Local Print Still Profitable

A discussion about N2 Publishing (now Stroll), a profitable print media company that succeeds in an industry many consider dying, by focusing on hyper-local neighborhood magazines and utilizing a franchise model.

Key Points:

• Business Model Success:

  • $130 million in annual revenue
  • Profitable every year for 18 years
  • 18,000+ advertisers
  • Expected to double revenue every 4 years (roughly 14% annual growth)

• Operating Structure:

  • Franchise model where local publishers pay $5-10k to become official publisher
  • 250 employees, mostly ad salespeople
  • National team provides editorial oversight, printing, and operational resources
  • Magazines distributed free in reader's mail

• Content Strategy:

  • Focus on hyper-local content for upscale neighborhoods
  • Simple content approach: "People don't care about the writing, they literally just want to see people they know"
  • Stories about local events, graduations, new businesses, and community happenings
  • Non-partisan, community-focused news

• Unique Aspects:

  • No individual websites for magazines - purely print-based
  • Succeeding in a space others thought impossible
  • Demonstrates viability of traditional media with right business model
  • Shows value of focusing on specific, wealthy communities

• Revenue Model:

  • Primary income from local advertisers (dentists, realtors, etc.)
  • Challenging sales process - requires constant cold calling
  • $500 ad sales to local businesses
  • High volume of small transactions rather than big corporate deals

• Key Success Factors:

  • Focused on wealthy neighborhoods
  • Strong franchise model
  • Consistent local presence
  • Meeting specific community needs
  • Bootstrap approach to growth