A sad day yesterday – I learned over the weekend that my first boyfriend lost his fight with cancer. It wasn’t unexpected, but I don’t think anyone can really be prepared to hear that sort of news. I’d done my mourning, said my goodbyes, resolved in my own mind that which wasn’t resolved decades ago. I meditated, prayed, and bid him a loving farewell. My prayers and love to his family, whom I hope to see soon.
On to writing news. Our very own Irreverent Freelancer Kathy sent me this link to a revealing blog post about Demand Studios, written by Carol Tice. What’s revealing isn’t all that surprising. First, the blog reports the company is about to launch a $125 million IPO (inital public offering). Not surprising that the business model, which pays writers up to $15 an article, includes going public for big bucks.
Even the news of the company’s list of potential business threats comes as no surprise – not to me. Google, which seemed to me to embrace the content mill garbage at first, is now considering, according to DS’s disclosure papers, labeling its content as spam. That’s right – spam. That speaks not only to the saturation of content, but perhaps even the quality of much of it.
For me, here’s the surprise. Demand Studios’s business disclosure reveals it is losing money. Yep, they underpay their writers, giving them easily one-tenth what they could earn elsewhere and they’re still not able to make a profit. The business model, in my opinion, is weak on the provider side. How could it not be weak on the management side, I ask?
Demand made much effort in the news about its smart business model, its fairness to its contributors, and as the company increased its public patting of its own back, the question mark started to form. Why? If your business model is working, if you’re making money and being such a strong “employer” to the masses, why do you need to spend money to increase that image? Because you’re failing. At least that’s the message resonating throughout the company’s public disclosure.
I know there are those who think Demand Studios is a great place to work, a place to wait out a recession, or the only option they have. Whatever your view, know this – if you put all your effort and focus in one client, you’re betting on the stability and loyalty of that client. That’s a foolish business model. And please, don’t say the recession is killing you. I’m working like crazy right now, which is usually my slow period. The work is there if you look for it.
The fact is this; if Demand Studios – or whatever content mill you work for – closes its doors and it’s your only client, you’re now without work. And you’re going to have to start from scratch, if you’re even able to. Have you bothered to learn how to market, or did you think you’d just write those articles from the company’s wish list for the next five years?
If you currently work for Demand, now would be a good time for you to consider putting that effort into learning how to market – how to approach clients, build a network, secure work, build a reputation, and grow a business. As I’ve said repeatedly over the last few years, any company that undervalues your skills is not one to put all your focus on, or any, for that matter. Choose clients who need writers and aren’t afraid to pay a decent rate for the talents you possess.
Should the company and others like it be forced to close up shop, put yourself in a position to move on to greater things much more quickly. Don’t wait for the hammer to fall. Think of it this way – if your house started to burn, would you wait until the flames hit the back of your computer chair before logging off, or would you get out and find safety faster?
Apply that same logic to your career.
22 responses to “Beyond Demand”
First of all, please accept my condolences. You are in my thoughts.
I've often talked at length about my contempt for content mills and those who work for them.
Two well-worn sayings come to mind:
"You get what you pay for"
and
"What goes around comes around."
I'm really sorry to hear about your friend.
Lori, sorry to hear about your loss. 🙁
While we're on the topic of Demand Studios, you might enjoy this article on the Dumbest How-To Content from Demand: http://www.dailyfinance.com/story/media/dumbest-how-to-content-demand-media/19601052/ (I didn't write this, someone posted it on a forum I frequent and it's too good not to share!)
Thanks, everyone. He's in a better place now.
Devon, I tend to agree. I didn't see the company surviving this long without some kind of backlash. The reading public are not a bunch of morons, and yes, we demand (note the irony there) better content. The company may be learning the hard way – it does indeed get what it pays for, which ain't much.
Thanks, Jennifer. I appreciate it. 🙂
Susan, I saw that! Kathy's been busy. That link was waiting for me when I opened the in box today. 🙂 Hilarious! I think I love the "how to put on a speedo" one best.
What gets me is the company could've made a name for itself as providers or hilarious content instead of trying to position itself as a provider of quality. Hell, they corner the market on the completely ridiculous! Some of those stories are just, well, too damn funny to be serious. The sad fact is that they ARE supposed to be serious, which means that instead of being funny for the right reasons….
So sorry, Lori. I'm glad you wrote that final letter.
Susan actually found the article about the dumbest DS articles first. It was her link on Facebook that led me to it. Great stuff, and I mean that in the most sarcastic of ways.
