Where Reader's Digest -- and many other companies -- REALLY make their money....

Hi John,

> I never thought of Readers Digest as a front
> end product before. I suppose it's the
> equivalent of an online opt-in strategy
> where there is an acquisition cost for each
> customer.

You could think of it as a kind of opt-in strategy....

Once you take the bait, they've got you on their hook! :)

Though that's not necessarily a bad thing.... If you're interested in their other stuff, it can be good. :)

It's also a way of building trust.... When you receive the first thing you ordered and see it's good quality, then you'll feel more comfortable ordering something else too....

If you go on a first date with someone, and you feel good about it, you'll be keen to go out on another.... And it's the same sort of thing. :)

> In fact you may find that Readers Digest
> loose money on selling the Readers Digest
> itself and make money on the back end
> products.

I think they probably do make money on the magazine, it's just that that's not where they make most of their money from....

It's easier to get financial information about Reader's Digest, because it's a publically listed company. However, there are plenty of other businesses which use the same technique, many of them online.... It's quite common. :)

Dien Rice