A different approach to revenue
While this may sound like it’s tied in to yesterday’s post, I’m actually veering off in a different direction with this one.
Each day I receive Erick Erickson’s e-mail missive, probably because I’ve been on the RedState list for many years. Since Erick was the biggest part of RedState it made logical sense and his new endeavor has kept a lot of the same look, feel, and message. On Thursday, though, he had a post that looked at blogging and the entrepreneurship aspect of it, and he put out a proposal I found quite interesting.
I may be doomed to failure on this new radio website endeavor, but I am going to try something new in terms of ad revenue.
Over the past two years with my radio show, I’ve been growing an email list of radio listeners. That list has crossed 200,000 people. At the same time, this site, to which I have not dedicated a lot of time, is averaging about 75,000 page views a day. Again, it is not even my day job yet.
So when I kick things off again with the new design on January 4th, I’ve going to try a sponsor model instead of an ad model. In other words, I am going to strip away all the advertising and just do a sponsor a week.
What the Sponsor Gets:
They will get a graphic on the front page and a graphic on each post. It will be a static image so ad blockers cannot block it. They will not be in competition with any other advertiser.
They will also get a thank you mention on Monday and Friday that will make it in the emails of those days. So in the worst case scenario they’ll be getting 75,000 page views a day, plus 400,000 eyeballs in email over the course of a week.
What the starting price is going to be: $5000.00 for the week.
I do not need to make a huge profit off the radio website. I do need to cover costs, pay for the redesign, pay a staffer, etc.
We will see if it works. Hopefully, over time, I can raise the price.
I do not want Taboola throwing up on my redesign. I do not want pop up ads and auto play videos and semi-porn to draw in eyeballs.
I may fail. I may not be able to get the advertisers. But I am going to try.
So let’s look at this as a business model. Those of us who have revenue-producing websites don’t seem to have a lot of options on ways to make money.
First, there is always the old rumor that goes around about some billionaire benefactor like George Soros going around and propping up particular bloggers. That may well exist but I can assure you the Koch brothers have never stroked a check to me. (Maybe I’m just doing it all wrong?)
The second approach is to bleg, as several bloggers I know have to various amounts of success. Once in a great while I have passed on their tales of woe. Many of these bleggars’ sites also have static ads, the combination of which keeps bloggers like Peter Ingemi going. (You may know him better as DaTechGuy – have fedora, will travel.)
And then you have what many of the big guys and commercial media sites have: the ad-laden mess that Erickson is referring to. On a couple occasions I was an Examiner for that website, and the sad thing about it was that for all the advertisements cluttering up my posts and occasional slideshows I don’t think I ever got more than $50 a month. I pick on Examiner but the same is true for the Washington Times or rare.us websites as well as more local and regional sites like Red Maryland. This also encompasses the pure clickbait of the TEA Party News Network and groups like that. I don’t like going to those sites because they bombard me with ads and auto-play videos I don’t want to watch – generally I’m there to read and get out.
Erickson’s site as it exists today is actually very unobtrusive as it just has a handful of static ads on the header, sidebar, and footer. (It’s set up a lot like this one.) So there’s probably a small amount of revenue coming in but nowhere near the $5,000 a week he’s going to request.
There aren’t many who do sponsorship posts, or posts like my record reviews for which I am compensated regardless of whether I like the music or not. (The sponsor encourages the honest criticism.) So I am interested to see how a large-scale operation like Erickson’s fares under this model. $5,000 a week is $260,000 a year – I think he can afford a staffer, IT person, and still make a go of it with that sort of revenue.
Yet it’s also instructive of the power of marketing. Somehow Erickson has built up the mailing list past 200,000 even though I’ve never listened to his local radio show. (I’m sure familiarity through RedState has put many thousands on that list.) 200,000 e-mails has beget the 75,000 page views a day – over 500,000 weekly. It doesn’t work out to an economy of scale – a blog like mine that has 1,000 views a week at slow times like this can’t subsist on one $5 a week sponsorship. Needless to say, I can’t come up with $5,000 for a week although I’m sure my readership would increase.
Of course, there is the interesting question of what sponsors will come forth. Left unanswered is what criteria Erickson will have for advertisers, but the obvious advantage with his venture is that he gets to choose who benefits, unlike some other methods where someone else controls content and delivery. (They can make for interesting bedfellows because if I go to look at certain sites the cookies track with me. For example, I see Kathy Szeliga for Senate ads on a lot of places I go, even if they’re not Maryland-based.)
To me, though, the control of content is almost as important as the revenue. If you listen to talk radio regularly you’re probably aware that they host a much different variety of advertisers than, say, the NFL game of the week. I hear more ads for get-rich-quick, be-your-own-boss hucksters who have to invest in gold there than I do anything else. To me, that affects the credibility of the shows they sponsor – although, to be fair, this may be the local station selling the spots, too.
So I’m going to be interested to see how Erickson does with this idea. I suspect he will do well the first six to eight weeks, but the test will come by spring. If he’s able to do well and even raise the price it may be something to explore for the rest of the blogging world.