Where do Newspapers make their money?

In the newspaper business there is potential to make loads of money. But how exactly does a Newspaper company make its dough?  For a paper to be profitable, the company must create an interesting paper that others are willing to read and they must know where the paper can make a profit. So, where exactly does a papers profit lie?

 For a newspaper company to gain profit in any way, they must first make a paper that people are willing to purchase and read. Though I am stating the obvious, it is a very important point. You want to give the people news that their interested about. People also want to know that their source for news is credible; so don’t go publishing unreliable sensational news for a profit, because it won’t help sales in the end. If you don’t have a good, credible, and interesting paper, you won’t have many readers, and without readers you can’t get into where the real profit in the newspaper business lies, advertising.

Advertising is where the big profit lies in the newspaper business. To attract advertisers, the company needs to show the advertisers that they have a good following of people who are willing to purchase and subscribe to the paper. The newspaper company must also have descent costs for advertising; so it would be best for the newspaper company to compare the prices for advertising in other newspapers. Once you have people who are willing to advertise you can charge different prices for different types of advertising and for different spots on the paper; when it comes to advertising in papers it’s all about location.

In the newspaper business, a company can make some serious dough. For newspaper companies to make a good profit, they need to have a good, interesting, and credible paper that people are willing to read. With readers comes willing advertisers; which is where the profit lies, in advertising. These are the ways in which newspapers make their money.

Resources:

1. Sutton, J. (2008, July 28). Newspaper-Info:Making Money. Retrieved September 5, 2012, from:  http://www.newspaper-info.com/more/news3.htm

2. Waltenburg, D. ehow: How does a newspaper make money?. Retrieved September 5, 2012, from:  http://www.ehow.com/how-does_4690012_newspaper-money.html