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We are pleased to announce that the Free Updates section of Demand Studio Secrets has moved to the Demand Studio Secrets forum.

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New Writer Expertise Privileges
February 24, 2011

You may have noticed that availability of good DS titles has diminished lately. This has to do with the radical reinventing of the way DS determines writer privileges. It is their way of restricting unqualified writers from tackling subjects that they are woefully ill equipped to write about. DS is implementing ways to determine which writers should write about which subjects. They plan to base these decisions on resume qualifications and experience writing about the subject. This is an imperfect plan. People can lie on resumes and just because someone has not written a long list of titles for DS on a particular subject does not mean they are not qualified to do so. Still, DS is trying.

While this new plan is being implemented, many qualified writers will not have access to some quality titles. DS promises a system to request access to these titles, but they are vague about when or what it will look like. The key is to be patient and diversify your portfolio as much as possible right now so you have justification for asking for more writing privileges. There will be a general knowledge category that everyone will have access to, but it is worth your time to gain access to as many categories as possible.

Good Titles Hard to Find
February 20, 2011

I have received several emails lately from DSS community members complaining that good titles are becoming increasingly difficult to find. This is not your imagination. The Find Assignments list is indeed quite lean right now. There are only 270,000 available writing assignments overall. It is typically as high as 350,000. Most writers only have access to a fraction of those.

Finding good titles to write is a matter of playing the numbers. You don't need thousands of titles to write, only a few dozen good ones per week. The key is finding the good ones. The new way DS is categorizing its titles is making this a bit tougher.

Good DS writers must be flexible. The Find Assignments list is often feast or famine. Thousands of great titles are dumped into it at once then nothing good could appear for days. When you find good titles, fill up your list to the limit and ration those titles throughout the week. When the list is lean, work outside your comfort zone and become an expert in a new area.

This is what DS writers must do at times like this. First perform searches for your bread and butter topics. If nothing is available, search for subjects you would like to know more about. It is both rewarding and profitable to learn new things and write about them for DS. Try tackling a subject you know nothing about but is popular on DS. Your new knowledge and the resources you find can be used for numerous articles for a long time.

Do not be afraid to claim a title you know little about. You must find references for all DS articles regardless of your knowledge level. A good writer can process new information efficiently and write an articles quickly. It is important to develop this skill. Not only will it get you through lean times, it will expand your knowledge base and increase the number of titles you find comfortable to claim.

When you are using filters to search the Find Assignments list, start specific then make them broader. For example, you can first search for specific keywords, publisher, category and pay rate. This can produce ideal results but few titles. Perform further searches removing the specific pay rate, category and publisher. Many titles are categorized. A broader search can find them. A title that is below your usual pay grade may be simple for you to write and worth claiming. Occasionally you should also browse the general list. Sometimes you come across a great title you never thought to look for.

Ehow Money Bio
February 15, 2011

Demand Studios is laying down an ultimatum. They say you must have an approved DS bio attached to your profile by February 18 or you will not be allowed to write for eHow Business and Personal Finance. DS wants to go big in finance and they believe that bios add credibility. I don't know that they do, but DS cares a lot about them.

They have done this before. I worked several months on their previous bio project. At that time, every DS writer was supposed to update their bio and get it approved. That was more than a year ago. Apparently DS got soft on this requirement and finds it necessary to crackdown again.

Updating your bio can be a major pain. I strongly encourage you to read the chapter in Demand Studio Secrets devoted to writing your bio. DS is looking for something very specific in your bio. It will only take you a few minutes to write if you know what to do. If you do it wrong, you could find your bio rejected and forced to rewrite it two, three or more times. Trust me on this one. Nothing is more frustrating than have a 50 word personal bio tossed back in your face.

Webinar Schleminar
February 13, 2011

Demand Studios has gone webinar mad. They are getting excited about an upcoming webinar with a new member of their board of directors. What I can't figure out is: why? The guy's name is Peter Guber. He is said to be a "legend of film, music and sports industries." He is also the owner of the Golden State Warriors. While all of this is great, I can't see how Mr. Guber's webinar is going to benefit the DS community. I am sure that he is a very interesting man, but does he have fresh insights into in-text citations or offline referencing? If not, I'm not sure why DS is asking us to tune in.

If you want to see it, follow these instructions:

Topic: Peter Guber Tell to Win Call
Date: Wednesday, February 16, 2011
Time: 10:00 am, Pacific Standard Time (San Francisco, GMT-08:00)
Meeting Number: 928 384 250
Meeting Password: Guber12

Call the toll-free number (US & Canada):
1-866-469-3239
Call Access Code: 928 384 250

Dealing with Two Copy Editors
February 12, 2011

From the Demand Studio Secrets forum: Posted by Hailey08

When you send an article back after you've rewritten it, does it usually go back to the same copy editor? I had a rewrite about two weeks ago, made the changes, and resubmitted it. The status changed to With Editor and stayed that way for about a week. Then it changed to Pending. Today it was rejected by a different copy editor, with comments that started out "Although I disagree with some of your first editor's comments..." This CE went on to say that the introduction was much improved, but pointed out something else that he disliked. I'm not planning to appeal it. I've probably already spent too much time working on it and worrying about it. I'm just curious about the process. Also, it hasn't yet affected my scorecard. I suspect they wait until after the appeal deadline has passed to do that. Is that correct?

Response:

While this situation is rare, it does happen. All articles sent back for a rewrite are returned to the CE who first reviewed it. If that CE does not edit the rewrite within the allotted time, the article is returned to the editing queue. This situation is rare since the CE is not paid for the work already put into the article if they abandon the rewrite edit. The unfortunate thing for the writer is that they now must impress a new copy editor and there is no opportunity for a rewrite if the new copy editor doesn't like it. You just had bad luck with that one. You might have grounds for a rejection appeal since you were denied due process.

Scandal Brewing
February 11, 2011

From the Demand Studio Secrets forum: Posted by Vlad

I've received notice from some members of our semi-defunct study group that a big scandal is brewing. Apparently a guy figured out a way to scam DS: he wrote articles on esoteric tech topics, packed them with false, made up information, and backed them up with offline sources (maybe made up as well). He then cranked out scam articles at the rate of one to two dozen per day since at least last autumn. Depending on what the balance of scam vs. real stuff is, the guy might have taken DS for tens of thousands of dollars. You can go see for yourself at eHow under "Paul Mann," although the index might be gone by the time you get there.

I would not be surprised if this didn't brew a CE crackdown - it has happened before over much, much less (sometimes just whip cracking to make sure everyone is properly intimidated). Basically, be aware that in the near future Lally and Lederman will probably chew their entire department, from copy chiefs down to the newest CE, a new one.

One of my consistent points here is that the editorial system is based on intimidation rather than effective management, and in response to this I would expect more of the same rather than any real reform. So beware of a big rewrite spike, open hostility to articles that have mostly or entirely offline sources, open hostility to articles that are too technical for the CE to understand, etc. I've never heard of anything like this happening before, so I would not be surprised if the response was not fierce and utterly Inquisition-like.

Response:

I've actually known about this situation for some time but decided not to post about it for fear of burning a source. Since the word it out, I guess I can now. This is why I always recommend against using offline sources. They are not easily verifiable. CE can either spend a ridiculous amount of time tracking down the sources (which isn't practical for what DS pays) or just take the writer's word for it and approve the article. Legitimate writers who use offline sources are now in danger of being lumped in with the culprit. Expect a CE crackdown and change in policy. Even if you have had previous success with offline sources, stop using them in the future.

