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Manchester Confidential tears down paywall, concentrates on other revenue streams | Print |  Email to a friend
Monday, 19 April 2010

Publisher Mark Garner's paywall experiment has come to an end, as site content on Manchester Confidential has been completely opened up to non-subscribers just months after the high-profile restrictions were put in place.
Publisher Mark Garner's paywall experiment has come to an end, as site content on Manchester Confidential has been completely opened up to non-subscribers just months after the high-profile restrictions were put in place.

Speaking to How-Do about the development Garner was his usual candid self, admitting that the paid-for model had not worked in terms of direct revenue creation, but had worked in terms of leading to an increased profile for the business and new revenue models.

Garner first revealed that Man Con was set to become a subscriber-only website last October, closing off large sections of its local food, drink and leisure-based content to its (at that point) 260,000 weekly readers.

Image
The subs model the business opted for introduced Heroes and Friends membership, whereby special offers and discounts were included in packages that also gave subscribers unrestricted access to the portal's restaurant reviews, interviews, articles and news pieces.

A new Man Con site, complete with paywall, was then launched in January.

"Prior to launching the subs model we undertook in-depth research that showed that around 21% of our readers would pay for content," Garner told How-Do. "We were bullish after that and decided to give it a go."

What Garner didn't tell How-Do, or anyone else at that time, was that the business was losing money "hand over fist", with ad sales plummeting and the property market all but disappearing as a result of the recession.

"We lost money throughout the entire year," he now states matter-of-factly.

What he doesn't admit is that the paywall measure was an act of desperation on his behalf. He still believes it's the future - "absolutely, somebody HAS to pay for original, specialist content... that's the reality of the situation" - although not for Manchester Confidential (in the short term at any rate).

Garner won't reveal the numbers of subscribers that signed up to the various packages as the site is still pushing membership as a means of building a community centred on the unique deals (in restaurants, bars and venues around town) that Man Con can negotiate, rather than site access.

Image
Garner: positive
All he will say is that "it's a very meaningful number" and "more than I expected."

What is clear is that he and his colleagues have now switched from trying to pull in revenue through editorial content and are concentrating on e-commerce. Two new streams have opened up as a result of the site relaunch that appear to be doing the business.

They are Strictly Confidential (which was trialled last year), a service focusing on getting users into venues where availability is usually non-existent, and voucher sales.

The latter involves selling vouchers that users can redeem against, for example, spa days at health resorts.

Together, according to Garner, these are now accounting for 30% of business turnover.

What's more, he stresses, that turnover is now rising again - partly as a result of the increased profile of the site through the paywall introduction ("this publicising isn't for my own sake you know"), but largely due to a sense that the clouds of recession are retreating and advertising and associated revenues are returning.

Image
Advertisers spending again
"After losing money for so long, things levelled off in January, we made a bit of money in February and finally a lot of money in March."

Advertisers are booking too - Regus and City College are two names he mentions, while an airport and various football clubs are ones he can't but are at "advanced stages" of discussion.

To get the e-commerce revenues flowing Manchester Confidential needs a requisite weight of users perusing the site and this is probably the key reason for breaking down a wall that, when it was first planned for, seemed to be so deeply unpopular (with How-Do users at any rate).

Garner, despite his positive outlook, sounds disappointed that the concept didn't quite pan out as planned, vehemently insisting that paid-for will be the future of online publishing.

But for now, he says, Man Con will be shelving the model and concentrating on something that he knows works - "deals, food, booze and a bit of architecture thrown in" and, of course, "making real money."

 

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  Comments (39)
RSS comments
 1 By erjio, on 19-04-2010 11:58
Hopefully this will shoot Garner down to size. Maybe he'll realise that we only visit Man Con for Wagamama 2 for 1 vouchers and that the editorial content is of little to no interest or worth. The idea of charging for content was absurd and arrogant. Sorry but I for one haven't missed the site.
 2 By George Dearsley, on 19-04-2010 12:17
You have to warm to Mark. No disgrace in giving it a go, reviewing and revising. I hope we don't get too many "I told you so" comments on this thread. Easy to snipe, at least Mark is trying to create wealth. Now let's see how long it takes for Rupert Murdoch to admit he has made an error of judgement on paywalls.
 3 By Graham, on 19-04-2010 12:33
There's a shocker. 
 
The thing is, if their website was half decent and provided a quality user experience, the paywall might just have worked. 
 
