April 28, 2006
Andy Hagans lays down some phat posts about blogging network business models. In Sorry, Rev Share Still Blows Andy states that the lack of risk to blog network owners also leads to less opportunity.
It’s About Incentives: The Economics of Blog Pay Structures Andy talks about overcoming the spam issues typically reinforced by most blog payment terms:
Depending upon the risk aversion of a particular writer the figures can change, but essentially the best payment structure is something like:
- 80% fixed salary
- 20% discretionary bonus contingent upon writing quality
- Weekly posting quotas
- 4x Penalty structure
The point is to provide sufficient stability in payment rates such that you can attract professional writers, but still maintain a sufficient motivation for quality in the form of a bonus. And finally, to tackle the problem of posting regularity include a penalty clause which is a multiple of the per post rate.
Pretty sharp stuff Andy. Few people actually post about the realities of pay scale and how to pay people to run blog networks. Clearly in giving out this information Andy is trying to reinforce his position as a blog overlord.