Alvin Lee, Going home…..
As a child of Woodstock I have always believed in living the dream.
The last two days I had the unique experience of seeing both sides of the dream.
On Tuesday, I went to SUNY Stony Brook to talk to journalism students at Barbara Selvin’s class.
A good many of them were interested in starting their own websites, many of them hyperlocal.
Yesterday, I was a speaker at Jeff Jarvis’ NewsInnovation conference at CUNY in Manhattan.
The main news room at CUNY was packed to the rafters with people who had started their own hyperlocal websites. Â Many of them were refugees from the meltdown at the newspaper business, others were young and eager. Â They are all really good journalist, and their products, from what I could see were quite good.
Their problem, universally, was not content but rather revenue.
Journalists have a natural disinclination to talk about or even think about revenue. Â To our profession ‘business’ is a dirty word – something to be investigated rather than participated in.
The students at SUNY had a massive recoil when I told them that they had to embrace the business side with the same fervor as they embrace the content side. Â The upshot, tens years after, is the room full of good journalists/bad business people at CUNY yesterday.
The thing with the ‘business side’ is that if there is no income, there is no journalism. Â No matter how ‘important’ the stories, if no one sees them, you die. Â And the notion of ‘make it and they’ll come’ does not work.
The interesting thing is that the room at CUNY was filled with bright, talented and very driven people. Very driven. Â The tragedy in the room was that all that talent was, for the most part, going disengaged (if you can say that) from the potential to actually pay for their sites and much more.
The reason is that the money is not where it used to be.
As the world moves to the web, there is a crying need for the talent in the room. Â The ability to create web sites, to put video online, to tell good stories, even to understand how the whole online world works. Â There may not be a crying need for the hyperlocal stories that they want to tell – that remains to be seen; but there is a crying need for the talent that the possess.
Every business in the world – every local florist or shoe store or candy store is going to have to go online if they are going to survive. Â Most owners of these small businesses don’t have the vaguest idea of how to build a website or create video to put online – let alone place online ads or deal with Google AdSense.
But the people in the room do.
For them it is second nature. As I said in the conference – “you live in the online world. They live in Connecticut.”
There is money to be made. It might not be the revenue model that you start with – who cares? Â Your hyperlocal website is a small factory that manufactures online content. You can do it for you or you can do it for lots of other people who need it and are willing to pay for it.
So the answer is to start looking beyond your own website. Look at the skills you have and look at what the market needs. Â
Make the connection.
And get to know your potential ad buyer in the community at the same time.
As Alvin Lee says – Going Home!
8 Comments
Lauri November 14, 2009
We didn’t all recoil Mike! There were about 3 us who turned our ears closer to listen.
We discussed your visit yesterday in class right up to the last minute. You sparked some great conversations.
I think part of it is that many journalists don’t want to be business people. Of course not everyone is a business person but I think they need to obtain some business sense and would be ignorant not to do so. I personally think that schools need to revamp their J-school programs and include a decent focus on the business end of things. But I suppose some people are perfectly happy working for the man. Me personally? No way.
Any suggestions for marketing regarding what you talked about in class? I’m really on board for creating my business. In fact I’m basing my whole final project for class on it.
Thanks again!
Yaroslav Kofman November 13, 2009
Its basic economics. Where there’s a need in the market, you fill it.
Michael Rosenblum November 13, 2009
The bridge I am not interested in. Shares in Google or Amazon or eBay I might take however.
pencilgod November 12, 2009
…and if you believe that Yaroslav I have a bridge you might like to buy.
Yaroslav Kofman November 12, 2009
What? There is no money to be made on the Web?
That’s Ridiculous. You don’t make money on the web. You make money on the people who use web. Which is everyone!
Nino November 13, 2009
“What? There is no money to be made on the Web?
That’s Ridiculous. You don’t make money on the web. You make money on the people who use web. Which is everyone!”
HOW AND FROM WHO???
Nino November 12, 2009
This isn’t a problem with journalists or with the web, it’s a problem with everyone who is getting into a business without any knowledge of business. Even when the economy was good 9 out of 10 small businesses start-ups failed within the first two years and the reason is lack of knowledge of business management and administration.
The idea of teaching business to journalists is something that they should know in the first place but I seriously doubt it that it will help them starting and succeeding in a web business. Remember that a good knowledge of how business work will not help in creating opportunities where there are none. Someone who has good knowledge of what it takes to make a business successful would immediately discard the web and move on to something else.
Educating journalists on the fundamental of marketing will inevitably have an adverse effect from what you guys are trying to accomplish. They are going to open their eyes and realize that there’s no money to be made on the web.
The failure on web businesses is so high that making any statistics is impossible. I can tell you that banks and investment firms have web start-up businesses at the very bottom of the list as safe investments.
When I started my freelance business 40 years ago one of my mentors suggested that I take business courses as creative people were (and still are) notorious for being bad business people. It took me four years of taking part time classes but I got my associate in business. I wasn’t at all interested in becoming a businessman, my main goal was to catch screw-ups before they get out of control and the damage would become irreversible.
Part of what we did in business school was to create hypothetical “what if†situation. Someone come up with an idea and our assignment was to play devil’s advocate. Find everything that could possibly go wrong and would inevitably turn those ideas into failures. Ask the Columbia Business School to do just that and you’ll see how fast you guys run away from your web plans.
The problem with the web is that it takes no money and no financial commitment to start a business, everybody can do it and everybody is doing it. At least if you have to put up a sum of money or get a loan somebody will analyze your business plan and tell you if you stand any chances of succeeding or if you are just throwing money away.
I don’t want to paint a dark picture but realistically at this time there’s no way for journalists to make any money on the web whatsoever, actually there are no ways for anybody to make any money directly from the web itself. The same open access and no cost commitment that makes creating a business on the web so popular and easy also works negatively. If anyone would ever find a business that actually works I can assure you that within days there will be thousand of copycats around the world trying to do the very same thing thus effectively destroying any potential success.
The only success that I see on the web and the only clients that actually spend money on creating web projects are entities that use the web as a tool for communications with their clients. These are existing businesses where the revenue is derived from other sources and the web is a support and communication venue and not a stand alone revenue generating source.
And while we are on the subject of business I’m sure you’ve seen this
http://www.latimes.com/business/la-fi-ct-current12-2009nov12,0,6721489.story
Just in case you are still trying to convince any VJs, CJs or TJ that they can find success with their limited skills.
Judy Sims November 12, 2009
Nice post. Time for journalists to stop believing that understanding the business side and wanting to make money are not a betrayal of journalism and that (most) advertisers are not evil, they just want to sell a product and make a living.