A question we’re often asked is whether the Internet is best used as a product platform or a marketing channel. And the answer, of course, is that it’s both. But most publishers have been very confused about the difference.
Our estimation is that in 2006, publishers should be generating at least 30 percent of their total revenues online. Meaning 30% of their overall revenue should be coming from a combination of two sources:
- Physical, print, hard-deliverable products or events that they are selling over the Internet.
- Online-only products, such a membership websites or webinars.
Those that are achieving the 30 percent goal clearly understand the difference between the two and work on optimizing their product development and marketing programs accordingly.
The publishers here at VNR are very clear on this difference, hence the reason they’ll be much quicker to adopt the Mequoda System.
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They understand that the intention of a Mequoda Internet Hub is to build email circulation so they have a method of monetizing their subscribers by marketing their print or physical products via their email newsletter(s). And they understand that membership websites, or webinars, are separate online-only products that can generate additional revenue.
A note of caution: a lack of understanding this difference before you start to build or redesign your website or website network, will almost guarantee an unsuccessful online strategy.
