Originally Posted by beej67
Most of your post is condescending and rude so I'm not going to bother with it, but the thing about profit margins is very important to understand.
In a perfectly transparent free market, whoever sells the same product for the least cost gets 100% of the market share. If you don't understand that, then you need to just stop while you're behind. If you're selling oranges for a dollar and I'm selling them for a nickel, 100% of people buy oranges from me, 0% from you. Unless your oranges are different from my oranges.
Apply the internet to airline fares. Pre internet? $300 to buy a plane ticket. After Expedia.com? $69, and anyone who can't sell tickets for $69 goes out of business. Why? Because nobody goes to a travel agent anymore, they buy their tickets direct, and they shop for them with a few clicks. Travel agents were merely obscuring the marketplace. They were an additional barrier between the product and the consumer.
The first big tech bubble was all about people misunderstanding this concept. They threw all this money into online product delivery thinking it'd be the wave of the future, and it was, but for much slimmer margins than before, because any website can sell at the same cost as any other website can, so the profits are competed down to near zero. Margins. Internet. Welcome to it.
So the net result is we all get airline tickets for $69 and half the air carriers go bust. The same story is played out in every sector to one degree or another. Print media especially.
What is print media? Well traditionally, it's just a bunch of crap used to convey some information from point A, the origin, to point B, the consumer. Information could be news (newspaper) or entertainment (novels, comic books) or nudie pictures. But the nitwits at the head of the print media organizations thought people bought their magazines for the color paper they used, and the layout they presented. Hell no, they just wanted the information. (news/entertainment/porno)
So the internet is this fantastic way to transfer information without all the crap. It takes words out of the author's mouth and puts them in front of the eyeballs of the end user without having to murder a billion trees and squeeze them into paper and print them on giant presses and deliver them with trucks and planes and bicycles to the end user. It's pointless crap if you can get the information directly.
So 95% of the people complaining about their old media dying out are the folks in the industry who's jobs depended on the pointless crap. I've got one word for them: Cope. Long ago there was some honest businessman who made buggy whips, and when the car was invented he went out of business. He coped. Learn from his example. The other 5% complaining are the originators of the useful information, that we like to read. Their task, in this brave new world of free information distribution, is to make their money through new means. The new means come in two flavors, that I've seen:
1) Run their own website themselves, with banner ads or google ads,
2) Accept money for touring / speaking
The music industry is heavily in the throes of this transition right now, because all the end users have realized that they can get the music for free, and the artists have realized that they didn't make squat compared to what the labels made for distribution in the first place. Smart musicians are dumping their labels and becoming their own distributor, for much lower rates, and people are buying their product, cutting out the music industry's version of the 'crap.' Dumb musicians are still hitched to a label crying about making less money now.
New world, welcome to it. You've got two options, adapt or die, and I don't really care which one you pick. They can etch "refused to adapt and made everyone around him miserable for it" on your tombstone if you want. I'm sure your grandkids would get a chuckle out of that.
Now, back to Mr. Dylan Winter's problem. Nobody wants to pay him directly for his information. Well okay, he should learn how Google Ads works, put them on his website, and foster a community around it to generate traffic. Write something into his contracts with other publications that he is allowed to distribute copies of the article a month after it's released on his website, and do it for free. People will appreciate that, and will sign up for a mailing list for when new articles are out. That further develops the community. Use that community to book more speaking gigs, which of course would be paid. Etc.
you are completely correct - and to some extent search engines are replacing magazines. You would look at a magazine because it was a collection of information that was relevant to you - truck magazines for truck enthusiasts, sailing mags for sailors and porn for everyone else.
Now the search engines can do that for you - provided you take the time to learn how to use one. The search engines will collate information for you.
I agree that the person who took the time to work on a subject (let us call him or her a journalist) and boil it down to a few thousand well written typo free words with well shot illustrations only got a tiny percentage of the advertising or subscription money.
I make truck dvds and get ten per cent of the retail price
I have written two books for the BBC - they paid me around £100 a thousand to write them plus ten per cent of the book sales. They sold 10,000 copies of each book so my advance was the totla income. They then sold the books onto reader's digest along with my images for around £15,000 for each book - my share of that deal was £56. The BBC also got a percentage of the sales - I got nowt.
but that was in the past when there was money in the system.
