Partnering – the new profit center

Grab your partner and do-se-do

At the FMA (Fulfillment Management Association) meeting last month, a panel moderated by Nicole Bowman (co-leader of the talk I’m giving on Direct Mail Rules to Live By at the CM Show, Chicago, June 24) focused on the pluses and minuses of partnership.

On the down side, developing a partnership hardly proceeds at the speed of light. In fact, it can take 6 months to 2 years just to jell, and the volume and launch date can be unpredictable.

It’s challenging to find the right partner and forge a relationship that’s a win-win for both sides. In addition, the economics can become unprofitable – and once the program is approved, nothing can change with the promotions and program itself. Plus, problems can arise if your partner is not technically savvy.

Conversions, too, are lower, it turns out. So publishers use fewer renewal efforts. The rule is, the better the affinity, the better the renewal rate.

It was suggested a good starting place is to approach whoever is renting your names, being careful not to cannibalize ad sales. Suzanne Nicholas of Hachette recommended making a big splash with your first offer. Make sure it’s in the main sales channel, she emphasized, not a weak channel.

Peter Winn, Bonnier Corporation, pointed out the more niched = the more successful.

So what is the up side? Partnerships are one of the few untapped resources available to publishers today. They could be fertile territory to cultivate new subscribers who would not normally discover your publication on their own. And they could become a substantial revenue stream.

For copy that gets results or a copy checkup, contact Shira at 203 371-0654, via email at shira@promowriting.com or her website www.promowriting.com

What’s working For Publishers

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SHIRA LINDEN • 203 371-0654 • www.promowriting.com


Hudson Valley DMA sponsored another successful series of roundtable discussions earlier this month and naturally I attended the ones hosted by publishers. First, Multi-Title Marketing - with Philip Ketonis of Hachette. He referred to partnerships as an untapped opportunity…one of the few we have, he said. They are going after big programs with retailers or catalogs, where a subscription will be included with purchases over a certain amount. Ketonis cautioned that forging these kinds of programs takes time, requires persistence, and the demographics must match. Their goal is for partnerships to account for 6-7% of the file.

Hachette is also experimenting with e-mail in renewals to replace some mailed efforts and cross sell. Ketonis reports their audience is receptive. He cautions against using every effort to sell and suggests publishers should use some efforts to convey valuable information.

When I asked about sweeps, he said Hachette is using newsletters and sweeps to collect e-mail addresses and for consumer research, not for acquisition.

Next, I sat in on Email Creative - with Jane Weber of Taunton Press, who mentioned their key challenge is to grow the file without corrupting their current audience of serious hobbyists. Weber reports e-mail campaigns are their most effective way to sell books, DVDs and subscriptions, and are very profitable. Each title offers an e-letter one or two times/month. Five e-mails a month is average. E-letter signups and the website are their sources of names.

Weber mentioned there is a lot of trust between Taunton and their core audience, and they are seeing a 12-22% open rate. Only .1% opt out. They are doing a lot of premium testing, since their subscriptions are costly and they feel they need to add value. In their latest test, a scraper beat out a video. Taunton also offers subscribers discounts on their other products.

Taunton successfully integrates print and web. They do co-branded efforts with advertisers, print ads and e-mail follow-ups, and have also ventured into the partnership arena, offering a $25 gift certificate to White Flower Farm.

For copy that gets results or a copy checkup, contact Shira at 203 371-0654, via email at shira@promowriting.com, or her website www.promowriting.com.