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Building a Revenue Por0olio: New 
       models for a new age 

            Susan Mernit 
 Founder, Oakland Local, consultant & 
            web strategist 
          February 25, 2010 
Sustainability=$$ 
•  Non‐profit does not mean no income 
•  Strategies used by non‐profit & for‐profit news 
   & community enLLes will look very much the 
   same 
•  Revenue & earned income both require a 
   por0olio of approaches—and the knowledge 
   & staff to execute them 
Planning for $$ 
•  Build a revenue por0olio: 
  –  Sponsorships: organizaLons fund site, features, 
     programs 
  –  AdverLsing: Third‐party & you‐sell adverLsing 
  –  Donor/contributor program 
  –  FoundaLon support: GA, training programs, 
     reporLng 
  –  Other: consulLng, training, Merch, events, 
     research (pick one or two) 
$$: How do you know where to focus? 
Strategy             Requirements          Risk                   Model to look at 
Third‐party ad       Need sales partner    O]en not very          Ode Magazine 
revenue              & high traffic          lucraLve for niche 
                                           sites 
Sponsorships         Need compelling       ROI must deliver       BlogHer 
(across media,       offer & focused        value for sponsor 
events)              salesperson 
DonaLons             DonaLon               Donor pool             Texas Tribune 
                     infrastructure 
Merchandise,         Design,               MarkeLng: will they 
collaterals          manufacturing         sell? 
Events               Planning &            Profit or cost          BlogHer 
                     markeLng team         center? 
Training, consulLng  Something to sell     Does this align w/     Oakland Local 
                                           core mission 
Crowd‐funding        Community‐funded  Right price?               Spot.us, Kickstarter 
MisconcepLons 
•  “Our content is so good, we should just charge 
   for it.” FAIL=good enough is free 
•  “If we can create X at a lower cost, Y will pay 
   us for it.” FAIL= recession killing old media 
•  “We can make a lot of money if we have some 
   events.”  FAIL= profit margin is an issue 
•  “Community foundaLons will fund us next.” 
   FAIL=Earned income or die 
RecommendaLons 
•  Balance aggressive revenue strategy 
   development with Lght cost controls 
•  Base expenses on most conservaLve 
   projecLons Lll new revenue streams kick in 
•  Treat expenses of new revenue project as 
   priority but STILL manage aggressively 
•  Structure new efforts so you can afford to 
   change cost 
Models to look at 
•  Baristanet: Local adverLsing success in New 
   Jersey 
•  Salon.com: Excellent moneLzaLon of niche 
   audience 
•  Texas Tribune: Raise money from local patriots 
   & affluent friends 
•  Oakland Local: Scrappy shoestring, high‐
   quality work, community focus 
Resources to think about 
•  Third party ad networks: Build your own with 
   Adify: New‐‐Sacramento Press SLOAN 
•  Donor & giving campaigns: Donor Digital, 
   Network for Good 
•  Crowd‐funded projects: Spot.us, Kickstarter, 
   Kachingle 
•  Merchandise: Oaklandlish.com‐fund projects 
   with % of profits 
Happy to talk more 



Susan Mernit 
Susan@oaklandlocal.com 

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