Money issues (or lack thereof) behind Unbooming?

BusinessWeek’s Heather Green wrote about the breakup. Chuck Olsen, who is a friend of both Andrew’s and Amanda’s, said they weren’t raking in the money, even though I reported that they were making $85,000 a week.

Hmmm, I thought I accurately reported what Andrew had told me and others at VLoggerCon, but Chuck says that the $85,000 amount was just the top line in their ad sheet and didn’t represent any ads sold. Demonstrated that I should have gotten more facts before I reported that they had sold ads for $85,000 a week. Looks like the highest they got was about $40,000 for a week, but they were struggling to close more ad deals.

At VloggerCon Amanda also introduced her brother and said he was working for Rocketboom. If I remember right there was another employee as well. I wonder what’ll happen to them?

It’s too bad, though. One of the things that interested me about PodTech was they have a good sales staff already in place that was pulling in good sales. I — and that’s with content that’s a lot less popular than Rocketboom. At PodTech I met the sales team before I made my decision and they are rocking already.

I can’t believe that with an audience of 250,000 per day they couldn’t find some advertising, though. I know people who are making $10,000 per month in Google ad revenue with less traffic than what Rocketboom was getting.

Update: Andrew just wrote me and said they did close a deal for $80,000 and that he just got paid for that a few days ago.

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59 thoughts on “Money issues (or lack thereof) behind Unbooming?

  1. You know Robert, I’ve always wondered why you don’t do more advertising on your blog. You have a steady readership, and a wide variety of topics. I’d think that even a small add would bring in enough for another HD TV or something! πŸ˜‰

    Do you not do advertising because you think it makes your voice more valuable?

    Just curious.

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  2. You know Robert, I’ve always wondered why you don’t do more advertising on your blog. You have a steady readership, and a wide variety of topics. I’d think that even a small add would bring in enough for another HD TV or something! πŸ˜‰

    Do you not do advertising because you think it makes your voice more valuable?

    Just curious.

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  3. Toby: I didn’t do advertising because I worked for Microsoft and it just would have made things weird. “Is Scoble just making trouble to get more audience so he can make more money on ads on his blog?”

    Even with doing a book I heard those kinds of whisperings over on MiniMicrosoft so I just didn’t need the hell. It wasn’t worth the trouble.

    Now that I’m working for a startup, though? We’ll see. It’s something I have to decide on, but haven’t needed to yet.

    Having ads does cause some conflict, though. Let’s see, do I write about “world peace?” Nah, that isn’t paying much money. Let’s write about “mortgages” instead!

    I’m not sure I need that kind of influence on my writing. At least not the writing that I’m doing at 1 a.m. for fun like I am right now.

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  4. Toby: I didn’t do advertising because I worked for Microsoft and it just would have made things weird. “Is Scoble just making trouble to get more audience so he can make more money on ads on his blog?”

    Even with doing a book I heard those kinds of whisperings over on MiniMicrosoft so I just didn’t need the hell. It wasn’t worth the trouble.

    Now that I’m working for a startup, though? We’ll see. It’s something I have to decide on, but haven’t needed to yet.

    Having ads does cause some conflict, though. Let’s see, do I write about “world peace?” Nah, that isn’t paying much money. Let’s write about “mortgages” instead!

    I’m not sure I need that kind of influence on my writing. At least not the writing that I’m doing at 1 a.m. for fun like I am right now.

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  5. no worries Robert — that $85k perception was definitely out there. I *think* they garnered more than $40k from Earthlink, but less than $85k.

    yes, what they really needed was a business partner. a couple of them didn’t work out, and right now they have someone that could help them capitalize on their vast potential, even post-Amanda.

    now, if only i can get your sales team to help with my burgeoning vlog empire. πŸ˜‰

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  6. no worries Robert — that $85k perception was definitely out there. I *think* they garnered more than $40k from Earthlink, but less than $85k.

    yes, what they really needed was a business partner. a couple of them didn’t work out, and right now they have someone that could help them capitalize on their vast potential, even post-Amanda.

    now, if only i can get your sales team to help with my burgeoning vlog empire. πŸ˜‰

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  7. That makes sense as to why you haven’t done ads in the past. As a vote of confidence for you, I think that there is enough trust in you to do just enough ads to get just one more toy… then one more… then one more…

    Oh, I see your point.

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  8. That makes sense as to why you haven’t done ads in the past. As a vote of confidence for you, I think that there is enough trust in you to do just enough ads to get just one more toy… then one more… then one more…

    Oh, I see your point.