Some people never listen.
 4 By Another brick in the paywall, on 19-04-2010 12:48
George - I think you're right and maybe there shouldn't be so many "I told you so" comments. But the fact is, on these very pages, so many people did tell him - so prior to the event. It's not sniping when it was clear that many people (who do have a good opinion of Mark) did not believe it would work.
 5 By Dave Spanner, on 19-04-2010 12:53
It's all well and good kicking people when they're down erjio, but at least they tried, and at least they kept investing in the idea until they realised it wasn't working (unlike MEN et al).
 6 By mancman, on 19-04-2010 13:10
There's always been an air of arrogance about ManCon and it's hardly surprising that they're taking some stick now.
 7 By George Dearsley, on 19-04-2010 13:16
Another Brick...in many ways I agree and indeed I was one of those who (under my own name) ventured that it would not work. But sometimes you have to try these things. I'm sure a lot of people thought Twitter was absurd when it launched.
 8 By John Nuttall, on 19-04-2010 13:25
Well Erjio, the next time you get a newspaper or magazine from the newsagent try walking out without paying for it and see if the excuse that "The idea of charging for content is absurd and arrogant" is accepted. The IT world has a word for the likes of you that believe they shouldn't pay for anything on the net - 'Freetards'
 9 By John Smith, on 19-04-2010 13:28
Re the membership numbers, All he will say is that "it's a very meaningful number" and "more than I expected." Really?? Mark Garner boasted (on this site) that he expected 2,000 heroes and 10,000 friends when in reality it was 300 heroes and 1,000 friends when the figures were first let out the bag. As for the 'strictly' offers, I booked one (with no problem on a Saturday night) but when I discovered that the £7 deposit went to Man Con, not the restaurant, I booked again the following week directly through the restaurant. Simples. Man Con have an over-inflated opinion of themselves and think for some reason they are the 'voice of Manchester'
 10 By Manconfan, on 19-04-2010 13:42
Well, it was worth giving it a go - something Gordo's never been afraid to do in all his guises. As for those on here slagging off Mancon - it's a heck of a lot sparkier than other websites/publications I could mention. Out of my peer group (professional, successful 20 and 30somethings), people talk about Mancon, they read it and they like it. Those same people never read the MEN, for example. They don't even pick it up when it's free.
 11 By Tristan Welch (Communications website, on 19-04-2010 13:49
Hi John, that £7 deposit isn't profiteering, it's our fee for the media space we put behind the Strictly deals, there's no charge for the restaurant to advertise and it gives us a menu that's devised to be exclusive to our readers that shouldn't be available directly through the restaurant
 12 By It's all a bit odd.., on 19-04-2010 14:13
John Smith, we advertise on ManConfidential; it's called 'the voice of manchester' because it does what it says on the tin. I remeber them getting the parking restrictions lifted, no other media in town did that for us. Why do you hate it so much? It's all a bit odd, are you a competitor? To the people at the publication, good to see that you have survived the recession and, I know, have come out fighting.
 13 By mcrgossip, on 19-04-2010 14:25
you try something it doesn't work , as a result of trying you find new ways to make money,in my book a success. Adapt or Die.
 14 By John Joseph, on 19-04-2010 14:30
There is nothing her but to admire I reckon. Spirit and pioneering stuff. You win some, you lose some. There are a lot of bitter people in the media. Would they be as honest? They can't even put their own names on this thread for the most part. I wish Mark Garner and his team all the luck for kicking them up the backside.
 15 By Hamish The Scot, on 19-04-2010 16:04
So now they are using the Top Table model then, commision for every restaurant place sold? Very innovative indeed. If you believe Mr Garner and his mates were reponsible for the lifting of the parking restrictions/fees, over the Christmas period, I suggest you are more deluded then they are.......
 16 By erjio, on 19-04-2010 16:23
@ John Nuttall 
 
Would love to hear the origin of your word for the likes of me, John. 'Freetards', eh? Nice. 
 
As it happens I spend upwards of £200 per year in subscriptions to online journals, so I am not a 'Freetard' after all. I don't object to paying for online content, it's just that Man Con is a bit, y'know, rubbish. All they seem to write about is where 'Gordo' had his lunch, and I was never going to pay to read that.
 17 By erjo, on 19-04-2010 16:26
@ Dave Spanner 
 
"It's all well and good kicking people when they're down erjio, but at least they tried, and at least they kept investing in the idea until they realised it wasn't working (unlike MEN et al)." 
 
Indeed: unlike MEN, who invested in Channel M for 10 years before they realised it wasn't working.
 18 By It's getting a bit odder, on 19-04-2010 16:46
@Hamish; nothing to do with that Hamish. MCon spotted the move by the council, three years ago, when they were moving free parking after six through to midnight along with a lot more stuff. Which meant my flat would be surrounded by pay booths and my mum couldn't come to visit unless she parked a mile away... in the dark. Over two weeks they orchestrated a campaign, single-handedly, which resulted in the Council completely backing down. @erjio, or erjo. I doth think you protest too much matey. You seem to know a lot about ManC. The only thing worse than being talked about...
 19 By Hamish The Scot, on 19-04-2010 16:49
Exactly. The pay wall lasted all of three months
 20 By Hamish The Scot, on 19-04-2010 17:05
You know it's all a bit odd and it's getting a bit odder, you sound just like the main man himself ;)
 21 By VC Man, on 19-04-2010 17:11
@Hamish. You seem a little bitter there Hamish old chap. Try pay wall out, pay wall doesn't work, take paywall down, admit mistake, get on with other revenues. Sounds like a management team I would invest in personally. From a VC feller.
 22 By Getting tiresome, on 19-04-2010 17:51
The only thing that this kick-fest is making me do is turn off How-Do, I'm afraid. It has a touch of same-old, same-old about it.
 23 By Brian, on 19-04-2010 22:06
Erjio who apparently spends 'upwards of £200 pa subscriptions to online journals' could answer a lot of questions about this paid for/free subs business assuming he is being factual. Can he give us a lowdown on say two of them (but not porn or FT.com ). I am sure it would be a great help.
 24 By Man Con Haters, on 20-04-2010 11:25
You all make me laugh! Man Con does what it says on the tin. The paywall has not worked and Garner has held his hands up! 
 
