Paying the top DIGG/REDDIT/Flickr/Newsvine users (or "$1,000 a month for doing what you're already doing.")
Quality. That single factor is what determines the winners in our business. Google's search is of higher quality than Yahoo, MSN, and even AOL's. Because of that Google wins. Engadget is of higher quality than Gizmodo and they are ranked first and second place in their space. Similarly, LifeHacker is of better quality than DownSquad today and as a result they are ranked one and two in their space. For background, my friend Nick Denton of Gawker fame owns Gizmodo and LifeHacker, and we (AOL) own Engadget and DownloadSquad. My point here is that in order for us to beat LifeHacker we need to increase our quality, and in order for Gizmodo to ever beat Engadget they need to increase their quality. The only way to do that is an investment of time. Time equals money, so they both need an investment on a cash basis.
Today we have around 200 bloggers on the Weblogs, Inc. payroll. Two years later John Battelle took the idea and extended it in a blog repping business. Om Malik has raised funding and stolen a Red Herring reporter, and even the nascent vlogging space is in full-blown talent war mode. What was foreboden three years ago is commonplace today.
Talented people's time in our society is primarily engaged with money. As a result we are doubling the staff of DownloadSquad and we've increased the rate we are paying our bloggers to $10 a post on that blog (much more for features). As a result I'm sure our traffic will double over the next three months--in fact I will guarantee that it will happen. Money does change everything.
Talent wins, and talent needs to get paid. I love paying talented people so they can sleep well at night doing what they love. That's my biggest joy in business: gettin' people paid.
Before launching the new Netscape I realized that Reddit, NewsVine, Delicious, and DIGG were all driven by a small number of highly-active users. I wrote a blog post about what drives these folks to do an hour to three hours a day of work for these sites which are not paying them for their time. In other words, they are volunteering their services. The response most of these folks gave back to me were that they enjoyed sharing the links they found and that they got satisfaction out of being an "expert" or "leader" in their communities.
Excellent... excellent (say that in a Darth Vadar/Darth Calacanis voice for extra impact).
That is exactly what bloggers told Brian and I three years ago when we started. Given that, I have an offer to the top 50 users on any of the major social news/bookmarking sites:
We will pay you $1,000 a month for your "social bookmarking" rights. Put in at least 150 stories a month and we'll give you $12,000 a year. (note: most of these folks put in 250-400 stories a month, so that 150 baseline is just that--a baseline).
Now, this offer is going to get a big response I know, so we're going to have to limit to a dozen or so folks. However, I'm absolutely convinced that the top 20 people on DIGG, Delicious, Flickr, MySpace, and Reddit are worth $1,000 a month and if we're the first folks to pay them that is fine with me--we will take the risk and the arrows from the folks who think we're corrupting the community process (is there anyone out there who thinks this any more?!).
We're gonna identify this people in our system as "Netscape Navigators," and they will work with our full-time "Netscape Anchors" to build a community. I see a day when we have the eight full-time Anchors working with two dozen Navigators to keep the site fresh and clean (hmm... I think I need a better choice of words here).
The concept of "free" content producers, which I think WIRED called crowdsourcing, is going to be a short-lived joke. A loophole in the content business that will be closed by savvy startups which identify the top 5% of the audience and buy their time.
If we're (DIGG, Delicious, Flickr, Reddit, MySpace, Netscape, etc) are going to make businesses out of this space we should share the wealth.
As we say in Brooklyn: everyone's gotta eat.*
* Note: Everything I know about business I learned in Brooklyn. I learned this one from my father while at his restaurant when I asked him why we didn't just buy our own jukebox and instead split the money with the "goodfella" who brought the machine in, changed the records every month, and split the quarters with us. "Everyone's gotta eat" he told me. It wasn't the last time I would hear that expression, and there are many variations of it that the 'fellas in the neighborhood would use. "Can I get a taste?" or "I need a taste" were two of many variations on the theme. This expression was a the humble--or demanding--way of saying you wanted a cut of the action (money).
Note 2: One of my favorite Knicks of all time, Latrell Sprewell, famously used a variation of this saying by stating that he had a family to feed when turning down a $10M+ deal from the Timberwolves. They wouldn't give him a better deal and he sat out last year--perhaps his final quality year as a basketball player. This is an important lesson for the talent out there: your first offer is usually your best offer. I'm just saying... :-)
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Reader Comments
(Page 1 of 5)2. It's a tempting offer, but it appears the new Netscape has had quite the backlash with the regulars. Having your readers automatically discount your work because you are part of a 'perceived problem' is not attractive to most writers online AND off.
