Tom Davidson

My friends at the Online News Association put together a terrific program at the University of Alabama-Birmingham for entrepreneurial journalists and others interested in starting news and information sites. (Thanks to the Gannett Foundation for the necessary financial support.) 

I spoke a bit about emerging business models to support these kinds of sites (and – plug warning – the work of my partners at GrowthSpur).

You should search on Twitter for the #ONAUAB hash for some of the fascinating discussions that grew out of the sessions. Less fascinating, perhaps, was my presentation – but for those who asked for it, it’s here.

(Why, yes – I used Prezi. My friend Tim Windsor snarks that Prezi screams 2009 the same way a Yamaha DX7 synthesizer screams 1983. But, hey, I liked a-ha.)

Also: Here’s Robert Hernandez’s excellent presentation on how journalists can use social media tools (both to build audience, and to be better reporters).

And @DannySanchez’s informative riff on free tools doesn’t have a perfect online analog – but he writes about nearly all of those tools (and even more) on his blog, Journalistopia.com.

I’ve been preparing a presentation to the terrific News Entrepreneur Boot Camp at the Knight Digital Media Center next week. I’m part of a panel of folks who have transitioned from the newsroom to business-side roles.

As part of the prep work, I’ve re-read a hefty stack of posts about emerging revenue models for news – advertising-supported for-profits, L3Cs, non-profit structures, even the wishful-thinking paid-content model.

Running through many of the pieces was an irksome thread: A focus on single solutions. Most framed the discussion in terms of “what’s the source of revenue,” as if there were a magic bullet that can solve every operation’s money woes.

There isn’t, of course. What’s more important, though, is there never has been. In times like these, naiveté isn’t charming – and for entrepreneurial journalists, it can be downright dangerous.

No successful news media organization has ever relied solely on a single source of revenue. In fact, the most successful industry segments – newspapers, magazines and broadcast stations – have long had many revenue sources, almost too many to list.

There’s more elaboration – and a rough list of the different sources — in this deck.

Key takeaways:

-  Don’t think too broadly. Even something as seemingly straightforward as “advertising” isn’t a single source of revenue. There are myriad advertising products – each with distinct strengths and weaknesses, sets of customers and sales models.

- As you plan the revenue models for your own proto-business (that’s what start-up journalism sites are, folks), copy the best of traditional organizations. Find multiple streams of revenue.

(Lest this come off as too scolding: I think it’s fantastic to see journalists actually interested in this sort of question. For decades, most of us acted as if the money that powered our organizations was created by magic. Worse, some assumed that it was the result of their brilliant journalism. For a welcome example of incisive, if tardy, analysis, see James Fallows’ terrific Atlantic piece on Google and the news industry.)

Eleven years ago, I caught the break of my life: I got a one-year Knight Fellowship at Stanford. (I still find it so shocking that I rarely mention it. Friends say it usually takes at least 18 seconds before I bring it up in conversation.)

I’m unabashed about how grateful I am to the program – whatever I’ve achieved in the past 10 years of my career is due solely to what I learned on that fellowship.  Jim Bettinger and Dawn Garcia are to be commended for dramatically shifting the program’s focus to address the radical changes facing our industry.

Until two years ago, the program operated much like the Nieman Fellowships at Harvard, or the Knight-Wallace program at Michigan: Pitch us an idea that will make you a better journalist. It might be Internet economics (my topic); it might be studying the narrative form of American musical theater.

Stanford has unique qualities, however – it’s a world-class university in the heart of Silicon Valley, a place that has consistently spawned great companies.  Now the Knight program asks applicants to submit ideas that “focus on innovation, entrepreneurship and leadership to foster high quality journalism during a time of profound transformation.”

For several years, I’ve gotten to peek at the stack of ideas as one of several former fellows who help the program staff screen applications (nearly 150 U.S. applications for the 2010-11 class). We completed that initial screening last week. There’s still a lengthy process of interviews and review by the program committee before next year’s fellows are announced in April.

