Friday, March 5, 2010
Why? Largely because it's doing what almost all magazines do: it's trying to maintain a circulation or rate base that is higher than it's natural demand. By keeping its rate base at its current level, it can charge advertisers a higher price than it otherwise could. Inc. is hardly alone in playing this game. Pretty much every U.S. magazine has the same strategy. If you're the circulation director of a publication, you have a simple choice: pay large direct mail costs to get new subscribers who really want the magazine, or lower your subscription costs to a point where you're pretty much making an offer that is hard to refuse. Although I have never paid for a subscription to Inc., I'm filling out a check for $10 right now. As a magazine junkie and a new entrepreneur, I simply cannot refuse this offer. Inc., you got me.