New media business models: How to make $2K on $5m in revenues

New media business models: How to make $2K on $5m in revenues

Summary: Business Insider revealed its finances...the stark reality of the digital media business model.


Business Insider, the popular news site founded by former Wall Street analyst Henry Blodget, this week revealed its finances.

We only did only $5 million of revenue last year ($4.8 million, to be precise, of which most came from advertising). And, yes, $5 million of revenue is pretty puny in general. It's less than a single big network news anchor gets paid in a single year, for example.

But $5 million of revenue is a lot more revenue than we did three years ago ($39,495)...

And did I mention that we were also profitable last year?


Not WILDLY profitable, mind you. In fact, the sum total of our year's worth of effort would barely--just barely--buy us a MacBook Pro: We made $2,127 in 2010.

Business Insider has nearly 8 million readers per month, which means that each reader is worth just 62 cents per year in revenues. And to get all those readers Business Insider has to run a lot of erotic content that has nothing to do with business, such as "Carnival: Photos of carnivals in Brazil, Italy, Germany."

This is the economic reality of today's online media businesses and it is the reason why old media is in the state it is today and can't transition its business model to the new.

My favorite Yankee saying, "You can't get there from here," perfectly describes the situation facing old media.

Here is a Pearltree on New Media Business Models:

Topics: Banking, Enterprise Software

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  • not a great business...

    ... in that sense, still it feeds a few people. i think henry and dan and the rest get a healthy salary. <br><br>now in related new, could zdnet please reveal their numbers. THAT would be interesting ...
    banned from zdnet
  • That is why you need paywalls ...

    ... and highly differentiated user experiences. Also HTML5 is HTML / the browser, and trying to make money on this platform, where most everyone expect things to be free, is largely a waste of time. In fact I think IP on just about all commercially oriented web sites would be better monetized with paywalls and proprietary apps. This includes IP on Yahoo!, MS online properties, Facebook, etc.

    MS in particular, sends a really bad signal to its developer community and the world, when the vast majority of its software is found on the web, instead of its own proprietary platforms, in the form of highly engaging apps. It would benefit MS in many ways to make its services available through an app (similar to what Apple does with its iTunes client). MS would make more money from its online properties; its developer community would have more confidence its platforms over the web; the investor community would have more confidence in the company because of its platforms; and MS would attract more content business to its platforms.

    The web is not a place for making money without a paywall for the overwhelming majority of businesses, and it would behoove most companies to transition to highly differentiated apps with paywalls, in order to do so.
    P. Douglas
  • Don't use those &quot;pearltrees&quot; again...

    I checked out that "pearltrees" link, it was insanely confusing. Just provide a list of links to related articles next time.

    Justin James
  • RE:New media business models: How to make $2K on $5m in revenues

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