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Perils of Blog Economics

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by Ben Cohen

Gawker reports on the latest online publishing venture to go under:

It's not just America's sad newspapers that are considering converting
to nonprofits: The blog has transformed from potential profit
gusher into the beneficiary of tax-deductible contributions. At least
people are getting paid.

Jewcy's backers pulled out in February and the site has been run
since then by volunteers, under the stewardship of editor Lilit Marcus.
Now Jewcy has been "adopted" as the "flagship program" of the Jewish charitable non-profit JDub;
the Jewish Federation of Los Angeles has already committed to funding
the site, allowing the editor and at least some writers to get paid
once again.

I am always cautious when Gawker reports on other blog style ventures failing, as I'm fairly sure it's part of a larger strategy to dissuade anyone from getting into the game to compete with them. The truth is, blogging can be profitable, and it most certainly will once advertising rates climb back up again. Gawker posted a 45% increase in ad revenues early this year, proof that if you know what you are doing, online content doesn't have to be generated for free.