
Originally Posted by
Rathdown
I started a western fiction magazine (FAR WEST) back in 1978, and over the course of five years (and five golden spur awards for short fiction) managed to loose a little over $500k before calling it quits and killing off the title. Surprisingly people still buy, subscribe to, and read magazines (there are probably 300 titles on sale at my local Books-A-Million store); the difficulty for a publisher comes when trying to balance the cost of production (staff and paying writers, overheads, etc.) and the cost of printing (both ink and paper are petrochemical products) and sales. Most magazines achieve about 30-35% newsstand sales (for every 100 copies put out on the stands about 30-35 copies are sold); printing costs can be as high as 40% of the cover price, and distributors generally take a 30% commission, leaving the publisher with about 30% of the retail cover price-- out of which he has to pay the writers, pay his staff, and -- hopefully -- pay himself. So, if you distribute 100k copies to newsstands, you might sell 35,000. If the cover price is $5 that's total sales of $175,000, of which the publisher receives about $50,000 from which he has to pay all of his costs. A small publisher would probably get by with a staff of eight, with an average paycheck of about $1,000 per week (a low figure for the publishing industry). This works out to a spend of $32,000 per month for staff, which leaves the publisher with $18,000 per month for things like rent, heat, electricity, employee health benefits, and -- oh yes -- buying in the stories that he publishes. A 5% bump in the price of oil, and a publisher can be out of business in 90 days...