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Slate shows how to make money online

While Salon struggles to stay alive, Slate has done what no other Web magazine has done before: make money. In the first quarter of this year, Slate took in more money than it spent, The New York Times reports. Here are some interesting insights into how Slate has succeeded:

In the last year, the site's traffic has doubled, to roughly six million unique visitors a month according to Nielsen/NetRatings, and ad revenue has been growing -- in part, The Times says, because Slate is distributed via the MSN Network. "Getting distribution on a portal network is as important for Slate as getting distribution on the newsstand is for a print publication," said Scott Moore, general manager of MSN News and Information.

Founding editor Michael Kinsley told The New York Times that breaking even is essential to producing a good editorial product online over the long-term. "The only guarantee of editorial freedom in the long run is to be self-supporting," he said. "If you are perennially losing money, the only reason someone is going to own you is to be able to get their point of view out there."

However, Kinsley also said for the first time that part of the reason quit as editor was that he was frustrated by not being able to make Web publishing a fundamentally different medium.

"The multimedia component is our biggest failure, but it is a failure that we share with everybody else," he said. "The Web has not developed a new language for cultural criticism to take advantage of the medium and we haven't either."

Publisher Jacob Weisberg said that e-mail has turned out to be "the killer application" on the Web. "The killer ap at Slate turned out to be speed," he told The Times. "We deliver the quality of analysis of a weekly in real time."

And Slate's editor at large, Jack Shafer, said online magazines are more simliar to broadcast outlets than print publications. "When we started up, we looked at it as a print publication, but it is much closer to a broadcast property," Shafer told The Times. "Slate is a media product that scales very inexpensively. The cost of adding readers in print � the printing, mailing and subscriber acquisition � makes it difficult to scale. Slate is much more like a television station or a radio station."

Discussion

1 comments about 'Slate shows how to make money online'

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