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The S Word

The S Word. Rusty Coats President, Coats2Coats rusty@coats2coats.com. Congratulations on your foundation grant. I’m sorry it won’t last. S is for Sustainability. Money coming in must exceed money going out. You are not a blogger. You are a small business owner.

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The S Word

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  1. The S Word Rusty Coats President, Coats2Coats rusty@coats2coats.com

  2. Congratulations on your foundation grant.

  3. I’m sorry it won’t last.

  4. S is for Sustainability. • Money coming in must exceed money going out. • You are not a blogger. • You are a small business owner. • Or you are the caretaker of a small local nonprofit. • You should act that way. • That means building a business plan.

  5. This is not a business plan. “South Park,” Season 2, Episode 17.

  6. Neither is this.

  7. This is a business plan.

  8. So Let’s Make Some Money It’s not as evil as all that.

  9. Sources of Revenue • Advertising / Underwriting • Local Ad Networks • Foundation/Grant Funding • Members / Donors • National / Remnant Advertising • Events • Bolt-on Products

  10. Advertising • Local and neighborhood businesses are part of the community you serve • Advertising is how they get customers • Display advertising • CPM, CPC, WTF • Don’t be complicated until you need to be • Sponsorships • Fixed cost, open run • Sold monthly, quarterly, annually • Text advertising

  11. Underwriting • Like advertising, but different • Underwriting announcements CAN • Describe a business • Identify services and products • Describe corporate/company mission • Include company slogan • Include web/physical address, phone, etc. • But they CAN’T • Use qualitative language (“Award Winning!”) • Use comparative language (“The Best!”) • Include a call to action (“Visit our store!”) • Include an inducement to buy or sell • Reference to price or value

  12. Local Ad Networks • Leverages scale of local sites • 1 sales entity for multiple sites • Distributes the costs and revenue • Can include for-profit and non-profit • Requires infrastructure • Shared ad placement/size • Shared ad-serving software • Shared or compatible metrics • Requires collaboration and playing nice

  13. Foundation Grants • There are more than 75,000 foundations in the United States • About 72,000 of them have no staff • National foundations and community foundations • Grant cycles vary • Some favor multiple trips to the trough • Most don’t • “Sustainability” is the new hotness

  14. Members & Donors • Or, the Telethon model • The NPR model: A well-oiled machine for foundation and member support • Still, 1:10 listeners are doniors • Spot.Us: Community Funded Journalism, plus booster rocket fuel from Knight and other foundations • Getting money means appealing to community connection, philosophical alignment, human kindness, guilt

  15. National / Remnant Ads • “Mailbox Money” • Low-CPM • Quality varies • May drive CPM down locally sold ads • Weigh value against cost • Choose providers wisely

  16. Events • Or, meet-ups that make money • Leverage your knowledge to teach local business people how to: • Leverage social media • Use modern blogging tools • Organize using online tools • Be a multimedia journalist, even if all you want to cover is your family • Caveat: This is a LOT of work and the revenue model is shaky

  17. Bolt-On Products • Coupons • Self-serve • Auctions • Classifieds • Other shiny objects

  18. Examples Sites that do this. Successfully.

  19. The Batavian • For-profit site; launched May 1, 2008 • Two-person operation: Howard Owens and his wife, Billie, plus correspondents • Howard, who has a product/news background, spent two hours a day making sales calls during build phase • Active in local small business community • Now has almost 80 advertisers • 40 advertisers = survival • 80 advertisers = sustainability

  20. MyBallard.com • Seattle neighborhood blog run by Kate and Corey Bergman • Launched 2007 • Advertising/sponsorships support the venture. • Display and text ads cost $150/month • Sold by Kate, who is a journalist • The Bergmans also run News Door Media, offering micro-local news sites in other Seattle areas

  21. TexasTribune.org • Founded 2009 • $750,000 in private and foundation funding • Corporate sponsors / Underwriting • Individual donors: $50 • Investors: $5,000 • Also runs National Public Media underwriting messages sold centrally for NPR, PBS and other public media sites

  22. Homework Because wishin’ won’t make it happen.

  23. Knight’s 12-step program • “Launching a Nonprofit News Site,” a guide by Brant Houston and Andy Hall • http://www.kcnn.org/launching_nonprofit_news_site/ • “…Proceed with caution. If you have a job, don’t quit it until a solid framework is in place for your new organization.” • Modules include: Determining your structure, building your board, filing documents to create your organization, and, of course, bringing in revenue

  24. Build your revenue wheel

  25. Sustainability starts today • What pieces of the revenue pie are right for your site? • What existing, sustainable site can be a mentor site to yours? • What is your path for growth? • What resources are available? • Who can you partner with? • What are you waiting for?

  26. The S Word Rusty Coats President, Coats2Coats rusty@coats2coats.com

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