Lori, I'm also sorry about your first boyfriend.
As for writing, I'll be thrilled if Demand fails, but will other content sites think erroneously that they must pay less to be profitable?
You know there's some bonehead out there who will take $5 instead of $10 if it's offered, thereby pushing pay down even further.
Given what passes for business logic, that's not out of the realm of impossible.
Ugh. I've depressed myself.
I'm sorry Lori–but I hope you were able to do enough to get into a good emotional space about your loss.
As for Demand, it's not so much that they are losing money as it is that they are over-spending. Their model _can_ make money but when exec salaries, perks and other expenses go too far–you get no profits. But the higher-ups don't care especially RBlatt, whose salary is likely substantial. And if it isn't substantial enough, there's always the half million dollar deal that he just made to supply content from DS to his wife's website.
Someone IS profiting off those writers and the business model is inexpensive, which means that it is simply greed causing the losses each year. Of course, that doesn't come as a surprise when they pay their writers such small amounts and make such manipulative and untrue marketing statements to suck them in.
There is a thread somewhere on the DemandStudiosSucks forum that talks about how much they spent at their last conference, but the site is moving so slow right now that I can't find it.
Just got the link–sorry for double post: http://www.demandstudiossucks.com/forum/viewtopic.php?f=7&t=49
Lori, so sorry about your loss. Send me his name and I'll wear it on the 3-Day Walk for Breast Cancer. We're out to fight all forms of cancer and I wear the names of loved ones fighting the fight or those who lost the fight.
I am off to check out Susan's link.
Hugs, Lori.
Read the link Susan provided-way too funny. However, that site needs a better spam filter. So far only one of the comments had anything to do with the actual post.
Thanks for the laugh-I needed that this morning.
Kathy, thanks for setting the record straight. And Susan, thanks for providing the link here! I appreciate it.
Don't be depressed, Gabriella. Devon's said it a million times – if other writers fight tooth-and-nail to write for $5-15, let them to it. Less competition for those of us aiming higher. It was becoming a disease for a while there, and I was wondering how so many could drink the same Kool-Aid. As long as your business sense remains intact, that's all that matters. :))
Thanks for the link, Yo! I had wondered if the losses weren't the result of plain old greed. I don't follow the DS saga as closely as I should. It does seem odd that they can't make money since they're paying so little and getting so much from the content they're purchasing. Makes you wonder, eh?
Cathy, thank you. I'll send it via Twitter.
The link IS hilarious. 🙂
Sorry for your loss, Lori.
It strikes me that you applied the same logic when dealing with the impending death of your friend. You knew it was coming and dealt with the emotions as best as you could before the end came. It doesn't make his death any less shocking, but you prepared for it. Just like DS contributors should prepare for the inevitable.
And I like to think the fall of DS and other content mills is inevitable. Why? The public isn't as stupid as the mills assumed. After searches hitting two, three, or more poorly written and researches articles, people start noticing the URLs and avoid clicking links to sites they know have inferior content.
Of course, in reply to your post some DS writers might think, "Marketing? With the great visibility I get with DS, I don't need marketing."
Sorry for your loss, Lori.
WRT Demand Studios, I saw when Carol posted that, and she did a nice piece of reporting. I know I've referenced the South Park Underpants Gnomes before, but it's just plain apt. Do these people not understand math, let alone profitability?
Your overarching point, about diversifying your client base, is critical to survival. Over the years, I've lost a couple of five-figure clients to bankruptcy or other circumstances beyond my control…but within 6 months, I didn't even notice they were gone. Yeah, I won't deny it was lousy when it happened, but having an otherwise full dance card took the sting out of it.
I'm so sorry to hear about your friend, Lori. I'm glad you made peace with it.
On the issue of DS, I tend to have the perspective of – if those writers want to work for nothing, let them. It's that much less competition for me. The sad part is that there are others who want to begin their own content mills and pay writers crap because they see that it's working for DS.
The work is out there, but it won't just jump in your lap. When these writers learn that, then, maybe, things will begin to change for their business.
Paula, super analogy. And I think because I cried it out, reasoned it out, said my goodbyes, it softened the blow. I hadn't ever come to terms with our breakup years ago. It was time. As you say, the DS situation isn't that dissimilar. See the writing on the wall, deal with it in a business sense.
