Having decided to depart from its subscription-based model, a Hawaiian digital news publisher expanded its reach by abandoning it’s for-profit paywall and taking on non-profit status. They soon found readers were happy to make up the shortfall, writes Piet van Niekerk.
- Civil Beat’s shift from a paywall to a nonprofit model prioritised accessibility and genuine engagement, resulting in doubled revenue and increased readership.
- Investing in initiatives like a daily email newsletter and in-person events fostered reader loyalty and community connections.
- Seeking expert guidance and engaging in collaborative forums enabled Civil Beat to stay agile and drive sustainable growth in the digital media landscape.
In an era where digital news outlets continue to grapple with the challenge of audience engagement and monetisation – not to mention the Google referral crisis – the Honolulu Civil Beat in Hawaii doubled its revenue within a year of abandoning their paywall and witnessed exponential growth in readership and engagement.
Here are 8 reasons why they were successful:
1. They knew they needed to reach more readers.
Despite producing impactful journalism, Civil Beat’s management team knew its paywall restricted access to important information and hindered its ability to reach a broader audience. A smaller audience equated not only to lower revenue but also a failure to educate and engage enough people.
This was not what Civil Beat’s co-founders Pierre Omidyar and Randy Ching set out to achieve when they launched Civil Beat as a digital platform with a subscription paywall in 2010. Like many local digital news startups, Civil Beat was created after Omidiyar and Ching realised there were huge gaps in news coverage and public information in Hawaii.
“They wanted to make a difference,” says Ben Nishimoto, now Civil Beat’s vice president of operations and philanthropy but although they produced standout watchdog and explanatory journalism, their work wasn’t reaching as many readers as the founders hoped. “The for-profit paywall restricted our content… We had a very transactional relationship with our readers. It wasn’t authentic.”
2. They embraced nonprofit status
Transitioning from a for-profit paywall to a nonprofit reader-supported model in June 2016 marked a significant cultural shift for Civil Beat. By prioritising accessibility and community engagement over profit, they laid the groundwork for sustainable growth. It turned out that taking down the paywall paid off financially. From June to December of that year, total revenue exceeded projections by 82%. The following year, total revenue more than doubled.
3. They understood the importance (and invested) in a daily email newsletter
Civil Beat hired a dedicated newsletter writer to create, cultivate and sustain a daily newsletter. “Through our email, we’ve been able to cultivate readers to donors,” explains Ben. The newsletter has grown from approximately 4 000 subscribers in 2017 to 42 000 readers today. As subscribers grew, so did member donors. Between 2018 and 2021, the number of Civil Beat members grew from just under 3,000 to nearly 7,500. In that same time span, average monthly unique visitors increased from 167,000 to 610,000.
4. They were transparent and reinvested profits
Transparent communication and a commitment to reinvesting revenue into the newsroom fostered trust among staff and readers alike. “We’ve made substantial revenue progress since 2016, and we made a commitment to the staff that as our revenue grows, our operating budget will grow accordingly as well,” says Ben. “We’ve been super transparent in terms of how much we’ve raised, but also the staff can see that we’ve been reinvesting that money in the newsroom, which is important.”
As revenue grew, so did its operating budget, enabling the organisation to expand its team and enhance its journalistic endeavors.
5. They embraced strategic guidance from the News Revenue Hub
They sought guidance from the News Revenue Hub, a nonprofit consulting organisation that helps news outlets and other publications generate and increase revenue from readers. This proved invaluable. The Hub’s recommendations, including the creation of a daily email product and hosting in-person events, played a crucial role in expanding Civil Beat’s audience and fostering reader loyalty.
6. They built a dedicated community through events and engagement
Civil Beat’s commitment to in-person engagement proved instrumental in strengthening its ties with the community. From coffee meet-ups to panel discussions, these events not only facilitated meaningful interactions but also provided opportunities for reporters to connect with sources and gain trust.
As Katie Hawkins-Gaar reports for News Revenue Hub: “On any given week, in addition to reporting, editing, and investigating stories, the staff of Honolulu Civil Beat finds a variety of ways to connect with readers.
“Take, for example, a 10-days stretch at the end of March and beginning of April 2022. On Wednesday, March 30, a group of readers gathered at a community bookstore in Honolulu to discuss a book of poetry and prose about living in contemporary Hawaii. The discussion, which was followed by a half hour of writing and sharing, was led by Honolulu Civil Beat’s digital producer, Kuʻu Kauanoe.
“The following Monday, former Hawaii governor Linda Lingle joined Civil Beat’s politics and opinion editor, Chad Blair, for a virtual discussion about the Women’s Prison Project, a 31-member coalition pushing for a complete overhaul of Hawaii’s women’s prison system. Audience members were invited to chime in with questions and comments.”
And they found a buy-product. in-person events often lead to reporters finding sources for stories or becoming more trustworthy in the eyes of readers.
7. They invested in editorial integrity
Central to Civil Beat’s success was maintaining editorial integrity while undergoing a cultural shift. By ensuring that their mission remained unchanged, while adapting their approach to revenue generation, Civil Beat earned the support and enthusiasm of its staff and audience.
“Editors felt very strongly that our content – or mission – should not change. What had to change was how we generated support for that content and how we articulated impacts right to our readers and donors. “Once we did make the transition, the reporters were excited about getting to meet our readers in more organic settings,” says Ben. “There was no pushback on that – even to this day.”
8. They decided to continue to learn and collaborate
Civil Beat’s commitment to learning from industry peers and sharing insights with fellow newsrooms played an important role in their success. By actively participating in the News Revenue Hub’s community of member organiations, Civil Beat benefited from shared best practices, innovative strategies, and collaborative problem-solving. This culture of continuous learning and collaboration enabled Civil Beat to stay agile, adapt to evolving trends, and drive sustainable growth in the ever-changing digital media landscape.
