For any business, the desired outcome is to generate income. The first step in doing so is to identify suitable revenue models for your business.
When it comes to small academic publishers, the scope for generating income is less than it is for more established businesses or institutions. However, there are certain revenue sources you can utilize to construct an efficient model for your small academic publisher.
What is a revenue model?
A revenue model is used to identify how your business can generate income by categorizing and evaluating different revenue streams. The goal of the revenue model is to help your business maximize growth in the context of the market that it operates in.
Effective revenue models serve to ensure realistic business strategies are orientated toward the long-term profitability of your business. Without these strategies, a business would have no way of identifying current financial limitations or future earnings.
To build an effective revenue model for your business, you’ll first need to identify appropriate sources of revenue. But what are some of the best revenue sources for small academic publishers?
Article processing charges (APCs)
APCs are one-time fees required to be paid to cover the costs of publishing an article as open access. Traditionally, these fees were paid by readers to access the research. Now, with the open access infrastructure in place, they are usually fronted by the author’s institution or funding body and paid directly to the publisher.
APCs are very common in open access publishing and the primary source of income for most journals. APCs help cover the costs associated with journal article production, such as editorial, peer review, typesetting and proofreading, and dissemination. In this way, APCs are like the lifeblood of the small academic publisher, ensuring the body of the business with its many members goes on functioning smoothly.
Understanding the market and pricing in the context of revenue models
The problem is that if you set your APCs too high, you run the risk of pricing yourself out of the market. In fact, competitive pricing is a crucial issue that needs to be well understood. That’s why it’s necessary for small academic publishers and their journals to set the costs of APCs through competitive pricing. Research the APC costs of other competitors and determine a competitive price.
It’s worth nothing that most journals of small academic publishers don’t generate a lot of income, especially in the beginning. So long as you’re not operating at a loss, ensure the reputation and academic merit of the journal is the priority.
Subsidies and institutional support as part of your revenue model
The costs of APCs are generally too high to be fronted by authors. That’s why small academic publishers should look to other sources to help cover the costs involved in publishing an author’s work if they are an open access publisher. There are a few useful avenues for small academic publishers.
Agreements with institutions
Open access infrastructure is in place to help authors publish their work as open access. Under the open access model, funds are often reserved for this specific purpose. When you plan out your revenue models, remember to make sure that you keep institutions in mind.
Institutions are a reliable source of such funding, often having central funds to support their researchers when it comes to publication costs. Small academic publishers are in a good position to establish agreements and negotiate with institutions when it comes to APCs. For example, in addition to being able to support authors on a case-by-case basis, you may also be able to come to an agreement with an institution to offer discounts or bulk pricing for APCs.
Research funding bodies
Research funding bodies also have reserves of funding available for authors. They often offer to cover the cost of APCs as part of research grants.
Funding support from institutions is a basic form of funding utilized to support the researchers and research infrastructure of an institution. Funds from research funding bodies, however, are often awarded based on research priority or excellence.
Discounts and waivers
In addition to finding funding from external sources, small academic publishers can also offer discounts and waivers to authors.
This is particularly useful for journals in fields with low levels of funding, or authors from low- and middle-income countries. This strategic way of promoting open access and addressing financial barriers can help increase submissions and audience outreach.
Memberships
Another type of revenue model that can be considered are memberships. Memberships are another important source for gaining revenue and achieving long-term sustainability for small academic publishers.
If you’re wishing to attract people with a membership proposition, then the first and most important step is to research your audience and their information needs. This may include defining their interests and profile, job titles and affiliations, etc. Running a survey can help you identify your audience personas in detail.
It’s good to remember that memberships offer a personalized alternative to typical subscription packages. You can send unique member content through such channels, leading to a feeling of exclusivity for members. It’s important that these memberships aren’t just about the content, however; they need to create a sense of community and engagement. Look into putting on exclusive events or webinars for members, for example.
Memberships are a versatile way to generate revenue. And they’re hugely important for building the brand visibility of your academic publisher. The more unique and recognizable your membership proposition, the more chance you have of increasing your audience outreach and securing long-term financial sustainability.
A multifaceted approach to sustainability
Ultimately, building a sustainable publishing model is about blending revenue strategies and partnerships in a way that supports the long-term goals of your academic publisher. To be successful in open access publishing, you need to be adaptable and deeply connected to the communities you serve.
At a time when commercial consolidation is threatening diversity in scholarly publishing, small academic journals play an essential role in maintaining intellectual distinction and fostering innovation. By utilizing a range of strategies—from APCs and subsidies to memberships and community engagement—small academic publishers can chart a path forward.