Define your business model

An initial version of this fact sheet was released on February 16, 2023. Here is an updated version.

📌 Introductory Remarks

In this fact sheet, we take a closer look at business models that rely more heavily on revenue generated directly from readers or listeners. How can you fund your project while remaining true to your target audiences and the values that underpin it? Defining a business model centered on your audiences means asking yourself what they might be willing to pay for and what their limits would be.

💰Defining Your Business Model, Step by Step

Targets, competition, needs… Ask yourself the right questions

What would my audiences be willing to pay for? How can I optimize the journey between my paid product and my audiences? To consider funding models for your media outlet and ways to generate revenue, you need to ask yourself a series of preliminary questions. Defining your media outlet’s business model requires that you take all aspects of the project into account. What is your vision? Who is your competition? Who are your target audiences? What are their needs? What is your editorial offering? What platforms will you use? What are your touchpoints? What are your costs and revenues? What benefits will your target audiences gain? Answering these questions will help you define the framework of your media outlet’s business model.

To do this, there’s a method: the Business Model Canvas, which involves mapping out your media outlet’s editorial and business model. The business model must always be consistent with your editorial vision and your target audience. That’s why, first and foremost, you need to have defined your target audience (using the persona method) and your editorial and business models (using the Business Model Canvas method).

Outline Your Business Plan

Le travail sur le canevas vous permet d’élaborer votre plan d’affaire (business plan). Si votre média constitue un projet duquel vous aimeriez tirer des revenus (en vivre, donc), vous devez dresser des hypothèses pour atteindre vos objectifs de viabilité.

It is, in fact, necessary to assess the costs your project will generate and the sources of revenue—whether direct or indirect. The cost must be in line with your financial resources and the values of your target audience.

• Revenue: What revenue does this project generate? How do you plan to monetize this project?
• Costs: What costs does this project entail? Whether they are fixed or variable costs (labor, office space, routing, technical solutions, etc.)

In practical terms, you need to strike a balance between revenue (sources of income) and expenses (sources of spending).

Depending on your target audience, the content you want to produce, the format and medium you’ve chosen, as well as your financial and strategic goals, various business models may be feasible. We’ll tell you more about them later in this guide.

Conduct market research

Researching existing models and their effectiveness is the first step in developing your own: this allows you to understand your place within an ecosystem, avoid potential mistakes, and draw inspiration from ideas that align with your project and your target audience. Research media outlets that are structured like yours, target similar audiences, or offer the same formats. Ask yourself the right questions: Do these media outlets tend to monetize their content, implement subscriptions, crowdfunding, donations, paywalls, or sponsorships? In which cases does this work? Conversely, what lessons can be learned from the failures of your peers?

You can browse media websites and see how their offerings are structured. Another way to learn more about their performance is to follow media founders and executives on LinkedIn—many of them share updates about their projects, particularly from a financial perspective. Check out our educational resource at the end of this fact sheet, which will guide you through this process.

Ensure consistency with your editorial promise

A business model is based on a media outlet’s content, editorial direction, audience, and values—in short, on its value proposition.

When defining your business model, be sure to carefully consider your media outlet’s financial viability, editorial independence, and the bond of trust with your readers. It is important that no one pillar stifle the others. In other words, while your media outlet must be able to meet the goals of reach, influence, and financial independence, it must also remain true to its editorial vision. If your media outlet lacks a community aspect, the conditions for implementing a membership model may, for example, be called into question: What project is the audience participating in by becoming a member? Similarly, if your editorial approach isn’t centered around the concept of support, you may not be able to opt for the donation model. We’ll tell you more about these models a little further down.

Put your audience at the heart of your offering

We can’t stress this enough. By choosing to generate revenue from your readers or listeners, you’re acknowledging that you depend on them—or largely on them—to fund your media project. It’s therefore important to always keep in mind their profiles, expectations, and habits. Check out our practical guide on defining personas, which is also linked above.

