The following it is acknowledged that our different denominations have different regulations regarding accounting for income and expenditure. This then simply adds to the collective experience. An A5 page newsletter of up to 60 pages and an A5 supplement - a diary, directory, adverts, events in the 11 churches in the town etc - is produced each month. Each print run of 125 of newsletter/supplement costs around £2 a copy. A decision by the members of church was unanimous that the newsletter be free - but you get nothing for free. Why free? Because of the effort needed to collect subscriptions, advertising fees etc wasn't there. There are those who make donations - some quite generous - but the costs are primarily covered by 'if you think the newsletter is worth having then put something extra in the (Sunday) offertory plate' or make a donation. Are costs covered? Yes, they are.
My wife and I have been involved in the production of parish magazines for nearly 50 years. During most of this time we have charged for the magazines on the basis that everybody gets so much junk through their letter box, most of which goes straight in the bin, so if the magazine is of reasonable quality and is bought, then people are hopefully more likely to read it.
Well done you two. There is obviously no 'model'. It's what works for each local situation.
One of the things on which our PCC is united is that the newsletter is a) delivered to every house in all three small parishes of our united (country) benefice and b) it is absolutely free of charge. We regard it as our most important outreach tool and, although we know some people throw it into their recycling as soon as it comes through their letterbox, nobody can ever accuse our church of not telling people what is going on!