<img class="alignleft size-full wp-image-3508" title="Journalism Accelerator" src="http://www.journalismaccelerator.com/wp-content/uploads/2011/08/ja-bug.png" alt="Journalism Accelerator" width="50" height="50" /><em>You’re  starting a news site to fill a community need. Or you’ve been running  one for years; now you want to stabilize income, maybe expand. <strong>The  recent double-header JA forum on increasing revenue to news sites aimed  to capture and share the invaluable running-a-business know-how that  news publishers create through their work every day.</strong></em>
<p style="padding-left: 60px;"><em>The two-day conversation discussed first the needs of <a href="../questions/community/local-news-startups-how-do-you-make-it-work-financially/">local</a>, then of <a href="../questions/community/niche-news-startups-how-do-you-make-it-work-financially/">niche</a> news sites.  <strong>Here we distill both rich comment threads to showcase publisher  experiences and emerging best business practices in three key areas:  partnerships, advertising, and other sources of revenue.</strong></em></p>
<a rel="attachment wp-att-8837" href="http://www.journalismaccelerator.com/blog/ja-sustainability-forum-deconstructed-publishers-dish-revenue-models-tactics-and-cautions/attachment/post-img_word-cloud-bizforum-distillation/"><img class="alignright size-full wp-image-8837" style="border: 1px solid black;" title="post img_word cloud bizforum distillation" src="http://www.journalismaccelerator.com/wp-content/uploads/2012/03/post-img_word-cloud-bizforum-distillation.png" alt="" width="520" height="225" /></a>A hat tip to <a href="http://www.carycitizen.com/">Cary Citizen</a> publisher <a href="http://www.journalismaccelerator.com/members/hal990/" target="_blank">Hal Goodtree</a> for this pointed forum takeaway: “<a href="http://www.journalismaccelerator.com/questions/community/local-news-startups-how-do-you-make-it-work-financially/#comment-1562" target="_blank">One revenue stream alone will not support your hyperlocal</a>.” <strong>Seems obvious, maybe. But how do you get to <a href="http://www.journalismaccelerator.com/questions/community/niche-news-startups-how-do-you-make-it-work-financially/#comment-1610" target="_blank">seven different revenue streams</a>,</strong> like <a href="http://oaklandlocal.com/">Oakland Local</a>? Or develop a reputation for <a href="../questions/community/niche-news-startups-how-do-you-make-it-work-financially/#comment-1637">training that pays your investigative reporting bills</a>? Or <a href="../questions/community/niche-news-startups-how-do-you-make-it-work-financially/#comment-1700">use social media consulting to bring in ad revenue</a>?

A recent survey of <a href="http://www.investigativenewsnetwork.org/">Investigative News Network</a> and <a href="http://www.blockbyblock.us/">Block by Block</a> members found that <a href="http://nmj.thepattersonfoundation.org/?p=584">publishers put sixty percent of their budgets toward journalism and less than twenty percent to generating revenue.</a> <strong>“That mix does not bode well for creating financial stability,”</strong> writes <a href="http://www.coats2coats.com/janet.html">Janet Coats</a>, manager of The Patterson Foundation’s <a href="http://www.thepattersonfoundation.org/initiatives/new-media-journalism/">New Media Journalism Initiative</a>. (Full disclosure: The JA receives TPF support.)<strong> So what does?</strong>

The ideas and experiences shared over two days of intense conversation in the recent JA forum on increasing revenue offer <strong>many insights into building financial stability.</strong> The takeaways fit into <strong>three overarching themes, each central to business success: partnerships, advertising and non-ad sources of revenue.</strong> Dig into what interests you now, come back later for more. The <a href="../questions/community/niche-news-startups-how-do-you-make-it-work-financially/">conversation threads</a> also <a href="../questions/community/local-news-startups-how-do-you-make-it-work-financially/">remain open</a> discover more insights and add your experience.<!--more-->
<h3>Partnerships</h3>
<strong>Partnerships  and collaborations are often discussed in terms of creating content,  but what changes when you consider partnerships through the lens of  earning revenue?</strong> Consider the relationship between the <a href="http://necir-bu.org/">New England Center for Investigative Reporting</a> and <a href="http://www.bu.edu/">Boston University</a>.  BU support covers about 20% of NECIR’s costs. The university offers  students access to hard-hitting, working journalists, and NECIR gets a  brand name that helps sell investigative journalism training. In fact,  the <strong>training is NECIR’s biggest source of revenue, and it’s growing</strong>.

