"Why we pay writers: A look at Substack Pro and the changing landscape of journalism"

"Why we pay writers: A look at Substack Pro and the changing landscape of journalism"

In the ever-evolving world of journalism, the internet has brought both immense possibility and significant challenges. With the advent of online platforms, traditional business models have been disrupted, leaving many writers struggling to monetize their work. However, Substack, a platform that allows writers to publish and monetize their content through subscriptions, has introduced a new program called Substack Pro to address these concerns.

Substack Pro provides writers with financial security by guaranteeing them payment for a year of work, regardless of how their publication performs. This program is a departure from the traditional Silicon Valley wisdom that emphasizes the aggregation of an audience as the primary concern, with a business model coming later. By putting the writer's success at the forefront, Substack aims to build trust and reliability within its model.

To participate in Substack Pro, writers agree to let the platform keep 85% of the subscription revenue in the first year. However, after that initial year, the deal flips, and the writer keeps 90% of the subscription revenue. This arrangement allows Substack to absorb most of the risk on behalf of the writer while still ensuring the writer's long-term success.

It's important to note that Substack sees these deals as business decisions rather than editorial ones. The platform does not commission or edit stories, nor does it hire or manage writers. Instead, writers are the owners of their publications on Substack. The only requirement Substack has is a commitment to a minimum publishing frequency to demonstrate the writer's dedication.

When selecting writers for Substack Pro, the platform considers various factors, such as the writer's audience size, engagement on social media, and their standing among readers and peers. Additionally, Substack assesses the market opportunity of the writer's subject matter and aims to host a diverse range of voices to foster healthy discourse.

The importance of a free press is evident in Substack's approach. It acknowledges that writers who say important things may not always be universally loved. In fact, those who face fierce opposition may be the ones most deserving of support. By providing a platform for diverse perspectives, Substack contributes to a robust and inclusive media landscape.

Shifting our focus to a different tech giant, Yahoo's rise and fall provide valuable insights into the challenges faced by companies in the rapidly changing digital landscape. Yahoo, once a dominant force, struggled to adapt to new technologies and maintain its relevance.

Yahoo began as a web directory, manually curated by humans known as "the surfers." It was the first site to include news, sports, and finance feeds, expanding beyond a simple directory. Over the years, Yahoo added various services such as email, shopping, classifieds, and online magazines, becoming a one-stop destination for internet users.

One of Yahoo's significant contributions to the digital world was pioneering the pay-per-click advertising model that became ubiquitous across the internet. Through memorable TV campaigns and its iconic yodel, Yahoo established itself as a global brand sensation. However, despite its early success, Yahoo faced significant setbacks.

The dotcom crash in 2000 dealt a severe blow to Yahoo, causing a loss of advertisers and a decline in its value. The company never fully recovered from this setback. Yahoo had opportunities to acquire innovative technologies but missed out on licensing search technology from Stanford graduates and buying Google in its early stages. These missed opportunities allowed Google to surpass Yahoo in the search engine market.

One critical mistake Yahoo made was not allowing paid search ads to coexist with organic search results. Initially, Yahoo considered search results as editorial content that shouldn't be diluted by advertising. By the time they realized their error and acquired Overture, the company that invented paid search advertising, Google had already established itself as the dominant player.

Yahoo attempted to build its advertising platform called Project Panama, but it took nearly three years to complete. By then, Google had solidified its position as the leader in search advertising. Yahoo's lack of a clear vision and its attempts to be everything to everyone led to its downfall. As one commentator put it, Yahoo was "second best at everything," ultimately losing its place in the digital landscape.

From the stories of Substack and Yahoo, we can extract several actionable pieces of advice for companies and individuals navigating the digital world.

1. Prioritize the success of your contributors: Like Substack, businesses should prioritize the success of their partners or contributors. By providing financial security and support, companies can build trust and long-term relationships.

2. Have a clear vision: Yahoo's downfall can be attributed, in part, to its lack of a clear vision. Companies should establish a north star and stick to it, avoiding the temptation to be everything to everyone. Focusing on doing one thing exceptionally well can lead to greater success.

3. Embrace change and adapt: The internet is a constantly evolving landscape, and companies must embrace change and adapt to new technologies and trends. Being open to innovation and willing to take calculated risks can help companies stay ahead of the competition.

In conclusion, the changing landscape of journalism and the rise and fall of tech giants like Yahoo highlight the importance of adapting to new technologies and prioritizing the success of contributors. By embracing change, having a clear vision, and supporting those who contribute to your platform or company, you can navigate the digital world with greater success.