Your Thoughts on Magazine Pay Models: Ownership or Up-Front?

jhmattern

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I may be getting involved with a magazine startup in the near future in an editorial capacity. While in talks with the publisher, we’ve been looking at different models for bringing in a regular stable of writers. I’ve shared my thoughts on the options, and now I’d like to reach out to you for feedback from other writers. I’d like your opinions on the following two models, to pass your feedback along in the process (just feedback now - I'm not officially involved and recruiting at the moment). I hope you’ll be kind enough to share.


Background:



I don’t want to share specifics about the publication. Because we would be accepting research and opinion pieces from non-experts in the subject matter, I’d like to get feedback from writers across the board.


It’s also important that you answer with the understanding that this is not the type of profit-sharing gig you would see spammed all over Craigslist or something. It would be backed by an experienced businessman, reasonably funded, and very thoroughly planned out (as in lawyers, accountants, and proper business planning and projections - not a “I want to start a site or magazine, and if it makes money someday I’ll pay you” situation). It's also important to note that any writers under the part-ownership model would have access to those financial and planning details when presented with a contract to consider - no secretive BS about it.



The goal during startup is to find a dedicated team of 20 regular writers for the publication, as opposed to different freelancers each month. As the publication grows beyond that, supplemental freelance submissions would be considered from others. Please base your thoughts here on those initial 20 regular writer positions and not just freelance pieces.


While I know I'm not giving a lot of specifics, other things to consider are that the publication is in a niche that's not only in-demand on a regular and constant basis, but especially so during the current economy. Research shows that publications in the niche are doing rather well compared to the print publishing industry as a whole right now. Print industry issues are also being actively confronted in the planning, covering everything from common staff overhead issues (lean and remote staff, supplemented by contractors as needed), a strong online distribution / promotional plan, and targeted print distribution to keep those costs under control (again, can't really go into much detail right now other than to say these things have all been taken into consideration).



That said, here are the options. I hope you’ll contribute your thoughts on the pros and / or cons of each. The idea is to pass along as many thoughts on the matter as possible, as they may play a role in the final decisions on that front:


Part Ownership

The goal is to work from an existing online magazine format, and take it to print in several months. Writers would initially be brought in for one or two articles on a freelance basis at around $200 per article (assume 1000 - 1500 words for most features).


At that point, if the publisher wants that writer to fill one of those regular roles, they would be made an offer of part-ownership to continue.
That offer would involve a small ownership percentage of the magazine, but would also involve no further direct pay for six months (with one article due every two weeks).


After those first six months, all articles would be paid at the $200 per article rate.


After the first year, those 20 writers would be put on a more industry standard salary.


It’s also important to note that the contracts would include an exit strategy that would involve some kind of buyout or compensation for past work - meaning you wouldn’t have to worry about being dismissed in those first six unpaid months and ending up with nothing.


Up Front Payments

This would be similar in that you would be a regularly contracted writer if you’re one of the 20, and would still be expected to produce bi-weekly features or columns. You would receive the flat $200 per article from the first, and at least through that first year (where you then may also be put on a more typical salary). Having one or two articles accepted wouldn’t guarantee a longer-term commitment. They would still be used to narrow down the best 20 writers, who would be presented with the longer-term contract offers.


However, you would have no ownership in the magazine, and you would earn no profit from its operation or later sale.


(Please note that I’m basing the $200 on features, and for much shorter regular columns pay might be lower, or you may offer the same word count by writing your column alongside a short department piece.)


--


In either of these situations, it’s also important to note that you wouldn’t be asked to sign a contract with vague promises. You would have access to the same financial projections and other planning details relevant to your position, just as those in editorial or marketing roles would so you would be able to make a well educated decision before making any commitments.


Those offered a contract who choose not to accept it would not be continuing on with freelance assignments. In the beginning, all of the attention would be going into getting those 20 writers on board. At that point if we needed additional material, we would certainly love to talk to those previous writers again about freelance pieces occasionally, but it shouldn’t be expected as that need is currently unknown.


So there you have it. I’m sorry I couldn’t give you more specifics, but I’m really just looking for general thoughts to pass along at this point. I hope you’ll share yours, and I appreciate you looking through all of this.
 

caseyquinn

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For me, I would have no interest in the part ownership option. As a writer, I am not looking to own a magazine and would not want my pay to be tied to its success. I want to be paid for the output of my pen (or fingers on keyboard really) - so I would just want the payment upfront for each article I submit.
 

jhmattern

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Thanks for your thoughts Casey. :) I'll be continually forwarding any feedback on the topic to the publisher for consideration, so any other thoughts are always welcome.
 

Nancy

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As a freelancer, I have to agree with the others. I don't make enough to do unpaid-might-be-making-a-profit-in-the-future work at the moment.

