifts in consumer behavior are transforming the magazine industry. To better understand how these trends will shape the future of magazines, we reached out to industry expert Samir “Mr. Magazine” Husni, Ph.D . Husni is the founder and director of the Magazine Innovation Center at the University of Mississippi’s Meek School of Journalism. He engages in media consulting and research for the magazine media and publishing industry. Above all, he’s a passionate and lifelong magazine reader.

Our conversation with Mr. Magazine ranged from how publishers can build better business models to account for declining ad revenue, to the booming trend of bookazines, in-depth special edition magazines on a single topic, and beyond. The following conversation has been edited for content and clarity.

The historical moment we’re currently living in is changing the world around us. What will the magazine industry look like in the next five to ten years?

There are only two people who can tell you the future: God and a fool. I don’t pretend to be God, and I hope I’m not a fool. Who knows what the future will be? Throughout recent history, we have seen a lot of events that have impacted the magazine industry, but nothing like the COVID-19 pandemic. Stores shut down, bookstores and newsstands disappeared — all the vehicles that magazines depend on to reach their audience disappeared with the exception of the post office. That’s one reason why subscriptions have seen a hike of anywhere from 15% to 30%. It’s also because these days people are bombarded by information but have less understanding, so they want somebody to explain, to curate, to vet, to provide a trustworthy conversation with them.

Advertisers also vanished. It was a double whammy. That’s why we’ve seen a shift in terms of the business model. A magazine that has been published for 20 years like O, The Oprah Magazine , changed its circulation to quarterly with a cover price of $15.99. This is more than what you paid to get 12 issues when it was a monthly magazine. Magazines are going to focus much more on their audience and get away from the business of selling the audience to the advertiser. And instead, they will get back to selling content to the audience. But if magazines are only in the content-providing business, we’re dead, because there’s so much content out there. To survive, it must be an experience-making business that feels like an exchange between trusted friends.

Do you think the shift towards relying more on consumer revenue than advertising revenue is the new reality for magazines, or is advertising just facing short-term, pandemic-related challenges?

I wish I could say it’s something that sticks. We’re seeing it implemented more than ever before. But I recall back during the 2008 recession, magazine executives were saying we have to change the business model and be in the business of circulation and depending more on the consumer. Then the minute the economy started picking up, they went back to their old ways. But this time because of the magnitude of the impact I think it will be different, and because there are so many other outlets for advertisers like emails and text messaging. Advertisers know how to reach their customers; they don’t need a third party to sell their stuff.

There’s a major change taking place, and whether it shifts to bookazines or quarterly magazines, there is less dependence on advertisers and more dependence on people reaching into their pockets and spending up to $15 for a magazine. So, the content of the magazine better be experience-making content that is timely yet timeless — it’s not going to make a difference whether I read the magazine today, tomorrow or next month. That’s where we’re going to be seeing the big change; magazines are going to be the only non-disposable media platform.

Are bookazines the future of magazines, or just a trend?

From a content point of view maybe, but there is still a need for that continuous relationship with the audience. Magazines are love affairs and long-lasting relationships; people want that trusted friend more. Magazines are the original influencers. People used to say, “I saw this in Life Magazine, ” or “I read this in Better Homes and Gardens. ” It was the brand that carried that influence, and we need that. While bookazines are flooding the market, what’s helping us is that we’re learning that people are willing to pay for good content that they are interested in. So, there’s nothing wrong with me launching a quarterly mountain bike magazine like Beta , for example, which just came out with a cover price of $8. Niche publications like these are numerous, but they have the same goal in mind: I’m providing you with curated, vetted and trusted content, but you have to pay for it.

What would you tell a publisher considering a magazine launch in 2021?

When you look at history, some of the best magazines in this country launched during bad times and became popular after them. Whether it’s Entertainment Weekly or Reader’s Digest , they came following something major that happened. It will take you at least one to two years to establish the magazine, and it’s much better to do it when times are not good, because when the times change and become better, then your magazine is already established. That’s why we’re seeing so many new titles these days, including over 30 so far this year.

Is there anything you wish magazine publishers would do differently?

They have to accept the fact that print is here to stay, but also that print is changing; you can’t do the same magazine you did 10 years ago. There’s no problem with print because study after study shows us that people comprehend more, engage more and remember more with a printed product than digital. We don’t have a print problem; we have a business problem.

Some magazine media outlets are launching new ways to generate revenue, such as doing all kinds of membership deals that go beyond just getting a subscription to a magazine. The smart publishers are finding new ways to create revenue, but they are still using print as the base. Look at Us Weekly , they have a television program, podcasts and bookazines. But no matter what, the printed weekly edition is going to be with us so long as there is Us . I’ve never given up on print; I’ve given up on the traditional business model.

What role should print companies play in supporting magazine customers?

Education is very important.  If magazines see that print is the only non-disposal media we have now, they will realize that you can’t print it on tissue paper. You have to be very creative with the printing, and in terms of ensuring that when you get that magazine you’re paying $15 for, it better feel worth that amount of money. There are so many different ways we can print today, especially now with digital printing. I’m getting some magazines they print only 500 of, but they are collectable or collectibles. Some even have hardcovers. Printers should think out of the box, and they should think they are creating a luxury item. There is no such thing as a disposable item because the price is over $10. It’s not about cutting costs when it comes to printing, and that’s where the education has to play a role. You are in the business of creating a collectible item.

Business Models and Value Creation in the Newspaper and Magazine Market

• First Online: 12 September 2020

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• Bernd W. Wirtz 2  

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The print media industry is one of the most important branches of the media industry. Print products are media products that are distributed in printed form, such as newspapers, magazines, and books. All enterprises that create and/or distribute these products are regarded as print media enterprises. In this chapter the management of newspaper and magazine publishers is examined, using US-American media as examples.

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Wirtz, B.W. (2020). Business Models and Value Creation in the Newspaper and Magazine Market. In: Media Management. Springer Texts in Business and Economics. Springer, Cham. https://doi.org/10.1007/978-3-030-47913-8_5

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Online magazine business guide for 2023

It can be challenging to capture your audience’s attention when there are so many businesses and individuals publishing blogs on virtually every subject under the sun. But if you consider yourself an authority on a specific topic, whether it be MarTech or real estate, you might be in a good position to start an online magazine business.  

A digital publication on a particular topic or interest called an online magazine can make money and offer substantial archival content. Even if there are other periodicals on the topic, you might be able to provide your niche with something really important that positions you as a thought leader in your industry.  

It may be the best time to think about expanding to start an online magazine, if you already produce a lot of content for blogs, whether you do it independently or for your business. What distinguishes a blog from an online magazine? A few examples are:   

• In contrast to blogs, which post articles one at a time, magazines typically publish vast amounts of content on a regular basis (every week, month, or quarter).
• In comparisonto magazines, which can adopt a more official tone, blogs tend to focus on building a personal relationship with readers.
• Then again blogs, which may only have one or two contributors, and magazines frequently compile information from a variety of writers and subject matter specialists or employ full-time writers. However, this distinction is arbitrary and might be determined by the publisher and editor.

It takes more than just a leisure pursuit to plan, collect, edit, and publish content for a magazine with several contributors. It might even develop into a full-time job later. If you’re launching a magazine for your company, it probably needs a manager. Even if you start small, you should think about monetization alternatives if you are establishing the magazine as a business on your own so that you may concentrate on expanding the journal.  

Understanding the types of online magazines  

Back then, only printed magazines in hard copies were available.   

The variety of textual content available today is much greater, and includes online and digital journals, blogs, news websites, applications, and more.   

Although it’s easy to lump things together, there are some significant differences that are crucial to comprehend.  

Online magazines  

Any magazine that can be read on a computer, an iPad, or even a mobile device is included in this.  

Magazine Subscription Apps    

You can subscribe to a platform provided by native apps like Issuu, Amazon Kindle, Readly, and Zinio for a monthly or annual fee, providing you access to hundreds of digital magazines.  

Distributing your magazine through a reputable app is a great way to reach a vast and diverse user base and avoid the effort of establishing your own app.  

Online publications    

Online magazines are publications that are shared, read, and published online, publications have never had, don’t have, and never will have a print component.  

Flipbook Magazines    

Flipbook publications, which are integrated on websites, mimic the page-flipping experience of a magazine. With a little of that tactile, real-world sensation, it becomes more engaged.  

Speaking of engaging your audience, creating digital magazines with the help of programs like Flipsnack is a great way to achieve it. If you include interactive elements to your publications, they will appear more enticing and keep readers interested for longer.   

Include movies, virtual tours, links, commentary, GIFs, and anything else you think would interest your audience.   

Editions created digitally    

As the name pretty much says, they are the digital equivalents of your typical print publications.  

Online and digital magazines are significantly more interactive than digital edition magazines, which are just the digital versions of their print equivalents and don’t have any bells and whistles. They do this by utilizing technology like videos and connections.  

Publications in HTML5  

These have a responsive layout design that adapts to the screen of the device it is being viewed on instead of the more fixed appearance of a PDF or flipbook.   

HTML5 magazines are created using the coding languages CSS, HTML, and Javascript.  

Choosing your model of the magazine  

You must choose the type of digital magazine that is best for you now that you are aware of the various categories. This mostly relies on your objective, your financial scenario, the amount of time you have, and whether you already have a printed copy version of your magazine business.  

Economical choices  

The least expensive option is to create a PDF if cost is your primary concern. All you need is quality content and an InDesign proficient graphic designer who knows their stuff.  

A flipbook (or digital duplicate) can be the ideal option for you if you already have a printed edition and want to upgrade to something slightly finer without spending a lot of money. Even free tools are available to help you with a lot of the job.  

Alternatives with a big influence  

Choosing a magazine subscription app at the right time  

Consider using a magazine subscription app like Kindle Newsstand or Zinio if you currently  printed version. Want to closely resemble its look and format, and want to make money from subscriptions.  

If you take this option into consideration, you will have to pay a membership fee, submit your magazine. To a review process before it is listed, and probably employ a developer to provide XML. Exports of your publication Even then, there is no assurance that you will attract readers because you will be up against thousands of other magazines that are already published on those sites. Additionally, you should prepare to pay a portion of the subscriptions you sell.  

Creating native applications 

You might think about making a native app if money isn’t an issue and you’re willing to put substantial development effort into it. This allows you a great deal of control over the user experience and offers several ways to make money, including app sales, in-app purchases, and advertising. Just keep in mind that you won’t be able to reach readers on desktop computers.  

To be present on each mobile platform, you’ll need to produce a unique version. Additionally, you’ll be subject to the terms and conditions, quality control, and profit-sharing policies of Google and/or Apple. Again, there is no assurance that readers will ever find you if you don’t already have a well-established brand in the congested app store.  

Selecting an HTML5 magazine 

An HTML5 magazine is definitely the best option if you want to make the biggest possible impression. But are strapped for cash You can reach computer and mobile readers. With them and provide an equally engaging reading experience without being bound by anyone else’s terms and conditions.  

You don’t need to be concerned about browser compatibility because an HTML5 magazine has its own domain. (like yourmagazine.com) and can be read by anyone using a current browser. Additionally, you have a great deal of design freedom, exactly like with native apps. As viewers turn pages, you may build a fluid animation and incorporate rich media, such as background videos.  

Forms, overlays, frames, and embeds are all permitted in HTML5 magazines because they employ. Technology as websites, along with third-party tracking scripts and remarketing pixels.  

Be careful though, as many platforms that advertise producing HTML5 magazines really produce flippable. PDFs that have the same subpar mobile experiences as we previously highlighted. These are quite obvious because they frequently offer to “transform” your PDFs.  

Establishing the magazine content  

It’s time to get to the exciting part of creating an online magazine now that the administrative and behind-the-scenes tasks are under control.   

The content   

Since this is the essential component of your product, it must be of the highest caliber possible to succeed.  

