The S Word
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The S Word. Rusty Coats President, Coats2Coats [email protected]. 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. - PowerPoint PPT Presentation
Transcript of The S Word
The S Word
The S WordRusty CoatsPresident, [email protected] on your foundation grant.
Im sorry it wont last.
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.
This is not a business plan.
South Park, Season 2, Episode 17.Neither is this.
This is a business plan.
So Lets Make Some MoneyIts not as evil as all that.Sources of RevenueAdvertising / UnderwritingLocal Ad NetworksFoundation/Grant FundingMembers / DonorsNational / Remnant AdvertisingEventsBolt-on Products
AdvertisingLocal and neighborhood businesses are part of the community you serveAdvertising is how they get customersDisplay advertisingCPM, CPC, WTFDont be complicated until you need to beSponsorshipsFixed cost, open runSold monthly, quarterly, annuallyText advertising
UnderwritingLike advertising, but differentUnderwriting announcements CANDescribe a businessIdentify services and productsDescribe corporate/company missionInclude company sloganInclude web/physical address, phone, etc.But they CANTUse qualitative language (Award Winning!)Use comparative language (The Best!)Include a call to action (Visit our store!)Include an inducement to buy or sellReference to price or value
Local Ad NetworksLeverages scale of local sites1 sales entity for multiple sitesDistributes the costs and revenueCan include for-profit and non-profitRequires infrastructureShared ad placement/sizeShared ad-serving softwareShared or compatible metricsRequires collaboration and playing nice
Foundation GrantsThere are more than 75,000 foundations in the United StatesAbout 72,000 of them have no staffNational foundations and community foundationsGrant cycles varySome favor multiple trips to the troughMost dontSustainability is the new hotness
Members & DonorsOr, the Telethon modelThe NPR model: A well-oiled machine for foundation and member supportStill, 1:10 listeners are doniorsSpot.Us: Community Funded Journalism, plus booster rocket fuel from Knight and other foundationsGetting money means appealing to community connection, philosophical alignment, human kindness, guilt
National / Remnant AdsMailbox MoneyLow-CPMQuality variesMay drive CPM down locally sold adsWeigh value against costChoose providers wisely
EventsOr, meet-ups that make moneyLeverage your knowledge to teach local business people how to:Leverage social mediaUse modern blogging toolsOrganize using online toolsBe a multimedia journalist, even if all you want to cover is your familyCaveat: This is a LOT of work and the revenue model is shaky
Bolt-On ProductsCouponsSelf-serveAuctionsClassifiedsOther shiny objects
ExamplesSites that do this. Successfully.The BatavianFor-profit site; launched May 1, 2008Two-person operation: Howard Owens and his wife, Billie, plus correspondentsHoward, who has a product/news background, spent two hours a day making sales calls during build phaseActive in local small business communityNow has almost 80 advertisers40 advertisers = survival80 advertisers = sustainability
MyBallard.comSeattle neighborhood blog run by Kate and Corey BergmanLaunched 2007Advertising/sponsorships support the venture.Display and text ads cost $150/monthSold by Kate, who is a journalistThe Bergmans also run News Door Media, offering micro-local news sites in other Seattle areas
TexasTribune.orgFounded 2009$750,000 in private and foundation fundingCorporate sponsors / UnderwritingIndividual donors: $50Investors: $5,000Also runs National Public Media underwriting messages sold centrally for NPR, PBS and other public media sites
HomeworkBecause wishin wont make it happen.Knights 12-step programLaunching a Nonprofit News Site, a guide by Brant Houston and Andy Hallhttp://www.kcnn.org/launching_nonprofit_news_site/Proceed with caution. If you have a job, dont 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
Build your revenue wheel
Sustainability starts todayWhat 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?
The S WordRusty CoatsPresident, [email protected]
