Start an online magazine by following these 9 steps:
You have found the perfect business idea, and now you are ready to take the next step. There is more to starting a business than just registering it with the state. We have put together this simple step guide to starting your online magazine. These steps will ensure that your new business is well planned out, registered properly and legally compliant.
STEP 1: Plan your Business
A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:
- What are the startup and ongoing costs?
- Who is your target market?
- How long it will take you to break even?
- What will you name your business?
Luckily we have done a lot of this research for you.
What are the costs involved in opening an online magazine?
You could literally start your online magazine without spending a penny. That doesn’t mean that you should—but you can. It’s possible to build a website for little or no money, or publish on WordPress or Blogger platforms at no cost. You can promote your magazine for free via such social media venues as Facebook and Twitter. You could write all of the content yourself or get others to write for no cost except links to their own zines or blogs. Also, you could shoot your own photos and lay out your magazine with free graphic design tools.
Since your skills are probably sharper in some of these fields than in others, your magazine might not look or read as professionally as it would if you hired expert writers, graphic designers, photographers, illustrators, web developers, and marketing experts.
All of these subject experts can be hired on a freelance or project basis, for rates that might not exceed a few hundred dollars per issue. As your business grows, there might be a point when you decide that the time is right to hire full-time employees to handle some of these responsibilities.
What are the ongoing expenses for an online magazine?
Most of your expenditures will go to the creatives you hire, most likely on a freelance basis, to regularly supply your magazine with content. The cost for this can be as little as an exchange of links and a promo plug to several hundred dollars per article, or more. Naturally, you can expect a higher quality of content (and less time spent editing) if you pay a higher amount for professional writing talent. As with anything, you get what you pay for.
You might also get to the point where you’re able to explore online advertising opportunities or to hire marketing communications professionals to promote your magazine. This cost will vary by the talent you hire and the scope of work.
Who is the target market?
You’ll know your customer profile as soon as you’ve identified your magazine editorial slant. Many publishers start with their own lifestyle interests, hobbies or career fields, because these are topics they know well.
Furthermore, your customers will likely be readers and very involved in the digital world. (Although magazines with a greater mix of visuals and video content can be geared toward non-readers.)
How does an online magazine make money?
Most e-zine income is from advertising. You can either chase down the ads yourself or rely on an advertising app like Google AdSense. Google will figure out the ads that fit the theme of your digital magazine and place them as viewer links. In this pay-per-click model, every time a reader follows the link to the advertiser’s content you’re paid a fixed amount. The larger your traffic volume, the more clicks you are likely to generate, thus increasing your ad revenue.
You can also contact advertisers yourself, but this approach would likely succeed only if you have a niche theme that can cater to companies selling related products. For example, a long-distance running e-zine based in Ohio could run ads for different running shoes stores in Cleveland and the surrounding area.
The more you narrowly you define your subject matter and audience, the easier it can be to appeal to advertisers.
How much can you charge customers?
Most online magazines provide free content. Revenue is generated through advertising. Ad programs like Google AdSense will pay you on a per-click basis for ads that you allow to be hosted on your digital real estate. Check out this thorough explanation of how Google AdSense works.
On the other hand, once your e-zine has achieved wide acceptance in your area, you can explore the possibilities of a subscriber-based revenue stream. For example, noted tech guru Marco Arment got subscribers to pay $1.99 for each biweekly issue of The Magazine, his general interest e-zine, and turn a significant profit even while paying his writes $800 per feature.
How much profit can an online magazine make?
Laurie Pawlik-Kienlen, who bills herself as The Adventurous Writer at TheAdventurousWriter.com, has this to say about the earning potential of her online publication. “Currently, I’m earning almost $300 per day from Google and about $70 per day from Amazon.” Pawlik-Kienlen’s earnings are all through Google and Amazon’s ad programs, giving a sense of what kind of revenue is possible for a successful e-magazine.
Marco Arment, publisher of The Magazine, says that his 25,000 subscribers yields a profit of about $35,000 per month after he pays writers, editors, copy editors, illustrators, photographer and others.
How can you make your business more profitable?
The e-newsletter you publish to promote your magazine can be a separate profit center if you offer links to advertisers with products or services that complement the theme of your magazine. Also, consider putting premium content behind a payroll for subscribers only. If this proves popular, you might choose to, at some point in the future, make your e-zine available only to paying subscribers.
Another profitable venture might be to host seminars, workshops or other events, thus creating networking opportunities for your readership that reflect your editorial focus.
What will you name your business?
Choosing the right name is very important. We recommend checking if the business name you choose is available as a web domain and securing it early so no one else can take it.
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After registering a domain name, consider setting up a professional email account (@yourcompany.com). Google's G Suite offers a business email service that comes with other useful tools, including word processing, spreadsheets, and more. Try it for free
STEP 2: Form a legal entity
Establishing a legal business entity such as an LLC prevents you from being personally liable if your online magazine is sued. There are many business structures to choose from including: Corporations, LLC's, and DBA's.
You should also consider using a registered agent service to help protect your privacy and stay compliant.
For most small businesses forming an LLC is a great option, and it's easy enough to form by yourself, or check out the top business formation services.
STEP 3: Register for taxes
You will need to register for a variety of state and federal taxes before you can open for business.
In order to register for taxes you will need to apply for an EIN. It's really easy and free!
You can acquire your EIN for free through the IRS website, via fax, or by mail. If you would like to learn more about EINs and how they can benefit your LLC, read our article, What is an EIN?.
STEP 4: Open a business bank account & credit card
Using dedicated business banking and credit accounts is essential for personal asset protection.
When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.
Open a business bank account
- This separates your personal assets from your company's assets, which is necessary for personal asset protection.
- It also makes accounting and tax filing easier.
Recommended: You can get $200 when you open a Chase business checking account with qualifying activities. Learn more.
Get a business credit card
- This helps you separate personal and business expenses by putting your business' expenses all in one place.
- It also builds your company's credit history, which can be useful to raise money and investment later on.
STEP 5: Set up business accounting
Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.
STEP 6: Obtain necessary permits and licenses
Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.
In most states, it is necessary to obtain a copyright license for a magazine. This article includes information on how to register your magazine with the U.S. Copyright Office.
STEP 7: Get Business Insurance
Insurance is highly recommended for all business owners. If you hire employees, workers compensation insurance may be a legal requirement in your state.
STEP 8: Define your brand
Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.
How to promote & market an online magazine
Use social media to increase awareness and generate excitement for your publication. Also consider advertising in e-zines, blog posts and websites that draw similar demographics.
How to keep customers coming back
Draw both readers and advertisers from the online communities that are relevant to your publication. Send out e-newsletters to alert subscribers to new content and to encourage sign-ups. Also, encourage subject experts who have their own audiences to write for your e-zine, since they’ll promote their work to their own audiences.
STEP 9: Establish your Web Presence
A business website allows customers to learn more about your company and the products or services you offer. You can also use social media to attract new clients or customers.
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