This is from StartUp Journal
Community Web sites started showing up a few years ago, often as a labor of love by some Web-savvy local resident. Now, many of these sites are trying to become actual businesses, complete with the sort of profits that can make them self-sustaining.
The fact that a few of them are managing to attract advertisers shows they are taking the first fledgling steps down that path. Alas, the particular economic circumstances behind these ads demonstrate just how long that journey may be.
Community sites operate much like a traditional community newspaper would, though all of them take advantage of newfangled, Web-based tools, such as allowing readers to submit digital photos or blog posts.
The obvious way to pay for all this is with advertising. But while advertising is moving online quickly, you need lots of eyeballs to charge lots of money. That is something smaller sites, by definition, struggle with. A New York financier familiar with the terrain says a site serving a community of 30,000 could, based on current Web advertising rates, expect monthly revenue of less than $4,000.
The obvious way to pay for all this is with advertising. But while advertising is moving online quickly, you need lots of eyeballs to charge lots of money. That is something smaller sites, by definition, struggle with. A New York financier familiar with the terrain says a site serving a community of 30,000 could, based on current Web advertising rates, expect monthly revenue of less than $4,000.
$4,000 per month for a one person, home-based operation wouldn’t be too bad - possibly. That depends on the hours and overhead. Beyond one person and you see the problems involved.
Other portal systems like Scoop Network have a higher profitablity rate because local entrepreneurs use sweat equity and grassroots marketing strategies to keep the money in their pocket. The sell purely advertising and do not try to mimic newspapers by generating content.
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