Corante

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Dana Dana Blankenhorn has been a business journalist for over 25 years and has covered the online world professionally since 1985. He founded the "Interactive Age Daily" for CMP Media, and has written for the Chicago Tribune, Advertising Age, and dozens of other publications over the years.
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Moore’s Law defines the history of technology. It held that the number of circuits etched on a given piece of silicon could double every 18 months as far as its author, Intel co-founder Gordon Moore, could see. Moore’s Law has spawned constant revolutions since then, not just in computing but in communications, in science, in a host of areas. Moore’s Law applies to radios, and to optical fiber, but there are some areas where it doesn’t apply. In this blog we’ll take a daily look at new implications of Moore’s Law in real time, as it rolls forward to create our future.
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August 17, 2004

More Thoughts On The Blogging Business

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Posted by Dana Blankenhorn

Every day, it seems, I see more and more people trying to use the blogging metaphor to make money. (The image, naturally, comes from business-blog.com.)

The question remains whether blogging will become subsumed into other media (lots of high-tech publishers, like Business 2.0, now have things they call blogs), whether new journalism businesses can be built on blogging, and whether blogging will be an individual or community endeavor.

Following are some Clues to this future:

I am intrigued by Weblogs Inc. On the one hand they have both a business model and a sales staff. They have good ideas on how to build awareness and traffic. They have excellent tools for user feedback. These are things Corante, for instance, doesn't have (yet). But I have some serious problems with their model:


  • There's no credit given writers, and thus no style to the writing.
  • They've got a lot of tech, but is there is a lot more to business media than tech.
  • While they support user feedback, they don't empower users to control their own content as, say, Slashdot does.


Markos Moulitsas (right -- I've previously called him Markos Zuniga, which is my mistake, as he notes here) has an eloquent statement on the idea of empowerment as a business model in his area (politics) here. He notes (correctly) that this isn't about journalism at all, but about empowerment, empowering voters to become political actors or (more generally) empowering readers to become writers. He takes this from former Dean campaign manager Joe Trippi, whose book he was reviewing while writing this.

Here's what I consider his "nut graph":

The question isn't whether the tools work -- we've seen them work (heck, half the book is dedicated to showing how the Dean campaign was built through the netroots) -- but who will take advantage of them. The open source geeks working on Linux (or Scoop) quickly closing the gap, or exceeding, what the commercial outfits can offer. Google, giving everyone a chance to get in on its IPO -- a perk once reserved for the good-ol'-boy network in the financial services industry. It's bloggers and their readers pioneering participatory democracy and participatory journalism.

I think this is a good summary of what's wrong with Weblogsinc, and Business 2.0, and to an extent what's wrong with nearly everyone trying to make businesses out of blogging.

The blogging business model cuts the distance between writer and reader, between participant and audience. The best blogging business models will shrink this distance to nearly nothing. The only difference between blog creators and their audience should be their level of commitment to the task. And the task for those who would build blogging businesses is to find the money necessary from somewhere to justify that commitment.

But where is the money to come from?


  • Advertising is one way to make money, and you need to pay the people who get it as well as the people who commit the content.
  • Speaking can be another route to success, if the blog manager creates a professional speakers' bureau and, again, hires an agent who will represent his or her "talent."
  • Creating a marketplace within the blog is another route, but again you need a professional store manager.

Blogging, like all forms of Web content, is easier to create than to profit from. We're all still finding our way, looking for Clues, the keys to success. Once someone finds that key there's going to be a boom here, one that will mean jobs for many and fortunes for a few.

Whoever that fortunate fortune-hunter turns out to be, I hope he (or she) hires me.

Comments (1) + TrackBacks (0) | Category: Business Models | Consulting | Internet | Investment | Journalism | blogging | online advertising | personal


COMMENTS

1. Perry de Havilland on August 19, 2004 06:05 AM writes...

I have always suspected the notion blogging will lead us into a wonderful future of 'participatory democracy' was one of those ideas which withers away to nothing under closer scrutiny. Sure, we can 'fact check the asses' (as Ken Layne put it) of the established political/media classes but that only makes us bloggers 'participants' in the sense that calling the cops when the party next door is making too much noise makes you are participant' in the next door's party.

But don't worry Dana, if I ever manage to extract riches beyond the dreams of avarice from blogging (and I am trying!), you will be on the short list of people who I will hire to administer the Mighty Blogging Empire :-)

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