How We’re Financing Meaningful Journalism

By Jeremy Adam Smith | Mar 1, 2011 | Author contact and bio

Very few of us become journalists so that we can write product reviews, celebrity gossip, or forty-seven tips for driving your man crazy in bed—even if that’s how we pay the bills. Yet as media have converged online, opportunities to produce meaningful journalism—that which gives people the tools they need to understand and improve their lives and society, the kind that inspires young people to become journalists in the first place—have declined precipitously, at least within legacy media organizations able to provide decent pay, benefits, and a measure of stability. By Ken Doctor’s count, for example, newsrooms laid off approximately 13,500 employees from 2007 to 2010—jobs that digital enterprises haven’t even come close to replacing, especially on a local level. But as Craigslist, Google, Groupon, et al. have sucked up the ad dollars that once supported journalism, many downsized-but-not-out journalists have plugged into collaborative editorial and funding networks to launch investigative, explanatory, watchdog, audience-generated, and enterprise stories (here’s one example from my own work)—a movement we have only just started to see and understand. As part of my Knight Fellowship at Stanford University, in January I launched an exploratory survey to discover how journalists are getting their most important work done in an age of shrinking resources. I took this on because I felt it important to break away from the obsessive focus on shiny new technology and failing business models. Instead, I wanted to examine how rising numbers of independent, entrepreneurial journalists are reinventing themselves and their work, and in the process sustaining journalism as a whole. This post presents the raw, preliminary results—think of it as the transcript of a conversation among many kinds of journalists. As you’re about to read, the survey found that today’s meaningful journalism predominantly arises from a nexus of collaboration, grants and donations, and nonprofit initiative—a commonplace but still controversial insight subject to wearying cycles of hostility and hype that tend to be highly resistant to the facts. The results also add to the growing pile of evidence that journalism is becoming a form of social entrepreneurship—an endeavor that combines commercial and nonprofit methods to achieve social change. Another interesting result: the survey found that journalists who are out on their own, freelancers and entrepreneurs, are much more optimistic about their careers and the field than those who are working for someone else. And much of this optimism, it turns out, is tied to a belief that nonprofit media will continue to rise in importance. I invite you to take a second survey of how you see your personal business model unfolding over the next 10 years. (Perhaps you haven’t yet thought that far ahead—but consider this a chance to do so!) In about one month I’ll report on the results of that survey and make arguments based on the results, including the implications for journalistic cooperation and training. Ultimately, I am trying to build up a useful picture of how journalists today can find the resources they need to launch the kinds of projects that matter most. For now, however, I’d like to continue the conversation and hear what these numbers say to you. How do they square with your experiences? What do you see as the practical implications? What entrepreneurial possibilities do you see? Who Participated? One hundred and fifty-seven journalists participated in this survey; 107 completed every one of the 16 questions. Seventy-nine percent categorized themselves as freelancers or entrepreneurs—the rest were full-time employees of media organizations. Most participants came through the crowd-funding site Spot.us, the Knight fellowships network, friends of the Center for Investigative Reporting, and through targeted social media outreach—a process otherwise known as snowball sampling. The survey first asked participants to rank their motivations for engaging in journalism. Participants overwhelmingly cited a social mission—a desire to change the world in some way. Financial motivations came in last by a very wide margin. (In open-ended responses, participants also mentioned curiosity, ego, and “not having to have a real job.”) When asked how they measured their success as journalists, participants deemed “policy or social change” to be the most important metric, followed by the “quality of audience engagement.” Roughly equal percentages of participants rated money and audience size as somewhat important. Overall, 65 percent of participants said they were optimistic about their personal journalism careers. However, there were huge differences between entrepreneurs and freelancers and their full-time counterparts in media organizations. Seventy-five percent of self-described entrepreneurs were optimistic about their careers, compared to 53 percent of full-time employees. For their part, freelancers were eleven points more optimistic than full-time employees about their careers. In a later post, I'll describe some of the other interesting differences among participating groups. What was Meaningful? Participants were asked to describe a project they had completed in 2010 that they deemed "meaningful"—and what made the project meaningful to them. Projects included watchdog coverage of renewable energy, a video about Sufi shrines under attack in Pakistan, a series about the impact of the Internet on China, a feature on mountain lions straying into urban neighborhoods, beat coverage of challenges faced by the small business community, a radio series about vocal music, an investigative feature on how climate change is affecting our health, an investigation into domestic terrorism at reproductive clinics, and many stories about conflicts of interest in government. When asked what made the project meaningful, typical responses emphasized innovation, social change, social connection, storytelling, and passion about the topic:
The insights, "space" to think, friendships and professional connections it produced are not likely to have been found in a traditional newsroom (and not even I suspect in a full-time job in a successful new media operation). We are trying to reinvent the newspaper business on the public broadcasting business model — noncommercial funding and public interest reporting about underreported topics for underserved communities. We need to sustain community journalism in an era in which the commercial model is failing. Was able to experiment with storytelling techniques while at the same time telling a compelling story about an underreported and misunderstood phenomenon. I wanted to provide a science-based, conservation-focused perspective on an issue that had been primarily focused on humans and their fear of lions, which is misplaced. Small businesses are what will drive the jobs recovery, and it's important to get these voices out there, talking about what they are experiencing every day, how they are managing, and what signs — good and bad — they see in the economy. I like talking to get "real people" talking as opposed to the "experts." It allowed me to weave in stories of coastal ocean and marine life protection with my exploration of local people, places and events. I do a lot of corporate work, and this piece was a chance to get back to talking about real people - their emotions, their values, what really matters.
Incidentally, when asked to describe a meaningful project they had completed in the past year, many responses spoke to the diminishing opportunities to do such work:
Sorry. That's over. None. [This response appeared four times.] Unfortunately, I had very few, which is why I'm not optimistic about my career. I am interested in a story I'm doing now about the connection between immigrant detention policy and the private prison industry, but I'm being paid very little for this, so it's not realistically something I could do very often.
Where Did They Get the Money? According to the survey results, today’s meaningful journalism can best be characterized as nonprofit, collaborative, and cross-platform. Almost all content appeared in at least two media—usually web and print, but sometimes across 3-4 different platforms. The projects were more often than not financed by (and shared among) multiple sources. These arrangements led many participants to envision a future in which journalists are (to quote one) “free agents” who piece together funding for their projects. Now we get to the heart of the survey: While there has been a great deal of discussion about the decline of commercial media and the rising importance of grants and donations to meaningful journalism, I was personally shocked to see exactly how important institutional grants have become, at least for participants in this survey. The average grant contribution to these projects was at least twice that of any other source. The combined contributions of grants, donations, and nonprofit media dwarfed that of commercial media. Funding in the “Other” category came from Google Ads, academic institutions, the journalists’ credit cards, syndication, and more. In what I see as the survey's most interesting finding, the vast majority of participants saw this trend intensifying, not diminishing. A stunning 71 percent of participants felt that over the next five years, commercial media would become even less important to meaningful journalism—while 84 percent said nonprofit media would become even more important. (One hundred percent of full-time employees, our most pessimistic group, said that nonprofit media would become more important over the next five years! Does this suggest that they might see a nonprofit future as a worst-case scenario?) Sample comments:
There will have to be multiple funding streams, including inventive solutions we haven't yet thought of, because advertising as we know it appears dead (or unreliable for the kinds of original, quality reporting and digging that should be sustained for an informed public). I think alternative models, such as nonprofit venues, will become more common and more important. I believe multiple funding sources will come together more frequently. I think more of the legacy newspapers are partnering with non-profits, university j-schools, start-ups and other funding sources. Obviously more journalism is going to be funded by sources other than large media companies. Commercial media's profit margins are so thin — or, are getting so much thinner — that they are more and more focused on making money than on meaningful journalism. Nonprofit media will have to fill the void. I think it is harder to get long-form, meaningful journalism pieces into newspapers, online. Most sources that are hiring are looking for 4- and 5- paragraph stories that will pay about $100. Look at AOL, its Patch sites, even Reuters. It's all hit-and-run journalism.