You should assess your audiences’ financial resources (are they willing to pay? If so, how much? Under what terms? For how long? For what type of service? etc.) Also keep in mind that you’re not alone in the market: ask yourself which media and types of content your target audience is accustomed to paying for (or not!). Furthermore, one essential point to keep in mind is that you’re addressing an audience to whom you’re providing a service.

Messages encouraging contributions should be tailored to different audiences (target audience, paying subscribers, regular readers of the newspaper, online community), both in terms of messaging and distribution channels (social media, newsletters, in-person events, website, flyers, etc.). You need to identify the touchpoints with your target audiences: what platforms do they use, and what are the potential paths between those platforms and your media outlet? This requires you to integrate your audiences into the marketing funnel: acquisition, retention, conversion, and brand awareness. We’ll soon be offering a practical guide dedicated to this topic.

Identify the Right Model

Donations, membership, subscriptions: In the rest of this fact sheet, we’ll take a closer look at business models centered on their audiences.

Note: Keep in mind that defining a primary business model does not mean you can neglect to identify other sources of revenue to fall back on. To ensure financial stability and limit the risk of becoming overly dependent on a single source, it’s essential to review all potential revenue streams for your project in light of your target audience and editorial content. Events, e-commerce, merchandise… To round out your model, don’t hesitate to diversify your revenue streams and take into account any public funding you’re eligible for. At Médianes, we have two resources that can help you.

The Gift

Reason for contributing: I support a cause or an idea I believe in.
Agreement: A sense of community; no specific consideration in return.
Mechanism: One-time, regular, event-based, or ongoing donation.

In the case of media outlets funded by donations, audiences make financial contributions either occasionally or regularly (usually on a monthly basis). The donation model is linked to support for a cause, a vision, an idea, or shared values. Donations stem from a sense of community; no specific reward is offered in exchange. Donations can be encouraged in a low-key, event-based manner—as part of donation campaigns and on an ongoing basis across the media outlet’s various platforms (such as pop-ups on the website or dedicated sections in the newsletter).

When you set up a donation system, it's in your best interest to:

• Ensure that you have a sufficient community base;
• Carefully choose the time when you reach out to your audiences (taking into account the overall schedule, the media calendar, your own outreach efforts, etc.) so that you can reach them when they are available;
• Find effective marketing arguments while remaining as honest as possible;
• Be completely transparent about the amount you need and what the money will be used for;
• Develop a strategy for donation-focused event campaigns and prepare them well in advance (visuals, messages and donation appeals, engagement of the community and Circles 0 and 1, press outreach, etc.).

Cas pratique avec StreetPress
Lancé en 2010, StreetPress est un média d’enquête et de culture urbaine qui affiche une proposition de valeur forte et incarnée. Il défend un modèle de journalisme engagé, gratuit, soutenu par ses lecteur·ices.

A donation to fund a publication

• As part of the November 2021 launch of FAF, a free newsletter dedicated to monitoring and combating the far right, StreetPress is running a campaign to raise awareness and support, in collaboration with Médianes, le studio. The campaign took off with a key call-to-action: supporting investigative journalism dedicated to combating the far right. The goal was set at €48,000 by December 16. It ultimately raised nearly €75,000 in donations, with a more than 50% increase in the number of monthly donations.
• In late 2023, StreetPress is back at it again, this time launching a collaborative platform focused on the far right. The idea? To allow anyone to report the presence and activities of far-right groups or activists, the events they organize, their meeting places, and so on. As part of this effort, the media outlet—once again partnered with Médianes—has planned two phases: an initial fundraising phase to recruit donors, and a phase dedicated to promoting the platform on a larger scale, while also encouraging donations. The result? More than €185,000 raised against an initial goal of €100,000.

A Donation to Support a Pay-What-You-Want Media Outlet In
the fall of 2022, we worked with the team on a fundraising campaign, this time focused more on supporting a pay-what-you-want media outlet. The initial goal of €80,000 was reached and exceeded, with a total of €100,000 ultimately raised for StreetPress (125% of the goal). Defending against threats from the far-right online sphere, funding legal battles, protecting journalists from threats, and ensuring the long-term survival of a media outlet that investigates the far right and the police… These points were turned into slogans and served as compelling reasons to contribute.