Then again, a lot of this will depend on the kind of online magazine business you’re starting, the size of your staff, your budget, and the demographics of your target market.  

Your magazine business plan will be the driving force behind keeping the content on course.  

The tone of writing utilized in your articles and the kinds of writers you collaborate with will depend on the magazine’s focus, the content plan, and the intended audience.  

When you have a range of contributors, style standards help keep the content consistent. They also help you connect with the audience by using a tone of voice that they can get used to.  

Look at the tone, style, and length of your competitors’ articles on the topic you’ve picked for your magazine. Discover what motivates you, what’s useful, and how you’ll set yourself apart stylistically.   

Give a brief description of the kind of writer you are searching for when you advertise for authors.  

For instance, if your publication is a formal tech journal, you will see that you need authors who have experience with both technology and formal writing.  

Once you receive the articles back, you’ll be able to identify the kind of writers you need and start compiling a database of potential contributors.  

You can also find authors through freelance websites. An effective editorial staff is essential to an online magazine’s success. You must also choose the tools that you and your writers will use for producing and creating content.  

Numerous SEO and grammar improvement solutions are accessible to help your magazine’s content.  

• With the aid of Frase, authors may create content briefs efficiently.  
• Writing may be made more engaging, clear, and spellchecked with Grammarly.  

‌‌ Structuring the Magazine  

When we discuss the organizational structure of a magazine, we generally refer to the parts you should include and the order in which you should arrange them – your editorial formula. Naturally, the choice you make here is heavily influenced by the kind of magazine you want to start, its purpose, and its intended readership. The good part is, there is more freedom and flexibility with a digital magazine than with a printed one.  

Let’s start with the most typical sections that classic magazines almost always have.  

Page covers  

The front and back covers, as well as the inside of the covers, which are typically used for the most expensive advertisements, make up the four “cover” pages of a traditional print magazine.  

The “internal” covers, however, are identical to every other page because we’re working with digital forms. The back cover isn’t really important either because you can’t exactly grasp a digital magazine and turn it over.   

The front cover is all that is left. Everyone will see this portion, and it has a significant impact on whether or not potential readers decide to open your magazine. You should consider carefully how to create it and what features it should have.   

What ought to be on the front cover?  

As a general guideline, your cover should be eye-catching if you want to stand out from the crowd of competitors.  

You should use carefully considered and persuading fonts, images, and colors. Apart from this, the following are other very typical elements to have on a magazine cover:  

• Your magazine’s name or brand logo  
• a featured picture or example  
• the date of publication (optional)  
• The volume or issue number (optional)  
• a title for the edition or a subtitle (optional)  

Some highlights of what’s inside (Since not everyone will read every page of your publication, placing your most significant pieces on the cover may encourage more people to do so.)  

Depending on the technology you’re employing, one benefit of a digital magazine is that you can utilize a full screen backdrop video for the cover rather than a still image. This is an excellent method to stand out and draw interest. Even a button to prompt readers to “keep reading” or “open the magazine” is an option.  

Book’s front  

The table of contents, the Impressum, the editor’s letter, and any reader comments or letters are all included on the pages commonly referred to as the “front of the book” in magazines.  

Of course, you can decide which of them are applicable for your magazine based on your objectives and target market. Let’s quickly review each of these and provide a brief explanation.  

The contents table  

Despite the fact that several publications in digital publishing combine this page with their cover page, this is nearly always the opening page of a magazine.  

The ability to make the items in your table of contents into hyperlinks so that readers can quickly access the section that interests them is a major benefit of digital magazines.  

The masthead or Impressum  

The masthead is a page or section that lists all of the people involved in producing the magazine, including the editorial staff, marketers and content producers, designers, and other important individuals. It is typically located at the beginning of the magazine but may occasionally be placed at the back.   

This section could or might not be required, depending on the kind of magazine you’re making. You might completely exclude it if you’re making a magazine that will function as a product catalogue, for instance.  

An editorial letter  

Again, this will differ based on the publication’s style. The letter from the editor is typically a kind welcome that briefly summarizes the magazine’s contents, provides some crucial information, or touches on recent news.  

This is frequently replaced by a letter from the CEO or human resources director in a staff magazine. In either case, it helps to humanize your publication and prevent it from coming across as a faceless corporation.  

Readers’ letters  

Naturally, whether or not you receive such communications will determine whether you include this section. Magazines with a sizable readership may have the luxury of selecting the most intriguing letters from among hundreds submitted.  

The quality well  

Your featured articles are placed in this section, which is the bulk of your magazine. This should be the largest section of the document.  

Variety is generally a plus in this situation. Use both lengthier and shorter articles in your writing. Combine it with articles that are pertinent to your topic, such as reviews, interviews, opinion pieces, etc. For instance, staff magazines might publish an interview with an employee of the month followed by a brief article about the goals for the following month.  

It’s crucial to maintain visual distinction between your features so that readers can tell when they’ve gone from one item to the next. This distinction should be made evident by your layout and color choices, which should also make reading enjoyable.  

You may incorporate more than simply text and graphics in a digital magazine. Adding more interesting content is a breeze with videos. Animated, interactive graphs and charts are common. It’s also enjoyable to experiment with overlays and popups that readers can open to view additional content. Even better, forms can be added to HTML5 magazines so you can get reader input directly on the page.  

The book’s back  

Everything else goes in the back of the book. However, that does not imply that it cannot be intriguing. Classified advertising, horoscopes, and smaller articles are common in magazines. However, a lot depends on the kind of publication.  

Advertising in this section of the magazine typically costs less than in the front of the book or in the feature because it typically receives less attention.   

Some publications choose to place the impresario towards the back of the book as opposed to the front. For a digital magazine, there’s an additional reason to do this: you want new readers to get access to your greatest content as soon as possible.   

If you want to add contact forms or even calls-to-action (CTAs) to your magazine, the final pages can be a fantastic location to do so. If you publish a typical subscription-based magazine, don’t forget to include a contact method for prospective sponsors.  

What are the different revenue models for a magazine business?  

You’re probably starting an online magazine because it can generate income. A high-quality digital magazine might serve as the foundation of your content marketing plan if you are the marketing manager of a small firm. You can increase the size of your consumer base by attracting an audience. You have a number of options for monetizing your content if writing articles is your main source of income:  

Model of Subscription  

You can charge your audience a monthly or yearly subscription price in exchange for access, much like with print magazines. The best publishers provide a selection of subscription packages and possibilities. The top-tier all-access package can give users access to digital publications, unreleased movies, and additional stuff.  

Model of Advertising  

Advertising is another option to profit from your content. Because there is no barrier to reading free magazines, they frequently have a larger circulation. Some people may not be willing to pay a subscription fee for something they typically receive for free since they view the internet as a source of free knowledge. Publishing companies that don’t require subscriptions rely on advertising as their main revenue stream.  

To reach the right audience, the right brands will be willing to pay well. Publishers create an environment that is conducive to marketers by building a specialized, devoted audience. They can write sponsored posts with high-quality content and references of brands or products, or they can directly include advertisements.  

When a reader tries to access your content for the first time and you require a subscription to view it. They’ll probably run into a paywall A paywall is a barrier that prevents readers. From viewing your publications before paying, allowing them to rank in search engines. They can pay for a single article’s access or purchase a subscription for unlimited access.  

Additionally, you can choose to have your paywall appear halfway through your magazine. Before asking them to pay to read more, this gives readers a taste of your content. Additionally, you can set the barrier to go into effect only after a specific number of issues  have been viewed.  

Magazines as a Source of Leads  

It’s possible that content marketers aren’t interested in making money off of their publications. Instead, they persuade customers to purchase their goods or services by writing informative articles. Within that philosophy, a digital magazine could be considered premium content. Prospects still have free access to it, but in exchange they provide their email or other contact details. This tactic pursues a long-term goal. The marketing team now has their contact information, which they can use to send them other marketing. And the content itself can assist in moving them ahead in the buyer’s journey.  

Are you all geared up for your online magazine business?  

It takes a lot of work to launch an online magazine from the beginning.   

Publishing an online magazine is labor-intensive and requires significantly more marketing strategy and work than a standard blog post or social media update on a corporate profile.  

The good news is that the journey can be extremely rewarding on a personal and financial level.   

The road ahead of you has the potential to be very rewarding provided you’re prepared to put in the necessary effort and adhere to a business strategy. Strap in!  

Niranjana Dhumal

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“In the beginning, I thought our mode of distribution was weird,” said Aude Walker, the editor in chief, as she sat in the magazine’s sparse conference room in the second arrondissement. “ ‘O.K., you’re a woman with a rich and young vibe. Here, take a magazine.’ It’s such super-targeted distribution. We don’t give to guys in their 40s from the suburbs.”

Each week, over 400,000 issues of Stylist are distributed in Paris and nine other French cities. For perspective, the monthly circulation of Vogue Paris is under 150,000. Advertisers in the magazine’s roughly 60 pages include brands like Kenzo, Lancôme and Dior perfume as well as local department stores. The quality of the articles, which mix luxury and affordable fashion, is on a par with major publishers.

“Free is not cheap,” said Gwenaelle Thebault, the magazine’s general director, who pointed out that her team came from magazines like Vogue and Glamour. She calls Stylist a “freemium,” a portmanteau of “free” and “premium.”

“We use young photographers who work for the luxury fashion magazines and top models,” Ms. Walker said. “We had to start out at a very high level or it wouldn’t have worked. People would have thought it was trash because it was given out for free in the Métro.”

Without having to sell at newsstands, the staff has liberty in its editorial choices.

“We can put a dog on the cover,” Ms. Walker said, and she wasn’t exaggerating. Stylist eschews traditional celebrity covers for conceptual ones, like a recent issue that featured a detergent bottle bearing Karl Lagerfeld’s face; another had an all-black Charlie Hebdo tribute.

Stylist won the 2014 Innovation in Publishing award from France’s Syndicat des Éditeurs de la Presse Magazine (akin to the American Society of Magazine Editors).

“For consumers, the boundaries between free and paying don’t exist,” said Pascale Marie, the syndicate director. And herein lies the strength of Stylist: It’s something of quality on paper for the Internet generation who are used to getting media free, with the added human element of hands-on distribution.

Stylist began in 2009 (and still thrives) in Britain, where it is the highest-circulated women’s fashion and lifestyle title. By 2014, revenue reached more than £10 million (about $15 million). The French edition is produced in partnership with ShortList Media and the Marie Claire Group.

“Our simple logic was, you can make a free magazine that’s the same quality as a paid-for one,” said Tim Ewington, a founder of ShortList. “The strange thing is that some media is free and some isn’t. There’s no logic to it. No one says Facebook is free so it’s no good. Magazines are just as relevant to young people, but they don’t buy them the way they used to.”

A Stylist edition was introduced in the United Arab Emirates in October. “We’re looking to launch in a new country each year,” Mr. Ewington said, explaining that there is no need for a cover price when they have gangbuster advertising.

“We have a reach with 25-to-40-year-old professional women no one else does,” he said. “It’s targeted and high volume. If you are launching new products, and want to have high impact with your campaign, it’s a very powerful relationship. It physically goes into their hands on their way to work: 400,000 punched into people’s hands over 24 hours. You will see an impact on sales.”

The business model, and the success of Stylist, is not being ignored in the United States. Soon the New York subway’s free reading material will not be limited to religious pamphlets and the morning newspapers that the Metropolitan Transportation Authority complains cause track fires.

Starting in April, 100,000 issues of TrendingNY, published by Hearst Magazines, will be passed out the first week of each month by teams at stations in neighborhoods like Williamsburg, Brooklyn, and the Lower East Side. A four-issue pilot version of the magazine was test-marketed last fall.

“The numbers we saw were off the charts,” said Michael Clinton, the president, marketing and publishing director of Hearst Magazines. Then he hinted at a possible wider-spread plan.

“Trending is a name that certainly can lend itself to other cities.”

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How Do Independent Magazines Make Money?