Segmentation and Beta
February 8, 2011

Demand Studios really needs to work on its bed side manner. They managed to turn something that is likely not a big deal into a full-on panic attack in the writer community. DS essentially announced that they are working on a realignment of title assignment categories so that all titles in a particular category can be found in the same area. For example, all the travel articles will be grouped together regardless of the publisher.

If you think about this, the realignment makes sense. Most writers care about subject matter more than publisher. The easiest way to find a title on a particular topic is to search within that topic. DS also suggests that specialized copy editors will review these articles. Isn't that what everybody wants? We all hate it when a CE with no knowledge on a subject is editing an article written by an expert in that subject.

Instead of explaining all this in clear language, DS used words like "segmentation" and "beta." These are scary words when not placed in context. It unleashed all sorts of paranoia about pay rates and integrity. DS already takes articles written for one publisher and shuttles them around to others. They bought the rights to the articles, so they can do whatever they want. This new process just makes it a little easier.

Writer Enrichment Program
February 5, 2011

In a few days, DS will announce its Writer Enrichment Program for this year. If you want to make a name for yourself within Demand Studios, then pay attention. This is your chance to get on a first name basis with staff editors. DS will select 150 writers for the program. They get to watch webinars, have their writing critiqued and get development training from DS staffers. Think of it as being called up from the minor leagues. In order to qualify, you must have more than 50 published articles, have a reasonable acceptance/rejection ratio, decent scores and have an account in good standing. To apply, you must add your name to the forum post by February 8. As I mentioned, this is a good way to get noticed by DS. If you want to remain anonymous and fly under the radar, stay away from this program.

Update: Here is a link to the application forum post: click here. Making a forum post enters you into the contest.

Tax Forms Arrive
February 3, 2011

My 1099-MISC arrived in the mail today. If yours has not arrived yet, look for it in the next day or two. If it does not show up, contact DS. These forms are important. They tell you exactly how much income DS reported to the IRS. You can't just ignore that income. This year the forms come from Demand Media and not Hillclimb Media. Do not attempt to do your taxes before you have your 1099-MISC in hand. The numbers on the website might not be the same as the numbers on the form.

Plagiarism Filter Changes
February 1, 2011

DS tweaked their plagiarism filter and the changes will be noticeable. We will no longer get emails informing us that the ominous plagiarism filter has flagged you. Instead, your article will disappear from your Work Desk for a few days until a human editor checks your article for plagiarism. The process is still the same, you just wont know it is happening. DS presumably did this because of all the stress it was causing writers when the dreaded plagiarism flag was waved at them.

If the human editor finds proof of plagiarism, your account will be immediately suspended and you will be sent an email. It will then be up to you to respond to the email and plead your case. If they find you guilty, you will likely be kicked out of DS.

Return of Tip Titles
January 29, 2011

DS released several hundred $3 Tip Format titles tonight. These are among my favorite DS assignments because they are interesting and incredibly easy to do. You can crank out 15 to 20 of them an hour and never be bored. Tip titles were eliminated several months ago and DS was vague about their future. They appeared without any announcement and vanished fast as the word spread. You might be able to grab a few if you hurry!

Ehow Changes
January 28, 2011

Demand Media website eHow is doing away with its social networking. In an ironic twist, they are moving it to Facebook. It is ironic because Demand Media founder Richard Rosenblatt helped create My Space. This move essentially admits that social networking on eHow did not work. The cancellation of the revenue share program on eHow helped kill it. When writers could no longer submit articles directly to eHow for profit, there was no more need to socialize there. The new process will involve accessing eHow social networking through Facebook.

Demand Media is hoping this move will increase exposure for eHow by utilizing the personal social networks of thousands of members. Friends of eHow members who previously had nothing to do with eHow will now be exposed to it.

If you want to, you can transfer your eHow social profile information to your Facebook account. You certainly don't have to. If you were not socializing on eHow before, there is no reason to do it now. If you are still raking in money from the old revenue share program, it will be handled through a different platform that has not been released yet. You will not need to go through Facebook to access the revenue share program. If you plan to go the Facebook route, do it by the end of January. In February, your eHow profiles will disappear forever.

Demand Media IPO Success
January 26, 2011

Despite all the worry, trash talking and criticism, the today's Demand Media IPO turned out to be a huge success. The stock entered the New York Stock Exchange at $17 per share and traded as high as $23.50. It's stock value shot up 33% in its first day raising Demand Media's market capitalization to $1.9 billion. The New York Times valuation is just $1.65 billion.

This is definitive proof that all the hype about Demand Media's allegedly shady bookkeeping was not enough to scare away investors. They flocked to the stock pouring millions and millions of dollars into the company. This would seem to quiet the critics who suggested Demand Media was about to go broke. Demand Media is now swimming in money they can use to expand and pay its freelancers.

The mainstream media is downright bitter about all this. I listened to an NPR report today about the IPO. They interviewed a woman who applied to Demand Studios but decided not to write for them because she considered the pay beneath her. They also interviewed a man who criticized the Demand Studios content as "junk" that harms the Internet. The reporter did not bother to talk to anyone with praise for the Demand Studios model. I was a member of the mainstream media for 23 years. I can tell you that this report was one sided and blatant sour grapes. The mainstream media is threatened by the likes of Demand Media and they are being shamelessly blunt about it.

Google Talk
January 24, 2011

There is continued talk about Google changing their algorithm to exclude content mill articles like those produced by Demand Studios. It is extremely doubtful that Google would ever do this. Demand Media makes most of its income from Google ads placed on the content produced by Demand Studios. When Demand Media makes money from these ads, so does Google. Why in the world would Google want to cut off one of its most reliable revenue streams? Do you really think that the complaints of a few disgruntled media types will make them take such a huge financial hit?

Google has no real competition. Do you think Google executives are worried that their customers will run off to another search engine because they haven't altered their invisible search algorithm to satisfy some special interest? The talk of a change in Google is being fueled by the mainstream media that has a vested interest in the change. That does not mean it would actually happen.

Commercial Site Reference Change
January 22, 2011

Demand Studios is changing its policy on websites that sell products. In the past, you were not allowed to use commercial sites as references except in certain specific review formats. DS now says that you can use some commercial sites as references, but you must be careful.

Here is what you need to know. You can use a manufacturers website when talking about their product, but not a cut rate retailer website trying to peddle the product. You can use major retailer websites like Wal-Mart that sells many products and has no blatant bias toward one product over another. However, be careful since this is a judgment call. Stick to well known retailers if you are going to do this. DS says the information on the site should be "unbiased." However, no information can be truly unbiased if the website containing it is trying to sell you the product. Always play it safe and avoid commercial websites unless absolutely necessary.

Bottom Line on In-Text Referencing
January 20, 2011

DS has managed to make a confusing mess out of a very simple change in their in-text referencing policy. This whole webinar thing has writers frantic fearing they are missing something. Don't worry. You aren't missing anything major.

Here is what you need to know. The most significant change in the in-text referencing policy is that you don't have to mention the authors of a study in the text of your article when you cite the study. All you have to do is list the organization and date of the study. You should list the authors in the references section after the publication and name of the study, and before the date. If there is more than one author of the study, you can use the term "et al." after the primary author who is always listed first. "Et al." means "and the rest" in Latin. Don't forget the period after "al." It is an essential part of the phrase. Beyond that, you don't have to worry about it.

Title Clarification
January 18, 2011

I have been getting a lot of questions about the changes to the DS title clarification policy. DS is going on and on about all the ways you should go about clearing up any confusion you have about titles. My advice now is the same as it has always been. DO NOT BOTHER CLARIFYING TITLES!

Writing any title that is flawed, unclear or subject to multiple interpretations invites trouble. You can do a fabulous job on the article only to have it thrown back in your face by a copy editor who disagrees with how you interpreted the title. There are about 300,000 available titles on Demand Studios at any given time. If a title needs clarification, move on and find something else.