In the JA forum, NECIR co-director <a href="../members/bergantinojoe2/">Joe Bergantino</a> noted that <strong><a href="../questions/community/niche-news-startups-how-do-you-make-it-work-financially/#comment-1608">a clear business proposal and level-headed negotiating</a> are key to cementing financially sound partnerships.</strong> NECIR sells  content too. Bergantino says <strong>to earn revenue from content collaborations  you first <a href="../questions/community/niche-news-startups-how-do-you-make-it-work-financially/#comment-1693">must believe your work is worth money</a></strong>. Then it’s that routine business practice again – explain your product and negotiate with your bottom line in mind.
<blockquote class="twitter-tweet">"I think we need to convince our readers that news isn’t free." <a title="http://bit.ly/wqw6q7" href="http://t.co/pYHyyjDI">bit.ly/wqw6q7</a> -Diane Lund of @<a href="https://twitter.com/thelundreport">thelundreport</a> <a href="https://twitter.com/search/%2523JAforum">#JAforum</a> <a href="https://twitter.com/search/%2523jbiz">#jbiz</a>

— AccelerateJournalism (@journaccel) <a href="https://twitter.com/journaccel/status/174943141353361408">February 29, 2012</a></blockquote>
<strong>Many new news sites consider partnerships with legacy news organizations. </strong>In the forum conversation <a href="../questions/community/local-news-startups-how-do-you-make-it-work-financially/">focused on local news needs</a>, <a href="../members/dangrech/">Dan Grech</a>, news director of public radio station WLRN, <a href="../questions/community/local-news-startups-how-do-you-make-it-work-financially/#comment-1547">talked up</a> his eight year collaboration with the Miami Herald newspaper. He says  he can’t draw a straight line between the quality of news and financial  support, but he <a href="../questions/community/local-news-startups-how-do-you-make-it-work-financially/#comment-1474">believes they are connected</a>. <strong>Partnerships between big papers and smaller online sites seem to have <a href="../questions/community/niche-news-startups-how-do-you-make-it-work-financially/#comment-1702">succeeded more at sharing content than generating revenue</a>.</strong> It’s a tricky relationship – judging by some of the <a href="../questions/community/niche-news-startups-how-do-you-make-it-work-financially/#comment-1711">sparks that flew in the forum</a>. <a href="../members/nedberke/">Ned Berke</a> of <a href="http://www.sheepsheadbites.com/">Sheepshead Bites</a> weighs partnership proposals with the question “<a href="../questions/community/local-news-startups-how-do-you-make-it-work-financially/#comment-1536">will this benefit both of us enough</a>?” <a href="../members/openmediaboston/">Jason Pramas</a> of <a href="http://www.openmediaboston.org/">Open Media Boston</a> hasn’t found a financially viable partnership yet, but he keeps the relationship door open through “<a href="../questions/community/local-news-startups-how-do-you-make-it-work-financially/#comment-1530">gamely chatting</a>” with big local news outlets from time to time.  <strong>The chats take time – it’s a business investment to create a relationship.</strong>

<strong>Any business relationship is useful to view as a partnership, while keeping your eye on the financial return. </strong><a href="../members/emilylowrey/">Emily Lowrey</a> <a href="../questions/community/local-news-startups-how-do-you-make-it-work-financially/#comment-1486">experienced that</a> as she built <a href="http://magiccitypost.com/">Magic City Post</a>, a local news site supported by a <a href="http://www.shopbirmingham.com/">local shopping platform</a>, now expanding beyond Birmingham.  <a href="../members/mediablogger-org/">Robert Cox</a> of <a href="http://www.newrochelletalk.com/">Talk of the Sound</a> found <a href="../questions/community/niche-news-startups-how-do-you-make-it-work-financially/#comment-1700">helping businesses get set up with social media led to ads</a>, and <a href="../members/jeremysapienza/">Jeremy Sapienza</a> learned local merchants wanted to support his site, <a href="http://bushwickbk.com/">BrooklynBK</a>, <a href="../questions/community/local-news-startups-how-do-you-make-it-work-financially/#comment-1503">through fundraisers</a> when they saw themselves as partners in a community effort to provide relevant local news.

