December 10, 2006: Six Takeaways for Building a Successful Online Media Business Model

For my session at a recent corporate management meeting I summarized six key points to bear in mind when you're developing the ideal model to support your online media business as you transition away from a print focus:

• Understand the online medium on its own terms and be open to new perspectives. Don't just stay in a comfort zone because it worked in the past. Online is a different universe where new rules apply.
  
  
• Strive to understand and build your strategy around the unique intersection of the special strengths of online (such as low unit and distribution costs) and the special strengths and market position of your business.
  
  
• Anticipate the need to reallocate resources and retool skillsets. Especially when you're transitioning from print to online, assume that your assets won't be deployed in the most efficient manner possible for the new medium. You will need to invest and disinvest accordingly. The sooner you start tackling this challenge the better. Similarly, assume that many core skills, such as production and marketing, will need to be retooled. Be proactive about reconfiguring your team as needed.
  
  
• Leverage the data available in the online medium to learn, grow faster, and optimize financial performance. One of the biggest changes and benefits of placing a media business on an online platform is the amount of data that's available on user behavior. Your web site is like a living focus group. Recognize that up front and move quickly to reorient your business to be data-focused. Consider hiring a data analyst to help crunch the numbers and derive actionable business insights.
  
  
• Put your audience to work for you. The online medium is ideal for managing content costs by promoting user-generated content. With a community strategy your audience will create content, monetize it through extra pageviews, and assist in audience development by inviting their friends. Don't be stuck in the one-way, push-content mentality of print. Get creative about deepening audience engagement and harvesting the potential benefits.
  
  
• Finally, don't forget to enjoy the once-in-a-career excitement of participating in creating the new industry of online media! All of us working in this field today are pioneers, developing platforms and strategies that will influence the way people give and receive information for generations. Don't lose sight of the fun and excitement of living on the cutting edge.