How The Scheme Works and Makes Money
What is Eskim?
How does the scheme make money
Potential future revenue sources
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The business model of the scheme for generating revenue is for similar email newsletters: through advertising, email newsletters can generate advertising revenue based on the number of subscribers, open rates, and other factors. In the future, The Scheme may want to expand revenue through developing itself as a brand and marketing its own products.
What is Eskim?
The Scheme is a daily, news digest newsletter founded in 2012 by two former NBC News producers, Danielle Weisberg and Carly Zakin. It is sent by email early in the morning of each week and consists of five to six news digest with minimal comments. These brief news / commentary digest are referred to as schemes. The schemes contain hyperlinks, which readers can click to read more about the story or topic if they wish. The newsletter's website provides a connection to SKM's blog site, archives of past issues and skim guides, which are 500 to 800 word articles that present, ongoing news topics such as "Greek Debt Crisis" and "Iran Nuclear Talks" Let's explain.
The scheme has been a success story almost from the beginning, gaining more than 100,000 customers its first year in operation and expanding its mailing list to over 5 million barely 18 months later. The newsletter and its two chief editors have impressed venture capital firms with sufficient revenue potential to achieve two rounds of funding of over $ 70 million. The company used the money to set up an office, as two producers start a business working from their apartments, and hire additional writers, editors, and support staff. Part of the received venture capital has been devoted to marketing.
How does the scheme make money
A company that publishes an email newsletter or a blog site earns its products primarily through advertising revenue. It is a proven business model for newsletters, both published and email.
A premium ad space in a newsletter typically costs the publisher between $ 20 to $ 100 per thousand impressions, or CPM. Assuming SKMM is matched by 1 million per day, about 50% of The Scheme Email newsletters average above 10-15% with an email open rate, which probably sends about $ 15, 000 to 75, 000 per newsletter.
Newsletter publishers can let advertisers negotiate directly with individual advertisers or use an advertising network to supply appropriate advertisements for their readers. Advertising network revenue is significantly lower than direct advertising deals; However, publishers often use the days when there is no mechanism to run directly conversational ads.
Dedicated email also brings a higher CPM rate. Dedicated e-mail is basically an email advertisement for a product or company sent to subscribers of a newsletter, usually consisting of a one-page note containing a special offer. And the product has an approval from the newspaper publisher or the company being advertised while dedicated emails receive high advertising revenue, this can only be done on a limited basis, possibly once or twice a month. Otherwise, the newsletter publisher risks alienating its audience by constantly bombarding it with advertisements.
Advertising rates that newsletter publishers can command are influenced by a number of numbers, including the number of subscribers, the demographic of readership and the open rate or percentage of subscribers who actually open and view email. The scheme has managed an open rate nearly four times the average from competing newsletters.
The publisher of The Scheme has found some creative ways to unify advertising efforts in the traditional search-in-newsletter format. This enabled him to develop significant deals with clients such as the NBA and ABC Television Network. To promote the NBA Finals and the All-Star Game, he arranged for NBA players to write skims.
Potential future revenue sources
Newsletter publishers or blog sites can ultimately generate additional revenue by building a brand associated with the newsletter and marketing their products such as coffee mugs or T-shirts. The editors of Eskim have indicated that the "scheme" represents a "lifestyle", so that they may consider establishing a brand and offering skim products for sale.