The staff will not be drawing salaries. Instead, writers will earn 75 percent of the revenue brought in through ads sold against their individual pages, while editors will get 10 percent of the revenue drawn from all the pages they oversee and be rewarded with a percentage of equity in the company.Their business model is interesting to me because print and online journalism are currently at a bit of a crossroads. It is apparent to everyone that the internet has drastically changed the way the media reports news. Should journalists be expected to work for free, or do publishers have a responsibility to compensate them for their work? If some do, does that diminish the value of others' work in their field? When a journalist is writing content specifically to generate ad revenue, does that bias their stories? Can and should we expect them to remain objective? To be able to resist sensationalism? There are many possible questions to ask here, and this business model may call into question obvious or expected answers. A few have already been touched on by Chris Anderson's book, Free.
Then came news that Gawker editor Nick Denton announced a new pay scale where bloggers would be paid based on the number of views at a rate of $7.50 for every 1,000 views that posts generate. Felix Salmon, who writes the Market Movers blog over at Portfolio.com, then asked what affect that might have on the quality of posts:The afterelton blog link discusses the problem at length. It's an excellent post.At least two things remain to be seen: whether the new pay scheme will increase the amount of salaciousness at the expense of the sites' broader credibility, and whether the new pay scheme will adequately reward the kind of old-fashioned shoe-leather journalism that Denton wants to encourage at Gawker.
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posted by Navelgazer at 9:42 AM on July 24, 2009