<strong>Business partnerships can include ad services </strong>– brief reviews of <a href="../questions/community/niche-news-startups-how-do-you-make-it-work-financially/#comment-1636">IDG</a>, <a href="../questions/community/niche-news-startups-how-do-you-make-it-work-financially/#comment-1645">Buy Sell Ads</a>, and <a href="../questions/community/niche-news-startups-how-do-you-make-it-work-financially/#comment-1660">Local Yokel Media</a> in the forum show its worth weighing the financial benefits and  drawbacks of different ad networks. You can also find help finding good  writers through companies like the startup freelancer database <a href="../resources/contently/">Contently</a>. Founder <a href="../members/shanesnow/">Shane Snow</a> has tips on <a href="../questions/community/niche-news-startups-how-do-you-make-it-work-financially/#comment-1717">managing business relationships</a> with writers. The experience of <a href="http://www.xconomy.com/">Xconomy</a>’s <a href="../members/bbuderi/">Bob Buderi</a> shows <strong>success with freelancers comes easier <a href="../questions/community/niche-news-startups-how-do-you-make-it-work-financially/#comment-1704">when the relationship is a mutual investment</a>.</strong>

But  in the end,<strong> perhaps the most important partnership is the one you  develop with the community that your news site serves</strong>.  As <a href="../members/mikegreen/">Mike Green</a> proclaimed at the end of the first forum day (and <a href="../members/stevenwaldman/">Steve Waldman</a> endorsed a few days later), “<a href="../questions/community/local-news-startups-how-do-you-make-it-work-financially/#comment-1592">community building is king</a>.” Readers who are emotionally invested in your success seem more likely to support you financially, as <a href="../questions/community/niche-news-startups-how-do-you-make-it-work-financially/#comment-1652">story</a> after <a href="../questions/community/niche-news-startups-how-do-you-make-it-work-financially/#comment-1699">story</a> in the forum revealed.
<h3>Advertising<a href="../questions/community/niche-news-startups-how-do-you-make-it-work-financially/#comment-1642"></a></h3>
<strong><a href="../questions/community/niche-news-startups-how-do-you-make-it-work-financially/#comment-1642">Banners are out</a>, but sponsorships are in.</strong> In the discussion of niche news sites, <a href="../members/bbuderi/">Bob Buderi</a> spells out the financial <a href="../questions/community/niche-news-startups-how-do-you-make-it-work-financially/#comment-1666">benefits of sponsorships</a> for <a href="http://www.xconomy.com/">Xconomy</a>:  a wide range of different packages to offer, long term relationships  that allow time for fine tuning if problems arise, and a more stable source of income than counting click throughs. There is a business and editorial distinction to be made between <a href="../questions/community/niche-news-startups-how-do-you-make-it-work-financially/#comment-1681">sponsored content</a> and sponsors <a href="../questions/community/niche-news-startups-how-do-you-make-it-work-financially/#comment-1697">associating themselves</a> with an independent news site. And a key distinction to understand, <a href="../questions/community/niche-news-startups-how-do-you-make-it-work-financially/#comment-1664">particularly for nonprofits</a>, between underwriting and <a href="../questions/community/niche-news-startups-how-do-you-make-it-work-financially/#comment-1685">advertising</a>.

<a href="../questions/community/niche-news-startups-how-do-you-make-it-work-financially/#comment-1615">Many publishers have had experiences</a> with advertising that leads them to conclude ads could only be part of a more complex revenue portfolio. One publisher, <a href="../members/dianelund-muzikant/">Diane Lund</a> of <a href="http://www.lundreport.org/">The Lund Report</a>, won’t take any advertising, citing the <a href="../questions/community/niche-news-startups-how-do-you-make-it-work-financially/#comment-1689">risk of editorial compromise</a>.  But journalists-turned-business coaches <a href="../questions/community/niche-news-startups-how-do-you-make-it-work-financially/#comment-1714">Joe Michaud</a> and <a href="../questions/community/niche-news-startups-how-do-you-make-it-work-financially/#comment-1719">Rusty Coats</a> thought that may not be a sound editorial or business approach. Many publishers found selling ads were <a href="../questions/community/local-news-startups-how-do-you-make-it-work-financially/#comment-1566">frustratingly not worth the effort</a>. Some publishers whose first love is journalism find it very hard to manage sales.  <a href="../members/dangrech/">Dan Grech</a> put it <a href="../questions/community/local-news-startups-how-do-you-make-it-work-financially/#comment-1497">this way</a>:
<blockquote>
<h4><strong><em>It’s  nearly impossible to make a living solely creating content…The  conundrum is most of us aren’t in the news business to organize events  or sell ads.</em>”</strong></h4>
</blockquote>
<strong>There are ways to learn this cornerstone to financial success.</strong> Publisher <a href="../members/emilylowrey/">Emily Lowrey</a> offers an outline of her <a href="../questions/community/local-news-startups-how-do-you-make-it-work-financially/#comment-1594">sales management program and compensation</a>. Hyperlocal sales rep <a href="../members/andydragt/">Andy Dragt</a> notes <a href="../questions/community/local-news-startups-how-do-you-make-it-work-financially/#comment-1532">sales people need time</a> to ramp up relationships. And <a href="../members/johnpgarrett/">John Garrett</a>, who cut his teeth in newspaper advertising and distribution before starting <a href="http://www.impactnews.com/">Community Impact Newspaper</a>, says <a href="../questions/community/local-news-startups-how-do-you-make-it-work-financially/#comment-1465">passionate journalists can be their products’ best sellers</a>, if they can get over the reluctance to tout what they believe in.
<h3>Non-Ad Revenue</h3>
<strong>The  list of new ways publishers earn income is long and growing</strong>. And as  many publishers know, any revenue source takes time to develop.  Forum  participants offered insights that might shorten the distance from  experiment to expertise

