Monetizing Online Journalism

Another Ambitious New Idea

Websites pay their bills using a combination of:

* Advertising
* Paywall / subscription
* Self-promotion
* Fundraising

But what if there was a better way?

What if getting visitors to pay not dollars, but pennies, was the answer?

I know, it doesn't sound promising, but hear me out:

-- Many people see a penny on the street and leave it lay
-- Which suggests that, perhaps, many people paying puny amounts, and not a few paying a lot, is the way to go
-- Especially so, if the reader experience doesn't end with reading, but involves commenting, and writing as well
-- So, here goes with an imaginary site that posts short pieces by in-house bloggers, as well as a steady flow of outside submitters:

A. Three Most Popular Comments
-- Site hires the three most popular commenters every day--as judged by the site's readers; these writers not only receive a one-post commission, but with each commission, gradually accrues increased pay and length of hire

B. Best Comment
-- Every day, site hires a 'best' commenter--in the site's opinion--with a commission to write about anything

C. Voice of the People
-- Each week, site pays a random visitor a 50%-of-weekly-proceeds commission to write about anything

All this assumes website visitors paying ten cents each per article clicked.  If the site starts big, with enough promotion to draw in a hundred thousand visitors a day, that's $20,000 per day, assuming an average of 2 articles per visit, less about two thirds of that in commissions, so a budget of around $2.4 million a year ($6,600 x 360), which would pay for regular writers and overhead.

The initial registration process would involve the usual credit card information exchange.  And each click on a thumbnail article summation would say "cost: 10 cents".  The Voice of the People commision, backed by 50% of weekly revenue, would thus pay $93,800, perhaps enough of an incentive to toss in a few dimes every few days.  The four daily commissions, meanwhile, would pay an average of $800 each, about right for aspiring writers.

Big picture, if this system is used for not just online content, like journalism, but other media as well (imagine paying a few cents to watch an ad-free TV program) this would be a way to gradually end the tyranny of advertising, something that has thoroughly infiltrated our culture.

Nay-saying:
-- Is it legal to pay a "commission" at random, when this is only a few steps removed from gambling (an up-front fee and a chance to win)?  Answer: Perhaps, if the site is organized as a non-profit.  If it's legal, how would the process be verified?  A: In general, the internet can generate a random number, which can then be compared to a list of visitor 10-cent purchases, with everything done transparently, or through an independent authority.  If a "commission" is not legal, could legislation to that end pass?  One would think so.
-- Is one hundred thousand visitors a day too optimistic for a Voice of the People payout of $90,000 each week?  A: The amount would vary, and the higher the amount, the more likely the site's success; thus, the promotion at launch.
-- Would an average visitor decide to register, and then toss in an average two dimes?  A: Would-be writers might guarantee several thousand visitors a day.  And once registered, there would, of course, be no need to do so again.  Beyond that, only an expert in online traffic would have a clear idea as to likelihood.
-- Is 10 cents too much?  The end of the penny is near, since it costs more to mint than it's worth.  The nickel is next.  The dime seems safe.