May 2009 Archives

I just finished reading Ursula K. LeGuin's The Dispossessed. The plot centers around a genius physicist and his life on two planets with two polar opposite social-economic systems: one statist-capitalist, and another anarchical-socialist. Like many of LeGuin's novels, the brilliance is less is the plot and more in her observations of how society works. Here she uses the two societies to examine the human desire for power and possession, romantic revolutionaries, and human need for stability.

At first glance this may seem pie-in-the-sky kind of talk, but please indulge me for a minute.
The anarchist-socialist planet has no laws, no government. People do what they please, take what they need. The conceit is that when laws exist, people want to break them. And laws only exist to preserve power and property. With no government or personal ownership, laws are unnecessary, since people use what they need.

OK, wacky stuff. But let's scale the idea down a bit to something real, like with Woonerfs, as Streetwiki describes them:

The five primary criteria for a woonerf...include gateways that announce that one has entered the woonerf; curves to slow vehicle traffic; amenities such as trees and play equipment that serve the dual purpose of forcing vehicles to slow down; no curbs; and intermittent parking so that cars do not form a wall of steel between the roadway and houses.

Sounds like anarchical street societies to me. Take away the extra rules, put everyone on the same plane and everything self-regulates.

Newspapers and their publishers are freighted with too much bad business judgment and lack of vision. We have arrived at a turning point where either newspaper companies will crash and die under their own poor business acumen, or owners and publishers will risk every asset they have on untested business models with each new model experiencing varying success. The innovators will be those who decide they have nothing to lose and everything to gain.

For over one hundred years when someone talked about "the news media", they meant newspapers. Television and radio (and for a short time newsreels) played a part, but newspapers were the main game.

Those who operated newspapers in this golden era knew their publications rested on two three-legged stools. On the cost side it was printing, people and delivery. On the revenue side it was display advertising, classifieds and subscriptions. Forward thinking publishers tried to tinker with the three-legged stools, like advertising on the plastic bags in which papers were delivered, or sharing printing presses and delivery with other newspapers, but those were just changes in the margins.

This is worth repeating: The three-legged stools of costs and revenues for newspapers lasted for over one hundred years. More than four generations of newspaper publishers and editors learned these rules, came to believe them and knew them to be true.

Starting a business of your own is hard.

I'm on my second business now: Purely Political Consulting. Despite the fact that it's just me, it is a business.  I have real clients, and I have real deliverables.  And the important part: I have to make enough money to pay the mortgage.

My first business attempt was more ambitious. A buddy of mine and I put together an investment group to purchase alternative newspapers in 2002.  Amazingly, we put together the money pretty easily.  The hard part was finding a property that wanted to sell.  Only six years ago most alts still had 25% margins.  Now it seems everyone wants to sell. (My buddy later started another business of his own too.)

I've had the "newspaper" bug since I was in high school. But when I got to college and became editor of my school's small student weekly, I found that I was more interested in making the paper financially viable than I was in rooting out the hidden stories on campus.  That was fine, since we increased readership to other campuses and cleaned up the paper's books.

After my first business attempt came to a close, I did some business consulting for a small group of suburban and ex-urban dailies. There, I came face-to-face with the entrenched business conservatism of the newspaper industry: If some other newspaper isn't doing it, then we don't want to do it. And this was in 2003. And their classified revenue was already falling through the floor. You'd think it was time to change some things up, right?

It drove me nuts, and I ended up heading back to Chicago and back into politics.

The bug stayed with me.  I wrote a bit for Chicagoist.com and developed a new business plan for a publication. I've been tweaking it and shopping it around for the right investor.

And then I went to Ken Davis' Chicago Journalism Town Hall. Listening to the conversation, everyone knew changes were coming to news media, but they weren't sure how to find it. It seemed to me that this would be the perfect opportunity for an aspiring entrepreneur.

And this would be hard.

So when Scott Smith, Barbara Iverson and I talked about a follow up conference, we all agreed that it had to be centered on how to make money selling the news.  Not necessarily "rich", but well enough to pay the mortgage.

And starting a business of your own is hard.  So we're going to have people who've done that to talk about it.

If you're thinking about taking the leap, please come out to the Chicago Media Future Conference on Saturday, June 13.  You'll be in good company.

The Writer

Dad, husband, MBA, homeowner, publisher of hyperlocal Center Square Journal, Cubs fan, media junkie and Democratic political consultant in Chicago. Drop Mike Fourcher a line at mike (at) fourcher-dot-net.

What Is Vouchification?

VOO ´ -chee — The first month of my college freshman year I got into a little trouble with the Dean of Housing. My college newspaper wrote a story about it, erroneously naming me "Mike Vouchey". The name stuck with some of my friends.

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