• Laura Isabella Matthews

LONDON, United Kingdom — In our increasingly digital world, where the average time spent with print magazines has fallen 19 percent in the past five years, according to a report by media agency Zenith Optimedia, it is often observed that independent fashion magazines are nonetheless seeing a resurgence. Today, newsstands have never looked so inviting. Rainbow rows of matte-papered, ice cream coloured fashion magazines cover every inch of space.

Journalist Ruth Jamieson has compiled a book of the world’s best independent magazines, MagCulture has organised conferences on them and the London Edition Hotel has created a dedicated independent magazine library, featuring a host of indie magazines. But what are the business models behind these titles?

The most obvious revenue stream available to titles is the cover price of the magazine. “It has been my number one rule here that we never ever sold a magazine at a loss,” said Masoud Golsorkhi, founder and editor-in-chief of Tank magazine, an innovatively-designed, ideas-focused, independent fashion title. “If we couldn’t rely on copy revenue, I would just close shop immediately,” he continued. The first issue of Tank, launched in 1998, was paid for wholly by cover price, though Golsorkhi comments, “That model in its strictest form is not hugely sustainable if you want to scale up and are producing a niche product that is not going to be selling hundreds of thousands of copies.”

"The cover price pays for distribution and printing and a little bit more," said Penny Martin , the editor of The Gentlewoman, a biannual intelligent women's fashion magazine, launched in 2010, that today has a circulation of 96,000. But Martin added that the majority of the magazine's revenue comes from its strong relationships with advertisers. The Gentlewoman counts brands Céline, Miu Miu, Balenciaga Saint Laurent , Gucci and Prada amongst its advertisers, for whom the magazine's tactile print quality is a part of what makes it a desirable place to market their brands.

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“Paper is a luxury material and I think that consuming our magazine is a luxurious experience. It is very different from the way that you engage with online content,” said Martin, who said that working in print builds a different, more desirable relationship with readers than online. “It extends to things like the quality of the photography and the production and the way it is graphically designed — it’s a very time-consuming operation, which extends to the way we want to engage with our readers.”

For Canadian menswear magazine Inventory, which transitioned from online to print, traditional advertising was a means of securing a revenue stream. “At the time it was really tricky to figure out how to do online advertising,” Inventory’s editor Ryan Willms told BoF. “Even though the print industry was in a bit of a declining state, there was still more of a traditional sense of advertising buying in print.” Advertising is now Inventory magazine’s main revenue stream.

But, with the relatively small distribution of some independent magazines — many media kits do not even include circulation numbers — not every print publication can depend on traditional advertising alone.

Some independent magazines have turned to branded content and other forms of native advertising to bolster their business models. “You’ll have a video on YouTube and you’ll have an event at London Fashion Week together and it will be more of a 360 degree collaboration,” said Becky Smith, editor and creative director of Twin, a luxury biannual bookzine with a circulation of 45,000 that champions female creatives and features cutting-edge editorials. “The advertising space is limited and has a limited revenue. It’s about approaching a brand and giving them something bespoke and curated, with a Twin twist," she added.

A number of independent publications, including Inventory and Kinfolk, a quarterly magazine based in Portland that celebrates the 'slow lifestyle' and features contemporary illustrations, charming photography and intimate interviews with creatives, have also been able to leverage their brand and point of view as curators of products, tapping transactional revenue by setting up online and brick and mortar stores. Inventory magazine has an online store that has stocked menswear brands including Margaret Howell and John Smedley, and now sells independent publications. Willms noted that this has "contributed to Inventory [being seen] as a brand rather than just a publication."

Events are another way for independent magazines to make money. Kinfolk, which operates international editions in Japan, China, Korea and Russia, hosts a vast programme of events internationally through relationships with partners across the globe — from Sydney to Seoul. Jeremy Leslie, founder of MagCulture, described these events as an “enormously powerful [tool]. People buy into the brand explicitly and they want the full Kinfolk experience. It doubles back into the magazine and makes them money along the way.”

Also harnessing the power of events is The Calvert Journal, an independent magazine with a focus on the post-Soviet world, funded by the Calvert 22 foundation, a non-profit organisation looking to promote the contemporary art and culture of Eastern Europe, which produces an annual print issue, supported by daily features, news and photography online. The magazine has built strong relationships with a number of brands, working closely with the likes of Nike to host events and organising global digital-journalism master classes with British newspaper The Guardian. “Our plan has been to create a viable, editorial proposition, with the idea that that helps us build enough cachet and unique visitors to begin talking commercially to brands,” editor Ekow Eshun told BoF.

Some magazines, like Near East, an independent art and fashion publication from Istanbul, are still building their business models. "It's a very specialist magazine," explained Mihda Koray, the magazine's publisher and editor. "There will only be a handful of people that understand what we are doing [with Near East] but with their support we can keep it going." Koray is looking to private investors who feel passionate about the magazine as a cultural project, not a business prospect, but she currently self-funds the publication with revenue secured from a previous project curating a gallery in Istanbul. For Koray, her print publication — though respected within the industry and stocked at major fashion spots such as Dover Street Market — remains a labour of love.

For others, like System — a visually rich biannual fashion publication known for its story-telling editorial style — creating a profitable business was never the aim. "We didn't do the magazine in order to make money, or to start a business on the side with a creative agency," said Elizabeth Von Guttman, who runs the magazine alongside brand consultant Alexia Niedzielski, Jonathan Wingfield , ex-editor of Numéro, and Thomas Lenthal , an art director who has worked for Yves Saint Laurent.

Fabrice Paineau, editor of the Parisian magazine Double, describes his publication as an "amateur professional magazine." Since its launch, Double has become a reference point for emerging photographers, innovative styling and graphic design, featuring major industry names including Juergen Teller , David Sims and Terry Richardson. However, each member of Paineau's small creative team has to maintain a job outside of the magazine.

But although some magazines don’t make money themselves, they can be powerful tools for other businesses. A number of magazines, including Double, Inventory and Tank, have founded creative agencies. Twin also aims to launch creative services.

Tank has leveraged its creative agency to help bolster business since its fourth issue. “We’ve evolved as a business to offer a kind of consultancy service, a design agency service alongside our publication,” Golsorkhi told BoF. “It pays for the office and the staff and keeps the lights on, whilst the magazine pays for [its production] and makes a small profit.”

Editor’s Note: This article was revised on 24 July, 2015. An earlier version of this article misstated that Inventory's online shop still stocked menswear brands John Smedley and Margaret Howell. It does not.

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Modern-day magazine business model relies on ‘tricks and goodies’

Good journalism is simply not enough to sustain magazine revenue these days, according to two business-side veterans who spoke at a panel at Columbia Journalism School on Monday. “Magazines don’t make sufficient money just by producing a magazine,” says David Rose, publisher of the history-focused literary magazine Lapham’s Quarterly . “You have to do all kinds of tricks and goodies to make it break even.”

Rose joined Hillary Frey, a consultant for the Huffington Post with priors including NBC News, The Nation, and Salon, for a cozy conversation about the magazine industry’s evolving business models. Rose and Frey said many publications are facing dismal prospects, and neither sounded anything resembling an upbeat tone about the future.

“Our massive mistake when the Internet started with journalism—why it was given away for free,” says Frey. “It’s not a public resource. It costs a lot of money to do good journalism.”

If more readers realized how much they value the work and decided to pay for it, news would become more profitable, Rose said. “Readers just want too much for too little,” he added. Readers including Rose, apparently: He told the audience he was a proud subscriber to a couple of publications like The New York Times and The Guardian . But after a year, “I haven’t renewed one of those things, and I’m a publisher,” he said. “I know what it means to those organizations that have that, and I can’t be bothered doing it. No wonder these places are in trouble.”

Rose did not say why he hadn’t renewed his subscriptions, nor explain why his own decisions as a consumer might portend doom for magazines. His own magazine charges subscribers $49 per year for a print subscription and $59 for a print-and-digital package.

After poo-pooing the prospects of the magazine business model, the speakers highlighted some alternative models publications are using—aside from the usual advertising model (though they noted most are repackaged or unsustainable long-term). Those include:

• Print magazines sharing and renting subscriber lists. Rose noted that Lapham’s Quarterly makes about $25,000 per year from renting its list. Gaining access to competitors’ lists is key because it allows publications to target an audience that is already interested in magazines and willing to subscribe.
• Digital outlets turning to venture capitalist funding in the hopes of eventually selling to a bigger publishing players or strategic investors. This model works by growing a publication’s audience, so large segments of it can ultimately be monetized. Advertisers end up working with these publications to produce advertorials and branded content based on the type of readers attracted to the site. Frey noted that the editorial side likes to hype the moral wedge between them and business. That said, a different team is getting paid to basically do the same work. “It can be just as beautiful and just as good as something that’s purely produced by editorial,” Frey said.
• Publishing a few special interest issues per year. Deaths and anniversaries serve as a great opportunity to use this model. One example was an Alexander Hamilton-themed issue of Lapham’s Quarterly , timed to the success of the musical  Hamilton. By recycling content, magazines benefit from lower production costs. Also, these issues normally have a longer shelf life, which translates into more time to make money off of them.
• Hosting events and selling merchandise featuring the brand. “The advent of the literary tote bag is what sustains literary magazines in Brooklyn,” Rose joked.
• Transitioning to a scholarly publication to attract experts that want to keep up to date on the publication’s coverage. Known as the white-paper model, these publications are typically ad free, but cost much more to subscribers. This circles back to an earlier point, that readers who are invested or really care about a magazine’s subject matter are more likely to invest.

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Subscription Business Model Defined, How It Works, Examples

Yarilet Perez is an experienced multimedia journalist and fact-checker with a Master of Science in Journalism. She has worked in multiple cities covering breaking news, politics, education, and more. Her expertise is in personal finance and investing, and real estate.

What Is a Subscription Business Model? 

Subscription business models are based on the idea of selling a product or service to receive monthly or yearly recurring subscription revenue . They focus on customer retention over customer acquisition. In essence, subscription business models focus on the way revenue is made so that a single customer pays multiple payments for prolonged access to a good or service instead of a large upfront one-time price. Now, the economy is trending toward more subscriptions instead of ownership for cars, software, entertainment, and shopping. This increases the lifetime value (LTV) of the customer.

Key Takeaways

• Subscription businesses involve selling a product or service and collecting recurring revenue for continuing to provide that service or product.
• Most subscription businesses charge either monthly or yearly. 
• One of the first and easiest to understand subscription business models is magazine subscriptions.
• Thanks to the rise of technology, many businesses are moving from one-time purchases to subscription models.

How Subscription Business Models Work 

Subscription business models were first introduced in the 1600s by newspaper and book publishers. With the rise of technology and software as a service (SaaS) products, many companies are moving from a business revenue model where revenue is made from a customer's one-time purchase to a subscription model where revenue is made on a recurring basis in return for consistent access to the delivery of a good or service.

The subscriptions are generally renewed and activated automatically with a pre-authorized credit card or checking account.  The benefit of subscription business models is the recurring revenue, which also helps create strong customer relationships. 

Types of Subscription Business Models 

Subscription business models can include a variety of companies and industries. Those industries include cable television, satellite radio, websites, gyms, lawn care, storage units, and many more. 

In addition, there are newer-aged businesses that operate subscription models, such as subscription boxes. Subscription box businesses include meal delivery services and meal delivery kits. As well, there are subscription business models for accessing online storage for documents and photos, such as the Apple iCloud.  

Beyond that, there are products that are shipped directly to your home, such as personal care products. Companies in this area include Dollar Shave Club and Birchbox.

Car subscription services provide you with access to a vehicle in exchange for a monthly fee. Vehicle subscriptions may include registration, maintenance, roadside assistance, and  liability insurance . Unlike a lease, which requires a two- to four-year term, you can subscribe to a car service for a shorter time frame, and you can swap out your car for a new one every month.

