Subject: Startup costs From: "Curt A. Monash" <0006058685@mcimail.com> Date: Tue, 4 Jul 95 14:25 EST

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Leo Wilcox asks about funding the startup of his on-line entry.  I've been
thinking about exactly the same thing.

In my case, I intend to ask the CEO or other senior management (probably
HIGHER than the normal advertising buyer) to fund a significant fraction of
my start-up costs in return for being the first "sponsor". 

The gimmick is that a technically sophisticated sponsor could provide some
of the technology as "in-kind" services.  In Leo's case, a local computer
retailer could provide all the equipment, whatever programming was needed,
and maybe even whatever pure technical support was needed.  It would be a
great deal for them, and would keep him out of the nerd-hiring (or
consultant-renting) business.  What's so great abut the deal?  First, the
readers attracted by the on-line newspapers are likely to be the right
demographic (even if they own their own computers and aren't buying more,
their friends turn to them for advice about buying ...).  Second, there's a
great PR hook, even if disappointingly few people ever show up on-line to
view the ads.       

As for content, if nothing else works out econonically, you could start with
the purchasing-oriented parts of the newspaper:  Movie listing, classified
ads, restaurant reviews, etc.  You should be able to sell advertising for
those on a pay-as-you-go basis.  Also, you can identify and put in hotlinks
to other parties' Web sites that have up-to-the-minute basic services: 
Stock quotes, sports scores, etc.  So you're doing ESPN a favor.  What's
that to you, as long as your readers benefit too and you make some money
along the way?       

Do all that, and you have a valuable service for your readers, breakeven or
profitable for you.  Then you can worry about increasing your profits and
actually beefing up the NEWS content, chat and BB discussion groups,
transcripts of the county water board hearings, or whatever else you think
is the REAL charter of your on-line newspaper-to-be.

Curt Monash
On-line publishing wannabe
cmonash@mcimail.com


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