
Leo LaPorte explains podcast economics: $350,000 expenses, $1.5 million rev - chuck_taylor
http://www.buzzmachine.com/2009/10/03/the-model-of-the-new-media-model/
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weaksauce
He is doing some stellar revenue. I am impressed. Though, just like Kevin Rose
cashed in on his cred from TechTV and made Digg immensely popular Leo is as
well. I would wager that he would not be anywhere near that revenue without
the initial infusion of celebrity.

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mechanical_fish
_the initial infusion of celebrity_

Leo wasn't famous on the day he was born, was he?

The only reason he seems to have had an "initial infusion" of celebrity is
that you're telling his story starting in the middle.

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johnnybgoode
I think his point is that Leo was famous from traditional media before he
started an online podcast.

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noelchurchill
He mentions, advertisers don't believe its worth advertising to smart people
because they don't make decisions based on brand, but rather they make
decisions based on research.

Interesting and true.

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harpastum
It may be true that advertisers believe that, but that statement (advertising
to smart people is a waste of time) is _not_.

Buying based on brand recognition is just one facet of a multitude of ways
advertising affects buying habits. There are a lot of advertisers that already
have a _great_ product, but just need to get the word out (i.e. many YC
startups). From the article, "Laporte said he charges $70 CPMs for ads."
Clearly advertising to smart people is in demand.

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Flankk
"Clearly advertising to smart people is in demand."

I think the point is that advertising to smart people is not effective; they
will research and find the best product regardless of advertising.

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8plot
If you view advertising as subversive and dishonest, then yes, advertising to
smart people is less effective.

Not all advertising is dishonest, and instead informative. Hopefully the new
media technologies will let this type of advertising thrive.

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danielzarick
The main reason I perceive advertising as 'dishonest' is that most of it is
talking at the consumer, rather than communicating with. Once more companies
figure out how to do this, then smart people will evaluate that advertisement
with as much value as a fellow community member's dis/approval. Plus the trust
factor comes into play heavily. Leo Laporte has a huge level of trust in the
tech community, and we all know he is here because he truly loves what he does
and would never compromise his community. (And I specifically chose
'community', not 'audience'.)

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CitizenKane
What impresses me is what is left out of the link title on this and what Leo
says in the video.

"We have about $350,000 in expenses and $1.5 in revenue and that's _doubling
every year. The revenue, not the expenses the costs in this are fairly
static._ " (Emphasis Mine)

That's amazing, when I heard this it made my jaw drop.

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rufo
Jeebus... I always sort of figured TWiT was more investment for the future and
wasn't making money yet - I had no idea they were doing so well. Awesome to
hear it, though.

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cdibona
I would also mention the most important part: Leo works his ass off to a
degree that would shock most podcasters dead. His operation is very small, and
he does a huge amount of work all by himself, from production to editing to ad
sales, new product development and more. He's a one man army.

The same work ethic was in evidence at TechTV that I could see in my limited
experience doing segments with him. He's also a hugely nice person, something
you don't see much in TV people...

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domodomo
Wow, TWiT is going to get on the Netflix Roku box. That is a fantastic
strategy.