As I’ll argue in other venues, the combined predominance of social motivation and charitable support clearly suggests that non-Gawker journalism has become a social venture, not the bottom-line business it once was. (Some perspective: even most of the “underground” papers of the 1960s were founded as for-profit, if not entirely "commercial," ventures—and indeed, the undergrounds evolved into profitable chains of alternative newsweeklies.) However, a minority of participants sounded dissenting or cautionary notes about this trend:
Non-commercial journalism tends to be too time-intensive for experienced, working journalists. The pay-per-hour is too low. Commercial news outlets are growing online and tend to be more efficient. Over time they will require more sophisticated journalism that taps crowd-sourcing and gives the audience unique, useful info and insights. It's important to note that, while much of the meaningful new journalism being done now is funded by nonprofits and grants, there is a much larger quantity of journalism being done by Bloomberg and traditional and online news organizations. The ways and places that Bloomberg is adding coverage show that it may not be the profit motive but a lack of organizational will and forward thought that presents the biggest obstacles for news organizations. Foundations and philanthropists see the decline in commercial media coverage of important topics and are willing to step up and fund projects that would otherwise not occur. Most of the funds, however, are targeted at a particular field, such as health care or the environment. Projects that fit into those neat categories can get funding, but projects that don't (covering the public sector's budget crisis, for example) will not be easily funded. Another funding opportunity not listed is the slippery slope of "advertorial" news stories paid for by advocacy organizations. When done transparently and ethically, it presents a great opportunity to advance an under-reported point of view into the public debate. If not managed properly, it becomes agit-prop with a byline.
It’s also worth noting here that despite a great deal of hope and hype, individual donations—crowd-funding—made up the smallest portion of financing, contributing an average of $2,503 to each story. Despite this current reality, 82 percent of participants said that individual donations would become more important over the next five years, and in open-ended responses cited it as a hopeful trend:
Since I've mostly chosen to fund my reporting through new models, like Spot.Us, start-up web sites and investigative journalism grants and centers, I think I will personally draw from those venues more down the line. Right now they are not established enough to support all of my work, but they support a good chunk of it. Something like this has no commercial base. I do know that some funds were raised on Spot.Us. I didn't work on any of those stories. I think more will be raised on Spot.Us in the future. Crowd-funding is going to grow and grow in importance. My next step is a kick-starter project for the documentary version of my story. Crowd-funding can really work, it's expedient and puts power in the hands of journalists and communities, rather than institutions. Readers' role will become more participatory in funding models; content barriers (albeit small ones) will appear, perhaps encouraging some form of upswing in direct micro-payments; print-on demand technology such as magcloud will remove the overhead costs of self-publishing; multimedia publishing will become the norm, with journalists licensing different parts of the same story to different platforms (eg. podcasts, videos, print and interactive).
Helpful Resources At the end of the survey, I asked what “resources have been especially helpful to you in preparing you to produce meaningful journalism in the 21st century?” I knew when I posed this question that the answers should be taken with a grain of salt—the survey wasn’t designed to assess these organizations’ effectiveness, especially when some of these groups are apples and some are oranges. However, I was still interested in what participants would have to say. The rankings of Mediabistro, Poynter New University, and the Knight Digital Media Center are particularly impressive; as far as I know, these organizations did nothing to promote this survey. In open-ended responses, participants citied a dizzying array of other organizations, such as the American Society of Journalists and Authors (mentioned four times), National Association of Science Writers, MediaShift, Nieman Labs, and Spot.us, which helped promote the survey. That’s what I found out. Now it’s your turn: How do you interpret these results? Are they surprising to you? Or do they just confirm what you already knew? Share your thoughts and experiences as a comment. And please take the second survey on the evolution of personal business models over the next ten years. In about one month I’ll report on the results of that survey, synthesize the results, and make an argument based on your answers.