Posted at 7:16PM on Jul 18th 2006 by Corey Spring
3. Jason: good plan. Yeah, it's inevitable that certain segments of the digging community get paid. There must be paid PR people contributing and making "friends" already. And soon paid political operatives will get involved too. It only makes sense that the independents "get a taste".
5. I'm up for it...I might not be in the top 20, but have been getting some front page stories lately. Had one today that has brought in 10,000+ visits so far. My username on digg is
manatee
Posted at 7:50PM on Jul 18th 2006 by James
6. Can I interview you for the "Best Damn Tech Show, Period" to talk about this offer and a chance to clear the new Netscape vs. Old Netscape issue?
Posted at 8:43PM on Jul 18th 2006 by Drew Olanoff
7. @Christian
1 - Get a real domain name. None of this blogspot stuff.
2 - Get Google AdSense... it's free to use for anyone.
3 - Network with blogs such as Nutmeg or Slashfood. If you produce well-written articles and say "please", they might link your stuff.
4 - Follow Jason's "New Publishing Model" http://www.calacanis.com/2006/06/28/the-new-publishing-model-or-on-rafat-om-federated-media-ad/
Posted at 8:59PM on Jul 18th 2006 by Landon Howell
8. While your attempt at hiring the best from your competitors is probably a shrewd business move, wouldn't (assuming this becomes widespread as you suggest) it attract more talent to the "free" content producers rather than cause their downfall? If people start seeing making a name for yourself at a place like digg as a way to land a paying gigg, wouldn't it really change the whole nature of it, rather than killing it off?
9. Hey they are going to have to kill off their e-mail but will start to pay bloggers? What's up with that???
Posted at 11:44PM on Jul 18th 2006 by Jac
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Posted at 12:09AM on Jul 19th 2006 by call2biz.gxs
11. You guys blog post was initially horribly misunderstood by more than just a few people...
See digg comments...
http://digg.com/tech_news/Weblogs_wants_to_pay_the_top_Diggers_$1000_month
Now... I'd be willing to bet you guys are going to find at least a few people willing to do it, but I guarantee they won't be the most proactive posters. There's a reason why they post: they love digg. Trying to take their allegiance away over to a company that already failed with a major web browser isn't that likely.
Keep checking myspace... It's your best bet.
12. Thanks, Landon. I've already made some progress on step 1.
Posted at 12:39AM on Jul 19th 2006 by Christian
13. Don't forget your real core content producers: attractive teen girls on YouTube. They're gonna make bloggers seem like... well, bloggers. But honestly, the page views on these things are amazing. More on my blog.
Posted at 12:49AM on Jul 19th 2006 by Pete Nicely
14. Makes sense to me! Those of us who are "passionate professionals" (that's the word at CambrianHouse) or "principled practitioners" (this phrase has an older bloodline) do what we do despite the heavy sledding. (I'd point out how http://gnodal.livejournal.com is just the LiveJournal-enabled version of what I've been doing for over a decade.)
Now, if there could be remunaration for folk who do hundreds of bug reports as unofficial beta-testers year after year!
:-)
regards
Posted at 1:04AM on Jul 19th 2006 by Bernard D. Tremblay (ben)
16. Jason, realize that you are now paying "top" posters to come to your site. That in itself is an admission of an inferior product. The only way people will come - for free - is if the "new" Netscape was cool - like digg, reddit, newsvine. But the only way to make Netscape cool is to not be Netscape.
So go ahead, pay for your content. It's a Web 1.0 of attracting an audience.
Posted at 3:14AM on Jul 19th 2006 by Arjun
17. Is there a non-compete clause and if there is how will you enfore that?
Posted at 4:31AM on Jul 19th 2006 by Dean Lowe
18. The top posters on Digg are most likely on the payroll already, as in all these social-sites....the only positive posts you've gotten these past few days came from AOL employees. LOL
Posted at 4:58AM on Jul 19th 2006 by paul
19. But if you pay the top-posters, doesn't this essentially just turn into another "news site" and these posters are essentially "reporters"?
digg.com has that phenomenon too albeit by accident. Further to this, it is also just following the Pareto Principle (80/20 rule) which happens naturally in many scenarios.
Roj
Posted at 5:08AM on Jul 19th 2006 by Roj Niyogi
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1. Hmm, I might be open to it.
BTW, if anybody can tell me how to make money legitimately with my restaurant review blog please let me know.
Posted at 5:49PM on Jul 18th 2006 by Christian