Media Tycoon since 1999

Chapter 36 DM Business Yellow Pages
"Do media?"

Chen Sen was a little puzzled: "Newspaper? Magazine? The problem is, it's impossible for private individuals to get the issue number."

Gao Yang shook his head and smiled: "Leaving aside the issue of the issue number, do you know the business situation of Jinyang Metropolis Daily last year?"

Chen Sen nodded: "I heard that the advertising revenue is close to 800 million, and there are more than 780 million."

Gao Yang said: "Taking 780 million as an example, we can calculate an account. What is the current circulation of Metropolis Daily?"

Chen Sendao: "I don't know the exact circulation, but I heard it's about 3 copies."

Gao Yang nodded: "How many employees does Metropolis Daily have now?"

Chen Sen said again: "72 people, this is an accurate number."

Gao Yang smiled and said: "Okay, then we can roughly settle accounts now.

Jinyang Metropolis Daily is a daily issue. There are as many as 20 to 24 pages per day, and as few as 12 pages. The average printing cost of each newspaper should be more than 4 cents. Let’s throw it away. It counts as 5 cents.

The retail price of the city newspaper is 5 cents a copy, and the subscription price is 6 to 7 cents off, and the price of the newspaper at the newsstand should be 3 cents a piece. We both count 3 cents a piece for subscription and retail. That is to say, for every newspaper issued by the newspaper, 3 cents will be recovered, and each newspaper will lose 2 cents on distribution.

For 3 newspapers, a loss of 6000 yuan a day is calculated on the basis of 350 newspaper issues a year, and the cost of publishing newspapers is 210 million yuan a year.

Then, the 72 employees, manpower plus office expenses, are calculated on the basis of 3000 yuan per person per month, which is almost 260 million.

This is the main operating cost of Metropolis Daily, with an annual cost of 470 million and a gross profit of 310 million.

Let's deduct another 100 million taxes and fees, which is already a lot. The net profit of Metropolis Daily last year is estimated to be in the early 200 million, right? "

Chen Sen was dizzy, nodded and said: "Your calculation is reasonable, Ma De, my year-end bonus this year is only 1600 yuan. This is after you resigned. The leaders of the newspaper were stimulated and increased the treatment of non-staff employees."

Gao Yang shook his head and smiled again: "I'm only calculating theoretically. In fact, the newspaper office is a public institution, and there are still many hidden expenses. I estimate that after last year, it would be pretty good if the metropolitan newspaper can retain a profit of 100 million yuan on its books. I just used the calculation of the city newspaper's business situation for a year to illustrate that if the media is also regarded as a business, this business is actually quite profitable."

Xiao Jin said with a smile: "Gao Yang, I have never worked in the media, and I know that newspapers and magazines are not allowed to run privately. You have analyzed it for a long time, what exactly do you want to say?"

Chen Sen also said, "Yes, what do you want to say?"

Gao Yang smiled and said: "When I finish speaking, you will understand that there are some market backgrounds that need to be foreshadowed.

Newspapers and magazines such as daily newspapers, evening papers, and metropolitan newspapers across the country, as well as media such as television stations and radio stations, are of course not allowed to conduct private publishing operations. This is a policy restriction.

However, some industry media, such as the CPI where I work, is an industry newspaper. It is affiliated with a publishing unit and has applied for a serial number, but it is actually privately run.

Such newspapers and periodicals are actually quite common in the IT media industry, and even foreign capital has invested in them.

The place where I work in Beijing is called CPI National Edition. Last year, the operating income of this project was close to 2500 million.

Do you know how many people have created such performance?

For the whole project, editing, editing and advertising business, there are only 36 people in the whole country.Of course, post-operation positions such as phototypesetting, distribution, finance, personnel, and office are set up at the group level, and resources are shared by each project.

If it is an IT newspaper that operates completely independently, this project will be assigned at most about 50 people, with an income close to 2500 million, net profit will be about 1000 million, and the per capita profit will be 20.

This kind of media is called commercial media, and it is completely market-oriented.