Your point about adsense is excellent and it is a subject about which I now know something.
I have a youtube space about trucks - 24 million hits worth $1 per thousand
my sailing space gets around 300,000 hits a year - woth $1 per thousand
as a rational video maker am I going to concentrate my time on making truck films or sailing films.... well obviously I am a crazy man and make both - sailing films at a loss because I love it and make truck films for money
The truck films on you tube were bringing in around £800 a month. My best day ever, during a snowstorm in North America I got 175,000 hits in one day.
good money - althugh ots of blokes on here would starve if all they earned was $175 a day.
so that £800 a month is still not enough to live off - but it helped
my best hitting sailing films do around 5,000 a year ....$5
so I started a website about my journey and shifted the films to a server accessed by a subscription of £4.99 a quarter
- subscriptions peaked at around 700 people paying me $4.99 a quarter.
Not bad money - but still not enough to cover the time and effort and server costs - video is stupidly expensive to serve - my website costs were around £100 a month
Of course my sailing films may be much worse than my truck films
I also put an adsense block on the sailing website - that was earning me about £80 a month - I was telling my sailors how I was financing my journey with subs and adverts and some of them started clicking on the adverts to help me out - google calls it click fraude. This broke a google algorhythm and my account was closed - both on youtube and my website.
I did appeal but there is no redemtption in the world of google.
but even if it had been going swimmingly the sailing films would still not earn enough from the advertising revenue to cover my costs
some people started asking for dvds, so I burned a few and they have started selling at around 25 a week. 50 a week in the run up to christmas
if I pack them into jiffy bags myself, wite the labels etc they cost me around £5 for each double disk set - which I sell for £15/ The American ones are packed by a sailing friend in Illinois - he gets 50 per cent of the cover price of $25 for a four hour double disk set
my truck DVDs are copied and sold by a specialist company who commiisioned the flms - I get ten per cent of the cover price - they sell around 5,000 disks a year.
Server costs for the sailing films were rising and the subscriber numbers were down to around 500 - you have to feed subscribers with a film a week otherwise they go away. Making a film a week is a full time job. Meantime server costs were still ticking in at around £100 a month
I am slowly putting all my sailing films onto you tube and Blip and making them available for free - website traffic is rising every month - currently around 3,000 films viewed a day across youtube and blip
people who want to download the HD still pay a subscription
we shall see if it works....
meanwhile the trucking films on youtube rattle along - smetimes 100,000 a day - youtube gets the advertising revenue as I am guilty of click fraude
Four years into the ktl project I now sail four days a month instead of eight because the KTL income is not enough to cover the costs of spending half my time working on KTL. Time spent on it has fallen to around a quarter of my time. I have children at universiity and a mortgage to pay. Truck films feed the family - sailing films do not.
I will continue with the journey - but I now need to think about every tank of petrol I invest in getting to the boat.
So you are dead right. Advertising will pay. But it will only pay for a mass market product stuff such as trucks or porn - but minority subjects, such as sailing or skateboards will be left to the enthusiastic amatuer or the deranged professional.
The web will supply information from forums and whimsy from bloggers, maybe the odd well made amatuer youtube film - but that will be about it.
You might get the odd pro film sponsored by champagne or watch manufacturers who want to get access to the uberrich but if you sailors of 30 footers think you are worth reaching by paying for content and especially if you are a a cruising sailor you can go whistle
if you want to read the KTL youtube saga it is here
Duckworks - All boat design is a compromise - Rubbish
It was my fault for not reading the 20,000 word adsense contract and also letting my enthusiastic website community anywhere anywhere near an adsense block. So if you are hoping that adsense willl support your sailing hobby with a supply of good free journalism - as words, images or video
I doubt itl. Trucks, cars, football, porn... no probs.
sailors do not pay for speakers either..because lots of people yak for freemans - blokes from Raymarine or International will come to speak to your club
Right now my project is being supported by old blokes who still buy DVDs.
I assume that, like me, they are a dying breed.