Syntagma readers may be interested in a review of the much-hyped UK Channel 4 documentary on the death of Princess Diana, which was broadcast last night. It raised many questions about press freedom and the so-called wisdom of crowds, beloved of social networkers and the Web 2.0 internet.

You can read it over on our sister site, Royal Anecdotes :

The C4 Diana Documentary Reviewed.

No news yet on the Lodge at Exeter Castle, which we hoped might be a candidate for the new Syntagma Towers. It’s looking unlikely as I write, for a variety of reasons.

However, since my short, mocking piece on photographs of desks, I’ve been inundated with … pictures of desks.

I’m just going to publish one of them to show you what splendid readers we have here.

This is the “office” — or library — at Humdrumming Mansions, a stately pile in Shakespeare’s Stratford on Avon, occupied by Steve Newman, a Syntagma author of peerless works of literary magnificence, including a novel, The Crime of the Crimea; a fictionalized biography of Ernest Hemingway; and his “blog”, Our Man in Stratford.

Note the volume on Elgar on the table (2007 is Elgar’s 150th anniversary year), and the picture of John Wayne on the wall-to-wall bookcases. A man of many talents clearly.

Apart from being Senior Director and Editor of the Humdrumming Publishing House, Steve is Director and driving force behind the Stratford International Festival of Literature, the first of which is to be held in September this year. The event will feature such mega-luminaries as Colin Wilson and Guy Adams (another Syntagma author), and is being jointly sponsored by Syntagma Media.

What more could you possible desire?

The Syntagma Story (continued)

Straws in the wind are important signals for digital farmers. They tell them crucially which way the wind is blowing, its strength, and something about the season/cycle.

There are now a lot of straws in the wind for digital networks (or, for purists, blog networks). BlogNetworkWatch no longer covers blog networks. It’s become a sort of mini Blog Herald. Many networks have shut up shop or are quietly getting on with their business underneath the radar.

So what is the state of the digital network business in these apparently doldrum conditions? As I’ve been writing here for a time, waiting for a knock on the door from the Business Development Officer of Yahoo/AOL/Google, whatever, is a sterile career move, and always was.

When Jason Calacanis announced Weblogs Inc was doing $1m a year on Adsense, followed quickly by its sale to AOL for $25m and a seat on the board, networks of content providers became the new Klondike. Lots of people moved in, including Weblog Empire (Duncan Riley) and b5media (Jeremy Wright and other names from the starry firmament). I worked for both before moving quickly on to form Syntagma Media.

Even then there were two ways you could play a digital network :

1. Build infrastucture and content platforms quickly so it stands out against the competition. Go for size and scale before anything else. Then, with a bit of luck, the BDO will come knocking on your humble door. Bingo! Blogging bliss.

2. Optimize the network for income — remember WIN was making $1m a year from Adsense alone before it sold out.

Here at Syntagma we followed Route 1, aiming always to reinvest income in exchange for size (55 sites and rising), and pushing the envelope into new fields, like network magazines and large retail portals. The business plan also included a move into IP-TV in 2008.

However, a major rethink has been forced on us through a number of events. Not the least is a lucrative publishing offer landing on my lap and, yes, straws in the wind. There are no big buyers of digital networks out there now, and even those that are sold have to settle for a bit upfront followed by a share in the income thereafter — in effect turning the owner into a salaryman of the buyer.

The really interesting point though, is that once you go from Route 1 and start exploring Route 2, something highly beneficial emerges. When you stop pouring all of your treasure into endless expansion, you discover that you can start paying yourself a handsome income just by running the network as a normal business, capping the size and scale, and going for quality and depth, rather than extension and constant revolution.

A network like Syntagma can easily pay its owner a six-figure salary (and rising) from a steady-as-she-goes policy of improvement and quality delivery. That assumes the business is around two-years old (we’re two in October) and has a bunch of mature inventory.

