The following is a written transcript from my video “Dallas Morning News Layoffs – The REAL Truth That Affects Digital Marketers” that appears on my Youtube channel ‘Kenneth Holland’. (If you’d like to subscribe, you can HERE):
Whoa, what’s going on everybody? Kenneth Holland here with the Friday edition of the Dot Com Minute. Hope everyone is having a good day. It’s a little gloomy and it’s supposed to rain later here in Dallas. What else is new? I want to talk and do a quick video today about the Dallas Morning News. Now this is more of a local regional story to Texas, but it’s yet another example of where business is leaning towards online, but it’s not what you think.
The Dallas Morning News announced the other day they laid off about 43 employees, more than half are half of them from their newsroom division. I’m gonna read you a quick quote, but the one thing I want to point out first is this is even though they’re in the story, the paper is alluding to this and that is they’re going to move more to a digital model, which is smart.
I think we all know that print is dying unfortunately because there’s a lot of things to love about print, whether it be magazines, books…what have you. It’s going deeper than this. This isn’t about they’re going to go to a digital business model…okay, because that’s not gonna cut it anymore in case anybody’s wondering. That’s not even enough, so stay tuned for just one minute and I’m gonna explain, but let me read you the quote to give you some context.
The Dallas Morning News said Monday it laid off 43 employees in its newsroom and other parts of the company due to revenue loses.
According to the newspaper, cuts include about 20 writers, editors, photographers and newsroom support personnel.
President and publisher Grant Moise said the layoffs are intended to position the newspaper for long-term success.
The company is now focusing more on building its digital subscriptions.
“After considerable thought and analysis, our management team has determined that our business in the future is largely supported by subscription revenue and the need for more aggressive investment in our digital products,” Moise said.
I’ll put the link to the story in the description, but here’s the thing I want you to pay attention to. I actually did a blog post on a couple of days ago on running display ads on your website and I will link to that below as well. The days of online websites making all this revenue from display ads are dying. I’m not saying they’re going to go away, but what I am saying and you really need to pay attention to this especially if you’re a solopreneur.
The ability for most publishers to make a significant revenue stream from display ads is going away and unless you have extreme amounts of page views. I can think of two examples off-hand: Huffington Post and Buzzfeed…they get huge amounts of page views so they’re able to adequately monetize through straight display ads.
What publishers are going to have to move to is not so much not running display ads, but where those ads go and how much revenue the publisher keeps and what I mean by this…and this is the important distinction that you need to be aware of going forward…is if you run a display ad but it forwards to one of your own sales funnels. Let me give you an example on a regular display ad. You run an ad and let’s say they pay you $5 CPM, so for every thousand impressions you make five bucks.
Now let’s say you run that same ad or that same call to action, whatever it is, but it takes you to a sales page or some sales mechanism that you own and control or if you don’t own it…you have a revenue agreement agreement in place with whoever has that ad, but you’re getting a cut of the actual sales. Not an impression based model but a sales based impression model.
The other model to keep aware of and I’ve talked about this for years and it’s only becoming more and more prevalent, is collecting emails from your website and then on the back end through an email campaign…selling your products and services to them or partnering with somebody to sell those products and services and getting a much bigger cut. You’re getting, let’s say a 50 percent cut of the sales or whatever agreement you put in place there.
This is where everything is going. I want you to go check out a company called Agora Publishing. They have a bunch of different websites. They’re mainly in the financial sector, but they have these very popular websites and most of the revenue is built on selling their own courses. So even if you see an ad on an Agora Publishing site, much of the time those ads are pulling people in or sending them to a page that Agora already owns or a product they already own.
So you see the difference? One is you are putting an ad and you know, making a few dollars per every 1000 impressions like I discussed before…this one is you control and get much more of the revenue because you either own the product in the sales funnel that you forward them to or you put an agreement with a partner and you get a cut of the sales.
Now, this new business model is a ton more work, but I think that going forward, this is what we’re faced with. This is already what I’ve done in the last couple of years. I don’t run any ads anymore. I’m not saying that don’t test them, but I just make much more money on the backend selling my own products and services and consulting.
So that’s the story for today. The Dallas Morning News story is a great example of this. Hope this helps you. If you have questions or any comments, make sure you leave them below. I would be very curious to hear your thoughts on this because this is what it’s moving to. If you haven’t subscribed to my channel, make sure you hit the button below and also hit the little bell symbol and you’ll be notified when I do new videos as well. So hope everybody has a great weekend. See you in the next video.
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Happy Holidays from Kenneth