[NSRCA-discussion] Electronic versus Paper K-Factor Poll

Sat Jan 24 19:46:53 AKST 2009

Chris you are a smart man. Maybe its in the name.  

I agree, what Troy isn't pointing out is that alot of our members don't compete. And alot that do, may choose not to resign if it's free. Say we lose half our members due to the free Kfactor. That's $12,000. Then the other 2/3 that want the E version will get a reduced rate. For example, say it's half (easy to compute that way. That's another $6,000. That's $18,000 that we lose. Where does the $12,000 that we'll make extra, but not printing Kfactors that Troy proposes make up the extra $6,000? Not sure the whole pic is seen. It's larger than what is being proposed IMO. 

Chris          

--- On Sat, 1/24/09, Chris M <cjm767driver at hotmail.com> wrote:
From: Chris M <cjm767driver at hotmail.com>
Subject: Re: [NSRCA-discussion] Electronic versus Paper K-Factor Poll
To: "General pattern discussion" <nsrca-discussion at lists.nsrca.org>
Date: Saturday, January 24, 2009, 8:18 PM

I am tired of studying so I will add my .02 cents.

This issue came up a couple of years ago when the organization was in a
rather tenuous financial state.  I agree with the comments from Troy
and I also agree with those that want to retain the printed versions. 
The status quo seems to be working fine right now but as Troy said it
uses up almost any discretionary funds we might otherwise have
available to promote and expand the hobby.  The fact remains that the
KFactor costs us more to produce and mail out than the cost of each
person's membership and that puts the pressure on John Konneker to get
ad revenue to pay for the rest.  If we go to an all electronic version
(and decide to give away access for free) we have to be willing to take
some BIG - really BIG risks:

1. We could lose some/many/most of the ad revenue until or UNLESS we
can show circulation numbers that are meaningful to the advertisers. 
Not just total download numbers, but meaningful translation of      
downloads to increases in sales. In this economy, this change might
just be the catalyst to get get some advertisers to drop out
until/unless we can show value and return to their ad $$ in the
electronic                version.

2. We would need to make a big push to show members why it is still
necessary to be a member of the NSRCA.  If you look at the total
membership numbers vs the number of active contest flyers, we see    
    that a large percentage of our membership do not actively fly
contests and I would surmise that one of the main reasons for their
membership is to get the KFactor.  Start giving that away, and we will
            certainly lose a lot of members shortly thereafter. Fewer
members = less dues.  We have to be ready before any change happens to
explain to people why there is value to being a member if these sole
        reason for joining is now available free.

Now to counter these points, we could get more ad revenue if the
download version would get enough exposure to the right people (read $$
in sales - not just readers).  This will certainly take a while and
require a lot of data to prove to the advertisers.  Hot links and click
through links in the online version may bring in additional revenue. 
We could be able to counter a short term loss of membership if our new
wider audience results in more active pattern flyers and thereby more
members who want to actively participate in the support of the hobby by
being NSRCA members.

While I do support the idea of the electronic version as I think at
some point it will be economically necessary, we need to be ready for
some really turbulent times as far as membership numbers and financial
status.  It could be an instant home run for us, but what if it is not?
And what if it takes longer than we think?  Without $100K to spend on
consultants and focus groups etc, we are literally swinging for the
fence with our helmet on backwards and need to be very, very careful.  

Chris Moon

Now back to studying my Airbus manual...and yes apparently they will
float.

Mark Atwood wrote:
Re: [NSRCA-discussion] Electronic versus Paper K-Factor Poll

  While I don’t dispute anything of what Troy
had to say, I for one do enjoy the paper magazine version, and I would
be willing to pay a premium in addition to my dues to get it.  I
realize that enough people would also have to sign up for the printed
version to even keep the costs the same, but I would HATE for us to no
longer have a printed version to distribute or to keep for posterity.  

Just my .02.  

-Mark

On 1/24/09 9:35 PM, "Troy Newman" <troy at troynewman.net> wrote:

  Hey guys,

This is a little long. Please read it’s important to the NSRCA.

I would like to say something regarding the printed KF vs. a online
only KF

Today the KF is costing the organization a ton of money every month. I
spoke to Derek about this at the AMA show a few weeks ago. Today the KF
is running us about $2100 a month for just round numbers. Most folks
don’t know this or understand the huge cost involved every month. We
are funding it from dues and NATS money when advertising comes up
short. John Konneker is struggling to sell advertising and doing a
great job….but we already owe our check to the company store.