In the end, what you get out of a project is more important than prestige, size, or future bonanzas, real or imagined — try explaining it to your bank manager.

So that’s the subtle shift I’ve made in the running of Syntagma. From a network that, at its peak, employed 15 authors, with five vacancies outstanding, to a trim 30 to 40 sites with maybe six high-quality freelances working. We are now a medium-sized digital publisher aiming for depth and quality. One that pays its owner a decent salary, allowing him to spend time on the book deals.

I’m guessing that many network owners have already come to the same conclusion. It’s not astro science after all. If Route 1 seems like a distant dream, even a total mirage, then Route 2 holds some surprises in store. It’s the old bootstrapper’s adage that, the lower your costs, the less you have to turnover to get into the comfort zone. Syntagma is now officially a Route 2 business. Our motto is :

Mind you, if any BDOs are in the area, do drop into Syntagma Towers for a cup of tea. (The champagne has already been auctioned off).

As I’ve written many times here, the entrepreneur’s nightmare is to lose control of your business creation during the expansion process and then find yourself dumped by the incomers.

Whatever happened to Duncan Riley, for example? Now thriving at TechCrunch, he wouldn’t be a man you would want to lose in a hurry.

That is the cautionary tale of JPG Magazine, an online and print business that morphed into 80/20 publishing which resulted in disaster for its founders.

The story is told at some length by Derek Powazek, who describes himself as a thinker, designer, and writer in San Francisco.

His conclusions from the experience are :

If it’s any help to other entrepreneurs, here’s what I’ve learned.

1. Make no assumptions when it comes to roles and responsibilities. Like my dad says: “Someone’s gotta call quittin’ time.”
2. Communication between partners is mandatory. And you cannot communicate with someone who is not communicating with you.
3. Decisions aren’t decisions if you have to keep making them. Set on the course and stick to it. If you keep talking about things that have already been decided, nothing will ever get done.
4. When someone says one thing, but acts in a contradictory way, you have a choice between believing their words or believing their deeds. Believe their deeds.
5. Never let anyone tell you what you want. When someone says, “You don’t want that,” what they really mean is, “I don’t want you to have that.”
6. Don’t stay where you’re not wanted, respected, or happy. Even if it’s your company.

That goes without saying, but it’s still worth reminding people that business is a tough environment unless you hold the best cards.

A quick reminder that our fourth network magazine, Moneyizor, will be launching on Wednesday.

It will range over finance and business and provide an aggregator for our money and business sites, as well as driving traffic to them.

Designed by Thord Hedengren, Moneyizor will have all the features of our other magazine portals.

From today’s Times (London) :

Web 2.0 may be destroying civilisation. That, at least, is the view of Andrew Keen, a Silicon Valley-based British entrepreneur and author. He has written The Cult of the Amateur: How Today’s Internet Is Killing Our Culture (due out in June), which argues that the web is an anti-enlightenment phenomenon, a destroyer of wisdom and culture and an infantile, Rousseau-esque fantasy. “It’s the cult of the child,” he says. “The more you know, the less you know. It’s all about digital narcissism, shameless self-promotion. I find it offensive.”

It’s an incredibly busy time for us here at Syntagma right now. What with new equipment to break in, upgraded systems for accounts, stats and other functions to test, we’ve also got the builders in. Today and tomorrow the floorboards are up in the office, so it’s difficult to get near the desktop computers.

Just the time for a big story to break on one of our main sites. Yesterday we had around 30,000 visitors to our Royal Anecdotes site off the back of the Kate Middleton story. Some newspapers have been shamelessly nicking our angles and distinctive points of view on this story. Anyone would think I’d used their stuff in the past. Ahem …

I sometimes wonder how I ever get time to post. Admin is such a huge drain on human resources in a multi-person content business. If it’s not lawyers, accountants, writers or partners eating valuable time, it’s the builders.

However, we should be back to normal by the weekend when we’ll be able to draw breath for the first time in a month.