Example of a Subscription Business Model  

The easiest subscription business model to understand is that of a magazine company. Instead of selling a magazine as a standalone product where a customer makes a one-time purchase, magazine companies offer a subscription service for the delivery of a weekly or monthly magazine. In this model, instead of having customers make single purchases, magazine companies offer monthly payments for a yearly subscription to access their monthly magazines.

If a magazine company offers a monthly magazine service, instead of as a single magazine purchase, it offers its service as a 12-month service comprising 12 purchases. This makes the revenue model of the company stronger because it guarantees itself sales over a 12-month period rather than a single purchase. This makes revenue forecasting and business planning easier since a company can project its sales farther out with more accuracy.

Magazine companies are not the only model that uses a subscription business model. With technology, almost any product or service can now be a subscription model.

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17 Sep 11 Business Models For Publishers

The media industry has been more affected by digital disruption than any other, according to several studies, including the Harvard Business Review. Digital disruption means that the competitive arena has significantly changed due to new entrants and products that are clearly a threat to the traditional monopolies of legacy media, which used to represent the majority of their income.

This trend has forced all media groups to diversify their income sources to enable them to survive. Some have failed in the attempt, but success stories are already emerging across the globe that show that the media business has a bright future.

This article explores the different business models that, according to INNOVATION, offer most potential for success in the media industry.

Considering these criteria, each company must raise strategic questions to ensure that they do indeed have competitive and differentiating advantages in at least one area.

• Do our audiences value our independence as a media company? Do they access our products as a first option?
• Does the content we produce generate credibility? Are we a must-read and frequent source of information?
• Do we fully understand the behaviour and tastes of our audiences? Are they loyal?
• Do we have a stable and trusting relationship with our advertisers? Are we able to expand our value proposition to diversify our sources of income?
• Is our business self-sustaining in terms of its cash flow?

Based on this exercise of genuine and deep reflection, a company must define its core competencies to continue to strengthen its portfolio of products and services.

To subsequently establish its business model, it is important to note that a diversified income strategy is required to survive: at least three alternatives should be considered in order to reduce the risk of solely depending on one or two revenue sources.

Business Models

To establish a suitable business model, it is essential to answer the following questions:

• What are the consumer needs that I am satisfying?
• Who are the final consumers of my products / services? Is our client focus B2B or B2C?
• How relevant and different is the content that we produce?
• How do we receive payment for our products and services? Is it direct or intermediated? How much is the consumer willing to pay for our products?
• How do we produce the content? Directly or through alliances and consolidation?
• What other assets – tangible or intangible – can I take advantage of to generate new sources of income?

INNOVATION believes that the most promising business models are the ones that offer a genuine and solid capacity to produce relevant content for an increasingly more profiled audience, and generate loyal engagement.

We recommend that publishers develop a deep understanding of their audiences so as to generate content that they are willing to consume and pay for, and thus work with better defined and segmented audiences. In the next section, we will describe the business models that INNOVATION believes are most likely to achieve future sustainability.

1. THE PAID CONTENT PUBLISHER SUBSCRIPTIONS OR MICROPAYMENTS

– Aimed at a loyal, demanding consumer who values the objective and relevant content that top news outlets produce – Examples: The New York Times (US), The Economist (UK), The Washington Post (US) – They are clearly the world leaders with the highest credibility, coverage and loyalty from their audiences. Through various forms of payment for content they have been able to sustain their business model. Only those with good quality journalism and community engagement are able to survive with this model.

2. THE PUBLISHER AS PHILANTHROPIST CROWDFUNDING – Aimed at a consumer who is willing to fund media companies with negative balances, supporting their clear independence and good quality, credible content. – Examples: Guardian (UK), DeCorrespondent (Netherlands), MotherJones (US) – This business model is recommended for kick-starting a business or a specific project, with a goal of then achieving sustainability through another model such as advertising or subscriptions. Only in very well developed economies will this model be able to grow. Regulatory restrictions still limit the use of crowdfunding.

3. THE PUBLISHER AS RETAILER VERTICAL, E-COMMERCE – Aimed at consumers who are highly segmented due to their needs and profile and who are willing to satisfy their purchase needs with the portfolio of products / services offered. – Examples: Net-a-Porter (UK), BuyaCar and Dennis Publishing (UK) – These companies have clearly focused on a niche audience with both content and exclusive and attractive offers, which has increased the purchase intent for their products and captured the advertisers’ interest. With the gradual increase of e-commerce in the retail market, more companies will have to develop this model, independently or through partnerships. A deep understanding of their audiences is a must to survive with this model.

4. THE PUBLISHER AS EVENTS ORGANIZER LAUNCHING BRANDED EVENTS – Aimed at consumers attracted by the quality and credibility of the brand and their resulting events – Examples: HearstLive (US), Spirited Media (US),The Atlantic (US), La Nación (Costa Rica) – These companies have consolidated the development of events of all their brands into a single area for the sale of tickets and sponsorships or have opted to create independent business units aligned with the growing interest of the consumer in actively participating in new experiences. These events also generate new content, data that feeds databases and become positive influencers for their brands. This model could represent 20 per cent of total revenues with good brand partnerships and with the right management team.

5. THE PUBLISHER AS A CLUB MEMBERSHIP – Aimed at consumers who, through subscription packages, not only access editorial products, but attractive discounts in a broad portfolio of products and services. The annual subscription could be recovered through accessing these discounts. – Examples: La Nación (Argentina), El Tiempo (Colombia), The Atlantic (US),The Guardian (UK) – All these companies have generated a robust list of benefits so that subscribers have preferential access to relevant events, premieres and discounts across a wide range of services. It requires a proactive telemarketing strategy to make sure that the club members are satisfied and loyalty prevails.

6. THE AD DEPENDENT PUBLISHER NATIVE ADVERTISING, BRANDED CONTENT, PROGRAMMATIC – Targeting interested advertisers to build and distribute relevant messages associated with their brands and the needs of the audiences – Examples: Quartz (US), The Atlantic (US), GuardianLabs (UK) – These companies are among the few that still survive with robust models dependent on advertising, due to their high segmentation and profiling of their audiences which capture sophisticated audiences.

7. THE PUBLISHER AS AN AGENCY SELLING BRANDED CONTENT – Aimed at advertisers who do not have the capacity to contract creative agencies to create advertising pieces for their audiences. – Examples: 23stories by Condé Nast (US), Remezcla (US), CNBC Catalyst(US) – Taking advantage of their content creation potential, these companies have built creative and editorial teams to design 360 marketing campaigns and branded content production for advertisers, that can be disseminated through their media portfolio. It requires leveraging the competency of the marketing team to be able to compete against traditional ad agencies with cost-effective strategies and excellent service level agreements.

8. THE PUBLISHER AS DATA BROKER DATABASE MARKETING

– Aimed at advertisers who want to increase their effectiveness in advertising campaigns with databases generated from the media companies’ audiences. – Examples: ProPublica (US), Schibsted (Norway) – With the emergence of programmatic advertising, it becomes increasingly important to have your own data, to be able to take advantage of them internally but also to offer them to third parties to increase the effectiveness of your marketing campaigns. Classified ads and verticals are also an excellent vehicle to enlarge databases with more relevant audience information.

9. THE PUBLISHER AS BRAND LICENSER DEVELOPING NEW PRODUCTS AND SERVICES

– When the intangible value of the brand is high, it is worth taking advantage of this to license the brand in other related products or services, and thus obtain other related sources of income – Examples: Disney (US), Playboy (US), Meredith (US), National Geographic (US) – All these brands enjoy great recognition, credibility and acceptance by their audiences. By developing new products and services with this seal of quality, they can generate additional income. In most countries, media companies have a good brand awareness and acceptance; an intangible asset that can be wisely used to enlarge revenue sources with complementary businesses.

10. THE PUBLISHER AS IT PROVIDER SELLING SOFTWARE • When internal IT development has proved to be effective, media companies can offer consulting and IT licensing services to their industry peers to increase their operational efficiency. – Examples: The Washington Post with ARC (US), Svenska Dagbladet (Sweden), Quartz (US), The Atlantic (US) – Unfortunately, not many media companies have the capability to offer these types of services. This model requires developing a business-oriented and a consultative selling and consulting culture in the IT team to provide these services to internal and external customers.

11. THE PUBLISHER AS INVESTOR LAUNCH A FUND

– When you want to invest in other promising and emerging businesses in exchange for advertising – Examples: Thomson Reuters (UK), News UK (UK), Guardian (UK) – Through alliances with other companies in the same sector, these companies have created specialized funds to invest in emerging media businesses. It is crucial to have a well developed private equity fund community that can serve as partner for media companies to correctly assess the deal flow and make the right choices.

Through this tour of the different business models INNOVATION can conclude the following: 1. To achieve and maintain sustainability, every media company must take full advantage of its tangible and intangible assets to create a strategy for diversifying its income. 2. It is rare for a company to triumph alone. Collaboration strategies should be generated either with companies in the same sector, belonging to the value chain, or with the final consumer. 3. The innovation capability of companies is limited. All means must be used to participate in innovative and emerging businesses. 4. Owners and management teams must have an open and creative mindset to be able to adapt to the new characteristics of the consumer and the business environment.

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Modern Business Models Will Drive the Post-Pandemic World

To remain relevant and resilient, companies and leaders must strive to build business models using three key components for growth.

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In the face of a global health and economic crisis, many traditional companies have suffered tremendous losses, and some have shuttered their doors. Those that heavily rely on physical capital (for example, stores, goods) and human capital (for example, services) were already vulnerable in economic downturns. The pandemic has exacerbated the lack of resilience in these business models, which have struggled to compete against digitally centric companies that can leverage data and machine learning to create valuable insights, intelligence, and capabilities across the organization.

For instance, compare companies whose products are like air (customers rely on them all day long for business, personal, or financial use) with those that are like haircuts (customers use them sporadically; they are nice to have but are not critical to their needs). Those in the former category that are being used constantly with little effort have proved to be resilient even in times of crisis. We typically know these as software-as-a-service (SaaS) products, such as Salesforce for business or Amazon Prime for consumers. In addition, those companies that combine SaaS with multisided platforms (like marketplaces) to fulfill their customers’ needs through a network of partners (such as Apple’s developer network) have an added advantage. These new, three-pronged models go far beyond SaaS and include the following:

• A community of active B2B and B2C users that creates a network effect due to their interactions.
• A marketplace that delivers offers from sellers and suppliers to meet customers’ needs.
• A secured data lake powered by AI that enables customized offers and insights.

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We call this new winning combination a modern business model (MBM). In fact, MBMs occupy four of the top 10 spots of the S&P 500’s most valuable companies: Apple, Amazon, Alphabet (Google), and Microsoft. And they are not alone — Shopify, Spotify, and others have adopted this new AI-powered, subscription-based model with marketplaces.

Based on our own machine learning analysis of the Russell 3000 Index (see “Comparing the Resilience of Modern vs. Legacy Business Models”), we found that SaaS, marketplace, and modern business models have proved to be more resilient than their legacy business model counterparts in times of disruption.

About the Authors

Lanham Napier ( @lnapier ) was the CEO of Rackspace and is the CEO and cofounder of BuildGroup, a permanent capital fund that invests in growth companies and private investments in public equity. Jim Curry was a senior member of the Rackspace leadership team and cofounded BuildGroup, where he leads the company’s investment activities. Barry Libert ( @barrylibert ) is the CEO of AIMatters, a business model data science startup. He is a strategic adviser to BuildGroup and sits on a number of its portfolio company boards. K.D. de Vries is in charge of marketing and thought leadership at BuildGroup.

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Digital Business Models: All You Need To Know

Published: 06 September, 2023

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Business Models

Table of Contents

In today’s world, there is widespread acknowledgement of the presence and validity of modern technologies and software solutions. The term “Artificial Intelligence” is now a household term, with most individuals having a basic understanding of its meaning. However, a persistent area of ambiguity, even among some chief executive officers (CEOs), pertains to the concept of digital business models and the factors that make them exceptionally successful as part of a comprehensive digital transformation strategy .