Linkedin Contacts
January 16, 2011

I would like to extend an invitation to all my readers to become a contact on Linkedin. If you are not familiar with Linkedin.com, it is the foremost resume and contact website on the Internet. It is 100% free to join and post your resume. It is also a wonderful way to network with Demand Studios executives.

Once you join, do a search for me: Kent Ninomiya. Send a contact request. I will accept invitations from my readers.

New Fourth Edition
January 14, 2011

I am happy to announce that the fourth edition of Demand Studio Secrets will be released on January 15, 2010. The book has been updated from beginning to end and is expanded to 202 pages. It reflects the very latest changes in Demand Studios.

All legacy members are entitled to a free copy of the fourth edition. Just email me your date of purchase from the email address you used when you bought the book. I can only send the new edition to the original email address.

I am also offering the new edition free of charge to anyone who purchased Demand Studio Secrets in the past 30 days. Just me an email with your date of purchase from the email address you used when you bought the book.

For a limited time, I am also offering free new editions to anyone else who previously purchased Demand Studio Secrets who is also active in the Demand Studio Secrets forum. If you have at least 20 meaningful posts on the forum (not one liners) you can get a free new edition. You have between now and the end of January to do this. Send me an email with your date of purchase from the email address you used when you bought the book when you are ready.

Send all requests to: info@demandstudiosecrets.com

In-text Citation Webinar
January 12, 2011

DS is holding a webinar on in-text citations. Woo hoo! Sounds exciting! If you are interested, here is the log in information. There are two different times and they are giving away an iPad or $150 Amazon gift card.

For the webinar at 11 a.m. PT on Jan. 12, please use the following meeting log-in information:
Topic: Writer’s Citations Webinars
Date: Wednesday, January 12, 2011
Time: 11:00 am, Pacific Standard Time (San Francisco, GMT-08:00)
Meeting Number: 927 921 090
Meeting Password: Citations1234

-------------------------------------------------------
Instructions to Join the Meeting:
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1. Go to https://demandmedia.webex.com/demandmedia/j.php?ED=154443167&UID=1216783687&PW=NNzg4MmVlNjVl&RT=MiM0
2. If requested, enter your name and email address.
3. If a password is required, enter the meeting password: Citations1234
4. Click "Join"
5. Use the drop-down menu to select “I will call in” when the Audio Conference box appears. Follow the instructions.

For the webinar at 4 p.m. PT on Jan. 12, please use the following meeting log-in information:
Topic: Writer’s Citations Webinars
Date: Wednesday, January 12, 2011
Time: 4:00 pm, Pacific Standard Time (San Francisco, GMT-08:00)
Meeting Number: 922 960 969
Meeting Password: Citations1234

-------------------------------------------------------
Instructions to Join the Meeting:
-------------------------------------------------------
1. Go to https://demandmedia.webex.com/demandmedia/j.php?ED=154443332&UID=1216783957&PW=NYjljNzgzMmEy&RT=MiM0
2. If requested, enter your name and email address.
3. If a password is required, enter the meeting password: Citations1234
4. Click "Join"
5. Use the drop-down menu to select “I will call in” when the Audio Conference box appears. Follow the instructions.

Why Google and Demand Media Are Headed for a Showdown

There’s been a chorus of criticism recently about Google’s spam-filled search results, including pointed blog posts from a number of technology and web luminaries, complaining that the company’s links are in many cases virtually unusable, because they are filled with keyword-riddled ad content disguised as helpful tips. Although such complaints are routine for search engines like Google, there is some truth to them — and trying to stamp out that kind of content is likely to mean pain for at least one giant web company. Demand Media, which is currently planning a high-profile IPO for later this year, is often singled out by critics as the kind of content “farm” that generates a lot of those spammy search results.

The most recent cavalcade of complaints about Google started in mid-December 2009, with a rant from Bloomberg business columnist and blogger Paul Kedrosky about the difficulty of finding information about dishwashers, and how the results displayed what he called “the drive-by damage done by keyword-driven content,” and the work of aggregators and content farms whose business model he described as:

Find some popular keywords that lead to traffic and transactions, wrap some anodyne and regularly-changing content around the keywords so Google doesn’t kick you out of search results, and watch the dollars roll in.

This was echoed a week ago by Vivek Wadhwa, an entrepreneur who is now the director of research at the Center for Entrepreneurship and Research Commercialization at Duke University. In a blog post entitled “Why We Desperately Need a New and Better Google,” Wadhwa said the search engine has “become a jungle: a tropical paradise for spammers and marketers. Almost every search takes you to websites that want you to click on links that make them money, or to sponsored sites that make Google money.” (A new Google competitor called Blekko has created a site called the SpamClock to track bogus web content, which it claims is being created at the rate of about 1 million new pages an hour.)

More recently, Instapaper developer Marco Arment joined the fray with a blog post describing how entire categories of searches seem swamped with spammy results — including those, like Kedrosky’s search for dishwashers, that involve specific products. As he put it, massive numbers of content sites are “generated by penny-hungry affiliate marketers and sleazy web ‘content’ startups to target long-tail Google queries en masse, scraping content from others or paying low-wage workers to churn out formulaic, minimally nutritious pages to answer them.”

Searching Google is now like asking a question in a crowded flea market of hungry, desperate, sleazy salesmen who all claim to have the answer to every question you ask.

Both Wadhwa and Arment — as well as others writing about the same issue — point the finger for much of this quasi-spam at “content farms” such as Demand Media (particularly its eHow.com unit) and Associated Content. The former, founded by CEO Richard Rosenblatt, is working on an IPO that is expected to value the company at more than $1.5 billion, while the latter was acquired by Yahoo last year for $100 million. As Wadhwa notes, Associated Content produces more than 10,000 new articles a month about topics such as how to change a tire or a diaper, while Demand Media has more than 8,000 writers who produce roughly 10 times that number every month.

Both companies argue that they produce valuable content that people (and companies) find worthwhile, and that they are not “content farms” trying to rig Google’s algorithms. But the reality is that much of their content is produced quickly, is often of fairly low quality, and is targeted — in Demand’s case, by the company’s own algorithms — to match the keywords that people are likely to search for, because those are the ones that will produce the most advertising revenue. Demand Media has noted in the “risk factors” section of its IPO filing that one of the big risks to the content business is that Google might devalue that content by changing its algorithms to make it show up lower in search.

Until recently, Google might have been able to ignore the kinds of criticisms that Kedrosky and Wadhwa and others have raised, because it was so dominant in both search and advertising. But the web giant can’t afford to do so for much longer when it’s already under competitive pressure from Facebook, which is not only growing rapidly and now has a $50-billion market value, but is also seen to be attracting increasing interest from the advertisers who represent Google’s bread and butter. Search results and user loyalty are about the only weapons that the search company has left — and that could make things unpleasant for Demand Media and its ilk.

Personal Finance & Business Bios
January 5, 2011

In the next few days, Demand Studios will insist that writers for their new Personal Finance and Business publisher update their bios to reflect their expertise in the area. My information is that you will be banned from writing for PF&B if you don't have a bio and photograph attached to your Demand Studios work. The big incentive they are offering is $17.50 per article instead of $15. This is kind of laughable, but the fact remains that you should have an up-to-date bio. DS will find other ways to pester you until you comply, so you might as well do it now.

IPO Update and Analysis
January 3, 2011

This article was published in the Los Angeles Business Journal:

When one of L.A.’s hot media startups announced in August that it was preparing for an initial public offering, analysts widely assumed it would have happened by now. But questions about Demand Media Inc.’s accounting have pushed its public debut back to an undetermined date.

