Re: Round 3 with Dave

["David VillaSunscape" <davidlass@villasunscape.com>]

----- Original Message -----
From: "Erik Olson" <erik@thekrib.com>
To: <aga-sc@thekrib.com>
Sent: Thursday, September 06, 2001 8:40 PM
Subject: Round 3 with Dave


Please excuse my not responding to this issue sooner, but things have been
really hectic.
I think that the real main issue is whether we want PAM to be the "official
publication of the AGA" or not. For what it's worth, IMHO that is precisely
what we are talking about. The real question is how Dave G handles this vis
a vis PAM being "his magazine". The sooner we address this issue with Dave G
the better. I think that we will end up agreeing that it may be something
like "Planted Aquarium Magazine, and the Official Publication of the AGA" or
the like.
Once we decide that we are joined at the hip, I think the numbers should
work out that AGA gets $5 per subscription. If the new total subsacription
is 1,000 that should be enough for us to run AGA. We can visit the issues of
who handles back issue sales at a later point.
To get from here to there should be relatively simple. AGA/PAM announce the
new venture, and AGA pays PAM $3.75 per issue per subscriber that was an AGA
subscriber but not a PAM subscriber. As AGA memberships run out we charge
$20 per year for renewals, and pay Dave G $15 of that.
>From Dave G's perspective, while I understand him wanting AGA to pay for our
pages in PAM, I think we should be adamant about not doing so. Erik's
analysis is correct, and I don't think AGA needs to do anything more than
make him and PAM break even -- he should worry about making it profitable.
The reality of the situation is that is that if AGA no longfer has the TAG
as an expense, we could perhaps afford to work out some deal with Dave G
that incremental subscribers/AGA members above 1,000 we give him $10 instead
of $5 per. All of our costs are really pretty much fixed (we've gotten rid
of most of our variable costs by getting rid of TAG), and we can probably
get by with the $5,000 net membership revenue.
I would much rather give him the incentive by giving him a higher percentage
split on memberships > 1,000 than give him any money for the pages that AGA
gets for our business in PAM.
So -- for what it's worth, those are my thoughts.
David

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