13 Comments

Yvonne Daley on Mar 1, 2011

What you didn’t ask — Journalism education: I’m teaching Literary Journalism, Reporting (second course in basic journalism, students cover a neighborhood in SF.) and News Bureau, in which students write for BANG papers and websites. I often feel like a fraud. I like turning them on to great writing and reporting — Wolfe, Capote, Stump, Boo, Konigsberg, etc., and the long form — but I haven’t a clue what kind of jobs will be there for my students and what tools they will need besides the obvious and a willingness to learn new tools of the trade in multimedia and photography. Watching the unfolding dramas in Libya, Egypt, etc., some of the best reporting has been on the radio and from the people themselves, online and through social media. Yet, I remain suspect of the everyone’s a journalist trend. And I wonder what happens to journalism as the (fairly objective) record of a community.

Jeremy Adam Smith on Mar 1, 2011

Thanks for your comment, Yvonne. Honestly, the picture that’s emerging from my research is that your students will need to create their own jobs, which suggests that their training should zero in entrepreneurial journalism and DIY media. They’ll need to be trained in nonprofit fundraising, cross-platform collaboration, project management, etc.–and instead of being trained to work in industrial newsrooms, they’ll need to study in environments that foster creativity, flexibility, collaboration, emotional intelligence. Probably a lot to learn from art schools (but not creative writing programs, for reasons I won’t get into here). And I think a critical part of their training needs to focus on curation and community management, coordinating discussion and crowdsourced verification. I’m coming to believe (slowly) that part of what’s going on is that news is no longer synonymous with journalism–that social media and YouTube News provide the news, and journalism provides fact-checking, context, analysis, visualization, meaning. I’ll be expanding on all these thoughts in later posts, here and elsewhere.

Dan Rademacher on Mar 1, 2011

Perhaps the thing that has most impressed me about the nonprofit model and crowdfunding is that both naturally appeal to people’s best instincts, whereas supermarket racks are crammed with crap designed to manipulate people’s most banal tendencies. When you ask people to give their own money to support something, they want that thing to be socially meaningful — even if they never read or watch the results. That’s obvious anytime you survey successful pitches on Spot.us. But when I am feeling pessimistic about humanity, I fear that the total resources gained from appealing to best instincts is vastly lower than the opposite. On the other hand, if the focus remains nonprofit, at least there’s no money skimmed off for corporate owners or stockholders. For a decade at Bay Nature magazine/BayNature.org (where I work), we have managed to piece together a semblance of stability based on strong connection to a relatively small niche audience. No luxury here, but the model has been working for us.

Jeremy Adam Smith on Mar 2, 2011

I like the way you put that, Dan: “nonprofit model and crowdfunding… both naturally appeal to people’s best instincts.” There’s no reason WHY we had to have the media that we got. Exhibit A: Charlie Sheen.

I am concerned about the possibility of developing a media system that is truly bifurcated, with Gawker-like gossip sites on one side, gawking and being gawked at, and a string of small-scale, high-minded, thoughtful publications like Bay Nature on the other–islands of meaning in a sea of repetitive crap. Or, to put it a different way: monasteries during a dark age.

But the only response to that is to try to build something good, which of course many, many people are trying to do, as I think this survey demonstrates.

Ann Alquist on Mar 2, 2011

This is interesting – but now I’d like to see the self reporting you’ve collected contrasted with current media economics. Yes, newspapers are losing money – but they’re still making money, just not as much as they would like.