Now, analysts are saying that if the Securities and Exchange Commission allows the Santa Monica company to go public despite its unconventional expensing method, it could be a game-changer for similar media companies.

Demand, a content-creation company that churns out thousands of articles and videos daily for its many websites, amortizes the cost of producing this online content over a five-year period. In its SEC filing Dec. 21, the company claims that it can do this because its content continues to generate revenue years after it was first published. Most online publishing companies expense the cost of creating content immediately.

If the accounting method is approved, “this will set a precedent and cause other firms already in the public domain to change their accounting,” said Lloyd Greif, chief executive of downtown L.A. investment firm Greif & Co.

Demand, which is headed by Myspace veteran Richard Rosenblatt, contracts more than 13,000 freelancers to produce articles and videos for its websites, such as eHow.com and LiveStrong.com, or outside publishers, such as USAToday.com. The majority of the company’s revenue comes from the advertising it sells around this content. Demand also runs a domain name registry, eNom, which makes up about 44 percent of its revenue.

The company announced Aug. 6 that it planned to raise up to $125 million in an initial public offering. Demand plans to be traded on the New York Stock Exchange under the ticker symbol “DMD” and use the money from the sale of its 7.5 million shares – 3 million of which will come from current stockholders – to expand internationally, develop content and products, and invest in sales and marketing initiatives.

But the SEC appears to have asked Demand to push back its public debut, which was underwritten by Goldman, Sachs & Co. and Morgan Stanley, until the company better explained how it amortizes the cost of making its content.

“It looks like they filed in the summer expecting the deal would get done well ahead of the holidays,” Greif said. “But clearly the original filing was deemed to be incomplete.”

Now that it has submitted its amended filing, Demand must wait for the commission to give it the green light to continue with its IPO.

Accounting questions

The company did not want to comment. But in its updated filing with the SEC, it explains that because Demand creates mostly “how-to” articles and videos, its content stays relevant for several years and can continue generating advertising revenue for up to 5.4 years. That means the company can amortize the cost of creating this content – it pays freelancers $15 to $30 per story or video – in a straight line over five years.

“These estimates are based on our current plans and projections for our content, our comparison of the economic returns generated by content of comparable quality and analysis of historical cash flows generated by that content to date,” the company stated in the filing.

The updated filing also includes a warning from Demand about its accounting, stating that any shortening of the company’s amortization schedule would hurt its financials.

But some analysts question whether the amortization method is just a way for Demand to artificially boost its bottom line.

“They’re playing games,” said Bo Peabody, a managing general partner at New York venture capital firm Village Ventures. “The fact is most of the content that gets generated, it generates the vast majority of its revenue in the first year or two. What they’re hoping is that they’ll use this accounting methodology to increase the value that the public gives to them.”

Demand has yet to reach profitability. The company reported a net loss of $22 million in 2009, down from a net loss of $14.2 million in 2008. In recent months, Demand has shown that it is moving closer to profitability. It reported a net loss of $305,000 in the third quarter of 2010, compared with a net loss of $4.17 million in the same quarter in 2009.

In the years before Demand filed for a public offering, Rosenblatt was quoted in several interviews claiming that the company was profitable. Although the company’s nonadjusted financials show a net loss each year, its adjusted operating income before depreciation and amortization shows that the company made $36.8 million in 2009.

A number of Wall Street insiders have said that Demand would be better off reporting a worse bottom line than generating controversy over accounting practices.

In a Business Insider article titled “Come On, Demand Media, Just Drop the Bogus Accounting,” Henry Blodget, the website’s editor and a former analyst, calls Demand’s accounting “unusual and aggressive.” He argues that the company will draw more speculation from its amortization method than from showing a wider net loss.

Peabody said Demand should wait to go public until it can show a few quarters of profitability without amortizing the cost of content.

“It’s not that I think the business is corrupt. They just need to follow the same accounting standards that all media companies follow,” he said. “It would be better for the public markets to allow them to show that they can generate three or four quarters of sustained profits before going public.”

Content creation

But Lou Kerner, vice president in equity research at Wedbush Securities in New York, said Rosenblatt’s past successes should make potential investors bullish on Demand’s forthcoming IPO, despite the company’s financials.

Before Rosenblatt co-founded Demand in 2006 with Shawn Colo, the company’s head of mergers and acquisitions, he served as chief executive of Intermix Media Inc. of Beverly Hills, the former parent company of Myspace, and helped lead that company’s $580 million acquisition by News Corp. Rosenblatt also sold his first startup, iMall, for $565 million to Internet portal Excite.

“Entrepreneurs can get lucky once, but they almost never get lucky twice. This is Richard’s third significant success,” Kerner said. “I think investors should get great comfort from that.”

Since 2006, Rosenblatt has helped Demand raise more than $350 million in funding.

In 2009, the company was rumored to be the subject of a billion-dollar acquisition by Yahoo Inc., Google Inc. or AOL Inc. Now, however, Yahoo owns Demand’s largest competitor, Associated Content, and AOL has incubated its own content creator, Seed.com.

If the SEC green-lights Demand’s IPO, it could change how these public companies, and other publishers that produce similar long-lived how-to content for the Internet, report their financials.

“If they go public and the SEC allows them to use this accounting standard, every other media company is going to go and restate their earnings and restate them higher,” Peabody said.

What the SEC will do with Demand’s amended filing is unclear. But Greif said the company has explained its accounting in a way that should satisfy the SEC. Once the company goes public, it’s up to potential investors to educate themselves on how Demand reports its financials.

“As long as there’s full disclosure, you the individual can decide if you’re comfortable with the accounting,” he said. “Ultimately, it’s your decision.”

Analysis: Here is my take on all this. There have always been questions about Demand Media's accounting. This is nothing new and most Internet companies proposing IPOs have questionable accounting. There are two ways to view Demand Media's IPO: as an investor and as a freelancer.

Investors should beware snatching up large amounts of stock until they see where the share price is going. DM might never get their IPO or the stock could go belly up due to phantom profits. Until the company is proven to be solid and profitable, I wouldn't buy any stock.

Freelancers should NOT care about any of this IPO talk at all. It really does not impact you. Demand Studios always pays exactly what the promise and on time. Paydays are twice per week and hassle free. In the freelance world, this kind of dependability is gold. Until DS stops being reliable, there is no reason to stop doing business with them. There is no reason to believe that DS or DM have cash flow problems. You do the work you want, they pay you. Anything beyond that is someone else's problem.

Holiday Club Deadline
December 31, 2010

As long as you submit your articles today, you are eligible for the $1,000 prize. To be precise, you must submit them before 12:00 AM PST on January 1, 2011. That is Pacific Time since DS is located in Santa Monica, California. The deadline time is 1 AM Mountain Time, 2 AM Central Time and 3 AM Eastern Time on New Years Day. It does not matter if you article is approved before the deadline. You are eligible for the drawing even if they are approved on a later date. Happy New Year everyone!

DS Revenue Share vs. Others
December 30, 2010

Question from Demand Studio Secrets forum:

Just skimmed through the book. Really solid material. One question that popped up in my mind was DS vs Other site rev share. I know DS probably pays more. But since the other sites you listed let you retain ownership to replicate, would that culmination of the less popular sites rev share bring in more dough than DS?

RESPONSE:

That is an excellent question. Unfortunately I must give you a vague answer: it depends. There are many variables. First of all, while I believe that DS pays some of the most generous revenue share in the business, there is no solid evidence of this. DS, like everyone else on the Internet, refuses to reveal their revenue share formula. I base my beliefs on the return I see on my revenue share articles and observations of my many readers. DS definitely gets more page views than others, though some sites like About do pretty well.