We are bringing in advertising money that is short of that number,
Let’s call it 1700 or 1800 a month typical for the last few years. Now
I know John K has been working very hard to increase advertising money.
The problem is even its breaking even…..is it really worth it to you to
have it in your mail box? AT $2100 a month to the group?

Look at it this way. Re-structure the KF to a new layout. An online
magazine. The advertisers are not going to like the idea at first…but
here is the what I think would work.

#1 tell all the advertisers. Today is a new day.  We are going to give
you free ads for 2 months at your current ad level. And we are going
online only.

#2 make all KF downloads free to the public. Absolutely free in every
respect. But put a counter on the downloads. Get the modeling public
looking at what we have to offer.

#3 at the end of 2 months….take the counter numbers to the advertisers
and say look…we were producing 800 copies a month. Now it’s downloaded
2000copies a month. You just doubled your exposure.

#4 Oh by the way Mr. Advertiser, we understand the economy is tough on
you too. Let’s do this. We want you to stay with us advertising and
since it’s a web only magazine, we are going to cut your ad rates in ∏.
You get the same number of pages for the ∏ the money…..would you like
to double your ad space for the same $$ you were paying? This makes the
online only magazine larger…more prestige, more info for the public to
see and like. Today we are limited on content…we can only afford so
many pages. Online there is no limit essentially. At least not the
budgetary limit we currently have.

Now let’s look at what this will do. John Konneker is selling $2000 a
month in ads for just round numbers. It’s close to this from the info I
have been told. 

$2000 a month is $24,000 a year. We are using that to pay the US mail,
and printer company. That’s 24K a year guys!

Now let’s go to online and ∏ the rates….more circulation as its free to
all that want to get it.  We get to take $12,000 a year and put in our
pockets to support and grow pattern.  What can you do to grow pattern
if you have money in the bank? Can we give more to the USA Team. Can we
hold invitational contests like the Tucson shootout and give cash
prizes  in all classes or buy products to give away to pilots. Could we
completely fund the NATS banquet?

The advertiser people want more exposure…so we give it away for free
after all the more that download it the better it is to sell ads
right?   Then we get new members by showing them we are friendly and
open folks that want them to come play with us. We get them to join our
organization because we support pattern not because we make a magazine.
 Telling them to join to get the news letter is like saying we have a
club but you gotta pay to play. They will be helping to pay by
downloading it. Oh and download often they will.  People want this
information…..when they like what they see they will join the
organization. If you hold it as a sacred cow then they don’t want to
play in that environment. Elitism: remember the stereo type we all know
it’s not true or is it….You have to pay to play: is this elite? Just a
question there not slamming the argument…just pointing out what we have
been doing in the past. I think it’s time for a change.

Oh and by the way back to John Konnecker’s job on those months when
advertising is low meaning not breaking even on the printing costs we
currently have…Guess what we are using MEMBERS DUES and NATS funds to
pay the printer company and the US mail.  On the new system low month
for ads is just that, a low month and it’s still profit mostly
profit…Today we go in the hole on the KF and make up the difference.
Would it be neat to say well we only made $5K in advertising last year
but we put 4K of that in our pockets.  Instead it we brought in 24K in
ads, and spent all of it plus another 2-3-4K out of the NSRCA treasury
to pay for a printed KF.

This new idea allows us to have money to advertise ourselves hold
events and promote pattern and get new members. The idea of paying to
get the KF is not attracting new members….the members we have are
footing the bill to pay the printer on those months that the KF
advertising comes up short.

This is common sense guys…run this like a business and it can grow and
expand. Live pay check to pay check like we are….. and we are always
struggling to stay afloat.

Is the KF in its current form worth $2100 a month to you? Yes a small
setup fee would need to be charged to layout the Online version…so
Online doesn’t mean free setup…just free printing and distribution.

Look Al Gore invented the internet…lets think like business people and
use it to spread the word. The US mail is not going to go belly up, the
price of stamps will just increase and so will our costs to print and
mail each and every member a copy.

Please keep this information in mind when you vote in the poll

My two cents on the subject. 

Troy Newman

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