About Me 0002: Making Money Ideas

What to make of Bill Cohan’s big Vanity Fair piece on a slightly skeevy lawsuit where a pair of Democratic party operatives are trying to pull a Winklevoss on Arianna Huffington? Arianna’s flack, Mario Ruiz, is clearly enjoying being asked to comment on it:

It’s a great story — if you read it backwards. At the end of the article, the writer takes apart Boyce and Daou’s case piece by piece, leaving it in tatters — and rendering everything that has come before it pointless.

Meanwhile, the plaintiffs’ attorney seems much more well-disposed towards the story, despite the fact that — as Ruiz says — it’s almost impossible to read the whole thing and think that they have any case at all.

The question of who’s got the stronger moral and legal case is pretty clear, from Cohan’s reporting: it’s Arianna. As Jay Yarow says about the Winklevii, “ideas are a dime-a-dozen. It’s execution that counts. Mark Zuckerberg executed. The Winklevosses didn’t.” Similarly here: Peter Daou and James Boyce had an idea for a “liberal Drudge Report” in late 2004, at much the same time as about a million other people had exactly the same idea. (Even Gawker launched one such site, Sploid, in April 2005; it closed in August 2006.)

The idea was, as Larry David says in the piece, “terrible”: the site was to be called fourteensixty.com, after the number of days between presidential elections. It had hypocrisy baked in to its business plan:

www.fourteensixty.com will be a Democratic-leaning site with enough non-partisan news so as to appear more mainstream than it truly is; this is critical for credibility and for advertising revenue.

And rather than build one big site, the idea was to build lots of little ones, including (I’m not making this up) mamadonkey.com, “a blog aimed at Democratic supporters over the age of forty”.

On top of that, the site was envisaged as a way to sell the services of political operatives:

1460’s staff technical and web-communication strengths will enable 1460 to offer candidates a full range of strategic and technological tools…

1460 will also help shape a candidate’s overall communication strategy, develop television and radio communications and coordinate that strategy through the Internet. Utilizing Peter’s extensive knowledge of online political communication, 1460 will develop and manage a candidate’s web site, email acquisition and communication strategy, blog communication strategy, volunteer acquisition and deployment, and more.

The plan goes on to detail all the different ways this would make money for the site, including taking “a percentage of monies raised, online and off”, as well as a percentage of all media buys.

No wonder that, when he saw the plan, Kenny Lerer told Arianna that “this doesn’t work for me on many levels”; the two of them went on to do something much smarter, much more innovative and, as befits a news site, much less beholden to party-political interests. And, I daresay, much less likely to ever dream of writing the words “blog communication strategy”.

But what of Cohan’s story? Given that this entire lawsuit seems to be a nonevent, is it reasonable for the Huffington Post to criticize Vanity Fair for printing it in the first place?

There are certainly good reasons why VF might have spiked the story, or buried it on VF.com somewhere. Rich and successful people get sued opportunistically all the time. There’s little new news in the piece. And the conflicts are enormous: not only has VF’s editor hosted Arianna’s book party, one of the plaintiffs has actually worked as a consultant for the magazine.

On top of that, Cohan overstretches in his attempt to demonstrate that there even might be a real story in the lawsuit:

The questions raised are profound: Did Huffington and Huffington Post co-founder Kenneth Lerer take ideas from Daou and Boyce—ideas the two men call “groundbreaking”—without properly compensating or acknowledging them? Or is this just a case of sour grapes, with Daou and Boyce looking to cash in on the hard work of Huffington and Lerer now that the site is successful and valuable?

Er, no, those aren’t profound questions at all. Even if Arianna and Lerer did take an idea or two, it’s hard to see that the plaintiffs would have any claim to compensation — and indeed neither of them asked for compensation or even the opportunity to invest in Huffington Post for six years, before they suddenly decided that they had been so egregiously wronged that they had no choice but to sue.

But the fact is that Vanity Fair loves nothing more than a gossipy tale of celebrity entanglements and the name-dropping in this piece is truly something to behold: Larry David, David Geffen, Brian Grazer, Aaron Sorkin, Meg Ryan, Tom Freston. Graydon Carter simply isn’t capable of passing up a story which includes a sentence like this one:

On Election Day 2004, after attending a Bruce Springsteen concert for Kerry the night before, he, the Davids, and Kristen Breitweiser, a 9/11 widow and political activist, were visiting polling places in Ohio before boarding a private jet to fly to Boston.

The biggest celebrity of all in this piece, is Arianna herself, a blow-dried visionary in a glamorous large-format portrait by Robyn Twomey. The picture speaks much more loudly than the words: she’s clearly the winner, not the men wearing suits lent to them for the duration of the photoshoot by VF staffer Peter Holleran.

This story isn’t bad publicity for Arianna then — the vast majority of VF readers will look at her picture but not read the article. And most of the ones who do read the article will come to the obvious conclusion. My guess is that when Arianna next bumps into Graydon, it’ll be kisses all round, like nothing happened. Especially if he agrees to write something for her website.

(Cross-posted at CJR)

Luck's father, Oliver, says the decision was based purely on "staying in a place he loves, playing beside teammates he adores and getting the degree he covets." Perhaps, I can relate to Luck better than some because I have the perspective of a 19-year-old high school senior that wants nothing more than to be in college right now instead of high school.

Being a senior in high school is not a horrible experience by any means, but right now, if I could be anywhere I wanted, I would be a second-semester freshman in college. Maybe a lot of high school seniors say that, but I am in my 14th consecutive year at the same independent private school. I have gone to school with more or less the same people for that entire time. I am ready to change schools, take some new classes, meet new people, and leave home. So when Andrew Luck announced he wanted to stay at school instead of going pro, I totally understood how he felt. I wouldn't want to leave school either.

On another note, even though the current NFL Collective Bargaining situation reported influenced Luck's decision very little, it is still a major issue worth examining in the context of Luck's decision. A major crticism of Luck is that he will lose tens of millions of dollars for not turning pro.

On the surface, that is almost guaranteed to be true even if his draft stock doesn't go down at all, and he doesn't get hurt playing for Stanford next year or the year after that because the new CBA realistically has to have a rookie payscale, which would result in Luck receiving a significantly smaller salary than the one he would have gotten had he gone pro this year.

But a closer analysis of the broad financial picture reveals that Luck made a sensible decision that very few big-time college athletes are capable of making. Assuming Luck gets his architectural design degree, he will still be set up to make good money regardless of what happens to his football career.

If something bad happens, he has a college degree to fall back on. If he plays for 20 years and makes more money than most of us will see in our lives, then he will have options for a real job beyond football if he wants to leave. Most former players who don't want to coach or don't make good coaches and don't have enough education, end up on the street because they spend too much money during their playing careers. By getting a degree, Luck assures himself that he will not share that future.

Andrew Luck has the right ideas of how to build a successful future. The rest of the world of big-time college athletics should take notice. And his critics should think twice before saying anything.

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Thursday, 13 January 2011

Making Money Ideas

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