Jeremy Wright is a serial entrepreneur, some have even said a blogpreneur for his focus on communications-oriented ventures. He has been involved in IT, programming and the business side of IT for nearly a decade. Jeremy is the President/CEO of b5media, a prominent blog network. He is the author of Blog Marketing, a business book on blogging and writes Ensight, a popular business and technology blog. Jeremy consults on blogging, communication, IT and time management.
What was your vision when you first had an inkling that you wanted to start b5media?
While it'd be nice to say there was some grand vision when b5 started, the truth is that it was a simple idea by Duncan Riley: partner with a bunch of bloggers to get more advertising. Then if we were going to sell ads, why not join them into a network? And if we were going to start a network, why not start new blogs? And if we were going to do that, why not hire authors?
The fact that until last week none of us had even met is even more amazing to me.
Looking back, it's easy to say that a blog network was an obvious idea. After all, Weblogs, Inc. and Gawker were already around, and Weblogs, Inc. had been bought by AOL weeks before. The truth is that we started this project in May, when the idea of a blog network was still a rather unformed one. I can't say we really innovated, but we consciously took a very specific path, and that path has - step by step - led us to where we are today. We aren't Time Warner. We aren't even Gawker or Weblogs, Inc., but we've had a very good first year.
So yeah, no clear vision initially, just a bunch of guys trying to have some fun and make some money. Who knows where it'll go though? We certainly have a vision and an amazing team and a fantastic group of bloggers that continue to astound me every day, but who knows what the future will hold, eh?
What do you feel are the benefits of being a part of a network?
There are obvious benefits. More traffic. Better traffic. Better ads. More ads. Higher paying ads. All of these mean that a blog that joins b5, or is started for b5, will almost always earn more money than it would on its own. It's kind of like hiring a book agent: sure, you give up 15-20% of your advance and royalties, but if they get you a deal that's 80% better it's a real no-brainer. And if they take all the heavy lifting of landing a book deal off your shoulders so you're less stressed, all the better.
We operate under a similar philosophy. We believe bloggers should blog. They shouldn't have to worry about blog platforms, software upgrades, stats packages, ad servers, ad sales, SEO, plugins, etc. They should just be able to write about what they're passionate about. And if they can make some reasonable money along with that, then that's great for everyone.
The flipside of the traffic/money equation, though, is that b5 has grown into a very real community. Everything from scientists and lawyers to PR folk and doctors to gold medal swimmers and stay at home moms. It takes all types, but the opportunities that are created within our community are fairly astounding. Quite a few have found jobs or contracts, many have saved money on services thanks to advice and overall it really is the community that powers b5. And it's a community you only get access to when you join the network.
Beyond that, you get free hosting, access to some of blogging's leaders like Darren Rowse and Brian Clarke, and you get to do it all while blogging about something you're passionate about and making some decent bucks for the privilege! It isn't really that hard of a sell when we have to pitch bloggers.
Why do you think more networks are popping up and what advice can you offer to the newer ones so that they stick around?
When we started, there weren't really any solid examples of networks that really worked, especially not bootstrapped. Weblogs, Inc. and Gawker were both launched with a fair amount of cash behind them. Growing a network with less than $2000 is a bit more challenging. Having done it, I have nothing but respect for people who start new networks. Ultimately, there are 2 kinds of networks will succeed: personal networks and vertical networks. Personal networks are ones where 1-2 authors write 5-15 blogs and basically work at it full-time. In that model, making 5-10K/month is often enough to succeed.
Vertical networks are networks in areas such as fashion, business, technology, etc. They grow to 30-40 blogs that cover just one highly niche area. In many ways, b5 is like 14 of those all joined together sharing core resources such as technology, ad sales and infrastructure. Vertical networks are really the only way to gain traction in today's market. Wide networks simply have a massive uphill battle, which is why there are only about a dozen networks that have passed their 1 year anniversary. It's simply too difficult now to go "wide." "Deep" is the new black!
Do you feel there are any downsides to networks?
For bloggers, there are lots of advantages, but like anything it's a tradeoff. When you give up design, platform, technology and ad control, you often have less choice. For some bloggers that's fine. For most, the tradeoff of more traffic, money, community and profile is worthwhile. However, the reality is that for a network that owns its own properties that a certain amount of centralization is key. Not total control, but enough that for some bloggers it's not a good fit.
There are enough networks out there, that bloggers should be able to find one that matches their philosophy. Whether it's "owned" networks such as b5, "club" networks like 9rules (anyone can join, no ad sales, little technical support) or "broker" networks (just sell ads). There are nearly 200 of them now, so there are lots of choices. Find the one that matches your priorities and philosophies.
What does it mean for networks when they obtain Venture Capital funding vs. those without it?
In a lot of ways, raising VC funding isn't meant to change the network itself. Gawker and Weblogs, Inc. were both started with decent amounts of capital. Other networks besides b5 have raised VC funding, and more will in the coming months. What VC funding allows you to do is fill holes quickly. When you bootstrap, you end up making decisions like, "Should I bring another server online or do a new design for my blogs?" That's a tough decision to make and is one that ultimately slows down your growth.
VC funding doesn't mean you can do everything (unless you raise $100M, heh), but it does mean that the types of decisions you make are more like, "Should we hire a full time developer or should we acquire this network over here?" They are larger decisions and are more about business than about the foundational aspects of running a successful network.
The reality is that a blog network itself doesn’t really need funding. There are lots of ways (such as revenue share) to ensure that a network can operate with minimal cash. As a network reaches a certain size and critical mass, there is a company that ends up being created that needs to support that network. Everything from server infrastructure to design to accounting to development to partner management to ad sales. The network could function without the funding, but the company that supports the network couldn't. Without that company to support the network, everything ends up being "status quo" for the network, which is sad to see.
Ultimately, a lack of external funding (by founders, investors, VC's, whatever) will often limit a network to "organic" growth. Which is fine, there's nothing wrong with that. You only rarely see "organic" growth create really lasting businesses, which is what we're out to do.
You can visit Jeremy Wright online at b5media, his blog Ensight or reading his book "Blog Marketing."
Posted by Shannon Nelson on November 29, 2006 12:11 PM
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