Paid Customer Acquisition

A business model where customers pay for magazine subscriptions, which then allows the company to sell them higher-value products and services. Based on Craig Fuller's success with Flying Magazine and FireCrown.

Core Business Model

• Acquires old magazine titles focused on expensive hobbies

  • Flying/aviation magazines
  • Boating/yachting publications
  • Model trains and hobby magazines
  • Astronomy publications

• Acquisition Strategy

  • Buys magazines for 3-5x EBITDA
  • Purchases in bulk from old family companies
  • Targets publications that are "just sitting there"
  • Focuses on titles around expensive hobbies

Revenue Model ("Negative CAC")

• Magazines serve as customer acquisition

  • Subscribers pay for the magazine subscription
  • This creates "negative" customer acquisition cost
  • Uses media business to bootstrap other revenue streams

• Monetization Strategy

  • Media business pays for audience creation
  • Uses audience to sell high-value commerce products
  • Example: Flying Magazine
    • Sells multi-million dollar homes around airstrip
    • Brokers private jet sales ($7-10M)
    • Creates flying clubs and communities

Business Performance

• Current State (FireCrown)

  • 44 different magazine brands
  • $50M annual revenue
  • 18% EBITDA margins
  • 257 employees
  • Q4 2024: $15M revenue

• Future Projections

  • 2030 Target: $1B revenue
  • 30% profit margins

Key Success Factors

• Print maintains legitimacy

  • Creates perception of longevity
  • Feels more legitimate than digital-only
  • Helps establish brand authority

• Focus on specific verticals

  • Targets expensive hobbies
  • Creates multiple revenue streams
  • Builds communities around interests