<a href="../questions/community/niche-news-startups-how-do-you-make-it-work-financially/#comment-1638">Consulting</a> is one of the multiple revenue streams <a href="../members/susanmernit/">Susan Mernit</a> at <a href="http://oaklandlocal.com/">Oakland Local</a> has developed.  <a href="../questions/community/niche-news-startups-how-do-you-make-it-work-financially/#comment-1655">Training</a> is another; <a href="http://oaklandlocal.com/">Oakland Local</a> gets grants for training as well as charges directly.  Many publishers  want to sell their content; the lively discussion over this in the forum  reflects <strong>the divergent debate over access to content across the wider  publishing spectrum</strong>.  Will it undercut traffic, as <a href="../questions/community/niche-news-startups-how-do-you-make-it-work-financially/#comment-1614">Bob Buderi asserts</a>? Does <a href="../questions/community/niche-news-startups-how-do-you-make-it-work-financially/#comment-1632">separate, premium content</a> make more financial sense? What <a href="../questions/community/niche-news-startups-how-do-you-make-it-work-financially/#comment-1659">would your audience be</a> for such specialized reports? You might mock up a draft <a href="../questions/community/niche-news-startups-how-do-you-make-it-work-financially/#comment-1668">and try pre-sales</a> as part of your market research.

<strong>Donations are gaining the attention of publishers</strong>. <a href="../members/andrenatta/">Andre Natta</a> incorporated a  <a href="../questions/community/niche-news-startups-how-do-you-make-it-work-financially/#comment-1663">"donate" button</a> right on <a href="http://bhamterminal.com/">The Terminal</a> site, although he has found <a href="../questions/community/niche-news-startups-how-do-you-make-it-work-financially/#comment-1675">a stronger response to t-shirt sales</a>. His read on that? <strong>People like to show off their support.</strong> <a href="../questions/community/niche-news-startups-how-do-you-make-it-work-financially/#comment-1667">Membership</a> models are attracting interest, as are subscriptions. <a href="../members/mikegreen/">Mike Green</a> says you can pull off paid access to content if you have great, unique content to sell. Check out <a href="../questions/community/local-news-startups-how-do-you-make-it-work-financially/#comment-1596">his list</a> for ideas, from Ask the Mayor to daily deals. <strong>As you build each revenue  source, remember you are building relationships</strong>. A key business  practice: Keep track of them! Consultant <a href="../members/rcoats/">Rusty Coats</a> says it is hands down <a href="../questions/community/niche-news-startups-how-do-you-make-it-work-financially/#comment-1662">worth investing</a> time to solidly learn CRM - customer (or community) relationship management.
<blockquote>
<h4><em>There are free CRM tools,” he says. “If you Google “CRM Evaluation Checklist” you’ll get a great headstart.”</em></h4>
</blockquote>
The conversation threads on <a href="../questions/community/local-news-startups-how-do-you-make-it-work-financially/">local</a> and <a href="../questions/community/niche-news-startups-how-do-you-make-it-work-financially/">niche</a> publishing are rich with more pointers, philosophical discussions,  pithy quotes and people to connect with. The most succinct basic  business advice of the forum may have come from <a href="../members/nedberke/">Ned Berke</a>, who recently started a second local news site in New York.
<blockquote>
<h4><em>Only do what you can afford to do,” <a href="../questions/community/local-news-startups-how-do-you-make-it-work-financially/#comment-1515">he says</a>, and only “when you can afford to do it.”</em></h4>
</blockquote>
Berke also makes his colleagues justify buying anything, <a href="../questions/community/local-news-startups-how-do-you-make-it-work-financially/#comment-1549">even a box of paperclips</a>. Folding corners instead just might be Step One to building financial sustainability.

<strong>What's working for you? </strong>We welcome more ideas, or challenges to those you see here. The comment thread, or the forums, remain open for those who may not have weighed in yet to do so. With the rate of iteration and experimentation at an all time high, bringing more ideas forward where others can find them holds great promise to lift all boats. <strong>What's your formula for revenue success?</strong>