Partnership Marketing

Folio: The Magazine for Magazine Management, April 1, 2000 by Robert Gursha

Publishers pressed to build circulation should consider partnerships with companies that buy subscriptions in bulk as a low-cost customer-loyalty device.

The world of circulation marketing has never been more challenging. With the continuing deterioration of direct mail, stampsheet agency business and single-copy sales, many publishers are struggling to hold current levels of circulation. Partnership marketing, a small but growing new subscription source, is offering some hope.

Partnership marketing refers to programs created by the publisher for a third-party company in which that company buys subscriptions, usually in bulk. The publisher acquires circulation that is both cost-efficient and qualifies as ABC net paid. For the partner company, the deal represents a low-cost customer-loyalty device that continuously reinforces its brand.

For a partnership arrangement to work, both parties must win. If done correctly, the publisher benefits by acquiring a significant volume of subs that are more cost-efficient than marginal subs from traditional sources. And the publisher is better able to target the desired geographic, demographic and/or psychographic segments that deliver the readers advertisers want to reach. Additionally, partnership marketing programs can open up new markets, enabling publishers to extend their magazine brands into under-penetrated population segments. Once the programs are set up, minimal ongoing maintenance is required to keep them going. And finally, they can mean incremental ad sales opportunities, too.

The benefits to the partner are great as well: The partner gains an extremely cost-efficient vehicle for regular communication with its customer base. The magazine becomes a carrier for delivering a personalized message from the partner to its customer, thereby fostering greater customer loyalty to the brand.

At Sunset, we have so far set-up five programs with different partners ranging from banks to insurance agencies to real estate companies. Each program has its unique deal points, but all generally fall into a one-year subscription offer in which we receive, at a minimum, half-basic rate for each sub plus a small marketing fee to cover additional binding expenses at the printer. Each subscription delivers positive cash-flow from the first contract.

All subscriptions are entered as gifts, with the partner's agent listed as the donor and the agent's customer as the recipient. Gift cards are sent to the agent to use to announce each gift subscription, and a full, personalized coverwrap is provided with the agent's name, office name, telephone number and company logo printed on it. The partner's agents fully embrace the coverwrap's ability to customize up to eight lines of marketing copy each month to promote the partner's other product lines and offers to the customer.

Help in getting started

It can be difficult to get partnership programs off the ground--and your circulation staff may not be comfortable working on them. So here are some tips to help ensure success:

Assign a dedicated person or team to work on these programs. Otherwise, they won't get the attention and priority necessary to complete the deal.

Look for prior experience in cold-calling and selling in the individual(s) you assign to work on partnership deals. It's easy to get frustrated and lose momentum when your leads turn into dead-ends or phone calls go unanswered.

Remember that flexibility and innovation are important as you create customized programs. One of our real estate partners wanted to deliver additional collateral materials to its customers; with some slight changes, we were able to get this material to ride along with our publication at second-class rates.

Utilize all fulfillment and printer capabilities to help your partner take advantage of one-to-one marketing.

Thoroughly research your potential partner's business before proposing a program. This will help them build a program that differentiates their offering from their competitors' offerings.

Know who the decision-maker is. If you aim too high or too low, you will waste valuable time.

Bring your publishing team on board early. Make sure they understand how this benefits the magazine. Include the publisher, editor and production director in your decision-making process.

Be prepared for some failures and prepare management for this, too. Otherwise, you might not be allowed to move forward if your first attempt fails.

Follow-up with your partners. Once a deal is completed, contact your partner a couple of times a year to see if they feel the program is working, and to find out if minor adjustments are needed.

Put all agreements in writing. The deals tend to be complicated and usually last for several years.

Follow these steps and you'll be well on your way to a successful partnership marketing program.

Robert Gursha is vice president, consumer marketing director and general manager of Sunset Publishing Corporation.