Angela Chan interviews the CEO of The Expat Group to discover why they give all expats a free subscription to their monthly magazine The Expat, and how they have managed to keep doing it for 18 years.

Angela: The Expat Group launched The Expat magazine in 1996. The magazine has changed a lot since then, hasn’t it?

Andy: Well, it has, and it hasn’t. When we started the publication, it was a thin, black and white newsletter. Thanks to our readers and advertisers, The Expat has developed into a fully-fledged, full-colour magazine. However, we’ve always been focused on publishing stories about Malaysia, and we’ve been adamant to always offer the magazine as a completely free subscription for expats living in Malaysia.

See Also: Behind the Success of The Expat Magazine

Angela: Does that really mean that expats in Malaysia don’t have to pay anything for the magazine: not a magazine fee and not a subscription fee?

Andy: That’s correct. There is absolutely no charge for an expat in Malaysia to have the magazine delivered to his or her home each month.

Angela: Can you explain the logic of this?

Andy: I wanted to be sure to reach as many expats as possible so we could tell them about the many attractions of Malaysia and ensure they had an enjoyable stay. Equally important, I hoped we could help ensure they left the country better informed than when they arrived, and essentially become mini ambassadors for Malaysia.

Angela: I thought the other magazines targeting expats were also free?

Andy: Yes, some are free, but they do not offer free personal subscriptions for as long as the expats live in Malaysia. You either have to find their magazine at one of the places they distribute it or they may offer a limited time free subscription.

Angela: Isn’t it very expensive to do this?

Andy: Yes, it is expensive, and sadly the cost keeps rising. We estimate it costs close to RM300, 000 a year for the postage and packing costs and, of course, for keeping the database up to date. As many expats do not tell us when they leave, we ask our subscribers to confirm they are still in the country every year so the database stays current.

Angela: So you cover the costs from adverting revenue. Wouldn’t it make more sense to place your magazine in lots of locations rather than focus on such targeted and expensive distribution model?

Andy: It would certainly be cheaper but then we would not reach as many expats, and we would not have as strong a relationship with our readers. For example, one benefit of our subscription model is that we can conduct and publish insightful surveys about our readers’ interests. Our surveys show that over half of our subscribers do not read competitor magazines, so advertisers soon realize it makes more sense to advertise with us, which helps offset the much higher distribution costs.

Angela: Are there other benefits from giving a free subscription?

Andy: Well, it means we can ask for demographic details as the “price” of the free subscription, and so we have good information about the expats who receive the magazine. For example, we know that 104 different nationalities currently subscribe to our magazine and 79% are married. Most important, this free subscription allows us to ask directly for feedback and views in The Expat magazine so we publish the kind of stories they want to read. We can also better understand their lifestyle and thoughts about Malaysia. Many people claim to do surveys on expats but usually they reach a tiny number; whereas we can usually get a good response from expats representing over 30 different countries. We are also able to send our subscribers weekly e-newsletters to keep them current on all things Malaysian.

Angela: Do Malaysians feel discriminated against when they have to pay and expats get it free?

Andy: Unfortunately, it would be prohibitively expensive to offer everyone a free subscription. Our goal is to help keep expats more informed about Malaysia so that is why we focus on them. Advertisers are only paying for ads in this magazine to reach expats – not Malaysians. So, we really have no resources to cover the cost of mailing free copies to Malaysians. If Malaysians really would like a personal subscription, we only charge RM5 per copy, so it’s not that expensive.

IF YOU ARE AN EXPAT LIVING IN MALAYSIA AND WOULD LIKE A FREE COPY (OR ARE A MALAYSIAN WILLING TO PAY THE SMALL ANNUAL FEE), THEN CLICK HERE TO SUBSCRIBE.

If you have any additional questions about The Expat magazine or the other media products associated with The Expat Group, please feel free to contact them at [email protected].