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  9. My apologies, Andrew says they did sell another big ad. I was only meaning to say it wasn’t a constant stream of top ad $ every week, as was the perception.

    Robert, my agent emailed you. Warning, he looks a lot like me. Maybe 10 lb skinnier in a warped mirror.

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  10. My apologies, Andrew says they did sell another big ad. I was only meaning to say it wasn’t a constant stream of top ad $ every week, as was the perception.

    Robert, my agent emailed you. Warning, he looks a lot like me. Maybe 10 lb skinnier in a warped mirror.

    Like

  11. Well, with something like 300000 hits a day, its hard to see why there isn’t a lot of advertisement revenue coming in. They need to seriously monetize RB. They have lost one of their biggest assets and if RB will continue with success will be seen in the future.

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  12. Well, with something like 300000 hits a day, its hard to see why there isn’t a lot of advertisement revenue coming in. They need to seriously monetize RB. They have lost one of their biggest assets and if RB will continue with success will be seen in the future.

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  13. Robert, glad to hear PodTech has a good sales team, and that you were smart enough to check. Too many sites with great audiences lose a ton of money due to the lack of good ad sales abilities. Where’s the company to handle that, or do bloggers only rate mostly automated tools (AdSense/Blogads/AdBrite). The company that actually actively seeks ways to help bloggers make money, rather than “paste some JavaScript and pray” will be a huge success.

    As an aside: PodTech.net does not look very good in Opera 9:

    Podtech.net in Opera

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  14. Robert, glad to hear PodTech has a good sales team, and that you were smart enough to check. Too many sites with great audiences lose a ton of money due to the lack of good ad sales abilities. Where’s the company to handle that, or do bloggers only rate mostly automated tools (AdSense/Blogads/AdBrite). The company that actually actively seeks ways to help bloggers make money, rather than “paste some JavaScript and pray” will be a huge success.

    As an aside: PodTech.net does not look very good in Opera 9:

    Podtech.net in Opera

    Like

  15. Reading between the lines, I’m guessing that the picture isn’t as rosy as Andrew Baron paints it and the potential impact to his exit strategy is enormous. Something doesn’t make sense here- I hope someone really digs in and focuses on the business aspects of this story. There is more to this than a spat between former friends/business partners/etc.- this is a good lesson for people in the content business and for those that want to do independent broadcasting on the web.

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  16. Reading between the lines, I’m guessing that the picture isn’t as rosy as Andrew Baron paints it and the potential impact to his exit strategy is enormous. Something doesn’t make sense here- I hope someone really digs in and focuses on the business aspects of this story. There is more to this than a spat between former friends/business partners/etc.- this is a good lesson for people in the content business and for those that want to do independent broadcasting on the web.

    Like

  17. It’s a crying shame. Sometimes when you have talent + creativity + money, it equals a blowup (pardon the pun.)

    I wish both sides luck regardless of who did what.

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  18. It’s a crying shame. Sometimes when you have talent + creativity + money, it equals a blowup (pardon the pun.)

    I wish both sides luck regardless of who did what.

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  19. That’s why I asked what the demographics of those supposed 250-300 viewers are. Do you plan to do any analysis of your audience to see of they actually have any money to buy the stuff the advertisers want to sell? Perhaps the advertisers are seeing something you aren’t?

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  20. That’s why I asked what the demographics of those supposed 250-300 viewers are. Do you plan to do any analysis of your audience to see of they actually have any money to buy the stuff the advertisers want to sell? Perhaps the advertisers are seeing something you aren’t?

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  21. I didn’t have ads on my blog for a long time. It was costing me money to have the blog. Especially when my traffic got larger and I had to move to a dedicated server that costs me $139 a month now.

    Earlier this year I joined FM Publishing (and this is not an ad for them, just how I really feel about it) and I have to say it’s been pretty good. I honestly don’t feel that it has affected my blogging in any way, shape, or form — but I know what you mean about the criticism Robert. One of the first easy hacks a critic will make at a blogger is that they are just writing about whatever they are writing about for the money.

    It’s funny how the same people don’t say that a newspaper is reporting the news just for the money.

    Especially when you were working at Microsoft I can see where that would be a sensitive point for you. And the bigger you are the more critics will eventually come out of the woodwork. Still, I think this criticism is easily dismissed in most cases and that it is entirely legitimate for a blogger to earn money from their writing in the same way that any other writer would.