There are two competing arguments concerning spreading around your content on the Internet. One states that the more exposure, the better. If your content is seen in more places, it is more likely to generate revenue regardless of the rate you get at each site. The other argument states that spreading your content around deludes your search engine value making it less likely to score high on Google. Your content will also likely appear at the top of a Google search with DS compared to being a bottom feeder somewhere else. In essence, it is better to put all your eggs in one basket if it is a top quality basket.

In my opinion, the one basket approach works better. The best thing about DS is that they do all the SEO work for you. They get the title to the top of the search engine list and you enjoy the revenue. In the past you could write revenue share for eHow directly. You got to enjoy revenue share income while keeping the rights to your work. DS closed that loophole, but the benefits of their revenue share program are still pretty good. Just make sure you do your homework before selecting a revenue share title. There are chapters in the book regarding this.

Kent Ninomiya
Demand Studio Secrets

1099 and W-9 E-mail
December 27, 2010

If you got the email asking you to fill out the form then your information is not up to date. It is important that you fill it out and send it back asap. They need that info to send out your 1099. In fact, everyone should check their contact info to make sure it is correct. It is pointless to withhold accurate information from DS. They already have your social security number from your application. DS reports your income to the IRS and the IRS expects you to pay taxes on that income. By withholding your proper address from DS, you are just delaying delivery of your 1099. This will delay your tax filing. If you don't include that income on your tax return, the IRS will come after you. Why would you want that headache?

Pay Raise?
December 24, 2010

The recent announcement about increasing the $15 rate to $17.50 for many DS titles has many wondering if it is a legitimate pay raise. Well, that depends on how you look at it. The "raise" comes at about the same time that DS reduced many $25 to $20. What they are pitching as a pay raise is really an overall pay cut when you look at the big picture. Of course, not everyone had access to the $25 titles, so many would argue that the changes benefited more writers. Again, it depends on your point of view. This is all part of the normal ebb and flow of DS title pay rates. They go up and down depending on market conditions. If DS needs certain titles written quickly, they increase rates. If they aren't producing revenue to expectations, they cut rates. Do not despair if you see some rates fall. Others are rising. In fact, DS is working on a $40 pay rate. More on that later.

Website Publishing Issues
December 22, 2010

It has come to my attention that this Free Updates section of DemandStudioSecrets.com has not been publishing on schedule. This problem is now fixed. Sorry for the inconvenience. Most items in this Free Updates section is also mentioned on the Demand Studio Secrets forum. Check it out and participate. It is free and anonymous.

Demand Studios Holiday Club
December 20, 2010

As predicted, Demand Studios will again offer their Holiday Club between Christmas and New Years Day. From December 24 and December 31, all approved articles enter you in a daily drawing for a cash prize. It is $100 on the first day and rises another $100 each day afterward until the final day. On December 31 the prize is $1,000. The winning article is picked at random. Both writer and copy editor get the prize amount.

Here is how to take advantage of the Holiday Club. Hold onto your written articles until the contest days. Submit them all on a single day to increase your chances of winning. Ideally this should be the final day, but you might want to submit a bunch early in the contest then build up another batch for the final day. Keep in mind that copy editors are highly motivated to produce a high volume during the contest. That means quick approval times and very few rewrites. Enjoy!

In-Text Citation Webinar
December 18, 2010

Demand Studios is really in a tizzy over in-text citations. This is when to site a source within the text of an article. The issue has been such a big pain to DS that they plan to have a pair of webinars on the subject and are inviting the entire DS family to attend. There are two times: January 12 at 11 AM PST and 4 PM PST. Keep in mind that Demand Media is headquartered in Santa Monica, California. All their times are West Coast times. They are even providing an incentive to attend. They will raffle an iPad or $150 Amazon gift card at each webinar. It is worth attending, if only for that.

Rate Raise
December 16, 2010

I am hearing from sources that Demand Studios will soon raise the rates they pay for How To and Topic View format assignments. The standard rate will rise from $15 to $17.50. Keep in mind that this only applies to new titles, though they plan to go through the existing titles and raise the rates for many. This rate change does not impact titles that already pay more than $17.50. The pay raise is certainly good news. That extra $2.50 will add up over time with no additional work on your part.

Profile Page Survey
December 13, 2010

I am getting a lot of questions about the recent Demand Studios survey about profiles. DS is asking freelancers their opinions about the features attached to their DS profiles. I am being asked why DS wants this information and why the profile is so important to them.

Demand Media was built on the concept of social networking. They see their websites not only as storehouses of content, but also platforms for social interaction that drive people to that content. About a year ago, DS went through every user profile in an effort to standardize the format. They made thousands of freelancers rewrite their profiles. Many had to rewrite it several times to suit the new standard. DS wanted their writers to appear more professional. Many freelancers did not care for the process. Some wished to remain anonymous and not reveal their image. Others did not have the credentials DS demanded they put in their profiles. The update was unpopular.

DS is now taking another stab at it. This time they want the DS community to embrace their changes. That is the point of this research. Facebook got bad publicity recently for invasive privacy features on user profiles. DS doesn't want to make the same mistake. They hope that DS user profiles will help encourage social networking and interaction with other popular sites like Twitter and Facebook. This would have a reciprocal effect on content page views and revenue.

Update Your Tax Information
December 9, 2010

Demand Studios is reminding everyone to update your contact information for tax purposes. This is extremely important. Demand Studios will send you a 1099-MISC at the end of January detailing your Demand Studios earnings. You must pay taxes on this income. Since you are a freelancer, Demand Studios did not withhold any taxes. If your address is not current, the tax form might not get to you before you file your tax return. Your Demand Studios income is reported to the IRS. If you don't claim this income, you could face a hefty fine. If you made a lot of money from Demand Studios this year, hopefully you followed my advice and paid estimated taxes. If not, you could be in for a nasty surprise from the IRS.

LiveStrong.com Changes
December 6, 2010

LiveStrong.com is going through some growing pains that will impact DS writers. A few weeks ago, they got rid of LiveStrong Health. This was a wonderful source of work for health and fitness writers. In the wake of LSH's demise, LiveStrong is implementing some measures they hope will satisfy eager writers.

The new Topic View format will go mainstream. This has actually been out for a while but only available to a limited number of writers. It is a flexible format that allows you to incorporate the features of About and List formats as you see fit. While some writers love this freedom, others complain that it gives copy editors more excuses to send articles back for rewrites. There will be more growing pains with this format as both writers and CEs figure out exactly how it works.

DS is making the $20 rate for LiveStrong articles the standard. That means many titles that now pay $25 will pay less. The change has not taken effect yet, so go claim those titles!

DS insists that there will be more LiveStrong assignments available in the near future. This is good news for all those who have had trouble finding appropriate titles to write.

Demand Studio Secret Forum Question
December 3, 2010

Demand Studio Secrets Forum question:

I'm trying not to freak out. But I just got plag flagged. The article is about wiper blades, of which I have written many, and I normally try very hard to avoid repeating myself. But, this assignment I made the mistake of writing very quickly and in shortly worded steps.

And, now I'm afraid I'm going to get fired. I have a total 433 articles approved and I have only set off the Plag Flagger only once before. How does the human being evaluate whether it was plagiarized or not? I'm being honest -- I didn't copy anything. But, reading the forums hear and elsewhere, I do know you can set it off accidentally.

Answer:

First of all, don't panic. Every DS writer eventually gets their share of plagiarism filter flags. The computer compared the words in your article to everything it could find on the Internet and found similarities. A person will now look at your article and compare it to the article the computer suspects you plagiarized. If it is obvious that you did not copy it, the editor will clear your name and forward the article to the editing queue.

