Skoeps.nl, a citizen-journalism venture, closed down last week after its owners declared it unprofitable. The business plan seemed simple enough to succeed:
- Find loads of money,
- Advertise massively, and
- Share advertising and syndication revenue with writers.
The plan worked, except that there wasn’t enough revenue to share. Skoeps cash-flow was in the black, which means that, if investors refused to go forward, growth must have been minimal and could not have offset the initial investment in the near future. Continue reading