    I do feel really positive about FM and think that they do a tremendously professional job at handling all of the ad sales for me on my site. In fact I don’t have to do much at all except say yes or no to the advertiser in question. You know John Battelle of course and if you decide to ever put ads on your blog he’d be the first person I’d recommend talking to.

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  22. I didn’t have ads on my blog for a long time. It was costing me money to have the blog. Especially when my traffic got larger and I had to move to a dedicated server that costs me $139 a month now.

    Earlier this year I joined FM Publishing (and this is not an ad for them, just how I really feel about it) and I have to say it’s been pretty good. I honestly don’t feel that it has affected my blogging in any way, shape, or form — but I know what you mean about the criticism Robert. One of the first easy hacks a critic will make at a blogger is that they are just writing about whatever they are writing about for the money.

    It’s funny how the same people don’t say that a newspaper is reporting the news just for the money.

    Especially when you were working at Microsoft I can see where that would be a sensitive point for you. And the bigger you are the more critics will eventually come out of the woodwork. Still, I think this criticism is easily dismissed in most cases and that it is entirely legitimate for a blogger to earn money from their writing in the same way that any other writer would.

    I do feel really positive about FM and think that they do a tremendously professional job at handling all of the ad sales for me on my site. In fact I don’t have to do much at all except say yes or no to the advertiser in question. You know John Battelle of course and if you decide to ever put ads on your blog he’d be the first person I’d recommend talking to.

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  23. With the current 3 minute video they can insert just 1 video ad and i doubt the max they can ever get is $5/CPM…So with 250k views per day the current monetizing potential per week is just $8750 (5 x 250 x 7).

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  24. With the current 3 minute video they can insert just 1 video ad and i doubt the max they can ever get is $5/CPM…So with 250k views per day the current monetizing potential per week is just $8750 (5 x 250 x 7).

    Like

  25. In post #11, Nathan stole my thunder. πŸ™‚

    Good content helps drive traffic to your site, but from what I understand about advertising is that you need to create a good way for your advertisers to see the value from their ad purchases.

    Placing advertising links on your site is not a complete strategy. If podtech hasn’t come up with a disruptive way of being able to generate ad revenue, I think that your new company will likely run out of money as well.

    The barriers to entry are too low for vlogging sites and looking at podtech.net. I don’t really see anything that is a differentiator. The risk is that you will have too many podcasting sites chasing too few advertising dollars $$$.

    The founders of podtech and the vc’s that are backing your venture are hoping that your sales guys can convince enough folks to purchase advertising on your site.

    Unless getting purchased by a larger media company is podtech’s actual strategy. A startup whose business model is to get purchased by a larger company? In the Valley? Never!

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  26. In post #11, Nathan stole my thunder. πŸ™‚

    Good content helps drive traffic to your site, but from what I understand about advertising is that you need to create a good way for your advertisers to see the value from their ad purchases.

    Placing advertising links on your site is not a complete strategy. If podtech hasn’t come up with a disruptive way of being able to generate ad revenue, I think that your new company will likely run out of money as well.

    The barriers to entry are too low for vlogging sites and looking at podtech.net. I don’t really see anything that is a differentiator. The risk is that you will have too many podcasting sites chasing too few advertising dollars $$$.

    The founders of podtech and the vc’s that are backing your venture are hoping that your sales guys can convince enough folks to purchase advertising on your site.

    Unless getting purchased by a larger media company is podtech’s actual strategy. A startup whose business model is to get purchased by a larger company? In the Valley? Never!

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  27. Mark: I don’t plan on flipping. We’re going to make a roaring thunder lizard of a content company. Our ultimate success? If we get in a place where we can purchase a larger content company.

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  28. Mark: I don’t plan on flipping. We’re going to make a roaring thunder lizard of a content company. Our ultimate success? If we get in a place where we can purchase a larger content company.

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  29. It’s ALWAYS about the money. Always. It was with Scoble, it was here, and it still was with VicG. Even Gates is all about the money, even if giving it away. You don’t have public squabbles like this if not for lots and lots of pictures of Ben Franklin.

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  30. It’s ALWAYS about the money. Always. It was with Scoble, it was here, and it still was with VicG. Even Gates is all about the money, even if giving it away. You don’t have public squabbles like this if not for lots and lots of pictures of Ben Franklin.

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  31. Money complicates everything.

    It appears that it was Amanda’s job to bring in the viewers and Andrew’s job to bring in the revenue. Amanda was doing fine but Andrew was struggling. Clearly his talent is in producing and editing and running the technical stuff. If he also felt his job was to close deals (a very important job) and he was no good at it, then the pressure must have been awful. Maybe he felt guilty, like he was blowing it no matter how hard he tried. That could explain why Amanda took a salary while Andrew did not.

