The Motley Fool Media Network Case Study

ARTICLE SNIPPET - The Motley Fool uses its powerful brand to launch seven successful print newsletters for personal investors that will generate $22M in 2005 revenues. Traditional advertising-driven Internet business model takes a back seat.

After the 2001 dot-com stock market crash occurred, The Motley Fool, or Fool.com, was forced to change its online business model. The years of generating more than $20 million in advertising revenue were long gone, much like the employees who suffered layoffs. They abandoned the advertising model for the print subscription model and today are succeeding handsomely.

The Fool's first print investment newsletter The Motley Fool Stock Advisor (launched as a partnership with Phillips Investment Resources) proved to be very popular and profitable. Its success has now spawned the launch of six more print titles, making The Motley Fool a major player in the paid subscription content business.

The Motley Fool started as an America Online discussion forum in 1994. In 1996, the 100 percent advertising-supported Fool.com was launched. Today, their database of over three million free registered users, nets them 150,000 active, paid subscribers to its seven investment advisory products. This is roughly a five percent conversion rate, generating roughly $22.5 million in gross revenue. They publish over 700 free articles a month on the website and through email, attempting to convert free relationships into paid relationships.

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