In short, compare the perceptions of the reporters with an analysis of what the media labor market really looks like. One thing you didn’t factor in here was the cost of paying for your own health insurance. That’s one reason why western European journalists are over prescribed and even flourish as freelancers.

I’d also be curious in a social networking analysis of the journalists who are succeeding with their business models: did they cover technology or business in their former lives? Do most of them live on the coasts where they are close to foundations and have had the opportunity to build relationships with philanthropists and venture capitalists? Anyone who has spent time on entrepeneurial new models of journalism (such as myself) know that at the end of the day, it comes down to relationships and getting people to trust you. We Americans like to think it’s all about a good idea, but Mr. Carnegie, Mr. Jobs and Mr. Zuckerberg can attest to, it makes a tremendous difference being close to people with capital and influence.

Jeremy Adam Smith on Mar 2, 2011

Hi Anna. I think a social networking analysis is a terrific idea; I’d love to see more of that.

But you know, we might disagree about something: I think newspapers are dying, soon to be dead or changed into something else, and I know the labor market is catastrophically bad. I don’t think there’s a pot of money out there for journalists that the capitalists are hiding; I think the money went over from journalism to online ad platforms that don’t need content delivery systems (e.g., newspapers and magazines) for their value, and no paywall or app will replace those lost dollars. Even if we could place more ads in more pages of meaningful content, the unlimited proliferation of those pages undermines the economic concentrations that might support, for example, big investigative projects as we knew them. Major functions that were once intrinsic to journalism, that subsidized the meaningful stuff, have been offloaded onto open platforms. The other week I went from the San Francisco Chronicle HQ to the Google HQ within 24 hours–and trust me, the Chron is on its way down. We’re at the beginning of this process, not the middle or the end–but it’s not all bad; ads were never good for journalism anyway.

And part of the message I’m getting ready to shout from the rooftops is (to quote Bill Murray in Meatballs) that it just doesn’t matter: we can be the journalists we’re waiting for, but we gotta let go of comics and weather and classifieds and printing presses and hierarchy and promotions and objectivity. We might have to let go of news-gathering and leave that a billion mobile devices. So what’s left? Lots of stuff–and it can be financed if we’re willing to frame it first and foremost as a social good and a commons, something to which everyone has to contribute in time and money. To appeal, as Dan suggests, to our better natures.

(Health insurance: to me it’s obvious that we need single-payer health care, for the sake of economic development as well as human welfare, but then I’m a unreconstructed social democrat, so no one listens to me.)

Jay Rosen on Mar 2, 2011

Hi Jeremy: Thanks for doing this.

You write, “One hundred percent of full-time employees, our most pessimistic group, said that nonprofit media would become more important over the next five years!” The way I would interpret that is… it’s not a statement about the non-profit model based on any real familiarity with that method of financing serious journalism, or the challenges therein. It’s a statement of despair about the commercial environments those journalists are working within and a cry of protest that the need to protect profits comes routinely before the preservation of journalism. “It’s gotta be non-profit because take it from me this industry sucks!” would be a crude rendering of what I think that finding is about.

Coupla other notes. This is a personal crusade of mine and I get ignored with it 95 % of the time, but… I persist. I really isn’t helpful to hear that crowd funding has been hyped unless you show me who said what about it, and on what knowledge these hyped up statements were based. Did the people creating efforts like spot.us say “this is the answer to how to finance serious journalism”? Were they the source of it? If not, who did the hype issue from? How would you explain it? Or when you say hype do you really mean, “a lot of us were hoping for more from these efforts than the people inside them dared to promise, because they knew how hard it was…?”

Third. When we compare the resources available to finance journalism under the old and now crumbling commercial regime to the more difficult situation today, and we say things like, “who is going to pay for the investigative reporting that can hold the powerful accountable?” (which we do say, a lot, and for good reason!) it is easy to forget an important fact. The majority of the journalism financed during the glory days of the commercial news industry was not that meaningful, not that serious and certainly not the investigative reporting that can hold the powerful accountable.

