Definition of paid and publisher’s suggested price

Magazine media paid promotional programs

Paid Circulation Defined

Rule F 1.1/F 101.1 Paid Circulation Defined is the primary rule for defining what price must be paid by consumers for the circulation purchased to qualify as paid on AAM documents. This rule stipulates the consumer must pay at least one cent, net of all considerations, for either a subscription or single copy to qualify and be classified as paid circulation.

What does “net of all considerations” mean? A consideration is anything that is offered to the purchaser in addition to the magazine. This includes, but is not limited to, a gift given to a consumer for purchasing the magazine as well as free or discounted products, advertising, marketing, and distribution services to a sponsor of paid copies. Therefore, the amount paid by the purchaser of the magazine must be at least one cent, after you subtract the value of all ‘inducements’ from the purchase price.

While Rule F 1.1/F 101.1 Paid Circulation Defined is the primary rule, it is not the only rule governing the qualification of paid circulation. Additional rules govern specific promotional initiatives used to sell a magazine such as the offering of a gift with the purchase, the inclusion of a magazine as part of another purchase, the sale of multiple publications in one sale, the use of the word “trial,” “free” and other synonymous language, and copies purchased by a third party (sponsored sales).

It can be frustrating to create a promotional package you feel is a sure winner only to learn later that it doesn’t meet AAM regulations. It is better to find out if a circulation effort complies with AAM rules and guidelines prior to the start of the program to avoid the disqualification of circulation during the annual audit.

Publisher’s Suggested Prices

A publisher’s suggested price, as defined by Rule F 1.2/F 101.2 Prices, is the publisher’s established price at which subscriptions and single copies of the magazine can be purchased by anyone at anytime. From this publisher’s suggested price, publications may offer a consumer a price that is reduced or higher than these suggested prices.