Content Validates Business Opportunities

A case study of how Craig Fuller built a $50M business by acquiring niche hobby magazines and using content engagement to inform commerce opportunities.

Core Business Model

• Acquires niche hobby magazines focused on expensive hobbies (flying, boating, trains)
• Uses "negative CAC" - customers pay for magazine subscriptions rather than paying to acquire customers
• Leverages content engagement metrics to validate business opportunities
• Creates commerce products to sell to engaged audience
• Media business pays for audience creation, bootstraps other revenue streams

Acquisition Strategy

• Buys magazines for 3-5x EBITDA
• Targets old family-owned publishing companies with underutilized titles
• Often acquires multiple titles in bulk (10+ at a time)
• Has acquired 44 different magazines to date
• Projects $50M revenue with 18% EBITDA in current year

Content to Commerce Example: Flying Magazine

• Bought Flying Magazine and 300-acre plot in Tennessee
• Used magazine to market real estate development
• Created flying club/community around airstrip
• Sells luxury homes around private airstrip
• Additional revenue from jet brokerage services
• Magazine content informs commercial decisions

Business Evolution

• Started as side project to main business (FreightWaves)
• Grew to 257 employees
• Projects potential $1B revenue with 30% margins by 2030
• Uses print magazines strategically:
  • Provides perception of longevity/legitimacy
  • Separate P&L for print vs digital
  • Print becomes a product rather than core business
  • Strategic distribution in private planes/venues

Key Success Factors

• Finding undervalued media assets
• Understanding how to unlock additional value
• Building multiple revenue streams from single audience
• Using content engagement to validate business opportunities
• Maintaining print for brand legitimacy while focusing on digital/commerce