Still, there are several useful lessons in this year’s stack, applicable not only to future Knights, but to anyone who aspires to entrepreneurial journalism. (All opinions are my own, of course, not those of the program.):

What was great:

•  A “just do it” attitude: Personally, I loved the people whose proposals (and, usually, their current work) showed a bias to action. They launch stuff knowing it isn’t perfect, then adjust based on the audience reaction. That’s a far cry from the attitude most of us developed in the days of monopoly outlets. (I remember an editor screaming at us we should never experiment on our readers. Sounds reasonable – but in practice, it meants we never tried anything new.) A thousand start-ups are experimenting out there – and an axiom of the startup world is that with enough experiments, someone will figure out what works.
• Awareness of the trends in technology. You don’t need to be a technologist to get a fellowship – but it sure helps to know broad trends in technology, especially as they affect journalism.  The best applicants understood that cheap tech gives anyone the ability to publish; and that it’s getting easier by the day to organize and display vast pools of raw data.
• It’s not just about the World Wide Web anymore. (Doesn’t the very phrase “World Wide Web” sound archaic?) Several applicants noted that publishers need to deliver information when, where and how consumers want it – and increasingly, that means mobile devices. The best name-checked the iPad specifically.
• Recognition that Stanford is a candy store of knowledge. The best went out of their way to discover the particular professors, classes and research going on at Stanford related to the applicant’s idea. (Hint: If you’re thinking of applying for a fellowship anywhere in the future, write that one down.)

What wasn’t so great:

• Applicants who focused their proposals on “saving newspapers as we know them,” rather than saving journalism. There’s a difference.
• Those who acted as if the fellowship is a lifetime achievement award: “I’ve done this and this and this – so someone somewhere owes me a sabbatical.”
• A corollary: “I need a year off to learn all this new, foreign digital stuff.” Stanford is a marvelous place to learn about the interplay of technology and storytelling – but basic knowledge can be acquired anywhere. Start with the people on the digital side of your current or former shop.  And don’t make the mistake of implying that they’re not journalists because they sometimes hold different opinions than you. (Someone did that in a fellowship application a year ago. Guess what? They didn’t get a fellowship.)
• “At the end of the year, I’ll have produced a report.” To steal a line from my former colleague Chris Krewson: The future of journalism isn’t going to be invented at a conference. Studies are helpful, of course – but only when they lead to actual publications that can be tested in the marketplace.

Best of luck to the Knight class of 2011. I’m insanely jealous of you all.

Publlishing hyperlocal information? Getting some grant money for it now from a local foundation? Or running a local foundation that’s interested in doing more to improve the flow of information, especially as traditional media suffer 1,000 cuts?

Here’s a chance to double down – and also gain access to significant training, guidance and knowledge.

The Knight Foundation, which is probably doing more to help journalism through this tumultuous period than any traditional media company, is coming up on the deadline for another round of its Knight Community Information Challenge. Note that this program is separate from the Knight News Challenge, which is about funding innovative ideas.

The FAQs are make clear the requirements. An added benefit (besides the dough): Registration is still open for the introductory Media Learning Seminar in Miami March 1-2. (If you go, and have never seen Amy Webb do her thing: Try not to let your jaw hurt anyone on its way to the floor.)

Moreover, there’s a chance to get answers to any questions you have about the program. The fine folks at the Knight Digital Media Center at USC and Cal-Berkeley are hosting a web-based Q&A on Feb. 26.

Journopreneurs: This can be a terrific start to your hyperlocal site – if you can partner quickly with a community foundation willing to match any Knight Foundation funds. But before you get all giddy, think about sustainability! If you get this money, what are you going to do make sure you can generate real money at the end of the grant? (Hint: “Apply for another grant” is not an acceptable answer.)

Dave Morgan

I’ve written before about how Moore’s Law  and its corrolaries in the software world inexorably make web tech cheaper and simpler by the year. But don’t take my word for it. A comment and a software release last week make the point better than I can.

Serial entrepreneur Dave Morgan dropped an offhand comment during his talk at the Borrell Local Online Advertising Conference  in New York last week.

His first startup, Real Media, needed tens of millions in capital when it was started in 1995 just to cover technology costs.  His next, Tacoda Systems, needed single-digit millions to get launched in 2001.

His latest, Simulmedia, founded last year? About a million.

There’s a lesson in there for journalist/entrepreneurs – and it isn’t that you need a million bucks to do something.

“The cost of  building out a massive data storage capacity for ad targeting has dropped enormously because of much cheaper, much more powerful hardware, cheap data centers, open source software (Hadoop & MySQL) v. classic DB (Oracle, etc.),” Dave wrote in a follow-up email.