Carol is great, isn't she, Jake? I think some of the folks working for Demand do understand math, but the fear of trying it themselves stymies them. No need to market! Easy money! Too bad the true nature of the gig wasn't spelled out better – No freelance clips to speak of! Lousy pay! They see what they choose to see.
Ashley, I think that's true. Beginning writers don't often understand their value, nor do they know there are companies out there itching to exploit their talents for very little return. It's why I preach …. er, post here every day. I hope one more writer says "You know what? I AM better than that kind of work."
Actually, my snide math remark was directed at the people IPOing Demand Studios.
But it clearly works both ways! =)
LOL! Sorry I missed that, Jake. You're right – that's got to be on their minds as they consider this "deal." I'd love to be a fly on the wall during those talks!
Ahhh Lori… hard to lose an old love to cancer… sending you loving beams.
I'm really curious to see where content mills are in say five or 10 years… the IPO for Demand is also interesting… I wouldn't invest, but I'm a skeptic.
Folks who write more than a few articles for the mills either don't understand the math or they do and it's okay with them.
Don't know how to get writers to see their worth… you, me, Carol, Devon, etc. do our best… that's all we can do I think,
hugs
Sorry to hear about the loss. My thoughts go out to the family who had to endure the loss over something like cancer.
I think those who want some kind of career in writing, should take your advice. Now would be the time to start. Imagine trying to get better opportunities by using DS on a resume. It's probably tough now, but down the line if DS happens to get branded as content spammers, it's going to get even worse. Quantity only gets you so far.
Lori — I'm so sorry for your loss. Lots of virtual hugs coming your way.
As for Demand, not surprised in the slightest. I'd already detailed many of their public lies on our blog. And if they weren't being honest with writers, why would we assume they were honest with everyone else. And yeah… they definitely went out of their way to make the company sound profitable, as per some of the videos linked in our post (and Carol's too I believe).
The think with Demand is that it's worse than writers putting all of their eggs in one basket. They're relying on a 3rd party that also relies on a 3rd party — double whammy. We called out the Google issue and actually were toying with the idea of a big campaign to G about their support of crap content and potentially copyright-infringing rewrites that often show up on sites like this due to rush work resulting from the low pay. If there's a chance they're already coming around, I think that's great.
DS is spam. Much of it at least. And Google's gone after MFA sites for years (made-for-adsense for those unfamiliar with the term). They killed the businesses of many a small business owner trying to make a living mostly off their ads (and providing less than high quality content for the sole purpose of attracting the "right" ads with the right keywords). They've gone after sites even when the content is genuinely authoritative just because they disagree with the advertising models there. They went after the bulk of the Web directory industry years ago. Google's not exactly known for being reliable in that sense, and it's incredibly stupid to base a business off of them in any large part, expecting it to last.
I'm surprised it lasted this long. I called for Google to start labeling content mills / content networks and things like article directories and the free and cheap press release distribution sites as spam a couple of years ago. If they want to go after one group, they really do have to go after all. I just hope it's sooner rather than later so users start getting more relevant content again — and not just the same info repeated.
Of course Google being a "threat" won't mean much unless they actually do something. I'll be crossing my fingers for now. And if they do renew a partnership with Demand, hey… we have options. The users aren't going to put up with it forever.
Gabriella — People have been doing it for years. And they repeatedly find that it doesn't work out. Not for long at least. Actually, many of my clients used to be in that game. It was the whole MFA thing I mentioned in my last comment. They make money early on. But these days they get flagged as spam faster and faster, and they're out of business. The clients I mentioned went from paying $5 per article (which was looked at almost as a standard a couple of years back in the webmaster and Internet marketing world) to paying me more than 20 times that much per blog post to keep sites updated. So fortunately those who might think that way generally either go out of business in their first year (if even that long) or the ones with actual business budgets wake up and start hiring professionals. So don't worry too much about that. 🙂
Jenn, thanks for the virtual hug. And thanks for the posts and info. I didn't want you to think I didn't see them.
I love the idea of the push to alert search engine sites of potential copyright infringement. I won't say every DS article is a rip-off of someone else's idea (I've seen ones that give such crappy advice it's obvious these things were made up on the spot), but that it's happening at all is a travesty. Time to kick some butt and take some names.
And you're right – unless Google and others like it take action, the threat is moot. DS proponents ask often why we "elistist snob" writers take offense at DS. Add the theft of content to the list of sins. Mind you, the company's not doing it directly, but they're not exactly policing the ranks, are they? And the writers who do so are either untrained hacks who have no idea or untrained hacks who do have an idea and do it anyway.