It’s worth noting that donations are the preferred funding model for community-based media. Like an NGO, StreetPress publishes an annual impact report—a way to engage with its community while being transparent about its budget and strategy.

Membership

Contribution rationale: I am contributing to an editorial and economic project.
Contract: A new editorial and economic relationship between the media outlet and its community.
Mechanics: Open or limited access; high or moderate level of involvement.

Le modèle de l’adhésion ou membership est corrélé au soutien à un projet éditorial et économique. L’adhésion nécessite de convertir les lecteur·rices en véritables membres de la communauté. Cela pointe un modèle à mi-chemin entre l’abonnement et le don ; il contractualise la relation entre le lectorat et le média sur une base mercantile, mais aussi participative et symbolique.

The media outlet invites its audience to contribute to its existence—that is, to directly fund the outlet and its editorial production in exchange for various rewards, whether symbolic or tangible (special rates, involvement in the editorial process, exclusive meet-and-greets, etc.). Community members do not pay for access to content, but rather to gain a say or a role in the outlet’s editorial direction, economic structure, or overall strategy. These benefits add value to the user experience by granting users greater access, rights, and influence. This is often a participatory model.

The relationship established between the media outlet and its members is a horizontal one based on a sense of belonging and mutual trust. It is a relationship of giving and reciprocity based on transparency in exchange for financial support. To make this membership effective, spaces and mechanisms similar to those used in community management must be established to facilitate dialogue, exchange, and interaction among members, as well as between members and the media outlet. Membership can be promoted through ongoing and/or event-based efforts—as part of membership drives and on an ongoing basis across the media outlet’s various platforms.

Some best practices:

• Align your editorial strategy with your business model to engage your audiences through a project that forms a coherent whole;
• Clearly communicate this editorial and business proposal;
• Clearly define the scope of what you are offering members as part of their membership (your expectations of them; the forms, levels, and limits of their participation);
• Take into account the needs and expectations of your audiences when developing this membership system;
• Create sufficient opportunities for participation to foster a sense of belonging among audiences;
• Choose participation formats that are tailored to your audiences’ availability, habits, and expectations.

Cas pratique avec Tortoise
Lancé en 2018 avec un financement participatif sur Kickstarter, Tortoise est un média britannique qui promeut le slow journalism. Son modèle économique principal ? Le membership (adhésion).  La page membership de Tortoise est très bien construite avec une liste claire et détaillée de ce que permet l’adhésion pour les publics (accès et tarifs privilégiés, produits éditoriaux exclusifs…). 3 ans après son lancement, Tortoise comptait 130 000 membres en incluant les membres payants et les membres en période d’essai.

This approach wasn't enough to make the media outlet profitable, so it decided to expand into podcasting in addition to articles in order to attract a younger audience. (Today, the average podcast listener is 29 years old, while the average member is 39.)

Tortoise thus turned to the podcast to secure a £10 million investment to expand into the audio sector.  A six-part podcast series released following the death of Queen Elizabeth II even reached 100,000 downloads during the mourning period alone. Tortoise requires a financial contribution for access to ad-free podcasts (on its own platforms outside of third-party services). It also funds its offerings through its studio (branded podcasts).

Case Study:
The Bristol CableThe Bristol Cable is a free, local investigative news outlet in the UK that is wholly owned by its 2,700 members. Readers can become members by paying a monthly or annual fee. The community contributes to investigations through the Cable Links tool; citizens can share their stories to enrich articles such as the one on living in high-rises. Events, listed in the community calendar, help strengthen local ties.

36% of its annual revenue (approximately 375,000 euros) comes from its 2,500 members; the remaining two-thirds come mainly from foundations and grants. To avoid dependence on grants and donors, the media outlet launched a membership drive in late 2023 to increase revenue from its readers by 50%.

