Adam Westbrook // ideas on digital storytelling and publishing

Revenue streams for your news business: part 1

Posted in Entrepreneurial Journalism by Adam Westbrook on March 21, 2011

 

Image credit: JelleS on Flickr

A two-parter this week: I’ll be explaining 10 revenue streams journalists can use: five today, and five on Thursday.

OK so you might have a brilliant idea for a new news business. You have the collaborators. You’ve got the website. You’ve got the content…

…but you’ve got to make it pay right?

There’s less than two weeks for students in the UK to enter myNewsBiz, the journalism enterprise competition. One of the questions entrants have to answer on their entry form is explaining how their business might make money: where will the revenue come from? To help in that endeavour, I’ve assembled these 10 possible ways to bring in cash.

They are just ideas, and the most successful businesses pick’n’mix from these plus several others. If there are any glaring omissions, let me know in the comments box!

10 ideas for revenue streams for your news business (part 1)

.01 mailing list

It’s an oft quoted maxim among online content creators that “the money’s in the mailing list“. Never mind creating a sharp looking online magazine – if your content isn’t flying straight into peoples’ inboxes then it has a far weaker chance of being viewed. Building a mailing lists means you have a clearly defined group of people interested in your journalism – and therefore they’re more likely to open the email.

Once you’ve built your mailing list up with great content you can look for sponsorship from organisations who’ll appreciate their advert going to inboxes and not just online. They then get a banner at the top of your newsletter.

I’ve mentioned TheBusinessDesk on here before: a daily newsletter of business news to their readers is one of the core things they create. There are plenty of services, like MailChimp who manage lists for you.

.02 other businesses

Here’s another maxim to learn from the business-heads out there: “the best customers are other businesses“. Why? Well, you can charge businesses more than you can charge an individual for something; but also businesses tend to be easier to deal with, and you’re less likely to get complaints.

So how do news businesses find revenue streams from other businesses? Well, there are several ways which pop to mind:

B2B journalism: Business-to-Business publications have mostly done OK during the recession. Their secret is they provide really good journalism to specific industries: their readers aren’t passing individuals, but (often) big corporations with lots of money to spend – who need the information you provide.

Another option is to act as an agency: in this line think of Getty, Demotix and of course, the news wires. Again, they’re building long term relationships with news organisations and charging thousands, not mere pounds.

If you still fancy creating a popular magazine, then there are ways to capture business revenue too. Treat it as a ‘shop-window‘ for a service business. For example, if you love web design as well as journalism, you can run a web-design business off the back of the magazine, with the mag’s awesome design bringing you attention and clients.

.03 partnerships

On a similar theme, another source of revenue could be the ‘partnership’. Here you are collaborating with a whole range of organisations on a specific project, and it’s very suited to the service business model.

We’re already seeing multimedia producers like VII Photography and MediaStorm talk about partnerships with organisations, either as a funder or a publishing partner. Here’s Stephen Mayes of VII, describing the idea in the British Journal of Photography in 2010:

“Certainly the magazines are still in the mix, but now more as print distribution partners rather than as exclusive clients (with additional distribution through TV and online partners), often co-funded by another party and supported separately by technology partners with access to story-knowledge being supplied by yet other people…The line-up shifts for each project, and as each new partner comes on board the opportunities to do interesting work and to generate income multiply.”

I guess it’s not hugely different to ‘clients’ but instead of finding one ‘client’ to pay you to do some journalism, you’re designing a project and getting involvement & funding from several organisations. This means you’re more driven by the project and not who’s paying for it.

.04 affiliates

Martin Lewis: MoneySavingExpert.com

Affiliation is where we get a bit close to the sales/infomercial area of business I think many of us would prefer to avoid. Still, there’s big (and relatively easy) money to be made in affiliates so don’t write it off.

How does it work? Well, you push your readers to someone else’s products, and take a share of every sale made. It has potential in a niche market, because if you can build up a significant, loyal fan-base around a specific area, related businesses will want their product in front of those people. Affiliate deals can nab you between 10-30% of every sale.

Sounds a bit dodgy. Can it be done in journalism? Martin Lewis, founder of MoneySavingExpert.com reckons so: his hugely popular website is funded almost totally by affiliate arrangements. But he is very transparent about when a product is affiliated, and separates it from the editorial content: crucially, he can still criticise a company even if they’re an affiliate.

.05 subscriptions

This revenue stream is very dependent on the type of news product you’re out to create, but in the right circumstances you can get people to pay to read your content. Here’s a must-read articles on how media outlets are using subscriptions.

As newspapers are learning, the key is to avoid ‘news’ content – that’s a commodity now, and very few people will pay for it. But even if you’re writing for a very specific niche, you have to work hard to create something people will fork out for. Targeting the B2B market will give you a better shot.

Is it worth it with hardly any readers? Well, do the maths: if you create really good content for a specific audience, of say, 5,000 readers, that is so good, they’ll be happy paying £5 a month to access it – that’s £300,000 in the bank. A legacy news organisation can’t sustain that, but that’s enough cash to pay yourself and a few others a decent salary. This is where being small is important.

