Can Pay-For-Performance Improve The Quality Of Content On The Web?
A couple of recent postings on Gawker moving to a "pay for performance" model:
Can Pay-For-Performance Improve The Quality Of Content On The Web? - Publishing 2.0:
Nick Denton and Gawker Media are wrestling with the problem of content quality on the web — specifically, how to give bloggers incentives to create content that drives traffic based on quality rather than quantity. Gawker has announced that incentive pay for its bloggers will now be based entirely on the number of page views that each blogger’s posts generate, rather than on the total number of posts a blogger writes.
Pay for traffic: Incentive or distortion? - - mathewingram.com/work:
The key question, of course, is whether rewarding bloggers for traffic is a good thing or a bad thing. One argument is that “incentivizing” bloggers to boost their traffic encourages them to make their posts more sensational, and will lead to them writing about nothing but Britney Spears or whatever they think people will be looking for, instead of deep and thought-provoking posts about serious issues. This is similar to the argument about people writing just because they want to show up on Techmeme.
The opposite argument is that it’s good to give writers a stake in the success of their blogs, something that encourages them to take an interest in their community. Will that encourage them to “sell out?” Perhaps. But maybe it will also encourage them to respond to comments, link to others who are discussing the same issues, and so on. Even former Gawker editor Choire Sicha thinks it’s not such a bad idea.
I have to admit that I don't like this model. I considered it for something I'm working on and ended up rejecting it in favor of a different model. It works -- and can work well -- but I think it has side effects that I just didn't like for what I am hoping to do.
It's a model that works well for sites like Engadget -- where there's not a lot of deep content or significant writing, but instead acts more as a link blog; you don't read Engadget for them to inform you, but for them to post links to other sites with interesting things on it. In a case like that -- the better you are at generating messages that include links that draw users, great.
But for sites hoping to get writers to invest in more thoughtful writing (instead of what I call the "engadget house style", that of being two paragraphs, a semi-related but catchy photo, a hot headline and a smirk), I think pay for performance rewards the wrong behaviors. It encourages LOTS of short and quick postings, not more thoughtful, longer pieces. It encourages thinking about maximizing page views instead of developing audience, and it encourages writers to promote themselves rather than the site in general.
My current plan -- heavily subject to change -- instead tries to look at the authors as members of a community, that community being those that contribute to a site. I want to build a financial model that encourages those members to support and help each other and benefit from the success of the community (and site), not just encourage them to fight for visibility and pageviews.
This model presumes more of a traditional magazine format -- fewer, longer articles, more use of freelance writing than "staff" writers, than what Gawker does (hey, someone has to create content for people like Engadget to point to!), but in that situation, pageviews is not king, nor is driving lots of daily traffic. Instead, I think the key is building a strong regular audience and a long-term draw of visitors to the site. Where Endgadget seems to need to depend on however many views they can get within 72 hours of posting a page, I'm looking at creating a place where pages continue to draw for weeks, or months, or years -- a slow, stead growth in traffic and interest over time.
So what I'm doing is creating a three tier payment system. Content creators live in one of those three tiers, and get paid depending on the revenues of the site and what tier they're in.
First, nobody gets paid until the site pays expenses... that, I guess, should be a given...
Tier one: founders/editors -- the people who do the day to day work, keep the site running, handle acquisition and all of the business aspects of the site.
Tier two: contributing editors -- people who are considering regular contributors to the site; generally this are people who've proven they can contribute on average 1 acceptable piece per month over a period of time.
Tier three: contributors -- people who contribute occasional articles, or a single piece.
Revenues are split 40/30/30: 40% of revenues (after expenses) gets split by the founder/editor group because they're not only writing, they're doing all of the other day to day crap that keeps the site running and useful; they need compensation for all of that (and the more they write, the less it's worth in some ways, because their share doesn't directly tie back to the writing, it's "part of the job". but founders are expected and expecting that sort of thing.
30% goes to the contributing editors, and they get paid based on the three months surrounding their article publication, so if it's published in the March accounting period, they get paid out of the 30% pot for February, march and April. Since part of the reason they do this is because they're regular writers, they basically get a monthly payment for contributing to the site -- and it comes from what ought to be a smaller number of writesr, so the share of that 30% is hopefully larger.
30% goes to the writers, in the month their piece is published.
Those percentages may change. there are all sorts of details to work out, such as "what if something's published on the 29th of a month?" (answer: I dunno yet). It may be the reporting period is whatever accounting month has most of those 30 days in it.
One issue I'm still grappling with: an article published that draws good revenue for a year or more might not benefit the author at all. On one hand, I'd like to hope this encourages the author to continue contributing, on the other hand, I think a successful article deserves some kind of royalty payment. I haven't decided how I plan on resolving this yet. Maybe set aside 10% of revenues to royalty authors of articles that "earn out" in some way with continuing traffic.
My main goal here is to create something that's equitable to all involved -- but encourages people to think in terms of making the site successful, not just promoting their own articles or themselves to the detriment of the site. Also a model that looks at long-term readership as a revenue stream, not hot and heavy pageviews that I think encourage "bitchslap journalism", or "people magazine on the web" type stuff. It's endemic on the founder/editor group to not tolerate "freeloaders", people getting revenue but not contributing any more, and to make high quality choices in content approval/acquisition.
But I think it's a much better model than pay for performance, especially if you're trying to encourage deeper, more thoughtful writing. Think of it as the "Esquire" model. At least, I'm hoping so...
(and yes, it's all been on hold for a while, thanks to the new job-that-pays-the-rent. But it's being dusted off again, now that I've more or less finished the ramp-up stage and gotten the worst crises under control...)


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