From Donation to Membership

Properly structuring a donation model makes it possible to transition to a membership model (membership encourages recurring donations). To do this, the media outlet must ensure it has a community base that is sufficiently engaged and willing to make recurring payments.

Case Study: The 19th
The American feminist media outlet The 19th highlights the importance of its mission from a democratic perspective (feminism): “Our goal is long-term viability to support a sustainable future for journalism and news at the intersection of gender, politics, and policy.” The 19th launched in 2020 with a fundraising campaign targeting major donors and relies on the membership and support of its readers. While the proposal is essentially symbolic, it does grant readers access to the outlet’s financial operations and strategic decisions. The arguments are as follows:

• Become a Member: Make a tax-deductible donation online and join our vibrant community of members who support our journalism.
• Make a Major Donation: Help us innovate through your ongoing support and enable us to make significant progress toward our mission and long-term growth. Our community of investors supports The 19th with annual donations of $1,000 or more.
• Planned Giving: Dedicate your legacy to independent, nonprofit media and make a lasting impact on our organization.
• Corporate Support: Expand your reach to a diverse, multigenerational community that seeks to make a meaningful contribution to society.

The Subscription

Rationale for contribution: I pay for a service or a specific editorial product.
Contract: Direct or indirect benefit; access to exclusive content.
Mechanism: Hard paywall, metered paywall, freemium.

In the case of a subscription, readers pay for a service—a specific editorial product. Unlike donations and memberships, subscriptions rely less on a sense of community and emotional connection than on a service-based relationship: the financial contribution guarantees exclusive access to content or a product that meets a personal or professional need. Consumers are more passive and less engaged with the media project itself than is the case with donations and memberships.
Several strategies can be employed within the framework of subscription plans. Some media outlets:

• set tiered prices based on readers' profiles (preferential rates);
• adjust their plans and prices based on the content they want to access.
• Content and the user experience can also be monetized (e.g., paywall systems).

Some best practices;

• Create a clear, simple, and concise user journey and subscription process;
• Display a small number of simple options with clear subscription plans;
• Set commitment periods and payment frequencies that are tailored to your business model;
• Payment options tailored to your audience’s profiles (no-commitment or limited-term plans, by credit card, by check via La Poste, etc.);
• Choose payment methods that help build customer loyalty (SEPA direct debit rather than credit card or check);
• Prioritize psychological pricing that aligns with the public’s perceptions of “fair prices.”

Case Study: La DéferlanteLa
Déferlante is a feminist magazine that launched in 2020 with a presale campaign. The campaign was a success, with 10,000 copies pre-sold, including 3,500 subscriptions. Since then, La Déferlante has had 30,000 newsletter subscribers, 10,000 magazine subscribers, and has sold an average of 10,000 copies in bookstores per issue.

Médianes, the studio, helped La Déferlante set up a subscription with no fixed term: this allows readers to receive the magazine in advance at a discounted rate and, most importantly, with no long-term commitment. For the team, this offer helps to sustainably reduce the churn rate (unsubscriptions). In addition to subscriptions, La Déferlante is funded through single-issue sales online and in bookstores, fundraising, donations, and publishing.

Case Study: Arrêt sur
imagesArrêt sur images offers subscription plans tailored to the economic profiles of its audiences. For example, one plan is aimed at low-income audiences (€2), while another is designed for those able to pay an average rate for news (€10). A gift subscription option is also promoted.
Subscription plans are also available for any organization wishing to provide access to Arrêt sur images for various members of a team.

Communicating About Your Business Model

In your special relationship with your audiences, you are committed to transparency—all the more so because you are an independent media outlet. Sharing your business model so that readers can understand and accept it—and so that they can get behind it—is a real added value.

Cas pratique avec StreetPress
StreetPress multiplie les actions pour faciliter la compréhension de son modèle auprès de ses publics. Cette stratégie se déploie d’abord de manière froide, sur la page « À Propos » (renommée habilement «Pourquoi StreetPress » au regard de la proposition de valeur du média) avec un lien vers un manifeste pour un journalisme engagé, un call-to-action « Pourquoi a-t-on besoin de nos lecteurs » renvoyant vers la page d’appel aux dons.

