16. First hand look at a culture of reinvention
why?
Rich, detailed photos and great storytelling
New, up-to-date topics every issue
Aggregated look into an innovative culture
Feeds into their worldly curiosity
19. zu-mu
April
2009
May
2009
June
2009
July
2009
Aug
2009
Sept
2009
launch plan
Oct
2009
Nov
2009
Dec
2009
Jan
2010
Feb
2010
Mar
2010
Business Plan
Development / Staff up
Concept Development
Prototype Topic Research Q1 Topic Research
Prototype Production
Test Marketing / Refinement
Press / Media Kits /
Sampling
Launch Q1 Zu-Mu and
Website
Q1 Niche DMA
Distribution
Launch Q2
20. Traditional Magazine Model:
30% Subscriptions*
20% Newstand Sales*
40% Advertising*
* Magazine Publisher’s of America & several Conde Nast Rate Cards
The Mu-Zu Model:
35% Subscriptions
25% Newstand Sales
30% Advertising
10% Trend Consulting
21. The Target Pool
Total = 15,000,000 (via Simmons)
Total customers x Conversion x Assigned New Customers
Probability
15,000,000 2% 10% 30,000
15,000,000 3% 40% 180,000
15,000,000 4% 30% 180,000
15,000,000 5% 20% 150,000
Total 540,000
Circulation 250,000
22. The Costs
Medium Spending
Printing 4x/year $4,500,000.00
Print R&D $500,000.00
Website $2,000,000.00
Production Equipment $150,000.00
Tokyo Bureau $925,000.00
Salaries / Freelancers $1,000,000.00
Research & Development $500,000.00
Test Marketing $500,000.00
Consulting Salaries $200,000.00
SF Office + Staff $250,000.00
Expenses/Travel $100,000.00
Total Spending $10,625,000.00
23. YEAR 1
To Break Even... * 33,750/edition
Total Units
Trend Arm $1,062,500
Newstand $2,125,000 141,667 copies*
Subscriptions $3,187,500 81,731 subscriptions
Advertising $4,250,000.00
24. YEAR 2 Customer Sales
Newsstand Revenue
Total Circulation x% x Price TOTAL
250,000 40% $15 $1,500,000
Subscription Revenue
Total Circulation x% x Price TOTAL
250,000 60% $39 $5,850,000
Total Customer Revenue $7,350,000
25. YEAR 2 Ad Sales
Online Ad Revenue
Total Viewers / 1000 x CPM x 365 TOTAL
100,000 100 $20 x 365 $730,000
* Wired Magazine sells 40pp. as of 12/08
Print Ad Revenue
Total Ads x Price x # of editions TOTAL - 20%Comm.
40 pp.* $30,000 4 $3,600,000 $2,880,000
Total Ad Revenue $3,610,000
26. YEAR 2 Trend Consulting
GOAL (10% of business): $1,298,000
27. ROI YEAR TWO
10,960,000 - $10,625,000
$10,625,000
x 100 = 3%
ROI YEAR TWO + TREND CONSULTING
11,988,000 - $10,625,000
$10,625,000
x 100 = 13%