In my previous entry I made a comment saying that I'm skeptical about money-making strategies on web content in general. There are a few primary options of money-making that I have encountered.
- Ads (Banner, Popup, Text, etc.)
- Subscriptions
- Donations
Let's start with Ads. Everyone hates ads or at least doesn't like them. Banner ads, big ads, text ads or annoying ones such as popups and those damn hovering ones do not ad anything to a site all they can do is distract or annoy the user. Now this is pretty obvious, since it applies to almost every medium - radio, television, print. (Arguably some users may like ads in mediums such as some magazines which are essentially books of ads.) Yet, ads are the norm in media and likely the easiest method of making money.
However, I wonder if web advertising actually works. Can you remember the last time a web ad made an impression on you other than an annoying one. I certainly can't. I can't even remember ever clicking on an ad! Maybe I'm a special case though, since it must work or the advertisers wouldn't pay for it. Thus I can forsee web ads continuing. Some will get more obnoxious on commercial sites that don't give a crap about their readers and others becoming more friendly like Google for independent web sites who aren't just in it for the money.
Now on to another method - subscriptions. This isn't as commonly found on the web. The New York Times offers a subscription service for their archives which has proved to be controversial in the weblog community. Also indie news publisher Salon.com has a subscription service which doesn't seem to be working to well for them given their financial troubles, however I'm not fully informed in the matter.
Web users seem to dislike subscriptions services more than they dislike ads. As John Gruber of Daring Fireball states:
"You can charge a mandatory subscription fee, but that sucks, going completely against the nature of the web."
Why is this against the nature of the web? Subscription fees are commonplace in the publishing industry where advertisements are a supplement. It seems it sucks because of what users of the web are used to - easy access to information. This isn't going to change and I don't want to. When someone gives you a link you expect to be able to just read it and not have to subscribe or pay for it. Web publishing's low entry barrier lends itself to this idea.
Now, Donations are starting to become more common, especially on weblogs, independent sites and small software developers. This is, in a sense, the Holy Grail of money-making techniques. With this method you are asking your readers to help you out if they like what you are doing. It feels good to have people paying because they like what you doing, not paying for ads or a closed-system subscription.
The downside however, is that you need to have a site with a large enough readership and content worth paying for.
So, it seems that no form of money making as of yet is really great for writing on the web. Ads or donations seem like the best options, despite their inherent drawbacks.