Making a Buck Online - Without Ads

A New York Times article hosted by C|Net looks at the unique position of the Consumer Reports website; they're one of the few online resources that gets by completely on subscription fees. They have no ads. One key seems to be valuing their online readers as much as their print readers - and charging both the same amount. "The New York Times and the Los Angeles Times tried charging for some online content, then abandoned the practice. For a decade, however, Consumer Reports has charged Internet readers the same price as print subscribers, currently $26 a year (or $5.99 for a month's online access or $45 a year to get the magazine both in print and on the Web). While the rest of the industry sees print readers as more valuable--because advertisers do--Consumer Reports actually makes more money from readers on its Web site, because it avoids printing, trucking, and mailing costs."

Comments

Reputation counts too

[Titoxd]

And Consumer Reports also has a reputation of not screwing people on both ends, so its clients are more than willing to pay for the content, be it in print or online. It just shows you the power that good ethics can have.

Re:Reputation counts too

[Titoxd]

Aye. Moreover, Consumer Reports is in an enviable position, as their comparisons allow people to save money, be it by getting a cheaper product, or by not spending on an overpriced piece of junk. As a result of these long-term savings, the consumer sees that CR provides value to him or her, and any company that has a product that is perceived as valuable has a captive market. I know I would think, "If this magazine can save me money any time, it might be worth the purchase price."

Re:Reputation counts too

[Fozzyuw]

The information they provide is truthful and valuable. People will pay for "data."

Exactly. I signed up for CR online when I was looking to buy a new cars in 2006 (and still had it when I bought another in 2007). To find the right car for me I spent the $30 to help read up on the cars I was interested in. It helped. I was able to read up on the past history of the cars, like the Toyota Corolla, and find it had a long history of excellent reviews. I was also able to knock a few cars off my list, like the Chevy Aveo, which had a recall in 2006/7 (I forget what year). Despite both cars having similar gas milage, the Aveo was a much smaller car (something my fiancee, who's French, felt more comfortable with given her European cars) with not as good reviews. In America, given the average size of a car is much larger, I felt safer with her having a slightly bigger car and she's adjusted to the size difference, given that roads here are also much larger.

That small amount of money I wrote off as part of the cost of a proper new-car purchase. And what's $45 when you're spending $15,000? However, I have no reason to continue until there's some other big name purchase I want to do so I canceled. I'll pick up their magazine at the gym when I see one laying around. I also found it more difficult than expected to cancel my account with CR.

Cheers,
Fozzy