In an era marked by rapid technological advancement and evolving consumer behaviours, gaining a deeper comprehension of these digital business models is imperative for anyone looking to thrive in the ever-changing landscape of commerce. In this discussion, we will explore what digital business models entail and delve into the reasons behind their remarkable effectiveness in today’s business environment.

Structuring your business model cannot be overstated, as it serves as the blueprint for how your organization creates, delivers, and captures value. The UNITE Business Model Innovation Patterns are invaluable for structuring a business model as they provide a systematic framework for innovation, offering comprehensive coverage across diverse industries. It summarizes 95% of all business model innovations and gives you the necessary tools to systematically innovate your business model. These patterns streamline the innovation process and enhance adaptability in the face of rapid change, reducing risks associated with business model evolution. You can download it now.

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What are digital business models.

Let’s delve into the fundamental underpinnings of digital business models . As with all comparatively new terms, there is no clear agreement on a universally valid definition. However, one can limit oneself to certain commonalities .

Interestingly, when you examine this definition closely, you’ll find that it shares substantial similarities with traditional business models . The key distinction lies in the integration of digital technologies. This begs the question: What sets digital business models apart and accounts for their significant success in today’s business landscape? To unravel this, we must embark on a deeper exploration of the intricacies that define digital business models and elucidate the precise factors contributing to their contemporary prominence.

Digital business models revolve around delivering added value to one or more customers through the strategic use of digital technologies. The ultimate objective is to ensure that the customer benefits derived from these digital solutions reach a level at which consumers are not only satisfied but also willing to pay for this value. Let’s delve deeper into the foundational principles that make digital business models so integral to contemporary business success:

• Digital Transformation: Digital business models are the result of a transformative shift in how businesses operate. They harness the potential of digital technologies to fundamentally reshape traditional processes and create innovative ways of delivering value.
• Customer-Centricity : Central to digital business models is a relentless focus on meeting customer needs and preferences. Through data-driven insights and personalized experiences, they aim to not only satisfy but delight consumers.
• Agility and Innovation: These models thrive on agility and rapid innovation. They empower businesses to adapt swiftly to changing market dynamics, experiment with new offerings, and iterate based on real-time feedback.
• Global Reach: The internet has erased geographical boundaries, providing digital business models with access to global markets. This expansive reach allows companies to connect with diverse customer bases and unlock new revenue streams.
• Data as a Driver: Data lies at the heart of digital business models . They leverage data analytics and insights to make informed decisions, identify emerging trends, optimize operations, and enhance customer experiences.

Importance of Digital Business Model

The importance of digital business models in today’s world cannot be overstated, and the reasons behind it are quite straightforward. It’s no longer a choice; it’s a necessity. The evolution of consumer behaviour, where consumers now expect seamless digital experiences, coupled with businesses prioritizing customer-centric approaches, has given rise to an entirely new paradigm. Companies have realized that the technological capabilities that are now available to them are so much more than a website.

Simultaneously, consumers have developed a newfound trust in digital business models. What was once viewed sceptically as a “subscription trap” a decade ago is now exemplified by the likes of Netflix, and the traditional catalogue people used to order from has transformed into the convenience of Amazon. This transformation underscores the imperative for businesses to embrace digital business models to remain competitive and meet evolving customer expectations.

Comprehending digital business models is pivotal for organizations aiming to thrive and excel. These models offer a multifaceted toolkit for businesses, providing advantages that extend far beyond their basic functions.

Characteristics of Digital Business Models

In the constantly evolving realm of contemporary commerce, digital business models have emerged as powerful catalysts, reshaping the very essence of how organizations conduct their operations and engage with their customer base. These models are marked by a distinct set of core qualities that collectively serve as the bedrock of their triumph and prominence in the fiercely competitive landscape of today, distinguishing them from classic business models . Let’s explore these fundamental characteristics more comprehensively to grasp their profound influence on the tactics and functioning of enterprises in this digital era.

• Digital Transformation: Digital business models represent a profound shift in business operations, encompassing the adoption of cloud computing, data analytics, artificial intelligence, and automation. These technologies enable organizations to not only optimize existing processes but also create entirely new ways of enhancing value creation for customers.
• Digital Value Generation: The added value in digital business models can only be generated digitally, setting them apart from traditional models that primarily create value in analog form. While traditional models may undergo digital transformation, the core value remains unchanged, only altering the means of obtaining it. In essence, the Internet is the cornerstone of the digital business model’s core operations, without which its core business would not be possible.
• Customer-Centric: At the core of digital business models lies an unwavering commitment to understanding and satisfying customer needs. Leveraging data-driven insights, organizations can segment their customer base, personalize offerings, and anticipate customer desires, fostering deep customer loyalty.
• Data-Driven: Data serves as the lifeblood of digital business models. These models collect, process, and analyze data on customer behavior, market trends, and operational performance. The insights derived from data empower businesses to make informed decisions, refine strategies, and continually enhance the customer experience.
• Agility: Digital business models thrive on agility, allowing organizations to pivot swiftly in response to market shifts, emerging technologies, and customer feedback. This adaptability ensures that businesses remain competitive and innovative in a rapidly changing landscape.
• Innovation: Innovation Culture permeates digital business models. Companies are encouraged to experiment with emerging technologies, develop new products and services, and explore novel revenue streams. This commitment to innovation is vital for staying ahead of the competition.
• Global Reach: Enabled by the internet, digital business models transcend geographical boundaries. They provide organizations with unprecedented access to global markets, allowing them to connect with diverse customer bases and capitalize on international growth opportunities.
• Revenue Diversification: Digital business models often incorporate a variety of revenue streams. These can include subscription models, freemium offerings, advertising revenue, and data monetization. This diversification reduces reliance on a single source of income and enhances financial stability.
• Ecosystem Orientation: Many digital business models foster ecosystems that bring together various stakeholders, such as customers, partners, and developers. These ecosystems create a network effect, generating additional value and enhancing the overall customer experience.
• Efficiency: Efficiency gains are a hallmark of digital business models. Automation, streamlined processes, and optimized resource allocation not only reduce operational costs but also enable businesses to deliver products and services more efficiently and at a lower cost.
• User Experience Focus: Delivering an exceptional user experience is paramount. Digital business models prioritize creating intuitive, user-friendly interfaces and applications that enhance customer satisfaction, foster brand loyalty, and drive customer retention.
• Disruption: Digital business models have the potential to disrupt traditional industries by introducing innovative approaches that challenge established norms. This disruption can lead to the creation of entirely new markets and business opportunities.
• Scalability: These models are inherently scalable, allowing organizations to accommodate rapid growth without a proportionate increase in costs. Scalability is a critical factor in achieving sustainable expansion and competitiveness.
• Sustainability: Ensuring long-term sustainability is a key consideration. Digital business models focus on maintaining profitability by aligning revenue streams with operational costs, ensuring financial stability and continued growth.

Related: https://digitalleadership.com/unite-articles/extended-business-model-canvas/

Types of Digital Business Models with a Real-Life Examples

Let’s take a closer look at the individual models to understand how they work and how they are structured to align with digital business strategy. Because even if the differences sound simple, they are not always. And especially with digital business models, it is interesting to see how the revenue streams emerge again. While in the beginning there was a lack of definition, there are now more and more possible distinctions. The largest and most established models are the following:

• In this model, the approach is still relatively intuitive. The entire offer in the form of the product or service is provided free of charge.
• The “Free” model offers core products or services at no cost to users.
• Revenue is generated purely through advertising on the respective URL. through alternative means, such as advertising, freemium upgrades, or data monetization.
• Example: Facebook is a social media platform that offers its core services (connecting people, and sharing content) for free to users. It generates revenue primarily through digital advertising. Advertisers pay to display targeted ads to users based on their interests and behaviors.
• On-demand models provide immediate access to products or services when users need them.
• Examples include ride-sharing services like Uber and food delivery apps like DoorDash.
• Convenience and real-time fulfilment are key features.
• Example: Uber is a ride-sharing service that allows users to request rides on-demand using a mobile app. Users can request rides in real-time, and drivers respond to these requests, providing convenient transportation.
• E-commerce businesses sell products or services online, often through their websites or platforms like Shopify or WooCommerce.
• They can range from small online boutiques to large-scale retailers like Amazon.
• E-commerce often involves various business models, including B2C (business-to-consumer) and B2B (business-to-business).
• Example: Amazon is one of the world’s largest e-commerce platforms, offering a wide range of products for sale online. It operates both as a B2C (selling products directly to consumers) and a B2B (offering marketplace services to third-party sellers) e-commerce platform.
• Online marketplaces act as intermediaries connecting buyers and sellers.
• They often charge fees or commissions for transactions.
• Marketplaces can focus on various niches, such as products, services, or accommodation.
• Example: Airbnb is an online marketplace that connects travelers with hosts offering accommodations, which can be apartments, houses, or even unique stays. It charges hosts and guests fees for bookings made through the platform, acting as an intermediary.
• This model emphasizes access to goods or services rather than ownership.
• Businesses rent or lease products to users, offering cost-effective and sustainable alternatives.
• Car-sharing services like Zipcar and equipment rental platforms follow this model.
• Example: Zipcar is a car-sharing service that allows users to rent cars by the hour or day. Users access Zipcar’s fleet of vehicles when needed, avoiding the need to own a car themselves.
• Ecosystem models create an interconnected network of products, services, or platforms.
• They encourage users to stay within the ecosystem for various needs.
• Example: Apple Ecosystem includes hardware devices (iPhone, Mac), software (iOS, macOS), the App Store, iCloud, and other services. Users are encouraged to stay within the Apple ecosystem, as products and services work seamlessly together (e.g., iCloud for data storage). The Apple ecosystem is known for its seamless integration, such as AirDrop, which can create a sense of vendor lock-in , where users are incentivized to use Apple products exclusively.
• Experience-based models focus on providing unique and immersive experiences.
• Businesses charge for access to experiences, such as virtual reality (VR) experiences, live events, or themed entertainment.
• Example: Disneyland is a theme park known for providing unique and immersive experiences to visitors. Visitors purchase tickets for entry and pay for additional experiences and attractions within the park.
• Subscription models offer recurring revenue streams and build customer loyalty.
• Businesses often offer tiered pricing with varying features or content access.
• They require a focus on retaining subscribers and continuously providing value.
• Example: Netflix is a subscription-based streaming service that offers a vast library of movies and TV shows. It offers multiple subscription tiers with varying features and content access, including options for streaming quality.
• Open-source models involve sharing software, code, or intellectual property freely with the community.
• Revenue is often generated through support, customization, or premium versions.
• Example: Linux Operating System is an open-source operating system widely used for servers and embedded systems. Companies and individuals can use Linux for free, but revenue is generated through support services, certifications, and customized solutions.
• Hidden revenue models offer a free or low-cost product but generate income through less visible channels.
• For instance, some mobile apps collect user data and sell it to advertisers without explicit user knowledge.
• This model can raise ethical and privacy concerns.
• Example: Free Weather Apps , Some free weather apps collect user location data and weather preferences, which are used for targeted advertising and data monetization. Users may not be aware that their data is being used for these purposes, raising privacy concerns.
• Freemium model attracts users with free basic features while offering premium upgrades.
• They can be effective for software, mobile apps, and online services.
• Conversion rates from free to paid users are crucial for success.
• Example: Dropbox is a cloud storage service that offers free storage with limitations and premium plans with enhanced features. Users can store and share files for free, but premium users get additional storage and advanced sharing options.
• Example: eBay is an online marketplace where individuals and businesses can buy and sell a wide range of products. It charges sellers fees for listing items and final value fees for completed transactions.
• Digital advertising models generate revenue by displaying ads to users.
• Targeted advertising, programmatic ads, and native advertising are common approaches.
• Platforms must balance user experience with ad revenue.
• Example: Google Ads is an advertising platform that displays ads on Google search results and websites within the Google Display Network. Advertisers bid on keywords and use targeting options to reach specific audiences.
• Data-driven businesses gather and analyze user data to offer insights, targeted advertising, or market research.
• Strict data privacy regulations must be followed.
• Data is often sold to third parties or used to enhance products and services.
• Example: Facebook Data Usage , Facebook gathers user data to offer targeted advertising to businesses. User data includes interests, behaviors, and demographic information. Facebook must comply with data privacy regulations and guidelines.
• IoT businesses offer solutions for connected devices, such as smart home systems or industrial sensors.
• Data generated by IoT devices can be leveraged for analytics and insights.
• Security and privacy are paramount concerns.
• Example: Nest (by Google) offers smart home products, including thermostats and security cameras, that are part of the Internet of Things (IoT). Data generated by Nest devices, such as temperature and motion data, can be used to optimize energy use and enhance security.
• Blockchain-based businesses use decentralized ledgers for various applications.
• Cryptocurrency exchanges facilitate the buying and selling of digital assets.
• NFT (Non-Fungible Token) platforms enable unique digital asset ownership.
• Example: Bitcoin is a decentralized cryptocurrency that enables peer-to-peer digital transactions without the need for intermediaries like banks. It is used for secure and transparent digital transactions, and it’s also seen as a store of value.