What more do you people want BLOOD! Man Con is not for everyone just 300,000 people as garner pointed out (not bad) 
 
If you dont like Man Con dont read it (simples)
 25 By jonthebeef website, on 20-04-2010 12:48
Credit where credit's due. I think it's fair play he gave it a crack, and then accepts both privately and publically that it hasn't been a success. That's called BALLS. 
 
You can't blame him for trying.
 26 By Comparethemeerkat, on 20-04-2010 18:24
It strikes me that this whole argument/discussion about paid for content is somewhat missing the point. Over the last few years (decades) very few media organisations have built their business based upon punters paying for content. Most revenue sources have been through advertising and sponsorship with the punter either getting the product free or for so little money that it becomes academic. So the problem with online is that there is very real advertising space to sell, and even worse its all completely trackable (though in certain cases and with certain sites this can work in the provider's favour). As far as I can see, the fact that there is a dearth of advertising to be flogged on websites has led the media community to blame punters not paying for content, when in reality they rarely did in any meaningful fashion previously. So, if its the case that this clamour for paywalls is largely spurious (except in certain exceptions when the content is unique, valuable and usually time critical - eg FT), media organisations need to work out other ways of monetising their sites. To me, the age-old principles apply. Build a community, identify things that community wants and orgaisations that want to provide them and bring them together. Whether it's events, clubs, special offers etc etc, as long as the audience is good enough and big enough, there's money to be made and a business to be grown. It seems to me that when all is said and done, people seem to forget that the way for most media sites to do make money is to stick to time honoured publishing techniques and remember that the internet is just a different form of publishing, no more no less. Mark is to be applauded for working it out, but I'm surprised it took him so long, Best of luck to ManCon, there's a lot of work goes into delivering that site, I for one hope they can learn from their mistakes and continue to grow
 27 By anon, on 21-04-2010 10:03
i wonder how many of these comments were written by mr garner.
 28 By Anatoly, on 21-04-2010 10:53
Hmm...agree with Comparethemeerkat...I wonder just how many of the whingers and backstabbers posting on here have got THEIR personal assets at stake in a business and how many of them are just wage slaves?
 29 By Mark Garner website, on 22-04-2010 11:37
Anon I said my piece to the Editor on the ManCon debate thank you very much. Thanks to the supporters and the people who have their own view; you are welcome to the debate. Massive reads over the past few days, welcome back everyone.
 30 By Francois website, on 28-04-2010 07:57
Mark,  
 
Been following you site and innovate online revenue streams with some interest, including the paywall experiment. 
 
Just checked the Manchester Confidential traffic on Alexa.com, and it shows an 85% drop in traffic since February. Is that about right?  
 
Of course, I'm also keen to see how long it takes for the audience numbers to recover. All the best.
 31 By Not Mark Garner/don't work for, on 28-04-2010 13:09
That Alexa thing is good, but when I looked to make sure you weren't just being one of those vindictive mancon haters I discovered this highly contradictory statistic to yours: traffic up 230 per cent since feb. 
 
1 month 0.00094 +50% Change in Reach over the trailing 1m period 
3 month 0.00068 +230% Change in Reach over the trailing 3m period. 
 
 
Here, look for youself: http://www.alexa.com/siteinfo/manchesterconfidential.co.uk# 
 
Shurely some mishtake, Francois...
 32 By John Smith, on 28-04-2010 13:41
Yep, but if you read Alexa, a positive change means a site is getting less popular-just hover your mouse over the figure
 33 By Kid Disco, on 28-04-2010 14:33
Seems to me he's quoting reach John, not traffic, an increase in that can only be good surely? 
 
They must be redirecting traffic from the .com to .co.uk address, that'd explain it.
 34 By Mark Garner website, on 28-04-2010 16:21
Francois, thank you for your interest. As part of our getting-our-act-together process, we have directed nearly all of the .com traffic onto the .co.uk domain, which accounts for one dropping and the other spurting upwards. Our stats show a slight increase this month on the last two with a large burp during january, probably because of people having a peek at the new format.
 35 By Brian, on 28-04-2010 17:17
Can I interpret these comments today as indicating that using .co.uk generates better traffic in the UK rather than .com?
 36 By Mr Logic, on 29-04-2010 08:00
No, but if you channel all your traffic to one domain from another, then you will get a rise in one and a drop in the other. Shall we draw a picture?
 37 By Brian, on 28-04-2010 18:23
Thanks Mr Logic, no pic needed I understand now.
 38 By Mrs Logic, on 29-04-2010 08:00
I was looking forward to a picture of "spurting upwards"
 39 By Mr Smith, on 12-08-2010 16:05
I'm still waiting for the 'heroes' membership card - anyone?

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