The New West FAQ for Online Community Journalism Entrepreneurs | New West Network

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Lampertina bookmarked on 2009-08-10 newwest jonathan_weber entrepreneurship journalism online_publishing local_news

Although over 2 years old, Jonathan Weber's "FAQ" for starting an online publication focused on local news is still useful and highly informative. Weber covers raising money, staffing, competition, revenue streams/ business models, etc.

Did you raise money from investors? How did you go about that?

Yes, we raised a high-six-figure sum from a group of angel investors. There are some friends and family in the deal, and there are also professional investors who did it as a personal angel investment. The success of the fundraising was very much dependent on my track record and reputation as editor in chief of the Industry Standard, and required relentless networking and cajoling over a period of almost a year.
What is the revenue model for New West? Advertising?

Online advertising is the core of the model, yes. However we also have several other revenue lines, including a small indoor advertising business, a custom-publishing business, and a conference & events business. Multiple revenue streams are a lovely thing. It remains difficult to make money on online advertising alone unless and until you have boatloads of traffic, and it is especially difficult to achieve that with a local site.
Do you sell your own ads, or do you use an ad network?

We sell our own ads. We do run Google Adsense on the site and we make some money from that, and we have looked at some of the other ad network options and may try some other things in the future. However, we get much, much higher CPMs on ads we sell ourselves then on anything we have seen from a network, and we expect direct sales to remain the core of the model.
Who are your main competitors?

Newspapers still dominate the local news and information business, especially outside of the major metro areas. The local newspaper here in Missoula – a Lee Enterprises paper – has been extraordinarily hostile and even unethical in its competitive response to us, though that has not been so much the case in other markets. There are various small, independent local sites that are competitors on some level but few that have any real traction. TV station and yellow pages Web sites are also becoming bigger factors in the market.
How big a staff do you have? Are your writers paid?

We have a full-time staff of seven, which includes managing editor Courtney Lowery, assistant managing editor Matt Frank, event calendar editor Colin Hickey, sales and marketing associate Jennifer Calhoun, designer Marshall Hibbard, a Webmaster who will start next week, and myself. We have “city editors” in each of our markets who are on contract. We also have a handful of other writers on regular monthly contracts, and we have some people we pay based on the traffic their stories generate. We also have a number of unpaid contributors.
What about citizen journalism?

We have found that the “if you build it they will come” approach to citizen journalism does not work at all. You can’t simply put up a site and invite people to come in and write stories and expect them to do so. However, we have also found there are a lot of non-professionals out there who can and will do good journalism if we work with them and encourage them. We think of this as a “high-touch” model (which depends heavily on the indefatigable energy and talent of the above-mentioned Courtney Lowery). Overall we think of our approach as “pro-am” journalism rather than “citizen journalism” or traditional professional journalism.
Have you looked at aggregating local blogs and other kinds of content rather than producing it all yourselves?

Good question! Aggregation is a key function of almost any publication these days; no one can pretend to be the source of all news and information. We have found though that aggregating news and headlines from other publications – even if we do it by hand and try to be clever about it - is not what drives readership for New West. We have also found that simple automated feed aggregation of local bloggers and the like is not very useful; you lose all context. On the other hand there are some very interesting new efforts in this area, including Steven Johnson’s OutsideIn and Lisa Williams’ Placeblogger, and I’m sure different forms of aggregation will be an important part of our future.

This link has been bookmarked by 2 people . It was first bookmarked on 03 Apr 2009, by G L.

10 Aug 09

Yule Heibel
Although over 2 years old, Jonathan Weber's "FAQ" for starting an online publication focused on local news is still useful and highly informative. Weber covers raising money, staffing, competition, revenue streams/ business models, etc.

newwest jonathan_weber entrepreneurship journalism online_publishing local_news
- Did you raise money from investors? How did you go about that?
  
  Yes, we raised a high-six-figure sum from a group of angel investors. There are some friends and family in the deal, and there are also professional investors who did it as a personal angel investment. The success of the fundraising was very much dependent on my track record and reputation as editor in chief of the Industry Standard, and required relentless networking and cajoling over a period of almost a year.
- What is the revenue model for New West? Advertising?
  
  Online advertising is the core of the model, yes. However we also have several other revenue lines, including a small indoor advertising business, a custom-publishing business, and a conference & events business. Multiple revenue streams are a lovely thing. It remains difficult to make money on online advertising alone unless and until you have boatloads of traffic, and it is especially difficult to achieve that with a local site.
- 5 more annotations...
- - Do you sell your own ads, or do you use an ad network?
    
    We sell our own ads. We do run Google Adsense on the site and we make some money from that, and we have looked at some of the other ad network options and may try some other things in the future. However, we get much, much higher CPMs on ads we sell ourselves then on anything we have seen from a network, and we expect direct sales to remain the core of the model.
  - Who are your main competitors?
    
    Newspapers still dominate the local news and information business, especially outside of the major metro areas. The local newspaper here in Missoula – a Lee Enterprises paper – has been extraordinarily hostile and even unethical in its competitive response to us, though that has not been so much the case in other markets. There are various small, independent local sites that are competitors on some level but few that have any real traction. TV station and yellow pages Web sites are also becoming bigger factors in the market.
  - How big a staff do you have? Are your writers paid?
    
    We have a full-time staff of seven, which includes managing editor Courtney Lowery, assistant managing editor Matt Frank, event calendar editor Colin Hickey, sales and marketing associate Jennifer Calhoun, designer Marshall Hibbard, a Webmaster who will start next week, and myself. We have “city editors” in each of our markets who are on contract. We also have a handful of other writers on regular monthly contracts, and we have some people we pay based on the traffic their stories generate. We also have a number of unpaid contributors.
  - What about citizen journalism?
    
    We have found that the “if you build it they will come” approach to citizen journalism does not work at all. You can’t simply put up a site and invite people to come in and write stories and expect them to do so. However, we have also found there are a lot of non-professionals out there who can and will do good journalism if we work with them and encourage them. We think of this as a “high-touch” model (which depends heavily on the indefatigable energy and talent of the above-mentioned Courtney Lowery). Overall we think of our approach as “pro-am” journalism rather than “citizen journalism” or traditional professional journalism.
  - Have you looked at aggregating local blogs and other kinds of content rather than producing it all yourselves?
    
    Good question! Aggregation is a key function of almost any publication these days; no one can pretend to be the source of all news and information. We have found though that aggregating news and headlines from other publications – even if we do it by hand and try to be clever about it - is not what drives readership for New West. We have also found that simple automated feed aggregation of local bloggers and the like is not very useful; you lose all context. On the other hand there are some very interesting new efforts in this area, including Steven Johnson’s OutsideIn and Lisa Williams’ Placeblogger, and I’m sure different forms of aggregation will be an important part of our future.

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