The media outlet also takes advantage of key moments to communicate its mission, the project it is pursuing, and its business model. In November 2022, as part of its fundraising campaign, StreetPress published content (a video FAQ, a manifesto article, a Twitter Space, and an impact report) to explain its approach.

In brief

Starting Over with Your Goals

To provide a cohesive offering and monetize your editorial content, it is essential that you ensure the following:

• Effectively address a specific need of your target audience;
• Offer formats and media tailored to their uses and consumption patterns;
• Offer a price that your customers will perceive as fair for the service provided;
• Offer a pricing structure that is in line with your audiences' financial means.

Determine the level of engagement among audiences

Preparing Your Business Plan

In a highly competitive media landscape, the challenge is to show how your product stands out and why it’s useful and interesting enough for people to pay for it. It’s not just about creating a balance between supply and demand, but also about offering good value for the price!

• Based on your project's objectives, start by selecting the appropriate business model(s).
• Next, outline your business plan:
• List potential sources of revenue, whether direct or indirect;
• List the expenses associated with this strategy;
• Develop a plan to track your income and expenses over the next six months.

✏️ Use our educational resources

To help you define your business model, we have created several downloadable resources:

• the general form to fill out to help you identify your sources of income;
• this table that allows you to outline your business plan;
• our fact sheet on the roadmap.

🔎 Learn more

We've included some resources to help you learn more about this topic! 👇

On community engagement and monetization:

• Marine Doux’s presentation—co-founder of Médianes—at Web2day and the recap available on our website
• “Moving from an Audience to a Community,” an article by Maxime Leroy on medianes.org
• How Can We Connect People? Margaux Vulliet Analyzes the Mountain Gazette Example
• Readers' clubs, fan clubs… How can you get your readers involved in shaping your media outlet?
• Independence, transparency… Valentin Levetti, co-founder of the Stupid Economics channel (StupMedia), shares his insights on how to engage his community without compromising his business model in the second episode of the Médianes Chemins podcast
• The Importance of Monetizing Your Content to Generate Revenue from Your Audience: Read it on Medium [In English]

Based on the model of giving

• How do you launch a donation-based media outlet? How can you ensure this model is sustainable, and what are some ways to engage your community? Find some answers in Episode 4 of the Médianes Chemins podcast, featuring Hervé Kempf, founder of Reporterre.
• Financer un reportage avec une campagne de dons : quelles pratiques, quels enseignements ? Retour d’expérience de Mediacités Toulouse
• For tips and practical examples on crowdfunding campaigns, check out our two how-to guides on the topic: Everything You Need to Know About Crowdfunding and How to Run a Crowdfunding Campaign.

Based on the membership model

• We’ll tell you more about ThinkIn, Tortoise’s event formats, in issue No. 15 of our industry watch newsletter
• How to Start a Club? Médianes Shares Examples from Les Glorieuses, Prior, and Puck
• How can you turn your audience into members? Get some great ideas from The Bristol Cable, Scalawag, and Zetland
• The Membership Puzzle Guide, a free online guide to setting up a membership system: francais.membershipguide.org
• Insights on the subscription strategy of the British newspaper The Guardian, as featured in Simon Owens’ newsletter. [In English]

About the subscription

• "Sign Up with Google": Learn more about the implications of the bilateral partnerships resulting from this feature
• Using Data to Prevent Subscriber Churn: Violette Chomier, Chief Data Officer of the Les Echos–Le Parisien Group, in an interview with François Defossez (Mediarama)
• How to Manage the Sharing of Paid Content? Strategies from Sud-Ouest, Arrêt sur images, Mediapart, Les Jours, and Le Monde
• Chapter 1 of the Google News Initiative on reader-based business models. [In English]
• Marine Doux's remarks on American models, as interviewed by Mediarama.

Before you go…

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