Jinyang Metropolis Daily claims to be a market-oriented operation, but it is not. If it is really operated as a commercial media, I estimate that as long as the management and incentives are in place, the current number 72 of the Metropolis Daily can create 1200 million, or even more, last year. Advertisement Income. "

Xiao Jin said again: "After talking for a long time, you still didn't say what project you can do."

Gao Yang said: "Don't worry, we'll talk about it right away."

Gao Yang is also a little tired to instill some business thinking beyond this era into his friends.

However, to let them understand the logic, see the future, and build confidence, they have to waste their words and follow the guidance.

Gao Yang lit another cigarette and said with a smile: "As I said just now, being a media company is actually very profitable, especially commercial media with market-oriented operations.

This second project, I call it Business Yellow Pages.

This kind of media is called industrial and commercial advertising direct investment, which has been developed for many years in developed countries, referred to as DM.

This kind, in fact, also has a serial number, and you need to apply to the industry and commerce department.

When you go to shopping malls during Chinese New Year, sometimes you will receive some advertisement leaflets, which are DM advertisement leaflets.It is illegal to print without permission, and you must apply for a publication number.

The Business Yellow Pages project I am thinking of can actually be regarded as a DM newspaper, which can be published on a weekly basis, also made into a newspaper style, and delivered for free.

And it must be delivered for free. DM Yellow Pages itself is not allowed to be sold publicly like newspapers and magazines.

So where does the income for this project come from?

In fact, it is the same as running a newspaper, it is to publish paid advertisements, and I judge that this market is not small in Jinyang.

Such a DM Business Yellow Pages I envisioned can be issued once a week, and gradually become two or even three issues a week, depending on market conditions.

Jinyang Metropolis Daily can do 800 million advertisements a year, and in the future, it may reach 1500 million, or even more than 2000 million. With the economic development, this is inevitable, and it will be within two or three years.

In my opinion, the DM Business Yellow Pages can completely achieve 1/5 or even 1/4 of the advertising revenue of Jinyang Metropolis Daily.

As long as it is operated properly and managed well, the operating cost can be much lower than that of a city newspaper. With an advertising revenue of 200 million a year, it is entirely possible to make a net profit of 80 or even 100 million. "

Xiao Jin and the others' eyes lit up: "How does this project work? Where does the advertisement come from?"

Gao Yang said: "This business yellow page is distributed to merchants in Jinyang, such as teahouses, restaurants, hotels, various shops, small shops, etc.

It is some industry-specific business information, such as which store has opened, which market has promotional activities, which industry has business opportunities recently, and so on.

More importantly, every month, or even every day, there are various stores being transferred, rented out, recruited, etc. There are quite a lot of needs in this category.

Advertise in newspapers, TV and radio. For these small businesses, the price is very high, they cannot afford it, or they don't have such publicity awareness at all.

It's like running a small advertisement in Jinyang Metropolis Daily. How much does it cost for a page with a large title? "

Chen Sendao: "The price of the single-title flower of Metropolis Daily is 80 yuan, and the double-title flower is 150 yuan."

Gao Yang said with a smile: "Yes, with the size of a single-title flower, no matter how crowded it is, it can only line up forty or fifty characters at most. If we make a DM business yellow page and issue 1 copies per issue, one single-title flower The advertisement fee is 20 yuan, and the double title flower fee is 35 yuan. We sucked up many such classified advertisements in the metropolis newspaper.

Moreover, in the classified advertisements in the metropolitan newspaper, there is no salesperson to run the order, but they are all waiting for customers to come to the door. This market has not been developed at all.

We want to do this DM business yellow page, and the salesmen need to run orders in different areas, and they are also couriers.

A salesman runs 10 small advertisements a day, 200 yuan, and gives him 20 points of commission, which is 40 yuan. I think it is not difficult as long as he can bear hardships. "

Chen Sen patted his thigh: "I see, Gao Yang's idea is great, it's a good idea."

Xiao Jin asked curiously, "How much does it cost to do such a project, and how to calculate the operating cost?"

(End of this chapter)