Read the email you got from DS carefully. If is say you need to reply requesting a plagiarism filter review then you must reply. Otherwise your article might be rejected or sit in limbo.

Plagiarism flags are common with articles that involve listing things like addresses, organizations or names. The computer can't distinguish titles from other words, so if it sees too many of these in common, you get a flag. You can even be accused of plagiarizing yourself. Make sure that your articles do not use the exact same wording as your previous articles.

Do not worry. If you have done nothing wrong this will not negatively impact your status with DS.

Demand Deals Site Review
November 30, 2010

Here's more on Demand Deals. Invitations went out to eligible DS freelancers today. That is just about everyone since the standards of membership are quite low. Demand Deals is a blatant shopping site incorporated into the DS website. Referrals are made to brands such as Target, Best Buy, Apple, Walmart, Bed Bath & Beyond, and Priceline.com. You are asked to indicate your sex, age and shopping preferences for marketing purposes. You are given purchase recommendations based on the data they collect. There is a point system called "WOW Points" to entice loyalty and additional purchases. There is also a feature called "OO's" for "Overwhelming Offers." They are time sensitive offers designed to encourage impulse buying. You are assigned a ranking based on your shopping history. Everyone starts out as a Novice and are given higher status if they buy more. There is also a "Spin To Win" feature allowing you to spin a virtual wheel to win prizes, points and discounts.

Wow! DS went all out on this. They incorporated every known bell and whistle to get people to buy on their shopping site. It is the opposite of subtle. This puts to rest all assumptions that this is merely an employee discount perk. DS desperately wants all of us to spend our money on through their site. Since they don't produce any of this stuff, it must be assumed that they are getting a commission for all the referrals.

Some will say that all this is irrelevant if the deals are really good. I disagree. Demand Deals blurs the mission of Demand Media Studios. What are they now? I'm not sure. It also raises questions about their motives. Since this program is only open to its freelancers, they obviously see this group as a revenue source. That can make freelancers who already feel exploited feel doubly exploited. It is also not clear whether these "deals" are good and can only be received on their site. It will be interesting to see how the site does.

Demand Deals
November 29, 2010

Tomorrow, Demand Media Studios will introduce a new program called Demand Deals. Essentially it allows certain DS freelancers to get everything from "travel discounts to huge savings on your favorite products, gadgets, and more." To qualify, all you need is to be "active." This is as minimal as writing a single article in the past 90 days and having 30 approved articles overall. That is virtually everyone in DS.

Are you kidding me? DS is now using it's freelancer email list as a marketing tool!? I will reserve judgment about how good these "deals" are until we get a look at them. However, the bottom line is that DS is trying to sell us something. DS will undoubtedly get a cut of some kind from the sales.

With this move, DS is officially turning a corner. Until now the writers were a resource for providing revenue generating content. Now the writers are also a source of direct revenue. This is a disturbing trend that will harm the already tarnished perception of DS as an exploiter (warranted or not). It was not enough for DS to make money off the work of their labor force. The blossoming email list of those who have extra disposable income in their pockets (thanks to DS) was too tempting a cash cow to resist.

This is reminiscent of the company towns of the Industrial Age. Robber barons would make their workers live in towns where they owned the homes, markets and entertainment. Every time the workers spent money, it went right back into the pockets of their bosses. Of course DS can't make any of us buy what they are selling, but they sure want us to.

This is as objectionable as your boss coming into your office and asking you to do your shopping from the company's catalog. It is not illegal but it is in poor taste.

Holiday Club
November 27, 2010

I am hearing something very interesting around the DS universe. The Holiday Club Bonus Program is having an unexpected side effect: fewer rewrites. CEs eager to improve their chancing of winning the daily prize are instantly improving articles rather than send them back for rewrites. This is because rewrites might not be returned for approval before the contest ends. Enjoy your bonus bonus.

Holiday Club
November 25, 2010

First of all, shame on all of you who are working on Thanksgiving. Shame on me too for participating. Demand Studios is pulling out the old Holiday Club again. It is an incentive for writers and copy editors to continue producing content over the holiday weekend. Every day between today and Sunday they will select one writer and one copy editor at random and pay them $500 each.

While I do not think that this contest is rigged, the odds of winning are certainly long. Like most contests, a little reward is being offered while a huge return is being reaped. DS gets us to do a bunch of work by dangling a carrot in front of us. The $1,000/day they pay out is nothing compared to the thousands of articles they motivate us to produce. So while the contest is attractive, it is hardly a reason to abandon your holiday plans. If you plan to work anyway, great! If not, enjoy your time off without fearing that you are missing out on anything.

Travels.com to USA Today
November 23, 2010

Demand Studios is moving some old Travels.com articles over to USAToday.com. The is good or bad news depending on how you look at it. DS is spinning it as increased exposure for writers since their byline will appear on USAToday.com. However, those writers are not getting any additional compensation for the increased traffic directed toward their work. Granted, the articles belong to Demand Media now and they can do whatever they want with them. Still, writers can't be expected to be jumping for joy over this news. Many of the USA Today assignments paid more than equivalent Travels.com assignments. DS is upgrading the articles at a bargain rate.

In-Text Attribution Update
November 20, 2010

Demand Studios is finding it necessary to clarify its in-text attribution policy. This is where you mention the source of a fact in the text of the article as opposed to just listing the reference in the references section. The clarification is ironic considering the intensity with which DS has been pushing in-text referencing. Apparently their efforts worked too well and many writers are doing it too much. Don't bother reading their updated policy. It will probably just confuse you more. This is all you need to know:

Do an in-text citation when you mention any of the following:

research
studies
points of view
stats
anything that is inferred by a source

You do not need to provide an in-text citation for anything that is common knowledge or widely accepted as true. You still have to list the references in the reference section, just don't bother mentioning it in the text itself.

DMS Monthly Meetups
November 17, 2010

Demand Media Studios is now attempting to organize local face-to-face get-togethers with its contributors. For a long time now, DS has organized local meetings between contributors and DS staff. A few times a year they "go on tour" and rub elbows with the faithful. Now they are encouraging the DS community to do it on their own.

I understand the impetus behind it. Demand Media has always about social platforms. It makes sense to evolve the virtual social network into a real one. However, all the risks of real social interaction come with it. Craigslist got a lot of bad publicity when rapists and murderers used it to find victims. What if the same thing happened through the DMS Monthly Meetups? I was in the news business more than 20 years. It would only take the suggestion of impropriety to make DMS synonymous with predators. Some might call this thought "impractical paranoia" and it might be. However, I have seen many more unlikely scenarios become reality. Will the DMS Monthly Meetups improve morale and productivity? Perhaps, but they are also just as likely to give contributors a platform to collectively gripe and organize against the company.

Here is the email announcing the program:

We are always looking for ways to help our community connect and learn from each other. With this in mind, we are thrilled to announce the launch of Demand Media Studios Monthly Meetups! We want our community to come together offline and meet freelancers in and around their hometowns.

We have set up an official Demand Media Studios Meetup page which is where you will go to schedule an event, RSVP, and chat with fellow attendees. To help kick things off we are dubbing December 16th the first official DMS Meetup Day!

Visit our forums for more information and browse our Meetup page to join or plan an event of your own.

Instructions to Join Topic View Webinar
November 16, 2010

New Format Introduction: TopicView

Date: Tuesday, November 16, 2010
Time: 1pm, Pacific Standard Time (San Francisco, GMT-08:00)
Meeting Number: 920 559 716
Meeting Password: Tuesday16

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To join the online meeting
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1. Go to https://demandmedia.webex.com/demandmedia/j.php?ED=152382732&UID=0&PW=NZWFkZDVjYmVh&RT=MiM0
2. If requested, enter your name and email address.
3. If a password is required, enter the meeting password: Tuesday16
4. Click "Join".