Put it this way: maybe 60 to 70 percent of the legitimation and glorification of the commercial news industry has been based on investigative reporting and Pulitzer quality accountability journalism. That’s why we keep saying, “who’s going to pay for the…” But what percentage of the resources of that industry ever went to such reporting? One? Five, maybe? It would be shocking if it ever reached ten. I would suggest that you factor that differential (60-70 percent vs. 5-10) into your interpretations.

Cheers.

Jeremy Adam Smith on Mar 2, 2011

Hi Jay. Thanks so much for stopping by and commenting.

1) On the attitudes of employees toward nonprofit journalism: Your point sounds very plausible to me.

2) Has crowd-funding been hyped? I partially agree with what you’re saying here. You should know that I’ve worked with Dave Cohn and believe very strongly in his project (and others like Kickstarter) and in the role of individual-giving to support not just journalism, but all kinds of social and cultural activities. But in the Bay Area world I come from, yeah, actually, I would say it is hyped, often by people who aren’t journalists but believe in projects like Spot.us as a model for a new society. Of course, other people routinely dismiss crowd-funding. And I think this survey shows that the extremes are wrong: yes, it’s part of the mix, but still a smallish part–this aggregate picture resonates with my own experience. Dave himself is not responsible for any utopian aspirations; his major challenge (as I understand it) is scaling up and increasing crowd-funding’s market share. I’d be curious what Dave himself has to say; I’ll ping him.

3) Comparing resources under the old regime to the more difficult situation today: Point taken!

Christine Larson on Mar 2, 2011

Jeremy,
Quick question now, with comments later. But, how do you define the difference between a “freelancer” and an “entrepreneur”? I realize people probably self-defined here, but I’m curious about how people might distinguish between them.
–Christine

Jeremy Adam Smith on Mar 2, 2011

Excellent question, Chris. I just scanned through the responses and saw that people who self-defined as entrepreneurs had launched websites, apps or other software project, or even (gasp!) paper periodicals. In analyzing responses, I often grouped the two categories together.

Here’s how Wikipedia defines entrepreneur: “a person who has possession of a new enterprise, venture or idea and is accountable for the inherent risks and the outcome.” And freelancer: “somebody who is self-employed and is not committed to a particular employer long term.”

I’d argue that the key difference is that the entrepreneur is someone who takes on some kind of risk in order to launch a new project that extends beyond herself and puts it on the market; a freelancer is simply taking money in exchange for a particular service provided to the entity that pays for it; they are the product on the market.

But, yeah: these days we’re entrepreneurs sometimes and freelancers other times, and the functions often overlap, and even convert from one to the other. Bottom line might be that entrepreneurialism is a state of mind!

mark roth on Mar 3, 2011

Excellent job. Wonderful to have this research.

Question: You say ken doctor counted 20,000 but the linked story seems to count 13,500. Where are the others? Did I miss soomething?

Jeremy Adam Smith on Mar 3, 2011

Hi Mark. You know what? You’re right–I made a mistake. It’s been fixed.

Marc on Mar 5, 2011

This is fascinating, and I wonder why no one (that I know of) has used this lens before to look at the problems we’re facing as journalists. Part of the answer is that I think some of us are rather embarrassed to talk about “meaningful” journalism–we prefer to sound more hard-nosed than that, to retreat into numbers and gadgets, and to speak as this is a vocation that has nothing to do with meaning. The approach taken in this study manages, however, to be both hard-nosed and idealistic, reminding us of why we do this while still addressing the practical means of doing it. I must register my disagreement with Smith’s notion (hinted in the comments, not the main piece) that news and journalism are going separate ways. It may be true that newsrooms of the future will be smaller; it may be true that their work will need to make extensive use of mobile uploads, as we’re seeing in the middle east today; but I think the evidence is strong that journalism’s main function will be news for a very long time to come, and thus must be defended and preserved.