How to Create a Digital Business Strategy

Crafting a robust digital business strategy has become nothing short of imperative. With technology continuously shaping the way we live, work, and interact, businesses of all sizes and niches must adapt to the digital age. Whether you’re an established corporation or a budding startup, a well-crafted digital strategy is a compass that can steer you toward growth, enhanced customer engagement, and operational efficiency.

We’ll walk you through the essential steps for developing a digital business strategy that harmonizes with your goals, capitalizes on the potential of digital technologies, and positions your enterprise for triumph in the digital era.

So, Choosing the right digital business model strategy is a pivotal decision. It requires a deep understanding of your target audience, a clear definition of your unique value proposition, and a comprehensive evaluation of your resources and capabilities. Here are some key takeaways to guide you in this process:

• Know Your Audience: Understand your customers’ needs, preferences, and pain points. Use data and analytics to gain insights into their behavior and expectations.
• Define Your Value Proposition: Clearly articulate what sets your business apart. How will your digital strategy address customer challenges or provide unique solutions?
• Leverage Technology: Embrace digital tools and platforms that align with your strategy. Whether it’s e-commerce, mobile apps, or data analytics, technology should support your goals.
• Stay Agile: Be prepared to adapt and iterate. Digital landscapes evolve rapidly, and your strategy should have built-in flexibility to respond to market changes.
• Invest in Talent: Build a team with the right skills to execute your digital strategy effectively. Training and upskilling may be necessary to keep pace with technological advancements.
• Measure and Analyze: Implement metrics and KPIs to monitor the performance of your digital initiatives. Regularly review the data to make informed decisions.
• Customer-Centric Approach: Put the customer at the center of your strategy. Tailor your digital offerings to meet their needs and provide exceptional user experiences.
• Stay Informed: Keep abreast of industry trends, emerging technologies, and competitors’ strategies. Continuous learning is essential in the digital business landscape.

Remember that there is no one-size-fits-all digital business model. Your choice should align with your industry, target market, and organizational strengths. By following these guidelines and staying committed to innovation and customer satisfaction, you can create a digital business strategy that not only survives but thrives in the digital age.

Business Model Vs Digital Business Model

A business model serves as a comprehensive framework that delineates the fundamental operations and sustainability strategies of a business. It encompasses diverse facets, including how the business delivers value to its customers, the channels employed to reach these customers, the relationships cultivated with them, the requisite resources and activities for value delivery, the revenue streams generated, and the associated cost structure.

In contrast, a digital business model represents a specialized subset within the broader business model framework, meticulously tailored to harness the capabilities of digital technologies and resources. It notably accentuates the strategic utilization of digital tools, platforms, data, and communication channels to elevate and revolutionize various aspects of the business. Digital business models frequently encompass:

• Digital Customer Engagement: Utilizing digital channels such as websites, mobile applications, and social media to foster customer interactions, offering personalized experiences and real-time connectivity.
• Innovative Revenue Streams: Pioneering revenue streams facilitated by digital technologies, which may encompass subscription-based services, data monetization, or digital product sales.
• Efficient Cost Structures : Optimization of operational costs through automation, cloud computing, and data analytics to enhance overall efficiency.
• Data-Driven Decision-Making : Heavy reliance on data analytics to inform strategic decisions, enrich customer experiences, and drive continuous business enhancements.
• Agility and Adaptability : Structured for agility, digital business models enable organizations to promptly respond to market fluctuations and technological advancements.

Connecting The Dots With Business Model Canvas

The Business Model Canvas (BMC) is a powerful tool in the realm of digital business models due to its adaptability and versatility. It offers businesses a structured framework to define, conceptualize, and iterate on their digital strategies. One of its key advantages is its ability to encourage customer-centric thinking, driving businesses to identify and address the evolving needs of their digital audience. You can download it now.

Your download is now available!

You can now access the complete Business Model Canvas Package, including a full presentation, related models and instructions for use.

The UNITE Business Model Canvas

Furthermore, the BMC promotes innovation by allowing organizations to experiment with different components of their model, aligning well with the ever-evolving nature of digital technologies. Its agility enables rapid adjustments to respond to market dynamics and emerging opportunities. Ultimately, the BMC is a valuable asset for organizations navigating the intricacies of the digital age, aiding in the development of comprehensive and strategic approaches to digital business models . You can easily access and utilize it to refine your own digital strategies and models.

In conclusion, crafting a digital business strategy is essential in today’s tech-driven world. To remain competitive, leverage tools like the Business Model Canvas to align your operations with evolving customer expectations and digital opportunities. Your Business strategy should adapt to the dynamic digital landscape, incorporating data analytics, online platforms, and customer-centric approaches. Remember, there’s no one-size-fits-all solution; tailor your strategy to your industry and strengths. By blending digital strategy principles with the Business Model Canvas, you can navigate the digital age and ensure your business thrives amid constant change.

Frequently Asked Questions

1- what are the key elements of digital business.

Key elements of a digital business include:

• Digital Technologies: Utilizing tools like AI, IoT, cloud computing, and data analytics.
• Customer-Centricity: Focusing on meeting customer needs through personalization and user-friendly experiences.
• Data-Driven Decision-Making: Leveraging data for insights and informed choices.
• Innovation Culture : Encouraging creativity and experimentation to stay competitive.
• Agility: Adapting quickly to market changes and technological advancements.
• Ecosystem Engagement: Collaborating with partners, suppliers, and platforms.
• Efficiency: Optimizing processes for cost-effectiveness and productivity.

2- What is a digital business structure?

A digital business structure refers to the organizational framework designed to effectively operate within the digital landscape. It involves roles, responsibilities, processes, and technologies that support digital strategies. Common elements include digital teams, data analytics divisions, agile workflows, and technology infrastructure to facilitate digital transformation.

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Behind the Boom in Celebrity Brands

Lessons from Kim Kardashian, Ryan Reynolds and more on a major consumer goods trend.

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There was a time when consumer goods companies paid musicians, athletes, and actors for endorsements, or to license their name and likeness. But in recent years, there’s been an explosion of celebrities getting into business directly, selling everything from shapewear to tequila. Ayelet Israeli, professor at Harvard Business School, says the growth of social media and online, direct-to-consumer retail accelerated this trend, but notes that not all celebrity brands are a success. She explains what works and doesn’t, and outlines lessons for non-famous entrepreneurs and established companies. Israeli is coauthor of the HBR article  “What Makes a Successful Celebrity Brand?”

ALISON BEARD: Welcome to the HBR IdeaCast from Harvard Business Review. I’m Alison Beard.

So you might not suspect this about me, but I am an avid reader of Us Weekly, the celebrity magazine. Amid all the business reading I do, it’s a true guilty pleasure. But over the past several years, I’ve noticed these two worlds converging somewhat. Musicians, athletes, actors, reality stars – I’m talking about Rihanna Ryan Reynolds, LeBron, the Kardashians – they’re all becoming serious business people and they’re making a whole lot more money from the products they sell, whether it’s makeup, gin, sports drinks, or shapewear than from the songs, games, shows, or films that made them famous.

When did this shift happen and why? And what does it mean for existing consumer goods companies and regular entrepreneurs?

Today’s guest is here to explain how social media and online retail have boosted celebrity brands, what makes a good or bad one, and the impact this trend is having on the broader economy. Ayelet Israeli is a professor at Harvard Business School.

She’s the co-author along with Jill Avery, Leonard Schlesinger, and Matt Higgins of the HBR article, What Makes a Successful Celebrity Brand? And she joins me now. Ayelet, welcome.

AYELET ISRAELI: Thank you so much for having me.

ALISON BEARD: So celebrity endorsements have been around for decades. Nike’s built a business around it. Why have celebrity-owned brands become so much more prevalent nowadays?

AYELET ISRAELI: We think that essentially several factors brought us here. Number one, the rise of what we call the creator economy or influencer marketing, where there are so many social media influencers and consumers have gotten used to engaging with them and seeking their authenticity and input around a lot of different topics. One of them is recommending products or services, and actually today’s consumers feel that this channel is more authentic. They believe it more than the traditional endorsements. So that’s kind of one factor, just the growth of what we call influencer marketing.

I think the second factor is that it used to be that in order to learn anything about a celebrity, you would need to follow Us Weekly or many other magazines, TMZ, all of that. And now with the rise of social media and the ability of everyone to connect and share every piece of their life, it feels like you’re more connected to these people who decide to share their life with you. So there is more of a direct line of communication than ever before.

Third, we know now that in this day and age, it’s just so much easier to launch brands because of the growth of e-commerce and direct-to-consumer branding. It’s easier to procure, to launch, to develop brands. So that kind of ability to do that makes it easier also for celebrities to do.

And I think the last piece of that is that what we typically see regular brands do or typical brands do, is actually use endorsements or influencers as part of their media strategy and as part of their paid marketing. Whereas celebrities, given the fact that they have this followership and this connection with consumers and followers, they can actually leverage these social media channels that are kind of free for them and thereby reduce the cost of getting to consumers, communicating with consumers, and having a huge advantage over existing brands.

ALISON BEARD: So that direct connection with consumers seems critical. You can market directly to them, you can sell directly to them rather than going through traditional retail channels. How has that sort of disrupted the broader advertising and consumer goods industries?

AYELET ISRAELI: We see more and more spend on influencer marketing, on TikTok. Things that didn’t exist a few years ago are now important channels and traditional brands are also figuring out how to use all of these different channels and social media strategies in order to develop their own ability to communicate with consumers. Always there is this challenge of how do I pick influencers? How do I attract influencers that are consistent with my brand, that deliver the message of my brand, that their listeners or their followers would actually be willing to accept or believe the message that they provide and actually turn that into sales?

ALISON BEARD: We have seen really successful celebrity brands in the past. I’m thinking as far back as the George Foreman Grill or Gwyneth Paltrow and Goop or Dr. Dre and Beats, are there any lessons that today’s celebrities have taken away from those earlier entrants in the category?

AYELET ISRAELI: One thing that these brands have in common was the true kind of fit between the celebrity and the product category of their brand. So if you think about Dr. Dre, it’s obvious connection to music, to the ability to listen to the tunes in a certain way, and that strong connection makes it really believable. Like, “Yeah, I can see Dr. Dre using this, I believe their endorsement of this.” It’s the same logic of the Michael Jordan Jordans with Nike where it allows consumers to have this special relationship with the product through their relationship with the celebrity almost.

