A historical tidbit: the original business model for Gizmodo was affiliate fees from purchases of gadgets through Amazon. We didn’t have the scale then to make that work. We do now. In December we made $70,000 from Amazon. Without really trying. No seriously, it was an accident.
Gawker Moves Towards a New Business Model, Makes $70,000 Dollars In One Month Without Even Trying
In a memo to ‘All Staff’ yesterday afternoon, Gawker founder Nick Denton advised the company of a number of changes. The meat of the message is that Gawker is determined to seek revenue outside of the traditional banner ad model. Said Denton:
We expect that the banner ad business will be supplanted by our content services and content-driven commerce
One example given by Denton, which is quoted above, is that Gizmodo was able to make $70,000 dollars in December from Amazon affiliate fees.
Editorial concerns aside, if Gawker can change its business to be primarily reliant on affiliate fees and content services, it’s a big deal.
Someone is going to have to find a better business model what’s in place now. And Gawker, ever pushing the envelope, has as good a chance as anyone out there.