    If this is so, then it is too bad because Andrew is obviously very talented. He created that show, he is the philosophy behind it. He’s going to have to accept that although he’s brilliant, he’ll always suck at some jobs. It’s a lesson a lot of talented people have to learn. How many times have you seen an amazing engineer become a lousy manager. We have to accept our limitations before we can deal with them.

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  32. Money complicates everything.

    It appears that it was Amanda’s job to bring in the viewers and Andrew’s job to bring in the revenue. Amanda was doing fine but Andrew was struggling. Clearly his talent is in producing and editing and running the technical stuff. If he also felt his job was to close deals (a very important job) and he was no good at it, then the pressure must have been awful. Maybe he felt guilty, like he was blowing it no matter how hard he tried. That could explain why Amanda took a salary while Andrew did not.

    If this is so, then it is too bad because Andrew is obviously very talented. He created that show, he is the philosophy behind it. He’s going to have to accept that although he’s brilliant, he’ll always suck at some jobs. It’s a lesson a lot of talented people have to learn. How many times have you seen an amazing engineer become a lousy manager. We have to accept our limitations before we can deal with them.

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  33. Robert, I agree with Christopher on this one. It is all about the Benjamins.

    Paul Matteucci, at USVP was our temporary CEO at Procket Networks after we burned through about $250 million. If you see him, have him explain to you his view on funding startups. It is a nice reality check. They go in expecting about a 98% failure rate because the 2% success rate more than pays the failed ventures.

    If Paul and his partners were to get a nice offer from Viacom or NBC/Universal for podcast.net, John Furrier and USVP would be flipping in a heartbeat. Not to be perjorative, but I don’t think that you would have much of a say in that.

    Talking to Paul will be very helpful to you because it looks like you traded one reality distortion field for a smaller one and a nice office in Menlo Park.

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  34. Robert, I agree with Christopher on this one. It is all about the Benjamins.

    Paul Matteucci, at USVP was our temporary CEO at Procket Networks after we burned through about $250 million. If you see him, have him explain to you his view on funding startups. It is a nice reality check. They go in expecting about a 98% failure rate because the 2% success rate more than pays the failed ventures.

    If Paul and his partners were to get a nice offer from Viacom or NBC/Universal for podcast.net, John Furrier and USVP would be flipping in a heartbeat. Not to be perjorative, but I don’t think that you would have much of a say in that.

    Talking to Paul will be very helpful to you because it looks like you traded one reality distortion field for a smaller one and a nice office in Menlo Park.

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  35. Mark: I’ve already met Paul. He’s a guy I liked instantly. Hope to pick his brain a lot over the coming months.

    Of course they’ll flip if they get a good offer.

    But our job is to build a roaring thunder lizard that can stand on its own. If we can do that the offers Paul will get will be a lot bigger. πŸ™‚

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  36. Mark: I’ve already met Paul. He’s a guy I liked instantly. Hope to pick his brain a lot over the coming months.

    Of course they’ll flip if they get a good offer.

    But our job is to build a roaring thunder lizard that can stand on its own. If we can do that the offers Paul will get will be a lot bigger. πŸ™‚

    Like

  37. Andrew broke his silence at CaseCamp Toronto today link It was amanda that walked out on the negotiations. rocketboom is going on. he’s confident the audience will come back. he put on a brave face but you can tell he’s nervous as hell about this monday’s show.

    yes there is a show on monday.

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  38. Andrew broke his silence at CaseCamp Toronto today link It was amanda that walked out on the negotiations. rocketboom is going on. he’s confident the audience will come back. he put on a brave face but you can tell he’s nervous as hell about this monday’s show.

    yes there is a show on monday.

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  39. Thomas: yeah, I think his show will do just fine! Monday’s show would have a very high audience cause people like to see “car wrecks.” It’ll be interesting to see how he turns it around.

    The thing is I’m not sure who’s telling the truth here or not. I heard Andrew advertised for a new host on Craig’s List two weeks ago. So, it seems he knew he had a problem with Amanda.

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  40. Thomas: yeah, I think his show will do just fine! Monday’s show would have a very high audience cause people like to see “car wrecks.” It’ll be interesting to see how he turns it around.

    The thing is I’m not sure who’s telling the truth here or not. I heard Andrew advertised for a new host on Craig’s List two weeks ago. So, it seems he knew he had a problem with Amanda.

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