Independent Publishers:

Operating in 2010 and Beyond

Where to Cut Back,
Where to Invest
-- Frank Finn
Briefings Media Group, LLC
 About Briefings Media Group
• Diversified B2B publishing & training company
• Headquartered in Richmond, Va.
• Product Lines:
– Magazines
– Newsletters
– Training – Events, audio conferences, videos,
online courses
– Database directories
 About Briefings Media Group
• Markets/audiences served include:
– Hospitality
– Human resources
– Industrial safety
– Apparel
– Business management and communications
– Healthcare facility managers
– Residential painting contractors
 About Briefings Media Group
• Products include:
– Communication Briefings newsletter
– Workplace HR & Safety ezine
– American Painting Contractor magazine
– FacilityCare magazine
– The Organized Executive newsletter
– Trend Letter newsletter
– MeetingPlannerLists.com
– Audio conferences and in-person events
The Challenge

Eagle or Turkey?
Feed or Starve?
 Words to Manage By
“Cutting back is okay, but you have to know
which aspects of your business are worth
reducing and which require further
investment, even in a down economy.”
--George Green
e5 Global Media
 Cost Control: Magazines
• Advertising is primary revenue source
• Keep costs in line with revenues using
– Required Cost Reduction (RCR) Calculator
• Publisher must recoup a portion of ad revenue
miss
• Process applied issue-by-issue
• Finance department monitors compliance
with cuts
The RCR Calculator
 The RCR Process: Step 1
• Calculate the Ad Sales Miss

Name Budget Sales Variance %

Jim $50,000 $30,000 ($20,000) -40.0%

Mary $25,000 $22,000 ($3,000) -12.0%

Bob $20,000 $10,000 ($10,000) -50.0%

Total $95,000 $62,000 ($33,000) -34.7%

 The RCR Process: Step 2
• How Much of the Miss to Cover with Cuts?
Name Budget Sales Variance %

Jim $50,000 $30,000 ($20,000) -40.0%

Mary $25,000 $22,000 ($3,000) -12.0%

Bob $20,000 $10,000 ($10,000) -50.0%

Total $95,000 $62,000 ($33,000) -34.7%

85% of variance from budget

$ (28,050)
 The RCR Process: Step 2 (cont.)
• How Much to Cover with Cuts?
• Considerations:
– Set a Trigger Point (minimum 10% miss)
– Are Misses Unusual or Chronic?
– What’s the Variance to Budget YTD?
– Are You in Investment or Cutback Mode?
 The RCR Process: Step 3
• Calculate Commission Savings
Commission plan: 3% of sales

85% of budget required to earn commission

Rep % of budget Comm.

Jim 60% $ -

Mary 88% $ 660

Bob 50% $ -

Total $ 660

Commission budget $ 2,850

SAVINGS $ 2,190
 The RCR Process: Step 4
• Hunt Down Additional Savings
Print Costs
Postage Costs
Selling Expenses -
Circulation -
Marketing -
Editorial  
Other  
Total Commitments -
Variance to Requirement $ 2,190
 The RCR Process: Step 5
• Track Cost Reduction Commitments
– Publisher completes RCR spreadsheet
– Finance makes sure cuts from future expense
budgets are delivered
 Why Use the RCR Process?
• Focuses cost cuts in underperforming areas
• Forces all departments to share the pain
• Takes the drama out of a difficult situation
 Where We’re Investing
• Products and Projects That Meet 3 Criteria:

#1. Generate quick return on cash outlays

#2. Build parts of the business with long-term value
#3. Bottom-up ideas with buy-in from line managers
 Where We’re Investing
• Newsletters
– Subscription Acquisition Direct Mail
• Target Net Profit Ratio of $.85 to $1.00

Result: Mailing less, but maintaining flow of new

subscribers and ancillary revenue
 Where We’re Investing
• Database Directories
– MeetingPlannerLists.com
• Largest online source of qualified meeting & event
planners
• In collaboration with leading industry association
• Users search online database and buy leads for
immediate download
 Where We’re Investing
• Audio Conferences
– Inexpensive training alternative for customers
– Format appeals across audiences
• HR managers
• Finance & accounting managers
• Safety compliance officers
– Launched portal to offer partners’ programs
• ProfessionalDevelopmentUniversity.com
 The Future

Here’s to soaring eagles

and fat turkeys!
 Thank You!
For a copy of this presentation and BMG’s
Required Cost Reduction Spreadsheet,
contact:
Frank Finn, EVP & COO
Briefings Media Group, LLC
ffinn@briefingsmediagroup.com
804-762-9600 ext. 249