Revenue streams for your news business: part 2
This is a 2nd of a two-part series suggesting ideas for revenue streams for a news business. Read the first post here, and don’t forget, the deadline for entering myNewsBiz (to win £1000) is Friday 1st April 2011.
In the previous post, we talked subscriptions, partnerships, newsletters, affiliates and B2B revenue streams. But that’s only half the game, if none of those appeal, try some of these on for size.
10 ideas for revenue streams for your news business (part 2)
.06 a store
This is a method of income completely separate from the journalism, but an online a store is relatively simple to run. It relies on your content bringing in the eyeballs to your site – again, building a community of like minded folk – and then offering them products which you can be confident will appeal to them.
So, for example, say you edit an online magazine for retired people who want to be more green. Once you’ve built up a community of readers, there’s a whole range of things you could sell on the side, from jute bags and wormeries to slippers & christmas cards. You’ll most likely want to partner with a fulfilment company, who will manage sales, stock and delivery for a percentage.
Who’s doing it? You’d be surprised. Big newspapers like the Sunday Times make a mint out of their wine club, which ships wine to readers; multimedia producers MediaStorm sell DVDs and even T-shirts on their site; UK hyperlocal The Lichfield Blog recently started selling t-shirts too.
Again, if you’ve got a loyal readership focused around a niche, events are another way to convert them into money, and this is nothing new. Everyone from Mashable to TheMediaBriefing run events tailored to their audience: think Journalism.co.uk’s successful news:rewired series for another example.
Conferences are big to organise but through ticket sales and sponsorship offer revenue opportunities. Beyond conferences there are meetups, speed dates and training.
.08 digital products
If selling someone else’s products to your lovely readers doesn’t appeal, then why not create your own? Digital products – in particular ebooks, training and podcasts now cost virtually nothing to produce. The two ebooks I have written and sold to date have paid for themselves many times over…chiefly because they cost absolutely nothing to make!
If you’re positioning your product as the ‘thought-leader’ in a particular area (as you should be), then you can legitimately package your expertise in digital form. To recall our environmental magazine example, you can create an ebook called ‘10 Ways To Grow Your Own Allotment‘ or ‘The Ultimate Guide to What’s In Season When‘
Jason Fried, founder of 37Signals argues every business has a by-product. In his excellent book Rework, he describes how the band Wilco brought someone in to film them recording their album Yankee Hotel Foxtrot. It was released as a DVD called Am I Trying To Break Your Heart?. So they successfully sold their main product (the album) and a by-product (the DVD).
This clever idea can be adopted by journalists, their products and services. You don’t just make one thing, so what else are you creating? A wealth of data about a story or topic? Stock footage or images? Training opportunities? A book or DVD?
And here’s the one you’re most familiar with. But it’s at the bottom of the list. Why? Because it’s the first (and often the only) revenue stream most journalists think of, and that’s why they never get very far. But it’s also so dependent on the economy. Advertising will boom again I’m sure, but until it does (and when it eventually collapses again) where does that leave you? Sure, do advertising: services like Addiply can help magazines, blogs and other products, for example.
But – in my opinion only – it ought to be the thinnest slice of the pie.
The greatest revenue stream of them all…
Which brings me neatly to the best, most reliable, and safest revenue stream: lots of them.
Having read this post and the one before it, don’t take just one single revenue stream and hope to make a living. Instead pick and choose the 3, 4 or 5 that are most relevant or appealing to you and your business idea.
If one of them doesn’t work, swap it round for another, and keep testing the soup til it works.
So who said journalism doesn’t any money? A targeted combination of several of these revenue streams could keep your idea going. But there are surely more…what have I missed off? Tell me in the comments below!