To view in other time zones or languages, please click the link:
https://demandmedia.webex.com/demandmedia/j.php?ED=152382732&UID=0&PW=NZWFkZDVjYmVh&ORT=MiM0

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To join the audio conference
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To receive a call back, provide your phone number when you join the meeting, or call the number below and enter the access code.
Call-in toll-free number (US/Canada): 1-866-469-3239
Call-in toll number (US/Canada): 1-650-429-3300
Toll-free dialing restrictions: http://www.webex.com/pdf/tollfree_restrictions.pdf

Access code:920 559 716

Competition for Demand Studios
November 16, 2010

This article by David Lieberman of USA Today demonstrates the urgency with which the Internet big boys are crashing Demand Media's party. Yahoo is a formitable distribution force, but Associated Content is a far inferior content producer when compared to Demand Studios. Writing freelancers are also paid better and treated better by Demand Studios. Remember that.

By David Lieberman, USA TODAY

Yahoo became one of the Web's most popular news sources by aggregating and featuring other people's journalism. On Tuesday, it will take its biggest leap yet into the highly competitive business of creating its own news content.

The Internet giant will launch the Yahoo Contributor Network, harnessing 400,000 freelance writers, photographers and videographers from Associated Content, a firm that Yahoo bought in May.

Yahoo did not renew deals to sell Associated Content's stories to outside news organizations, including Reuters, Scripps and Fox News. The work will appear only on Yahoo, including its home page, Yahoo News, Yahoo Finance and Yahoo Sports.

The change will "deepen our engagement with the millions of people who visit us every day and provide new opportunities for creative contributors," CEO Carol Bartz says.

About 28% of those who get news online check Yahoo, ahead of CNN's 16% and Google's 15%, the Pew Research Center reported in September.

Although others including AOL and Demand Media are also wooing freelancers, Yahoo's ability to distribute to such a vast audience "is not something that exists (elsewhere) on the Web today," says Luke Beatty, Yahoo's general manager.

About a third of contributors are paid modestly upfront or collect fees based on the number of people who access their work. Others forgo payment to share views or interests with a large audience.

Will contributors stick with a Yahoo-only service?

"They're not a prestigious news outlet, at least not yet," says Allen Weiner, a media analyst at research firm Gartner. "If a substantial number of contributors don't want to write for one source, then you might see some pushback."

Contributors have expressed "some hesitation" about the change, says Sabah Karimi, author of The AC Source Book. But the concerns should pass, she says, if they attract bigger audiences — and, as a result, collect more money.

She expects "more exposure for all of us." The company has told contributors that it will recommend more targeted topics, easing up on evergreen topics such as holiday baking.

Yahoo expects to post "2,000 stories a day, and that number grows every day," Beatty says.

He doesn't know how many editors review the stories, but he says computers check to be sure nothing is plagiarized or offensive.

Demand Media Value
November 15, 2010

This article by Stephen Walker of Venture Beat is the most comprehensive I've seen so far on the true value of Demand Media in light of its impending IPO. The bottom line is that no one really knows what Demand Media is worth. There are too many variables to accurately predict. Contributors need not worry anyway. As long as Demand Studios continues to pay well and on time, their financial dealings are of little concern. I suggest holding off on buying stock until it is apparent which way the financial winds blow.

How much is online-media baron Demand Media really worth?
With online media company Demand Media likely to price its IPO within a matter of days, I thought it was a good time to analyze how the company is likely to be valued in the public markets. I have to admit, when I first looked at Demand Media’s S-1 financials, my first thought was, “Uh oh, another company that thinks it’s still 1998”, a time when IPOs, like Boo.com, the Globe.com and eToys, rose to astronomical valuations based not on financial fundamentals but on the seemingly infinite promise of internet-driven growth.
As I dug deeper, though, my thinking changed -– radically. I can now envision a scenario wherein Demand Media, whose properties include eHow, LiveStrong.com, and Cracked.com, is worth $1.4 – $1.7 billion. Not bad when you consider that the equity of the New York Times Company is currently valued at $1.2 billion. Before I’m accused of being stuck in 1998, let me explain how I arrived at that conclusion.

Step 1: Determine Your Comparables

I used Internet Brands, which recently agreed to be acquired by a private equity firm for approximately $640 million, as a comparable for this analysis. It is usually better to look at multiple comparables when valuing a company, but in this case additional comparables might actually muddy the waters. Internet Brands is unique in that it is a public company (with all of the associated financial disclosures) and it also has agreed to be sold in a private transaction that both sides agreed was fair, which in my mind minimizes the effect of market hype. Internet Brands and Demand Media are also very … well … comparable. They share very similar models – both create unique content online and monetize that content largely via online advertising. Both have also pursued acquisitions for growth, acquiring online properties and rolling those properties onto their platforms to maximize profitability. In that light, it’s hard to find a better comparable.

Step 2: Determine Valuation Multiples Based on Internet Brands

Internet Brands had around $100 million in revenue and $20 million in EBITDA in both 2008 and 2009. It appears that company management has done a commendable job in cutting expenses in 2010 and should finish the year with around $26 million in EBITDA with some growth in revenue. Overall, though, the company appears to be in a low growth cycle (more on that later). The 2010 projected financials imply roughly a 6x revenue and 25x EBITDA multiple.

Step 3: Apply Valuation Multiples to Demand Media Financials

The hardest part of determining the value of Demand Media is sorting through the company’s accounting practices. Because Demand has acquired so many companies and their associated content, it reports negative gross margins, EBITDA and net income on a GAAP basis, despite showing positive operating cash flow. To help analysts come up with the “right” answer, though, the company provides a non-GAAP measure that it calls OIBDA (operating income before depreciation and amortization).

While this may seem like a 1998-inspired make believe number, when you look closely at the reconciliation between it and GAAP Operating Income, they are actually just backing non-cash items out of their operating income, which makes it a pretty close proxy to EBITDA and therefore a valuable metric. To derive a valuation for Demand Media, I applied the multiples I calculated for Internet Brands. I assumed for this purpose that OIBDA was equivalent to EBITDA. The Revenue and OIBDA/EBITDA multiples imply a valuation of $1.4 – $1.5 billion. (The operating cash flow multiple implied a lower valuation, but I discarded it as an outlier.)

Step 4: Adjust for Growth

Based on this analysis, you might conclude that a valuation in that range is fair, but this simplistic analysis fails to account for relative growth rates. Demand Media is growing at a pace of 25 – 50% depending on which financial metric you choose to use (revenue, operating cash flow or OIBDA). Internet Brands grew at a 10% – 30% rate using the same metrics (and most of that was due to cost-cutting). Clearly Demand Media deserves some sort of premium for its higher growth rate, assuming you believe it is sustainable. I ran a simple “what if” scenario to see what the company would be worth with a 10% and a 20% valuation premium based on its higher rate of growth. (These are likely conservative if you believe Demand Media’s growth story.) When you apply these premiums, Demand Media’s valuation increases to $1.6 – $1.7 billion.

