Rusty Coats President, Coats2Coats

Money coming in must exceed money going out. Money coming in must exceed money going out. You are not a blogger. You are not a blogger. You are a small business owner. You are a small business owner. Or you are the caretaker of a small local nonprofit. Or you are the caretaker of a small local nonprofit. You should act that way. You should act that way. That means building a business plan. That means building a business plan.

“South Park,” Season 2, Episode 17.

It’s not as evil as all that.

Advertising / Underwriting Advertising / Underwriting Local Ad Networks Local Ad Networks Foundation/Grant Funding Foundation/Grant Funding Members / Donors Members / Donors National / Remnant Advertising National / Remnant Advertising Events Events Bolt-on Products Bolt-on Products

Local and neighborhood businesses are part of the community you serve Local and neighborhood businesses are part of the community you serve Advertising is how they get customers Advertising is how they get customers Display advertising Display advertising CPM, CPC, WTF CPM, CPC, WTF Don’t be complicated until you need to be Don’t be complicated until you need to be Sponsorships Sponsorships Fixed cost, open run Fixed cost, open run Sold monthly, quarterly, annually Sold monthly, quarterly, annually Text advertising Text advertising

Like advertising, but different Like advertising, but different Underwriting announcements CAN Underwriting announcements CAN Describe a business Describe a business Identify services and products Identify services and products Describe corporate/company mission Describe corporate/company mission Include company slogan Include company slogan Include web/physical address, phone, etc. Include web/physical address, phone, etc. But they CAN’T But they CAN’T Use qualitative language (“Award Winning!”) Use qualitative language (“Award Winning!”) Use comparative language (“The Best!”) Use comparative language (“The Best!”) Include a call to action (“Visit our store!”) Include a call to action (“Visit our store!”) Include an inducement to buy or sell Include an inducement to buy or sell Reference to price or value Reference to price or value

Leverages scale of local sites Leverages scale of local sites 1 sales entity for multiple sites 1 sales entity for multiple sites Distributes the costs and revenue Distributes the costs and revenue Can include for-profit and non-profit Can include for-profit and non-profit Requires infrastructure Requires infrastructure Shared ad placement/size Shared ad placement/size Shared ad-serving software Shared ad-serving software Shared or compatible metrics Shared or compatible metrics Requires collaboration and playing nice Requires collaboration and playing nice

There are more than 75,000 foundations in the United States There are more than 75,000 foundations in the United States About 72,000 of them have no staff About 72,000 of them have no staff National foundations and community foundations National foundations and community foundations Grant cycles vary Grant cycles vary Some favor multiple trips to the trough Some favor multiple trips to the trough Most don’t Most don’t “Sustainability” is the new hotness “Sustainability” is the new hotness

Or, the Telethon model Or, the Telethon model The NPR model: A well-oiled machine for foundation and member support The NPR model: A well-oiled machine for foundation and member support Still, 1:10 listeners are doniors Still, 1:10 listeners are doniors Spot.Us: Community Funded Journalism, plus booster rocket fuel from Knight and other foundations Spot.Us: Community Funded Journalism, plus booster rocket fuel from Knight and other foundations Getting money means appealing to community connection, philosophical alignment, human kindness, guilt Getting money means appealing to community connection, philosophical alignment, human kindness, guilt

“Mailbox Money” “Mailbox Money” Low-CPM Low-CPM Quality varies Quality varies May drive CPM down locally sold ads May drive CPM down locally sold ads Weigh value against cost Weigh value against cost Choose providers wisely Choose providers wisely

Or, meet-ups that make money Or, meet-ups that make money Leverage your knowledge to teach local business people how to: Leverage your knowledge to teach local business people how to: Leverage social media Leverage social media Use modern blogging tools Use modern blogging tools Organize using online tools Organize using online tools Be a multimedia journalist, even if all you want to cover is your family Be a multimedia journalist, even if all you want to cover is your family Caveat: This is a LOT of work and the revenue model is shaky Caveat: This is a LOT of work and the revenue model is shaky

Coupons Coupons Self-serve Self-serve Auctions Auctions Classifieds Classifieds Other shiny objects Other shiny objects

Sites that do this. Successfully.

For-profit site; launched May 1, 2008 For-profit site; launched May 1, 2008 Two-person operation: Howard Owens and his wife, Billie, plus correspondents Two-person operation: Howard Owens and his wife, Billie, plus correspondents Howard, who has a product/news background, spent two hours a day making sales calls during build phase Howard, who has a product/news background, spent two hours a day making sales calls during build phase Active in local small business community Active in local small business community Now has almost 80 advertisers Now has almost 80 advertisers 40 advertisers = survival 40 advertisers = survival 80 advertisers = sustainability 80 advertisers = sustainability

Seattle neighborhood blog run by Kate and Corey Bergman Seattle neighborhood blog run by Kate and Corey Bergman Launched 2007 Launched 2007 Advertising/sponsorships support the venture. Advertising/sponsorships support the venture. Display and text ads cost $150/month Display and text ads cost $150/month Sold by Kate, who is a journalist Sold by Kate, who is a journalist The Bergmans also run News Door Media, offering micro-local news sites in other Seattle areas The Bergmans also run News Door Media, offering micro-local news sites in other Seattle areas

Founded 2009 Founded 2009 $750,000 in private and foundation funding $750,000 in private and foundation funding Corporate sponsors / Underwriting Corporate sponsors / Underwriting Individual donors: $50 Individual donors: $50 Investors: $5,000 Investors: $5,000 Also runs National Public Media underwriting messages sold centrally for NPR, PBS and other public media sites Also runs National Public Media underwriting messages sold centrally for NPR, PBS and other public media sites

Because wishin’ won’t make it happen.

“Launching a Nonprofit News Site,” a guide by Brant Houston and Andy Hall “Launching a Nonprofit News Site,” a guide by Brant Houston and Andy Hall “…Proceed with caution. If you have a job, don’t quit it until a solid framework is in place for your new organization.” “…Proceed with caution. If you have a job, don’t 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 Modules include: Determining your structure, building your board, filing documents to create your organization, and, of course, bringing in revenue

What pieces of the revenue pie are right for your site? What pieces of the revenue pie are right for your site? What existing, sustainable site can be a mentor site to yours? What existing, sustainable site can be a mentor site to yours? What is your path for growth? What is your path for growth? What resources are available? What resources are available? Who can you partner with? Who can you partner with? What are you waiting for? What are you waiting for?

Rusty Coats President, Coats2Coats