Let’s Start at the Very Beginning A very good place to start
There Is No New Revenue Stream Robert Niles: bit.ly/biz-check “For all those hopeful newspaper managers, searching for a new revenue model that will save good, old-fashioned newsroom journalism, I have a message for you: Youre wasting your time. Please, stop. There is no new revenue model for journalism.”
What Are They?●Advertising●Direct Purchase●Donations
The Positive Side Constraints are a Good Thing http://bit.ly/cool-constraint
We can Still Do a Lot!This does not mean we can’t improve, experiment, update,adapt old revenue models.It just means that some things change and some things.... staythe same.
Some things HAVE changed.....●But it’s not the revenue streams - it’s the productionmode, production cost.●Qualitative changes abound: Relationship withaudience, engagement, etc. These can be positive on therevenue stream.... but revenue streams are the same.
Lets talk about each of these●Advertising●Direct Purchase●Donations
Donations.....NPR can get 1/12 listeners.Perspective: KQED has roughly750k listeners and is the secondlargest NPR station in the country.Average donation $125.Total yearly take: 7.8 million
Dont forget the content.....All this assumes your content is good.Otherwise you’re in trouble
*Overall stats Spot.Us●All data based on a database replicafrom 1:10 AM December 16th 2011●Breakdown: ● Number of members: 12,588 ● Number of donors: 6,647 ➔ 52.8 % of the community donates
*Community *●Number of donations: 13,020●Average number of donations: ● Per Spot.us community: 1.05 ● Per donor: 1.93●Average donation: $38.17●Average time between donations: ~59.9 days
*Doing some math *●If Spot.Us Could Get 200,000 people tojoin....●Keep same level and occurrence ofdonations ($76 from 1/2 community)That’s 7.6 million.●
●I’M RICH!!!! and I beat KQED! ●but wait.......
*Reverse NumbersGame●Percent of Traffic that Joins: 1.9%●Means - Every 1k visitors = 20 new members!●Percent of joiners who donate (50%)●Means every 2k visitors = 20 donors●100,000 donors needs: 10 million eyeballs●OR: 833k a month (KQED traffic)●NOTE: NPR throughout the country = +30million listeners
Final ConclusionsIf I were a pure scientists - it would be apples and oranges. My "sample" iscontaminated. At best I could say "inconclusive" at worst "theory doesnt holdtrue."
But apples and oranges are always there And Id argue they play in favor of my theory We are an unknown brand Managed by a team of 3-4 people (at our height) Our content was good - but Im willing to admit we didnt win any Pulitzers.
And thats without bringing up the pink elephant in the room.
*Spot.Us - as examplebut extrapolate....●MinnPost●Voice of San Diego●Bay Citizen●etc. etc.●Let’s take LARGE foundation grants out of it.●Their current mechanism of donations istraditional - but if they were 100% donations -they’d have to hit numbers similar to KQED.●Can we lower that barrier?