Also, having just been royally burned by an online magazine start-up, I personally would be gunshy.

But, masochist that I am, I would like to hear how this progresses for you and don't want to totally rule out potential work. ;)
 

jhmattern

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Please keep in mind that these positions would very likely not remain freelance - we're talking about bringing people in as employees one way or the other (so it's not part ownership versus a get paid as you go thing - it would still involve a long-term employment contract, so I want to make sure that's clear).

I would like to hear how this progresses for you and don't want to totally rule out potential work.

If I personally decide to get on board after some of these issues are finalized, I'll be sure to be in touch with more specific details and questions for you - I haven't decided on my own end one way or the other yet. Just trying to gather feedback, as the conditions with writers will certainly play a role in what I do or don't do as well.

And thanks for all of the feedback so far. I really appreciate everyone taking the time. :)

Jenn
 

jhmattern

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I'm asking for feedback to pass along to help in their decision-making process--not trying to suck anyone into something with sales speak of the variety you're mocking. While I appreciate and respect everyone's opinions, please keep it constructive. Sarcasm won't go a long way towards influencing decisions one way or the other, and there's no need to put such a negative tone on the overall conversation. I'm making it a point to make sure writers have some kind of impact on these decisions up front, and the best way anyone can do that is to keep it professional please. Thanks.
 

jeffo

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Maybe I'm quibbling on words, but to me there's a big difference between part ownership and profit sharing.

If you're offering just to own a part of the company, I would have to agree with most people here -- what's the point? If the company isn't a publicly-traded company that pays dividends, actually owning part of the company is near worthless to anyone except those who have more time and money than they know what to do with. On the other hand, if you're offering some sort of profit-sharing associated with owning the company, that might be attractive to me, because I can see a value in it.

As presented, however, I have to say that miles is presenting a similar situation. While you, personally, may value the company, offering a part-ownership in a company that I do not control (via stock or other method) is offering me zero and requesting a lot of work to get that nothing. I'm not trying to insult your company or you, I'm just telling you how that offers appears and my thought process in evaluating that offer.

Then again, perhaps you're asking the wrong audience. You say that the long-term plan is to bring on writers as employees -- and you're asking people who don't do that if they'd accept your ideas. There may be people who would be happy to do that, but I suspect those are people who are NOT currently freelancers, but instead are happier with full-time jobs. Again, just tossing ideas around (see my sig), but perhaps your model should revolve around using freelancers until you're ready for employees, then plan on hiring employees to replace the freelancers.
 

jhmattern

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The entire point of the part ownership in this particular case is just that - you would own stock in the company, collect your relative portion of any dividend payments, as well as any future buyout of the publication. So I hope that clarifies.

And for the record, it's not my company. :) I'm not officially involved. I'm considering taking on an editorial role with the publication, and before I agree to do that I'm insisting on seeing these kinds of policies laid out up front. That's why I'm taking an active role now in gathering the feedback since I'll be involved in those types of decisions if I do sign on, so everyone involved is fully aware of potential problems or resistance that may come up.

I do understand your point about freelancers vs employees, and have already suggested the same a little while back. For the time being though, one issue at a time. :)

Again, I appreciate all the feedback and perspectives!
 

SouthernFriedJulie

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Some of us have been bitten quite recently by staff positions, so you may get very skeptical replies.

I wouldn't want part ownership, a monthly payment would be more up my alley. It may be hard to find anyone willing to go without a specified fee/payment for 6 months.
 

CatMuse33

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I agree with what's been said...And particularly Jeffo's views on freelance v. employees.
$200 isn't the best pay but it's not bad and you could probably get decent quality at that price--more so than w/profit-sharing mumbo jumbo. (no offense to you; I understand your role. )

But the bottom line is: presumably this new publisher is paying his printer, the mailing house and the electric company. Why should writers be any different?
 

CoffeeBound

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Six months is a long time to be working without pay. If I was the owner of this publication, I'd fear that going this route would bring lackluster content from my writers. (Non-paying gigs don't usually take precedence over projects that bring home the bacon, am I right?)

So, yeah, my vote is for the upfront payments option.

And Jenn, when this publication does need writers, would you be so kind as to let us know the details? :D
 

jhmattern

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And Jenn, when this publication does need writers, would you be so kind as to let us know the details?

If I end up getting more involved and handling some of the recruiting end, I absolutely will. Even if not, I'll likely post an ad for them on my freelance writing blog (link in sig), so details would be up there. In the meantime, if you want to, you can email me a link to samples or a portfolio with a brief background on the type of writing you specialize in - [email protected]. Then even if I don't choose to get involved on that level, I can pass your information along to whomever does. :)
 
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