I wrote a couple weeks ago of my desire to start a new, online-only news organization covering Toronto and the GTA. One that is nimble and debt-free.
Debt-free? How can this be done?
This is a response to Rohan Jayasekera, who commented on that post.
You’d pay your journalists (”for money”)? So much for the low costs you claimed. Unless you won’t pay them enough to live on, in which case you’ll be in the same territory as Torontoist and blogTO
But I think it can be done, even if only in theory.
Can we develop a news organization that can cover a metropolitan area, not just adequately, but exceptionally well, without borrowing any money?
Possibly, if we follow these five principles:
1. Online-only
Distributing news on the web is next to free. Making the organization online-only frees us from having a circulation department and a production department. Instead we just have a web department, which will build everything we need out of free, open source building blocks.
2. The distributed newsroom
Everyone can work from home, on their own phones and computers. This eliminates the need for a building, an office management team, and an IT department. We can all collaborate on gMail and Google Docs and other free office collaboration software.
Reporters can work their own hours, deciding how best to efficiently use their time to meet quotas.
3. Commission-only salespeople
Any news organization needs skilled, trained salespeople to sell advertising. We pay good commissions and pay for performance. Sales managers too. This eliminates the need to bankroll wages for the sales department.
4. Internology
Borrowing a term from Rob Curley, we use internology to fill databases, correct business listings, and gather news. Every professional reporter gets teamed up with at least one intern, and they use them how they wish: to get quotes, attend meetings, copy edit, whatever the case may be.
Maybe they work a bit like Extreme Programmers, i.e. work in pairs, publish early and often.
This reduces the payroll requirement for professional news staff and increases our ability to cover the Metro area thoroughly. It also contributes to the future of journalism, as we train people to work as journalists one-on-one with professionals.
5. Sweat Equity
How do we pay the people we cannot do without? This gets to the nut of Rohan’s objection. And the only way I can think of to do it is via sweat equity. Reporters, editors, web developers and other essential staff work for some period of time – a year, say – in exchange for shares in the company.
After a year, the company issues shares accordingly, and the company’s profits are meted out in the form of dividends, and we move to a more traditional compensation scheme.
I should add that a sixth pillar has been proposed. After I tweeted these five pillars yesterday, Vaughan Citizen editor Kim Champion tweeted back:
Don’t forget the sixth … mythology.
Fair enough. I realize this is fairly pie-in-the-sky. But what are the actual arguments against? How can we make something like this work? I’d love to hear from you in the comments.