Let’s begin with this sobering statistic: nine out of 10 startups that get funded will fail.
Reliable and comparable numbers for news-related startups aren’t available, but it’s a good guess that any journalist thinking of venturing out on his or her own faces huge odds.
Three experts urged attendees at an Online News Association session Thursday to avoid five myths that can derail any news enterprise before it gains traction.
Myth #1: I’ll make money through advertising!
Harry Lin, head of business development for the Internet Movie Database (IMDb), an Amazon subsidiary, said the amount of traffic required for a website to pay the bills through advertising is “ridiculous.” More often than not, he said, startup sites end up running network ads, and after the network and ad agencies take their cuts, the sites are left with 25 cents per 1,000 page views.
“Which is why major media are in big, big trouble,” Lin said. Read more