ALISON BEARD: At the same time, I feel like there are reasons to be wary of a celebrity brand. Like why would Ryan Reynolds know more about making gin through his brand, Aviation Gin, than a beverage company like Diageo? Or why would Rihanna know more about lipstick to make Fenty Beauty than L’Oreal would? So how did these brands overcome that skepticism to be perceived as very high quality, very valuable, rather than gimmicky?

AYELET ISRAELI: So we definitely see a pattern that the product actually has to be very, very good. And it’s either that it was actually developed by people with expertise in this domain, or the celebrity actually has domain knowledge to be able to produce this product. But if the product is not actually superior, consumers are no fools. Consumers might buy the first one, but then word of mouth is going to essentially kill the product if it’s not good. So that has to be there, but often it has to come through trial, which is a benefit of these celebrity brands relative to regular brands where we might expect that trial for them is actually cheaper because I have some affinity to this celebrity. So you might have more sales than a product that is the same quality, but from someone unknown because of the initial hype, because of the initial excitement by the celebrity. But then you will also lose sales very quickly once the word is out that the product is not good.

ALISON BEARD: So how do these celebrities go about developing the expertise they need or hiring the expertise they need to develop that kind of superior product that can beat those being offered by multinational companies?

AYELET ISRAELI: In our article, we basically looked more deeply into two main case studies: Kim Kardashian’s Skims product that started out as shapewear and is now kind of activewear, loungewear, bras. They even have men’s products. And the second one is Dave Chang’s Momofuku. Dave Chang is a well-known celebrity chef that started creating also CPG products that consumers can make at home like chili crunch or noodles or things like that.

He was known as a chef. He was known as particular tastes, flavors, things you would expect. And then he could lend this expertise very easily for people to believe that, “Okay, this is actually a good product, or he has credence there, or this is something that should be high quality.” And people tasted it and it was actually good.

And then with Kim Kardashian, the story is a little bit different, but what is interesting about the initial Skims product, the shapewear product, is this idea that it is actually a solution-based product, a need-based product. She and her friends had a real issue with the existing shapewear. One was the typical colors of the shapewear. So typically what is skin color is not necessarily skin color for many people. And she used to color it by herself with tea bags or with coffee. And then that was one challenge. And the other challenge was the particular cuts and shapes of the clothes that she likes to wear that perhaps show more or reveal more than typical clothing. The existing shapewear wouldn’t fit that either.

So there was a real need for a solution. And through that need, she developed a product. And of course then she had to work with experts to develop something that will actually work, but it came from something real that she needed and something real that she saw that there is a market for, and then collaborated with people that have the expertise to take it to the next level.

And I think with both of these cases, I believe also with the cases, the examples you mentioned, we have examples of people, of celebrities that are deeply involved with the product and deeply care about the quality of the product in a way that actually assures that it will be a better product.

ALISON BEARD: And how do they find the time? I feel like that’s what I’m always wondering. It’s like how do they do it when they’re also shooting films, but then they’re incredibly hands-on managers of these brands.

AYELET ISRAELI: So I think some people are incredibly hands-on and some people are not. But I think really the answer is that it’s not just them alone. They have staff, they find the right co-founders, collaborators. Dave Chang has a fantastic CEO that leads a lot of aspects of the business. Kim Kardashian has two co-founders, Jens and Emma Grede that actually have a lot of expertise in this field. So it’s not just them, but they are involved as much as possible to ensure the aspects of the product they care about. We know that up until this day, Kim Kardashian tries out all the different products that Skims create. And Dave Chang is incredibly involved in developing the products as well. Perhaps not in necessarily developing the whole go-to-market strategy, but yes, in the aspects that are critical to him, which is the flavor of the product and ensuring that the product is good.

ALISON BEARD: Okay. So you’ve talked about the celebrity product fit, strong social media following, developing a superior product, listening to consumers. I want to dig into a couple of those things more deeply. So on the social media issue, the person has to start with a very big following and an almost intimate relationship with those followers.

AYELET ISRAELI: So I would actually emphasize the second part of what you said more, the intimate relationship. So you can have a lot of followers, but they are not necessarily a followership and this kind of real connection, real engagement with the celebrity or with the social media influencer. I believe a lot of these principles can apply to celebrities that grew from being influencers. It’s not just the number of the followers, but it’s really this followership relationship. It’s really that a follower feels a true connection. Like they have a conversation like they know this person and they act upon what they see this person advertises on social media or see this person says on social media for this to actually work out. So you might have the exact number of followers of someone else, but that person, celebrity, or that influencer doesn’t create as engaging a relationship or their followers don’t feel as engaged, in which case it’s not going to work very well.

ALISON BEARD: But you do offer cases where celebrities who don’t have big social media followings and don’t post a lot have been successful. I’m thinking about Scarlett Johansson with her beauty brand Outset or George Clooney with Casamigos tequila. So it doesn’t seem like social media is a totally necessary ingredient?

AYELET ISRAELI: I think then some of the advantages that we see social media providing such as this direct relationship with consumer and reducing the cost of customer acquisition are just not going to be there as much as when you have this direct relationship with consumers and you might need more support on other aspects of the brand. You don’t have as much brand awareness or as much demand generation through consumers talking about the brand as you would when you have this direct influencer relationship. And then you would have to figure out other ways to do this. So you might have to go directly to retail faster or have to spend more money on advertising campaigns compared to situation where there is this strong social media following.

ALISON BEARD: And we’ve talked a lot about good celebrity product fits. What is an example of a bad one?

AYELET ISRAELI: So one example was Hulk Hogan who was a-

ALISON BEARD: 1980s wrestling star?

AYELET ISRAELI: Yes. We have seen that some of his early forays into business or into celebrity brands were around food. So he had, for example, Pastamania, which was a fast food restaurant that closed very quickly. He had these cheeseburgers, a lot of foods like that that we have just not seen a lot of traction with. And there are probably many reasons it could have failed, but we believe that one strong reason is this real lack of connection. What is the expertise of Hulk Hogan with pasta or burgers other than he’s a person that eats them. And I think also in the time when he was active, there was a different relationship with celebrities than there is now. You didn’t have this direct channel and consumers were looking for other things than they are looking for now.

ALISON BEARD: At the same time, I feel like there are a couple examples now where the fit doesn’t necessarily seem obvious. I think of George Clooney and his tequila brand. Ryan Reynolds and his gin brand. How did they make that leap that I’m not an expert in this, but I’m still making it something you want to buy?

AYELET ISRAELI: George Clooney is more of a mystery to me because he also shies away from social media and does not play this game. Whereas Ryan Reynolds is really a marketing expert and he really, for all the brands he’s been involved with, he has so much to say. He connects with consumers, he advertises them on social media. He has always clever ways to bring it on. So I think that is more aligned with the other examples we’ve seen. Whereas George Clooney’s example is just completely different.

ALISON BEARD: It’s just the cool of Clooney rubs off on a tequila.

AYELET ISRAELI: And his charm. It’s the Clooney charm.

ALISON BEARD: What are some ways that you see celebrities really interacting with their followers to improve the products, to get from sort of that minimum viable one that they’re able to launch really successfully to one that really is superior and beats the competition?

AYELET ISRAELI: So one thing we’ve seen is influencers and also celebrities, but influencers actually talking to their followers and asking them about the product and seeking their feedback before they even use the brand. So even giving them access to beta products, asking them what are they interested in, what type of designs, what type of fabric. So really engaging the community almost to co-create something the community is interested in.

ALISON BEARD: Speaking of co-creation, are we in a world now where companies or even entrepreneurs are now thinking, “I need to move beyond trying to get a celebrity or influencer to endorse my product. I actually need to, from the beginning, partner with this person to make it and launch it”?

AYELET ISRAELI: Not all brands need a celebrity, but a celebrity is definitely an unlock into this idea of how can I reduce my customer acquisition cost? So one thing we’ve seen starting around 2010, there was an era of direct to consumer brands and their whole kind of philosophy was we can cut out the middlemen. So we’re not going to sell through retail, we’re going to sell direct to consumers. We can do that thanks to e-commerce, thanks social media. It’s really easy to procure product, to create brands, and to sell online. So why not do that? But then when you cut out the middlemen, you actually have these activities that retailers use to do for you, like generating demand and generating awareness that you suddenly have to do. So in the early days of direct to consumer, we’ve seen brands doing this really successfully on Facebook and other websites where it was relatively cheap for them to advertise and to find consumers and to get these consumers to buy their products.

But quickly, many other brands, both incumbent brands and new brands started also advertising. And all of these costs increased so much that they’re out of control these days and it’s just not very sustainable to continue advertising for the current customer acquisition costs. And that’s a true concern for businesses of how am I going to acquire customers? How am I going to incur all these costs? And a celebrity could give you this ability to reduce these costs significantly if they are willing to work at selling your product through their channels that are not paid, for instance, their social media channels.

ALISON BEARD: But then you’re giving them a big cut of the profits.

AYELET ISRAELI: You would have to give them a cut of the profits, for sure. Not all celebrities are willing to work at selling. There is a shift. You said initially we’ve seen celebrity endorsement in many years, but that would just mean I’m wearing the product, which is a different activity than engaging in selling a product.

ALISON BEARD: So what advice do you give companies and startups that are interested in partnering with celebrities? Does it start with an endorsement or influencer relationship and then build from there?

AYELET ISRAELI: One thing to look at that we talked about is this idea that it’s not just a number of followers. You actually need to see how much engagement they have. And there are currently tools to look into that. But you see there are average metrics of engagement such as comments, likes, reposting for different channels that you see kind of the convergence of number of followers, how many people actually engage with a posting. And that helps you understand is there a true followership or are there just a lot of followers for a particular celebrity? So that’s one that is important. Two, of course, what we talked about is this idea of fit. Is this celebrity credibly selling this product? People are looking for some kind of authenticity. Are we going to believe this or is this going to seem a very hard sell for consumers?

And then I think there has to be an element where the celebrity is willing to be involved in the product in some way. So if we’re talking about a situation where a brand already has a product, so it’s not necessarily involvement in development like we talked about in the Kim Kardashian or the David Chang case, but it has to be involvement in selling, involvement in talking to consumer, involvement in something that makes the connection seem more real, more organic, more believable to consumers.

ALISON BEARD: And I imagine that it’s also really important to think about the risks of a particular personality.

AYELET ISRAELI: Certainly.

ALISON BEARD: Adidas and Kanye West come to mind.

AYELET ISRAELI: Certainly. So of course celebrities can go out of fashion. There are lots of PR crises that are possible with celebrities. And of course you need to take that into account as you think about your own brand health of who might be a good fit, and also if there is going to be a scandal, how am I going to get out of this? And we’ve seen historically that if the brand in relationship of endorsements, the brand can easily cut off ties with that person. But if you are developing kind of a celebrity brand where the brand is so centered around this one persona, then this is going to be a little bit harder.

ALISON BEARD: I truly think that I hear or read about a new celebrity brand almost every day. Is the market getting too crowded?

AYELET ISRAELI: So I think we hear about a lot of celebrity brands, but I don’t know that we’ve seen so many successful celebrity brands. It goes back to this quote by the CEO of Warby Parker, and of course I’m paraphrasing, but it’s something like, it’s never been easier to launch a brand, but it’s also never been harder to actually sustainably grow that brand. So sure, you can create new products very easily, especially if you have access to capital, which a lot of these celebrities do. But then it’s not necessarily going to gain any traction. And surprisingly, one of the first issues is perhaps more obvious one, which is the product is oftentimes not that good and consumers are going to sense that very quickly.

ALISON BEARD: This is really my big question because I feel like this trend is happening in other areas too, like celebrity podcasting and celebrity children’s books. So what about businesses, entrepreneurs with no celebrity association? You have a great product, but you’re not a big name with a massive social media falling and millions of dollars already, and ways to get meetings with venture capitalists or other investments. How do you compete?

