While many Web sites (you know who they are) subside on aggregation or free labor, Edmiston sees Nomad as providing a sustainable source of work for journalists. “We wanted to create something where people who create good content could actually share in the money that is generated by their work,” he said.
via Mediaweek.
5 Comments
It all depends on how much revenue “sharing” is actually provided to journalists; but I think this sort of model could transform, and revitalize, the publishing marketplace. I’m not entirely sure why you need $600k of seed money to get this off the ground however.
If successful, this model could also be the final blow that kills off the large publishers. But in the long view, that may not be such a bad thing.
@Tom, One of the biggest (if not the biggest) reasons for a start-up to go belly-up is undercapitalization.
Business is a machine that, if it works, turns some money into more money.
The businesses that fail are often the ones who expect to spend $100,000 and survive.
$600,000 seems pretty bloody reasonable for any business with 2-3 employees, an office, some benefits and a marketing budget.
In fact, it’s low enough that I wonder if they are properly capitalized.
A million bucks doesn’t buy nearly what it used to. $600,000 buys less so in start-up land in a dismal economy.
I know of creative upstarts that spent (wisely, it would seem) $50,000 on lawyers and accountants just to open the doors.
Throw in staff salaries (day one, with or without profit), insurance, space, and, hopefully, paying reasonable fees to contributors, and the guy could be looking at some serious flow out the door just building his brand. Before even a buck comes in.
It is interesting that the one title that is mentioned is a SURF book, and not another NEWS weakly (sic)! Maybe they understand that iPad owners have different tastes/expectations than their parents/grand parents – how refreshing.
@c.d.embrey, I agree with you, it is interesting that both titles mentioned are away from the mainstream weekly. I like the idea that the content has to be reader driven and forces the editorial staff to know the readers well enough to help guide the reporter/photographer to create the right content. That puts the reporter/photographer at the front lines needing to know also.
I think it is cool concept. if you are positive about this venture then there will be subscribers who will buy, especially since there would be less advertisements if any at all.
Ah yes, I can see it now on a banner: “Free iPad with every subscription….”
Comments are closed for this article!