Moore’s Law in action: The cost of a major tech startup has dropped by almost 100x in 15 years.

 (For those of you who don’t follow ad-tech startups as closely as the Mets, a couple bits of data: Real Media merged with a couple others to form 24/7 Real Media, which was eventually bought by ad-agency conglomerate WPP for $649 million. Tacoda was bought by AOL for $275 million. Dave knows how to make this stuff work.)

Let’s take those forces out of the realm of VC-backed startups, and instead look at the world of independent journalism sites. Their technology needs are merely a fraction of massive advertising analysis companies – and so are the start-up costs.

The radical downward trend of those startup costs follows the same downward spiral, however. A few years ago, you needed a million bucks to get solid, automated content management. Today? Close to free.

I’m an unabashed fan of the blog platform WordPress, and of the easily customized themes produced by many different developers. Even a year ago, getting WordPress to do what you wanted it often required some code tweaks – simpler than building from scratch, but still not for the uninitiated.

Now? One of my favorite development houses, WooThemes, launched a highly customizable theme, appropriately named Canvas, this week. Want to change your site’s look and feel, dramatically? Punch size and color changes into simple menus. Beats opening the underlying PHP code.

One more reason journopreneurs should stop pondering and just launch. So a question, and a challenge, for those still pondering:

What’s stopping you?

The gang at GrowthSpur, of which I proudly call myself a member, is having another of its introductory sessions for hyperlocal and niche site operators.

We think journopreneurs – and people who just want to operate great local sites, whether or not they claim the “j” word – are one of the key parts of the emerging local information landscape. If you’re interested, drop a note to Mark Potts or to me.

It happened again: I heard a tale of a laid-off journalist who spotted an unmet need – a community that was no longer being covered the way it should be. So she decided to launch a neighborhood blog. Terrific!

Then came the thud: She’s already hired someone to take care of all the technology and design. For only $5,000. And she’s thinking like a businessperson – she bargained him down to that.

I joked about this a little the other day. But, really, it’s not funny.

Journopreneurs have a tough enough time doing all the things they need to do to launch a site, and figure out how to make a living at it. I want to scream when I see people so intimidated by Technology (cue dread-inspiring music) that they blow cash they could use on freelancers, marketing and another month’s mortgage payment.

I don’t blame the design and tech shops – they have a tough life, too. But if you want to be a hyperlocal or niche-site operator, learn the about technology. You don’t have to write code (God knows I don’t) – but you at least need to understand enough to know you don’t spend $5,000 on something you could easily do for $500.

I offer some-more practical advice – not just more harrumphing – over on the GrowthSpur blog. (Fair warning: There’s a pitch in there for GrowthSpur’s partnership services.)

A self-deprecating aside from long ago: When I first ran a semi-big local website, sophisticated content-management systems were just becoming available. Big chunks of the site were programmed by hand, using HTML code written by producers.

Those hand-coded pages were then shipped off to our distant web server by a direct-transfer process known as FTP. To make life easier, we kept a spare computer forever linked to the server – when a producer had something to load, they’d just hop over to that empty desk, slap their file into the computer via a floppy (kids: ask your parents) and voila! Done.

Of course, an always-live connection to the server, in the wrong hands, was a guaranteed way to crash the site. And mine were the wrong hands. Don’t get me wrong: I had a lot of skills in journalism, management and business. But I had (and still have) horrible skills at coding.

How horrible? The site’s very good executive producer quietly passed the word: If I ever sat down at that live computer, someone was to run over there and slyly, but quickly, get the keyboard out of my hands.

I tell this story to make a simple point: You do not need to write code to run a website. In 2000, I needed a great staff of producers; today, all you need are some free tools. Another post of mine on the GrowthSpur blog has some basics about that.

If you’re serious about being a journopreneur, you need to be able to do this. It isn’t hard.

This blog, for instance? Launched it in the course of a weekend. Costs $9 a month for hosting (only because the $6 a month host I had previously was too dodgy for my liking).

The basic design is a free (the favorite word of any journopreneur) theme for WordPress called Bueno, from the fantastic folks at WooThemes. (Full disclosure: I did buy $70 worth of themes from them for some other sites, including my wife’s – and their free forum support was so great I tossed a few bucks at the founder’s favorite charity.)

Oh – and every bit of work on this site was done by that guy who wasn’t allowed to touch the live keyboard at a big website. Heh.