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<html>
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  <title>Model 1: Standard Web Publisher</title>
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    <td align="left"><h2>Model 1: Standard Web Publisher</h2></td>
    <td align="right"><a href="slide-4.html">Prev</a> | <a href="slide-6.html">Next</a></td>
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<blockquote>

This business model is the online equivalent of a traditional paper
publication.  This is an expensive site to run as the business has to
produce most of the magnet content (the content that attracts users).
While the user will occasionally contribute comments or discussions it
will not be the main attraction/purpose of the site.  Money is
generated by selling advertising, kickback from sites you link to in
your stories, and paid subscriptions.  If you are really clever you
will have the latest craze in online advertising and tie your ads to
the content on the site.  Does this model really work?  It depends who
you ask.

<ul>

  <li><a href="http://www.nytimes.com/">The New York Times Online</a>:
      During it's first few years of operating this website leaked
      money like a sieve.  In the past year it has totally turned
      around.  It now nets the publisher millions of dollars in
      revenue.  It's secret?  Cheap, high quality content.  It already
      creates a lot of content for it's newspaper and only has to add
      a little custom content to the website.  With the paper edition
      paying for 80+% of the content the website can sit around and be
      a cash cow.</li>

  <li><a href="http://www.salon.com/">Salon.com</a>: One of the
      original big online newspapers, this publication had no print
      version.  If you are checking this link in 2003 there is a small
      chance that it still works, if you, as a person in the distant
      future were to check it again you may find a cyber-squatter or a
      website advertising the latest hairstyles.  While I am writing
      this Salon is fighting for it's life.  The problem, they had to
      produce content to compete with the existing print newspapers
      and that cost had to be entirely covered by the website.</li>

  <li><a href="http://www.slate.com/">Slate.com</a>: Not wanting to
      lose it's chance to have a major propoganda dealer on the web,
      Microsoft created Slate.  Slate has the same problems that Salon
      does, plus the technological challenge of running it's software
      on the inferior MS platform (no I'm not biased .. really).  As
      of this writing Slate was still in business but only because MS
      pours money into it at an alarming rate.  Will it be viable in
      the long term?  Well with more people turning to the web for
      their news it seems that a purely online newspaper must
      eventually be a working business model.  The best signal of that
      time is if Slate ever becomes self-sufficient.  The problem is
      that once this happens the market will probably be
      saturated.</li>

</ul>

</blockquote>
<hr>
<a href="tristancohen@yahoo.com">tristancohen@yahoo.com</a>
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by admin — last modified 2003-04-28 10:07
 

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