For all he's worth: Randy Jones' latest financial play reflects a brash belief system in the resilience of affluent markets and the power of his own vision

Folio: The Magazine for Magazine Management, March, 2002 by Beth Snyder Bulik

MARKET TRAILER

Worth's fifth-title status, however, is more precarious than ever in this cutthroat ad market. "There's so much competition in [the finance category]," says Steven Bloom, print planning supervisor, The Media Edge. "Money is the clear category leader. Mutual Funds, with its redesign, looks a lot better than it did in the past. SmartMoney, Kiplinger's--they're both very strong publications." And when a category is five or six deep, some of the books on the lower rungs start to fade away, he says. "These days, we're pressured more and more to make sure we're running with books that have strong numbers and vitality. We definitely can't take as many chances as we did in the past."

Bloom says he'll keep a "close watch" on Worth now that Jones has taken over. "How much funding is there?" and "How long will it last?" are Bloom's biggest questions. "The key is, where are they going to be IS months from now? Are they still going to be around? I've done work with them in the past and I think it's a good book-and they're reaching a good target audience. But there are stiff challenges ahead."

Jones claims he can raise more money if needed. "We've got a great brand and a great reputation. We can always bring in partners. In fact, since the news [about the buyback broke], I've gotten half a dozen inquiries both about strategic and investing relationships," Jones says.

Media investment banker Reed Phillips of DeSilva & Philips says that few are better than Jones when it comes to conveying ideas and attracting investors. "The likelihood of his being able to attract more money when he needs it is high," Phillips says.

But Bloom points out that Worth, as an independent, faces a huge disadvantage. "Money and Mutual Funds have Time Inc. behind them using integrated properties together. It's not just the pages in the book-they're able to give you the integrated programs, the extensions that clients are looking for these days," he says. "One thing that will hurt Worth is Money's new upper-demo edition, Money Business Select, reaching that high-end personal finance investor as well. That was Worth's niche for a while, but other books are moving into that space."

So what's a single-title publisher to do? Bloom says Worth will have to be extra aggressive. "They need to be putting programs, extensions, together that go well beyond the book. I have seen programs they've brought to me in the past, and they do go beyond the pages, but it's hard when you're going up against Time Inc. They're monsters."

Adds Robert Crosland, managing director of AdMedia Partners, "It's tough being an independent. What it boils down to the fact that you don't have a great deal of influence in the advertising community because you're free-standing, and you don't have a beneficial cost structure because you're free-standing."

Jones may have a solution, at least to part of the problem. He says Gruner Jahr USA Publishing approached him about its idea to start a back office division of the company to help small publishers aggregate and consolidate costs for things like circulation, finances and accounting. Jones plans to continue those talks. A G J USA spokeswoman declined to comment for this article.