Basic Financial Plan To Start Le Cool

moneyLet’s talk a little about what kind of revenue opportunity running Le Cool Magazine offers. We will talk about advertising, info caries both display and native, as well as about how we offer content services, produce events and create books and magazines for our clients. Note: the amount of revenue generated depends on many factors, the main one being the dedication and experience of the founding team. The numbers mentioned below are estimations that assume an experienced team, or at least the presence of a full time sales rep.

ADVERTISING AND SPONSORED CONTENT

As with most magazines, digital or printed, we make revenue from advertising. Selling advertising to brands and local businesses is the way most Le Cool editions start financing their venture. We offer display advertising online and in our newsletters. One quite unique aspect of our magazine is that we have a very strong email newsletter. We currently have close to 300.000 people subscribed to one or several of our editions. We sell a lot of cross media campaigns that include both presence in our newsletters and online. Newsletter ads go for a fixed price per weekly issue, while online ads typically are sold for a CPM rate (cost per thousand).

We also monetize through offering sponsored posts and social media mentions, which now is popularly called Native Ads. We do not sell our content, meaning that, for example, a restaurant can not buy a review. We offer posts in the Inspiration/Feature category to brands that wish to communicate a product launch or an event they are putting on. These posts should always be clearly marked as sponsored.

A PREMIUM NICHE MEDIA

Our focus is always to be a premium niche media. That means that we prefer having less advertising and charge higher rates. To get a new edition started we always recommend that you should aim to generate revenue from day one. Team up with two-three cool brands and have them act as exclusive sponsors. As the magazine readership grows the magazine will attract more brands, more advertisers and revenue grows.

SO HOW MUCH REVENUE COULD ONE GENERATE FROM ADS AND SPONSORED POSTS?

Any new market should be able to generate at least 20.000 euros or equivalent during its first year. That is assuming that the edition starts with limited resources, a small team and a brand new reader base.  Larger launches with more financial resources behind it should be able to generate 50-60.000 euros already from year one.

Within a few years the yearly advertising revenue should be at least 150-200.000 euros yearly.

BEYOND ADVERTISING

The really interesting opportunity (from a revenue point of view) lays with providing services such as sponsored content for brands. You can see a sample of projects we have done, and the way we present ourselves, by visiting our agency site.

Any market is invited to explore opportunities that uses the skills, talent and resources that are generated once setting up Le Cool Magazine. Beyond advertising some of the services that any market could offer include:

  • custom content for brands
  • social media management
  • magazine and book creation
  • content syndication

We also provide markets with ideas, concepts and even finished products in some cases. We have created local city guides for beer brands, inflight magazines, on demand guides for hotel receptions and many other concepts that could be transferred to a local market.

While offering services is something we recommend to all markets it is fundamental to have team members with marketing and communication experience to really be able to make the most from these revenue opportunities.

Beyond advertising, services and content projects may very well generate above 1 million euros per year in revenue for a large, mature market. Even for a small market it could provide a steady stream of fixed revenue from local businesses that need help with content for their blog or social media.
moneyLet’s talk a little about what kind of revenue opportunity running Le Cool Magazine offers. We will talk about advertising, visit this both display and native, website as well as about how we offer content services, produce events and create books and magazines for our clients. Note: the amount of revenue generated depends on many factors, the main one being the dedication and experience of the founding team. The numbers mentioned below are estimations that assume an experienced team, or at least the presence of a full time sales rep.

ADVERTISING AND SPONSORED CONTENT

As with most magazines, digital or printed, we make revenue from advertising. Selling advertising to brands and local businesses is the way most Le Cool editions start financing their venture. We offer display advertising online and in our newsletters. One quite unique aspect of our magazine is that we have a very strong email newsletter. We currently have close to 300.000 people subscribed to one or several of our editions. We sell a lot of cross media campaigns that include both presence in our newsletters and online. Newsletter ads go for a fixed price per weekly issue, while online ads typically are sold for a CPM rate (cost per thousand).

We also monetize through offering sponsored posts and social media mentions, which now is popularly called Native Ads. We do not sell our content, meaning that, for example, a restaurant can not buy a review. We offer posts in the Inspiration/Feature category to brands that wish to communicate a product launch or an event they are putting on. These posts should always be clearly marked as sponsored.

A PREMIUM NICHE MEDIA

Our focus is always to be a premium niche media. That means that we prefer having less advertising and charge higher rates. To get a new edition started we always recommend that you should aim to generate revenue from day one. Team up with two-three cool brands and have them act as exclusive sponsors. As the magazine readership grows the magazine will attract more brands, more advertisers and revenue grows.

SO HOW MUCH REVENUE COULD ONE GENERATE FROM ADS AND SPONSORED POSTS?

Any new market should be able to generate at least 20.000 euros or equivalent during its first year. That is assuming that the edition starts with limited resources, a small team and a brand new reader base.  Larger launches with more financial resources behind it should be able to generate 50-60.000 euros already from year one.

Within a few years the yearly advertising revenue should be at least 150-200.000 euros yearly.

BEYOND ADVERTISING

The really interesting opportunity (from a revenue point of view) lays with providing services such as sponsored content for brands. You can see a sample of projects we have done, and the way we present ourselves, by visiting our agency site.

Any market is invited to explore opportunities that uses the skills, talent and resources that are generated once setting up Le Cool Magazine. Beyond advertising some of the services that any market could offer include:

  • custom content for brands
  • social media management
  • magazine and book creation
  • content syndication

We also provide markets with ideas, concepts and even finished products in some cases. We have created local city guides for beer brands, inflight magazines, on demand guides for hotel receptions and many other concepts that could be transferred to a local market.

While offering services is something we recommend to all markets it is fundamental to have team members with marketing and communication experience to really be able to make the most from these revenue opportunities.

Beyond advertising, services and content projects may very well generate above 1 million euros per year in revenue for a large, mature market. Even for a small market it could provide a steady stream of fixed revenue from local businesses that need help with content for their blog or social media.
If you are serious about making a living from Le Cool and wish for Le Cool to be a proper business you need to become a Business Partner. This following example will contemplate that scenario although some aspects apply for Ambassador partners too. 

We always aim for a new market to be able to cover a substantial part of their costs even from day one by creating partnerships with brands and advertisers. Nonetheless we recommend that you reserve an initial capital to cover the running of the business for the first year.

STARTING FEE

The only starting cost is the minimum 5000 euros license fee to acquire the license. That fee might be higher depending on the size and matureness of the city. Once that fee is paid you are ready to get started.

THE TEAM

A team needs a minimum of least two people, find  an editor and a publisher. The editor should ideally be available full time for the first two months, anemia and can after that step down to 50%-60%.

The publisher’s dedication can be anything from a few hours weekly to full time. As the publisher is the person responsable for generating the revenue if he or she is not available to dedicate proper time to pursuing opportunities with advertisers the team will need to include a sales person.

Some markets, store like Rome and Lisbon, have external sales team that work on commission only meaning that the publisher can work on partnership deals, marketing and team growth.

CONTRIBUTORS

None of the cities compensate the writers with cash. Instead we spend a large amount of time to compensate our writers by caring for them, helping them to become better at what they do, getting them tickets and press passes to the events they cover etc. Here is an important text for you to read: What does it mean to be part of Le Cool.

ONGOING COSTS

Excluding any costs for sales or salaries for the founders a new market can be run with only the cost of a half time editor and the minimum royalty fee of 300 euros. We have seen many example of cities starting covering those costs through an initial sponsorship deal with one or two brands.

Posted in Investment