Subject: Re: User supplied content: Innovative business model From: outings@netcom.com (Steve Outing) Date: Fri, 24 May 1996 16:51:46 -0700

On 5/24/96, xerxes wrote:
>A new list-publishing business model mini-proposal....anyone intrigued?
>
I am, as you'd expect. I've gotten a couple sponsors to this list, but it's 
not quite enough to pay the freight. I'd love to figure out a way for 
participants in the list to help pay for its operation -- and more importantly, 
for improvements to it. 

Basic problem is that administering online-news for me is one small part of my 
overall consulting/writing practice. I can't afford to spend lots of time on it, 
yet that's what it takes to snag advertisers (and get them to renew!). Several 
list members have graciously passed on tips and talked up the list to potential 
sponsors -- and some have gotten close to happening. But it takes a lot of 
time and a lot of follow-up calls to get a sponsor to sign up. (gotta keep 
bugging them until they finally say yes seems to be what works ... but then I'm no sales pro ;) 
So, like most list owners I don't have the time to do what it takes to 
successfully get enough advertisers to make this work. 

>Now Steve Outing, and many other popular-list owners, have noted the
>problems in getting sponsorship & / or advertising support for their lists.
>I know that some commercial interests to whom I have recommended
>online-news sponsorship, have been reluctant to place their firm's goodwill
>into the hands of hypercynical professional writers.  Other potential
>sponsors want proof that the sponsorship will generate
>impressions/responses before they stake their dollars. 

An online-news sponsorship gives them a pretty select group of decision-makers 
in the online/news/Internet publishing industry, yet sheer numbers are modest 
(for this list's Web site, in the hundreds of impressions a week, plus a 
quantifiable number of email impressions) compared to other ad opportunities 
out there on the Net. This is a tough sell, even though they get exposure to 
a highly targeted group of professionals.

>But, are there
>other means of supporting a professional list, i.e. another business model
>than advertising to generate revenue to support the list?  Subscriptions
>come to mind, of course; but what proportion of list users would pay to get
>online-news, or any professional list?  Some would, certainly; but how
>many?
>
>Aren't there other alternatives?  What about an ala carte model, based on
>microcharges?  This model could reimburse both the list owner, and active
>reader-contributors as well.  Of course contributors would need to pay the
>list-owner to post their messages (take financial risk) in the hope that
>their individual readership revenue would reimburse the cost of their
>posting investment, plus profit.  Lurkers who never post would become pure
>consumers, paying perhaps a dime for 40 selected messages, selected by
>thread or by author, or both.   Is anyone interested in exploring the
>mechanics of this possible business model?  Reply by email if you wish.

On the one hand:
I wouldn't want to put up monetary barriers to participation. Even if it cost 
only 10 cents to read the day's posts, I think some would be put off by that 
(list owner seen as "profiteering"; 10 cents X 1,500 subscribers = $150 a day 
to the list host). 

On the other hand:
How many people would drop out if there suddenly was a 10 cent-per-day charge 
(or 5 cents, to make it riduculously cheap, so no one would presumably drop 
out because they couldn't afford it)? I'd hate to do anything that would 
lessen participation.

I'm somewhat inclined to consider a "shareware" 
like approach, where list members are reminded on a regular basis that money is 
required to keep the list going; if you find it valuable, then please 
(voluntarily) contribute (25 cents) (50 cents) ($1). ... (Sort of like an 
ongoing PBS pledge drive!) If you as a list member object to the concept of 
paying, then don't. (You'll be like one of those guilty people who watch 
FrontLine and Nova without paying a dime. ;)
Perhaps you're given the option of signing up for the 10 cents a day plan (just 
like my public radio stations takes $5 a month from my VISA account); pay a 
lump sum; or nothing.

As for the mechanism, perhaps Bill Densmore's Clickshare could be applied to 
lists. (Send an email message charging your account to 
"pledge-online-news@marketplace.com"). 

One of the digital cash companies was working on something like what Scott 
proposes above a few months back; one of its consultants approached me about 
it, yet I haven't heard whether the project/concept still lives. Idea is 
something along the lines of participants have possibility of earning money 
for posting stuff that others find useful -- and their account docked if 
folks think they're posting trash. I remain skeptical.

As to why I need more money to support online-news, we're still struggling 
along with Majordomo, which I find to be inadequate. I have my eye on a new 
list manager called Lyris (www.lyris.com), due out in a month. It should handle 
some of the spam problems better and has many features that would make the list 
run more smoothly and offer more services to list members. But decent list 
software is pricey. (ListServ, a good product, is on the order of $2,000 a 
year just for the software; then add on server costs, share of T-1, etc., plus 
operation of the Web site ... Now I *am* sounding like a PBS pledge announcer!)

I'd be interested in other ideas of how to implement this, or to hear other 
ideas. (Hey, you can even send in a check. 8-)

- --------------------------------------------------------------------------
Steve Outing                                   Planetary News LLC
outings@netcom.com                             Boulder, Colorado, USA
owner-online-newspapers@marketplace.com        voice: 303-543-7810
owner-online-news@marketplace.com              fax: 303-543-1059
          Consulting services for the newspaper new media industry
                      Read my Stop The Presses! column:
- ------- http://www.mediainfo.com/ephome/news/newshtm/stop/stop.htm -------



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