An unattributed quote floated around the Twitterverse two weeks ago that went something like this: Those who don’t pay to read the news are not consumers. They’re the product being sold.
ZING! It hurt like hell, but it was the truth. When news audiences receive free content, they no longer count as customers. They’re not dropping coin to keep the lights on or the servers running. They don’t pay for writers’ salaries. And even if they contribute “emotional” value to a news outlet through reader comments, that value doesn’t do jack for a business if it doesn’t translate into dollars and cents.
In my previous attempt at hyperlocal news, I placed the audience’s satisfaction ahead of business development. It was a colossal mistake. Readers loved my frank restaurant reviews as much as restaurant owners hated them, and that meant an enormous loss of potential advertising revenue from the neighborhood’s largest industry.
This time, I hope to develop my audience and customer base simultaneously without jeopardizing the quality of my publication’s content. Here’s how:
Extend services unrelated to my publication to residents and the business community. One of the revenue streams I plan to pursue is group-discount brokering (the Groupon model). To make it work, I need a mailing list of prospective shoppers (an audience) and business customers willing to offer these shoppers a discount. To build this mailing list, I plan to attend local meet-ups to learn what residents want or need from their community, and to gently introduce the idea of group discounts. Call it market research.
That information becomes leverage when approaching business customers for group discounts. It also brings together an otherwise non-paying audience with paying customers, without selling out a news outlet’s integrity.
Build my publication’s audience slooooooowly. Since setting up a beta site earlier this month, I’ve posted only two stories. But I’ve used Twitter to publicize my organization as a news source, mostly by retweeting neighborhood-specific stories from larger news outlets and by posting photos. So far, I have 13 followers, and that’s fine with me.
This modest following allows me to test different things, from writing style and voice, to website design. The publication’s slow, deliberate development also gives me the opportunity to educate customers (in this case, advertisers) on how my business operates, not as a quick hustle but as the next evolutionary step in advertising.
Those are my first two steps in building the business, though I should keep a few spare ideas in my pocket should neither of these approaches work.
Photo courtesy of Flickr user chillhiro.


