Consider any area you are interested in learning more about, and there is almost always a magazine devoted to that topic. Several periodicals give information on various issues, ranging from sports to gardening to locations to beauty. 

How can these publications continue to offer you this information month after month while still making a profit on the side? There is no mystery here: magazines are businesses, and like any other company, they must produce income and maintain a profit to survive. According to the magazine industry, circulation and subscriptions, classified advertising, and print advertising are the three primary ways magazines generate money.

Subscriptions and the Circulation of Materials

When you go to the newsstand and purchase your favorite magazine, the magazine receives a portion of the proceeds from the transaction. However, when you factor in the price, it costs to produce the magazine, the cost of transporting it to the newsstand, and the commission the magazine company must pay the newsstand company for providing space for its magazine to be sold, this type of sale, known as single-copy sale, generates very little profit. 

Because they eliminate at least one intermediary and provide their goods straight to the customer, magazines generate much more money through subscriptions. Magazine firms also have your address, which they may use to pitch to you to renew your magazine membership when it expires and pitch you on any other publications they may create that they believe you would be interested in when your subscription expires.

Advertising in Classifieds

When you open any magazine and turn to the back pages, you will find a classified section containing advertisements for things you are looking for. When selling want advertising, publications charge per word or line, and ads in prominent magazines with a vast circulation may be rather costly. 

Even modest periodicals with lesser circulations may attract high fees for their want advertising if targeted at a specific geographic region or demographic group. Because the advertiser knows that the individuals most likely to benefit from his goods would read his ad, a magazine about Chicago life, for example, would get a fair price for want advertising that targeted the whole city of Chicago.

Other Forms of Advertising

The single most effective approach for a magazine to generate revenue enables advertisers to take advantage of spare space throughout the magazine, including the covers and the inner front and back pages. 

According to PaydayNow, the cost of a full-page back cover advertisement in a prominent magazine with national distribution is customary to be several thousand dollars or perhaps more. The magazine gains money from this kind of advertising. Still, it also fills up the pages by inserting advertisements in the white space between storylines on the pages around storylines. The magazine’s appearance has improved, and its income has increased.