Mind how you go.

News hot off the presses of three new series starting on Syntagma inventory :

1. If you’re an aficionado of the BBC’s top-notch, mega-hit TV series, Life on Mars, you’ll be interested to know that Syntagma author, Guy Adams wrote the BBC book of the show, and is just beginning on the second volume, which covers the second series.

Read Guy’s story over on The Hack’s Progress.

2. As it’s Edward Elgar’s 150th anniversary in June, Steve Newman is publishing his play : A Summer Garden, over on Classy Classical in eight parts.

Start reading here.

3. The fourth in our Zen Masters series has begun over at Spiritual Nirvana. Catch the biography of Hui Neng, the sixth Chinese Patriarch of Zen, here.

My print publishing business, Dial Publishing, is currently in exploratory talks to buy a small, but established print publisher of nonfiction books. This is still at the confidential, due diligence stage, so no names or pack drill.

If the buy comes off it will bring a solid backlist of steady sellers to Dial’s inventory, plus a fund of experience and connections impossible to create overnight. Dial Publishing is a totally separate business from Syntagma Digital Limited, which is our digital publishing company.

These events have ballooned out over the Easter period and have led me to reflect on the essential differences between print and digital publishing. With 20 years of print experience and two years of digital publishing behind me, I’m only now beginning to see the wood from the trees.

Let’s state from the outset that we’re talking profitable projects here, not worthwhile artistic efforts which gain critical acclaim but lose money — they are more in the province of personal blogs. In the commercial sphere, it’s the money that determines the outcome in both cases, as always.

Digital and print publishing are surprisingly complementary over a range of possible output. Speaking very generally, the money in digital publishing is in :

Bite-sized reports on events and products that command large-scale interest.

Most essay-type sites don’t make any money at all. The way still to earn income publishing online (not social networking) remains in a few mega-niches : finance, automotive, gadgets, gossip and miscellaneous products and services. Looking across Syntagma’s 50-60 sites the ones with large numbers of text link ads stand out a mile. That’s a very good test of financial viability. All our projects going forward focus on these areas.

The gold in nonfiction print publishing comes from :

Lengthy exposition and detailed information on essential topics and useful techniques.

Most writers find one of these branches easier to accomplish than the other. Just a few may be good at both.

So, in terms of cash and results, there are two discrete environments — print and digital publishing — to work with. Both are capable of bringing results, but the need to consolidate and move on is ever present, especially online.

Other Considerations
To succeed in digital publishing you need to play the market and its highly volatile readership with a certain degree of cunning. Traffic is driven by keywords and buzz — what we used to call “word of mouth”, but now in a different context. To win online you have to get down and dirty with search engine optimization and a measure of gaming of the system. Google benefits too, so there’s real scope for the dark arts here.

Some people don’t really like that aspect of digital publishing — I confess to being a bit chary of it myself. However, to win a war you have to kill people. There’s no other way.

Print publishing is much more congenial to anyone with scruples, although the scope for shenanigans is increasing by the day, especially as the number of titles being published grows beyond the public’s capacity — and wish — to purchase. Content and reputation count above all in today’s busy marketplace.

Complementarity
If you indulge in both arms of publishing, what are the cross-fertilizations you can call up to improve both businesses?

There are many, but in brief :

* You can sell books online and use websites for publicity.
* Books can contain a list of web addresses to get a new audience logging on.
* Multiple cross-references can drive traffic both ways.
* Websites can provide an introduction, while a book develops the whole picture.
* Books can refer readers to websites for more up-to-date information.

These are real benefits and, used smartly, can make a great deal of difference to success on- and offline.

The convergence of digital and print publishing is therefore more of a complementarity than a merging. That the same people are now often doing both is a sign that a mature marketplace is developing which successfully crosses the seemingly large ravine between the two outlets for publishing.

Which, though, potentially yields the bigger return on investment?

That will have to be left to another post, so stay close.