AYELET ISRAELI: One of the things that is helpful is brand storytelling. So you might not have the story of a celebrity, but you might have an interesting and compelling story for your own brand that you can leverage. And of course, these brands, I mean they’ve always had to work on PR and how do I get people excited and things like that. It is true that it will be harder for them to get attention, but oftentimes once they do, it seems more credible to some people. Again, I know it sounds obvious, but really start with a good product. I think oftentimes we forget that. If you don’t have a good product to begin with, then what are you doing?

And I also think there is this question of hype or fad versus longevity and brands that actually create value. And a lot of these things are sometimes just hype, just fad. Like, “Okay, I will buy a book that a celebrity wrote, even if it’s not a very good book, but am I going to buy another copy of that book?” And what we see with the examples I mentioned is that retention rates are really high. People are willing to buy multiple products from the Skims brand and from the Momofuku brand and from other brands. So there is this question of do people just buy one to feel connection with the celebrity or because they’re interested in a celebrity and they’re interested in listening to one episode or something like that, or is there a real ongoing relationship?

And really what we care about as marketers and business people is this relationship with consumers. We want them to come back, we want them to bring their friends. All of these aspects of that.

ALISON BEARD: Well, Ayelet, thank you so much for talking to us about celebrity brands. I will keep reading about it in Us Weekly and HBR.

ALISON BEARD: That’s Ayelet Israeli, professor of business administration at Harvard Business School and co-author of the HBR article, What Makes a Successful Celebrity Brand?

And we have more episodes and more podcasts to help you manage your team, your organization, and your career. Find them at hbr.org/podcasts or search HBR on Apple Podcast, Spotify, or wherever you listen.

Thanks to our team, senior producer Mary Dooe, associate producer Hannah Bates, audio product manager Ian Fox, and senior production specialist Rob Eckhardt. And thanks to you for listening to the HBR IdeaCast . We’ll be back with a new episode on Tuesday. I’m Alison Beard.

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Inside the relationship of billionaire venture capitalist Josh Kushner and model Karlie Kloss, the power couple with unconventional ties to Trump

• Billionaire entrepreneur Josh Kushner is married to supermodel and coding advocate Karlie Kloss.
• Kushner's brother is Jared Kushner, Donald Trump's son-in-law and a former White House advisor.
• Kushner and Kloss have each revealed they didn't vote for Donald Trump in the 2016 election.

Model Karlie Kloss and venture capitalist Josh Kushner may seem like an odd pairing on the surface, but they've been together since 2012 and have become partners in both life and business.

The couple has kept their relationship under the radar since they first started dating. Kloss and Kushner got married in October 2018 and held a second Western-themed wedding eight months later.

Kushner also happens to be the younger brother of former White House advisor Jared Kushner, whose father-in-law is former President Donald Trump. Josh and Jared Kushner's father, real estate developer Charles Kushner, was also pardoned by Trump in 2020.

Charles Kushner pleaded guilty to tax evasion, retaliating against a federal witness, and one count of lying to the FEC in 2005 and served two years in prison. As chairman of Kushner Companies, Charles Kushner admitted to filing false tax returns and recruiting a prostitute to seduce the husband of his sister, who cooperated with authorities, and film the encounter.

Although Kushner and Kloss haven't publicly spoken out against Trump, they have said they didn't vote for him in the 2016 election.

Here's a look at the relationship between Josh Kushner and Karlie Kloss, including their ties to former president Donald Trump.

This story was originally published in March 2018. It was updated in 2020 and 2024.

Josh Kushner, 38, founded a venture capital firm called Thrive Capital in 2009 that helped make him a billionaire.

Thrive Capital has made some of its biggest investments in tech startups like grocery delivery service Instacart, stock-trading app Robinhood, and insurance company Lemonade, according to PitchBook .

Because of his investments, Kushner sits on the boards for shaving product maker Harry's and wedding planning platform Zola.

The firm has also invested in companies like Instagram, Stripe, and ClassPass.

Kushner's savvy investments have made him a billionaire with a net worth of $3.6 billion, Forbes reported. Thrive Capital is valued at $5.3 billion.

Kushner has also helped start two companies: He cofounded health-insurance startup Oscar in 2012 and real-estate investment company Cadre in 2014.

Oscar, which aims to use tech to provide a more consumer-friendly insurance option, secured $375 million from Alphabet , Google's parent company, in 2018. It is now the third-largest for-profit health insurance company in the US, Forbes reported.

Meanwhile, Cadre was valued at $800 million in 2019, according to Forbes. Kushner founded it with his brother, Jared Kushner.

Meanwhile, 31-year-old Karlie Kloss began working as a model in her teenage years and went on to become a coding advocate.

Kloss skyrocketed to prominence as a Victoria's Secret Angel and became one of the highest-paid supermodels in the industry, Forbes reported.

She also runs a free coding camp for girls. In 2015, Kloss started Kode With Klossy, a charity that encourages girls to get involved in coding and tech.

Kloss and Kushner met and began dating in 2012.

On June 8, 2016, Kloss shared a photo on X, formerly known as Twitter, of her and Kushner revealing that she had met Kushner exactly four years before, placing their first encounter on June 8, 2012, although it's not known exactly how they met.

Their relationship became public when Kushner was spotted on Kloss' arm at a Victoria's Secret Fashion Show after-party in November 2012, Us Weekly reported.

They have tried to keep their relationship relatively private since then.

In 2013, Kloss said she appreciates Kushner is "so not in fashion" in an interview with People.

"It's really refreshing to leave all the fashion shows and shoots and chaos totally behind," Kloss told People magazine .

Kloss deflected questions about her relationship in a 2016 interview with Elle.

Elle magazine's Lotte Jeffs asked Kloss if she and Kushner have a "no phones in the bedroom" rule. Kloss answered by shaking her head and saying, "I keep my phone pretty close to me." She added that she tries to digitally detox once a week.

When asked if technology ever causes arguments in their relationship, Kloss "deftly deflects the question," Jeffs wrote.

The couple has largely avoided talking about politics, which is notable given their ties to the Trump family.

Kushner is the younger brother of Jared Kushner, son-in-law to former president Donald Trump and former senior White House advisor.

Josh Kushner told Forbes in April 2017 that he and Jared Kushner spoke every day, but refused to comment for an Esquire article about his brother in 2016 because he "did not want to say anything that might embarrass him."

However, the couple has publicly stated they didn't vote for Trump in 2016.

Kloss posted a photo of herself on Instagram in November 2016 filling out an absentee ballot. She included the hashtag #ImWithHer in support of Clinton.

Kushner's spokesperson told Esquire he's a lifelong Democrat and that he didn't vote for Trump.

"It is no secret that liberal values have guided my life and that I have supported political leaders that share similar values," Kushner told Forbes in 2017. 

Neither Kushner nor Kloss were present at Trump's inauguration in 2017. Instead, Kushner was spotted at the Women's March in Washington, DC, that weekend.

Kushner told other marchers he was there to observe, The Washingtonian reported.

Kloss also posted a photo on Instagram from the same Women's March, along with an Audre Lorde quote: "Women are powerful and dangerous."

In a 2018 interview with Vogue, Kloss made it clear she doesn't agree with the Trump family's conservative political views.

"At the end of the day, I've had to make decisions based on my own moral compass — forget what the public says, forget social media," Kloss told Vogue . "I've chosen to be with the man I love despite the complications."

Kloss also pointed out the sexism in the questions she's frequently asked about her relationship with Kushner. 

"It's frustrating, to be honest, that the spotlight is always shifted away from my career toward my relationship," she said. "I don't think the same happens in conversations with men."

Kloss and Kushner have also shown their support on social media for gun control.

The couple was spotted in March 2018 at the anti-gun-violence March for Our Lives protest in Washington, DC.

Kloss and Kushner didn't hide their presence at the march: They posted photos on Instagram from the March for Our Lives rally. A few weeks earlier, Kushner made a $50,000 donation to the anti-gun-violence group, Axios reported.

While Trump's presidency was unpopular in Silicon Valley, Kushner's proximity to the White House didn't appear to slow his career as an investor.

"There is a lot of discussion in the Valley about political tests on both who you'll take money from and who you'll work with," the venture capitalist Marc Andreessen told Forbes in 2017. "Having said that, I haven't yet seen an instance of anyone hesitating to take money from Josh because of the affiliation with his brother."

In July 2018, Kloss and Kushner got engaged after six years of dating.

Kushner proposed "during a romantic weekend together in upstate New York," People magazine reported at the time.

"I love you more than I have words to express," Kloss captioned a photo on X announcing their engagement. "Josh, you're my best friend and my soulmate. I can't wait for forever together. Yes a million times over."

Kloss converted to Judaism shortly before getting engaged to Kushner, who is Jewish.

Kloss confirmed she had converted to Judaism in a March 2019 appearance on Andy Cohen's "Watch What Happened Live."

The couple got married in October 2018 in upstate New York.

The wedding was a small Jewish ceremony with fewer than 80 people in attendance, including Jared Kushner and Ivanka Trump.

"So much love for you both as you begin forever together," Ivanka Trump wrote in a post on X . 

Kloss wore a custom Dior wedding gown with lace sleeves and a flowing train.

"The wedding was intimate and moving," a friend at the ceremony told People magazine . "The couple was beaming with happiness."

In June 2019, the couple held a second wedding celebration at a ranch in Wyoming.

Kushner and Kloss' second wedding celebration was held at Brush Creek Ranch, an all-inclusive ranch resort near the Wyoming-Colorado border. The weekend included activities such as horseback riding, paintball, and off-road ATVing.

Photos shared from the wedding show that guests wore Western-themed outfits instead of traditional gowns and tuxedos. Attendees included Diane Von Furstenberg, Orlando Bloom, Katy Perry, Ellie Goulding, Princess Beatrice, and Ashton Kutcher.

Kloss and Kushner's relationship was publicly flamed on a 2020 episode of "Project Runway," which Kloss hosted for two seasons.

Brandon Maxwell, a judge on the fashion design reality competition show, criticized contestant Tyler Neasloney's creation. The assignment had been to design a look for Kloss to wear to a fashion event in Paris, but Maxwell told Neasloney that he couldn't see Kloss wearing the outfit "anywhere."

"Not even to dinner with the Kushners?" Neasloney replied, eliciting gasps from other contestants.

"Keep it to the challenge," Kloss responded. "You really missed the mark here, on all accounts."

When asked about the viral moment on "Watch What Happens Live" with Andy Cohen, Kloss said "the real tragedy of this whole thing is that no one is talking about how terrible that dress was."

She added: "Andy, I'm sure I'm not the only person in this country who does not necessarily agree with their family on politics. I voted as a Democrat in 2016 and I plan to do the same in 2020."

The couple has two sons, Levi and Elijah.

Kloss and Kushner welcomed their first child, Levi, in March 2021.

Kloss revealed her second pregnancy on the red carpet of the 2023 Met Gala while wearing a black Loewe dress designed by Jonathan Anderson. Their son Elijah was born a few months later in July 2023.

Kloss occasionally shares photos of Kushner on Instagram, where she has more than 12.6 million followers, but she doesn't show her children's faces.

Kloss has posted photos of the couple traveling the world and celebrating Kushner's birthday, but she doesn't share much else about their relationship. She also keeps the faces of her young sons hidden in photos.

"I know in my life what really matters to me," Kloss said in an interview with Harper's Bazaar in 2018. "I'm not trying to hide that from the world. I just really like having a more private life."

In 2024, Kushner and Kloss bought Life magazine and announced their plans to revive the iconic photography publication.

Kushner and Kloss bought the publication rights to Life magazine through Bedford Media, their media startup that also acquired i-D Magazine. They plan to revive the brand as both a print and digital publication.

"We see Life as an uplifting and unifying voice in a chaotic media landscape," Kloss, who serves as CEO of Bedford Media , said in a statement. "While Bedford is a new media company, we are deeply inspired by Life's iconic legacy and ability to connect diverse audiences with universal narratives of humanity."

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