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Selling out to the Devil... or not?

 
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MoontownCafe

posts: 51

Dec 29, 2007 4:01 PM ET    Quote  Report Abuse
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Ok, here`s the basics of where I`m at.  I own and operate an online business, www.MoonTownCafe.com.  Here`s a little about the site:

  • The site was started about 7 years ago to try to help poets and writers succeed with their work. 
  • The site is very complex, all custom coded, with many, many unique features, way too many to list.
  • We have about 10,000 active registered users.  Over 1,000,000 unique visitors last year.
  • Over 16,000 subscribers to our opt-in email newsletter
  • We receive about 25,000 pageviews per day, from users all over the world
  • Over 100,000 poems and stories in database
  • 90% US traffic, 6% Canada, 3% UK, 1% other
  • 65% Females, 35% Males
  • Yahoo Publisher Network is the current Ad Server.  Their payout has been much higher than Adsense, plus they have a much higher standard on who they let in than Google.
  • We occasionally sponser contests for other businesses to generate revenue. 
I know these numbers are not staggering by any stretch, but for such a small niche with no advertising costs, we have grown this site to a moderately impressive level. 

Now we need to make some money and here is an option that I have been struggling with.  To me it seems like I am selling my soul to the devil, but many fine companies do this and make a nice profit from it: renting/selling information.
 
We have about 6,000 home mailing addresses and about 16,000 email addresses from our users.  We have been granted permission to rent/sell this information but have never done so.  I have been considering doing this over the past couple months in a last ditch effort to salvage this business.  I would love to hear your thoughts and opinions on selling personal information.  Frankly, I think I know what everyone`s response will be, because like you, I am annoyed with junk mail and emails.  But from a business owners perspective, what are my alternatives?
 
MoontownCafe12/29/2007 4:04 PM


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Visit our poetry website today at:

www.moontowncafe.com
CraigL

posts: 9051

Dec 29, 2007 5:19 PM ET    Quote  Report Abuse
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Funny, but I was just listening to a radio show about something called SRI, which stands for Socially Responsible Investing. It`s apparently become a new and growing niche in the investment markets, with a focus on people asking questions about the companies in which they`re investing.

The reason I see a connection is that more people are starting to question the way money is being used by businesses, these days. It may be because of such things as environmentalism, but I don`t think so. Rather, I think we`re entering a new world image, understanding more and more that as individuals, we really do fit into something larger than America, or Mexico, or India, or some other country. We`re part of "The Human Race," not a sub-set.

To that end, I think if you were to ask similar types of questions about the companies interested in buying your customer database, you wouldn`t be trafficking with the Devil (although I think the Devil gets a bad rap, sometimes).

What if you were to only sell your list to companies that offer a real value in a related product line to writing, poetry, literature, and so forth? I don`t see why you, as the owner of the list, can`t ask these questions. And I don`t see why companies who want to buy your list wouldn`t be able to answer them, right?
MoontownCafe

posts: 51

Dec 29, 2007 7:28 PM ET    Quote  Report Abuse
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Thanks again Craig.  I would, of course, only sell to relavent businesses.  Personally, when I get mail from writing and poetry companies, I always open them.  I mostly get annoyed at all the free credit card offers.  They do, however, help to heat my home in the winter.

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Visit our poetry website today at:

www.moontowncafe.com
hostclick

posts: 129

Dec 31, 2007 7:16 AM ET    Quote  Report Abuse
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For what it`s worth I would strongly recommend not doing it. My recommendation would be to seek outside sponsorship as the ad networks (adsense/ypn) historically do not do well in these (SN) environments. It`s more work but the payout is much greater and in a sense it ads more value to the site as your not getting "random" ypn/adsense advertisements.

Also typically the most important piece of information you provide when going to advertisers is unique daily visitors (which I didn`t see listed).
KevDev

posts: 96

Dec 31, 2007 10:12 AM ET    Quote  Report Abuse
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MoonTown:

I don`t see a problem with your plan. You say that you have the permission of your users to share their information, so this shouldn`t come as a surprise to them. Many might actually benefit from the information they receive.

My only suggestion is that you limit how often your partners can contact those on your list. I don`t mind hearing from a related business ONCE, but to be deluged again and again just turns me off.

It`s worth a shot! Good luck!



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