The Intersection of Paying Writers and the Rise of Alphabet (Google)

Kazuki

Hatched by Kazuki

Aug 05, 2023

4 min read

0

The Intersection of Paying Writers and the Rise of Alphabet (Google)

Introduction:

The internet revolutionized journalism, but it also disrupted its business model. The traditional approach of aggregating an audience first and developing a business model later was no longer viable. In this article, we explore the innovative program called Substack Pro, which aimed to address this challenge by ensuring writers get paid for their work. Additionally, we delve into the story of Alphabet (Google) and its audacious founders, Larry Page and Sergey Brin, who defied the odds and transformed the search engine landscape. While these two narratives may seem unrelated, they both highlight the importance of taking risks, embracing diversity, and fostering long-term success.

Substack Pro: A Risk-Sharing Model for Writers' Success

In response to the broken business model of journalism, Substack introduced Substack Pro – a program that absorbed risk on behalf of writers. Under this program, writers would receive payment for a year of work, regardless of the performance of their publication. This approach aimed to establish trust and reliability in the Substack model. In exchange for financial security, Pro writers agreed to let Substack keep 85% of the subscription revenue in the first year. However, after the initial year, the writer's share increased to 90% of the subscription revenue. By taking on most of the risk, Substack incentivized writers to contribute to the quality of the Substack ecosystem, fostering long-term partnerships.

The Writer-Centric Approach: Owners of their Publications

A crucial distinction of Substack is its writer-centric approach. Writers are not hired or managed by Substack; they are the owners of their publications. Substack's role is to provide a platform and support for writers to flourish. The only requirement from writers is a commitment to a minimum publishing frequency, ensuring their dedication to their craft. Substack evaluates potential Pro writers based on factors such as audience size, engagement on social media, and the respect they command among readers and peers. The goal is to host a diverse range of voices, recognizing that a variety of perspectives contributes to robust and healthy discourse.

The Importance of a Free Press and Diverse Thought

The Substack Pro model aligns with the broader significance of a free press. Writers who address important issues often face opposition, yet their perspectives are crucial for societal progress. Substack recognizes the value of supporting such writers, even if their ideas spark controversy. The program aims to create an ecosystem where diverse thought thrives, challenging conventional narratives and fostering intellectual growth. History has shown that what may be considered heroic or villainous can vary depending on one's vantage point. By embracing diverse voices, Substack aims to contribute to the evolution of society's understanding.

The Rise of Alphabet (Google): A Story of Audacity and Vision

In 1999, Larry Page and Sergey Brin, two Stanford graduates, presented an audacious proposal to Kleiner Perkins, with the goal of revolutionizing the search engine landscape. Despite being the eighteenth search engine, they projected annual revenue of $10 billion. This bold claim caught the attention of John Doerr, who recognized their ambition and potential. Kleiner Perkins made a significant investment, which proved to be a turning point in the history of Google. With the introduction of Objectives and Key Results (OKRs) and the guidance of executive coach Bill Campbell, Google navigated its rapid growth and emerged as a tech giant.

Connecting the Threads: Risk-Taking, Diversity, and Long-Term Success

Both the Substack Pro program and the story of Alphabet (Google) emphasize the importance of taking risks, embracing diversity, and fostering long-term success. Substack Pro's risk-sharing approach allows writers to pursue their craft without the fear of financial instability. It encourages diverse perspectives and cultivates a robust discourse. Similarly, Google's audacity and commitment to innovation propelled it to become a market leader. The introduction of OKRs and leadership development underscored the importance of setting ambitious goals and investing in the growth of its team.

Actionable Advice:

  • 1. Embrace risk: Just as Substack took on the risk to ensure writers' success, individuals and organizations should be willing to take calculated risks to drive innovation and growth.
  • 2. Foster diversity of thought: Encourage a variety of perspectives to challenge existing narratives and foster intellectual growth. Embrace the concept that controversial ideas can often lead to progress and deeper understanding.
  • 3. Invest in long-term success: Like Google, prioritize long-term goals and invest in the development of your team. Set stretch goals and provide the necessary resources to navigate rapid growth and maintain a competitive edge.

Conclusion:

The Substack Pro program and the rise of Alphabet (Google) exemplify the power of innovation, risk-taking, and diversity in shaping industries. By creating a risk-sharing model for writers and fostering diverse voices, Substack has reimagined the journalism landscape. Similarly, Alphabet's audacity and commitment to long-term success propelled it to become one of the world's most influential tech companies. Both narratives provide valuable insights and actionable advice for individuals and organizations seeking to navigate the evolving landscape of their respective industries.

Hatch New Ideas with Glasp AI 🐣

Glasp AI allows you to hatch new ideas based on your curated content. Let's curate and create with Glasp AI :)