On Thursday: five more revenue streams – plus the most valuable one of all.

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Video: top trends in journalism in 2011

Posted in Entrepreneurial Journalism, Online Video, studio .fu by Adam Westbrook on January 5, 2011

The New Year is here and that means it’s time to look ahead at some of the big trends in journalism in the 12 months ahead!

This year I’ve brought in some of the brightest young minds in journalism today, including Alex Wood, Tracy Boyer, Patrick Smith and Philip John for their suggestions – and the 11th prediction this year has been suggested by one of you guys!

Enjoy – and if you think I’ve missed anything good out, or got something completely wrong, then the comments box is right downstairs.

Happy New Year!

 

10 trends in journalism in 2010

Posted in Journalism by Adam Westbrook on December 15, 2009

It’s that time of year again…

After a turbulent year in the industry, I’ve had a good think and put together my top 10 trends for journalism for 2010, wrapped in a big shiny positive outlook. But rather than roll out another list, I thought I’d be a bit different and crack out some video. Enjoy!

And is there anything I’ve missed? Add it in the comments box!

Your chance to get involved in the future of news

Posted in Ideas for the future of news, Journalism by Adam Westbrook on November 10, 2009

There’s lots and lots of talk about the future of journalism at the moment.

You can read it on blogs like this one, this one and this one.

You can occasionally read something new in one of the papers, like this one.

You can even pay some money and go to conferences.

And while they are all fantastic hotbeds for debate, they’re not really regular enough to be good forums for that most crucial currency of all: new ideas.

That’s why I’ve set up a new meet-up group to get things moving.

Futureofnews-meet1

It’s called the UK Future of News Group. If you are in the UK, or even better, in London then please think about joining and coming along to an informal meet up. It’s free, and you don’t even need to be a journalist- just interested about the future of journalism.

It’s perfect for bloggers, J-students, young journalists, J-entrepreneurs, hyper-locallers, lecturers not to mention seasoned old hacks. You could be working online, in print, on radio or with a camera.

The first meet-ups going to be in a bar near Waterloo, on the 7th December.

(hopefully avoiding any early Christmas parties)

What it isn’t, is an arena to repeatedly lament the death of print, or the end of quality journalism, or to go around saying  “paywalls must be the answer, journalists have got to eat!”

What it is, is a place where people can think positively, about tangible new ideas to determine the future of journalism. I hope someone will pitch a few ideas which we can all thrash out and stew over.

And maybe one of them will come up with the next big thing.

But most of all, I want it to be a forum where we can all have a say on the future of our craft, without having to pay hundreds in conference fees.

Interested? Sign up now!

The “do” economy (or: why I’m glad Murdoch’s charging for content)

Posted in Journalism by Adam Westbrook on August 10, 2009

So Rupert Murdoch’s announced he’s going to start charging for content for the Times newspapers in the UK. This guy thinks it’ll work. This guy doesn’t.

For me, it doesn’t really matter either way, I’m just glad he’s doing it.

Do I support pay walls? No.

Do I think it’ll work? No.

But it’s good because someone, somewhere is doing something.


I’ve used this illustration a couple of times when I’ve given presentations about the future of journalism. It sums up the fact as an industry we’re at a crossroads. Lots of different directions ahead, and the only road we know we can’t take is the one we’ve all just walked up.

But all we’re doing is standing in the middle like a huge flock of sheep arguing about which road to take. And going nowhere.

Murdoch’s announcement marks a positive step forward: someone is walking down one of the roads. Will it work? Who knows. The important thing is he’s trying – and only by actually doing something – something different to what we did before – will change happen.

Lindsey Agness at The Change Corporation sums it up:

“The important thing [is to take] action – sometimes it felt like two steps forward and one step back, but it doesn’t matter as long as you are moving ahead.”

Richard Branson built his empire on the “screw it, let’s do it” mindset

“If something is what you really want to do, just do it. Whatever your goal is you will never succeed unless you let you of your fears and fly.”

And now really is the time.  Multimedia journalist Henkrik Kastenskov over at the Bombay Flying Club summed up the crossroads perfectly this weekend:

“No such thing as the aftermath of an Extinction Level Event to fertilise the ground for new things to come. And the global economic recession was exactly that: an extinction level event.

“The impact of an almost overnight disappearing commercial print market in traditional media have had some profound consequences for the evolution of online media as the great meteor impact on the Yucatan Peninsula had on the off’ing of the dinosaurs 65 million years ago, preparing the ground for the rise of mammals.

“…nobody gets ahead by following in the footsteps of others! That…new thing is still lingering somewhere off stage. And right now is the defining moment for that new set of rules to be written. It’s Year Zero, it’s come to Jesus time, and you guys out there are the authors of the new manifest. And frankly: at this point, anything goes.”

Sure, somethings will fail. But what have we got to lose? Anything goes. Just do it differently.
In fact, just do it.