Rules & ResourcesNewspaper Support Center
Third-Party Sales Guidelines and Rules
(U.S. and Canadian Newspaper Publications)
PRICING
Paid Circulation Defined
For third-party sales circulation to be claimed as paid circulation on ABC reports, a qualifying price must be paid by the third-party purchaser.
- For U.S. newspapers, paid circulation is defined as copies or subscriptions paid for at 25 percent or more of basic prices, net of all considerations.
- For Canadian newspapers, paid circulation is defined as copies or subscriptions paid for at one cent or more, net of all considerations.
Note to Canadian Members:
Since paid circulation in Canada is defined as copies paid for at one cent or more, any subsequent references to “25 percent of basic prices” in this pricing section are not relevant to your publication.
Basic Price Used as Foundation
All ABC-newspaper members must disclose their basic prices in every Publisher’s Statement. Basic prices may be established as follows:
- Delivery method: mail, home-delivery, motor route and single-copy sale
- Term: 1 wk, 4 wk, 13 wks, 26 wks, etc.
- Frequency: Mon-Fri, Mon-Sun, Sun only, etc.
- ABC Zone: City Zone (CZ), Retail Trading Zone (RTZ) and All Other (AO) or Newspaper Designated Market (NDM)/ Outside NDM
Single copy or home delivery?
As several basic prices exist for each newspaper, a decision must be made as to which basic rate will be
used to determine a qualifying rate for the third-party sales distribution.
Single-copy basic prices must be used when delivery will occur on only a single day.
Examples:
- Copies to be delivered to residences on Sunday, Aug. 5 only.
- Copies to be distributed at an auto show event on Dec. 13 only.
Home-delivery basic prices must be used when the third-party sales distribution is intended for more than a single date.
Examples:
- Sarah Jones, realtor, purchases an eight-week Sunday-only subscription for new homeowners.
- Tony’s Restaurant purchases newspaper to be distributed in its establishment every day,
Monday-Friday.
- Jim’s Auto Dealership purchases newspapers to be delivered to residents on December 22-24.
If there is no basic price for the term offered, then a pro rata of the next shortest term must be used. (See Rule C 1.1 Paid Circulation Defined, section (b)(3)).
Example 1:
Sarah Jones, realtor, purchasers an eight-week Sunday-only subscription for new homeowners. In this case, an eight-week Sunday-only basic price should be used as the foundation for determining a qualifying third-party sales rate. However, most newspapers do not establish an eight-week term for basic prices, so the four-week or one-week prices would be used as the foundation to calculate a qualifying third-party sales rate.
Example 2:
Tony’s Restaurant purchases newspapers to be distributed in its establishment every day, Monday-Friday.
In this case, a one-week Mon-Fri basic price should be used. If a Mon-Fri. basic price does not exist, then a Mon-Sat. price should be used as the foundation to calculate a qualifying third-party sales rate.
Example 3:
Jim’s Auto Dealership purchases newspapers to be delivered to residents on Dec. 22-24.
Dec. 22-24 represents Friday, Saturday and Sunday delivery.
In this scenario, a one-week Fri-Sun home-delivery basic price should be used. If a Fri-Sun frequency does not exist, then use the frequency that most closely represents a Fri-Sun frequency (Thursday-Sunday, Monday-Sunday, etc.).
Qualifying Rate Charged for Third-Party Sales Newspapers
Single-Copy
To calculate a qualifying rate using the single-copy basic price, multiply the single-copy basic prices by
25 percent.
Example:
| Basic Prices | Minimum qualifying third-party rates |
| Daily SC basic price: 50˘ | Daily: 12.5˘ per copy (25% of 50˘) |
| Sunday SC basic price: $1.50 | Sunday: 37.5˘ per copy (25% of $1.50) |
Home-Delivery
If the frequency of delivery for the third-party sale program exactly matches a current established
frequency, then the calculation is similar to single-copy:
Example 1:
Sarah Jones, realtor, is buying an eight-week, Sunday-only subscription for new homeowners.
The basic prices for Sunday-only subscriptions are: 1 wk $2.00; 4 wks $8.00; 13 wks $25.00.
Since the term of the subscription for the third-party sale is eight weeks, then calculate a qualifying third-party sales rate as follows:
- Use the SHORTER term of four weeks at $8.00.
- $8.00 x 2 = $16.00 (‘basic’ price for 8 weeks)
- 25% of $16.00 = $4.00
- $4.00 is the minimum rate you need to charge, per subscription, for this third-party sale.
Tony’s restaurant purchases newspapers to be distributed in its establishment every day, Monday-Friday. The basic prices for Mon-Fri subscriptions are: 1 wk $3.00; 4 wks $10.00; 13 weeks $30.00.
Since the newspapers will be delivered as an ongoing program every week, then calculate a qualifying third-party rate as follows:
- One-week basic price is $3.00.
- $3.00 divided by 5 days = 60˘ (basic price per day)
- 25% of 60˘ = 15˘
- 15˘ is the minimum rate you need to charge, per copy, for this third-party sale.
(You could also charge weekly for an amount of 75˘ per week that is 25% of $3.00)
Example 3:
Jim’s Auto Dealership purchases newspapers to be delivered to residents on Dec. 22-24.
Dec. 22-24 represents Fri, Sat & Sun delivery. The newspaper does not have a Fri-Sun frequency.
- The closest resemblance is the Monday – Sunday (7-day) frequency.
- The Monday-Sunday (7-day) weekly basic price is $4.00 per week.
- Since Sunday is typically a higher value in the marketplace, then you must ‘weight’ the Sunday when calculating a qualifying rate.
- Here’s how to make this calculation using the single-copy basic prices to weight the Sunday:
| Weight the Sunday: | |
| Daily SC basic price is 50˘ x 6 days = | $3.00 = 66.7% (of $4.50 total) |
| Sunday SC basic price is $1.50 x 1 day = | $1.50 = 33.3% (of $4.50 total) |
| Total = | $4.50 |
| Apply the weight to the 7-day home-delivery basic price: | |
| Daily | $4.00 x 66.7% = $2.67 / 6 days = 44.5˘ (basic price per daily copy) |
| Sunday | $4.00 x 33.3% = $1.33 (basic rate per Sunday copy) |
| Minimum qualifying third-party sales rates: | |
| Daily | 25% of 44.5˘ = 11.125˘ (or 12˘*) per daily copy |
| Sunday | 25% of $1.33 = 33.25˘ (or 34˘*) per Sunday copy |
| *Always round up to the nearest decimal | |