Conclusion: It Really Comes Down To Growth

As with many IPOs, the most interesting question when deciding the “real” value of Demand Media is whether or not you believe the company’s growth story. The company has two primary lines of business: a domain registrar business and a content creation business. Demand had $114 million and $198 million of respective revenue in those two lines of business in 2009. The domain registrar business, which includes the practice of “domaining,” or owning and monetizing domains with intrinsic value, is highly competitive and, in my opinion, unlikely to grow rapidly. If that was Demand’s only line of business, then I think growth rates akin to Internet Brands would be the target. However, a bulk of the company’s growth is likely to come from the content creation business. Demand Media has developed a content creation process that allows it to rapidly and cost effectively develop articles on topics that are likely to drive traffic from search and, for its branded content sites like Cracked and LiveStrong, from social media. It even sells components of this process as a service to major publishers, such as USA Today (travel). So the real question in evaluating its growth story comes down to whether or not you believe two things about its content creation business:

1. That there’s room to run — Demand Media targets evergreen and breaking topics with targeted articles that it produces “on demand”. The question is, how much coverage does the company already have? If you believe there is a limit on the number of new stories it can create because it has covered most of the valuable topics, then you should not buy into the company’s growth story. However, I personally believe that Demand Media has only scratched the surface of available topics. The search and social space is huge, and new topics are being searched for and shared every day. As long as the company’s systems are capable of identifying these topics in real-time, it should be able to sustain growth.

2. That the economics work — This is the billion dollar question. Demand Media pays an up-front cost to create a story targeting a specific topic. So what is the average payback today, and what will it be in the future? The big difference between the company’s reported OIBDA and GAAP EBITDA is amortization of assets that the company developed or acquired in previous periods. The question in my mind is, how much of its amortization is related to content creation? Based on the fact that the company is generating good operating cash flow, it appears the content it has created or acquired in the past is providing a nice return. So let’s assume the model has worked historically. Then the question is, will this continue? If too many companies attempt to replicate Demand Media’s model, the fear is that there will be a “race to the bottom”, and the return on each article produced will be significantly diminished. Demand Media has two primary barriers to entry that can help minimize, but not eliminate, this risk. First, the company owns domains that are popular in search and social media and therefore it has an advantage in distribution. Second, the company’s content creation process is well developed and probably more efficient than a new entrant’s process would be. However, neither of these factors completely eliminates the risk, so I believe this is the primary risk to Demand Media’s growth story.

So what does all this mean for the company’s valuation? If you believe the company will achieve growth around that of Internet Brands (primarily because you are concerned that there is a significant risk that the economics of the model won’t hold over the long-term), then the company is likely worth around $1.4 billion. Of course, if you believe the economic model will completely unravel, then the company is worth substantially less.

However, if you believe Demand Media has created a new media model that will help it sustain more rapid growth rates, the company is likely worth north of $1.7 billion. My belief is that reality is somewhere in the middle. Only time will really provide the answer. However, when you see a newcomer like Demand Media likely to command a valuation 15 – 50% higher than the current $1.2 billion market cap of the New York Times Company (which also has approximately $1.9 billion of long-term debt, so its total enterprise value is over $3.0 billion), it is probably worth taking a moment to ask yourself what you think of this new media model.

Demand Media IPO Update
November 8, 2010

Demand Media is inching closer to its IPO debut, saying in an updated S-1 that it plans to offer 7.5 million shares of its common stock in its IPO. The firm, which has not yet set a pricing range, has applied to list on the NYSE as DMD. Demand said in the filing it plans to sell 4,500,000 shares of the stock in the offering, with selling stockholders selling an additional 3,000,000 shares. In addition to the offering size, Demand Media said it is now reaching 94 million unique visitors and 621 million page views globally, as of September 30th, up from the 86 million uniques and 550 million pageviews it was seeing as of June 30th. The firm also said it now has over 13,000 content creators working for the firm, creating articles for the company.
Source: socialtech.com.

DS Appeal for Experts
November 6, 2010

Demand Studios is sending out email to members asking for experts to volunteer for their Talent and Experts Network. This is a clear sign that the recruitment effort is not working as well as they hoped.

Essentially DS is asking experts to volunteer their time and expertise to appear in their videos. DS makes money off of your skills, time and expertise. You make nothing. Their sales pitch is that the exposure will help your business or brand. While this might be true in some cases, relinquishing the rights to your image, voice and knowledge without any compensation is downright foolish. You will have no ability to control how they edit your tape, the context in which they use it or how long they show it. You will never have the ability to demand they stop using it. Video tape can always come back to haunt you. Just ask Christine O'Donnell. This risk is unacceptable when you are getting absolutely nothing in return.

DS should provide compensation to experts in their network. This can be as simple as a percentage of the ad revenues. Until they do, experts should stay away.

Thought-Processed Verbs
November 3, 2010

Demand Studios officially changed their policy on thought-processed verbs for certain titles. These are verbs that involve thinking instead of performing a physical task. Examples they provide are the verbs "consider" and "plan."

I have actually been using verbs like this for years when the title calls for it. I have never been criticized for their use by a copy editor. When writing a How To article on any task involving any thinking, you must be able to instruct the reader to do things like calculate, distinguish or select.

DS is merely making the policy of accepting these thought-processed verbs official. Keep using them as you normally would. However, beware overusing them. Don't tell the reader to simply "think" or "figure out" something. You must still tell them how to do it.

LegalZoom Project
November 1, 2010

The latest on the ever-growing list of Demand Studios publishers is LegalZoom.com. DS is actively recruiting writers and copy editors for this project. Anyone with a law background is encouraged to apply.

While this is a great opportunity, there are a few things to beware. Like all new DS projects, the copy editing will be brutal. DS wants to make a good impression on the new publisher so will be hyper-diligent on quality. Expect rewrites on virtually ever article that will severely cut into your P/T Ratio.

Don't expect the pay to be much better than any other titles. They are likely to be comparable to higher end LiveStrong titles. This will not attract many actively practicing attorneys to write for them. They will instead get paralegals and law students. This is good news for them. Any actual attorneys who apply will likely be frustrated when they are edited by people with less experience and fewer qualifications. I am hearing a lot of this from lawyers who currently write for DS.

Demand Media Losses Narrow
October 30, 2010

By Christopher Zinsli
Of DOW JONES VENTUREWIRE

Demand Media Inc.'s losses narrowed in the third quarter as the content-generation company's increasing online presence helped boost revenue to $65.4 million, according to the IPO applicant's latest prospectus.

The Los Angeles company, which registered for an initial public offering in August, posted a net loss of $305,000 in the latest quarter, narrower than the $4.2 million it lost the preceding quarter and the $1.9 million it lost a year earlier.

Revenue rose 8% last quarter from the year before, reaching its highest mark since at least the beginning of last year, the first quarter for which information was disclosed.

Demand Media also said in the prospectus that it intends to sell 4.5 million shares in its planned IPO, while existing shareholders will sell another 3 million. The company, which aims to secure a New York Stock Exchange listing under the symbol DMD, didn't estimate a price range for the offering.

The company's major shareholders include Generation Partners, Goldman Sachs Private Equity Group, Oak Investment Partners, Spectrum Equity Investors and W Capital Partners. Investors have provided more than $350 million in equity funding since the company's founding in 2006.

Demand Media pays freelancers to create content for its network of websites, which includes eHow.com, and its customers, such as USAToday.com. The company said its websites received 94 million unique visitors in September, up from 86 million in June.

The company plans to use the IPO's proceeds to invest in content, develop its products, increase sales and marketing, and expand overseas. Goldman Sachs & Co. and Morgan Stanley are leading the offering.

Constantly Changing Guideline Modifications
October 28, 2010

Demand Studios has been ridiculous lately, changing their guidelines for various formats on nearly a daily basis. I want to encourage my readers not to get caught up in all these changes. You will waste a lot of time reading up on every change, plus you will never remember them all. Demand Studios also has a habit of eliminating formats without notice. There is no need to keep track of every change.

Just take a look at the section of their forums devoted to guideline modifications. It is a zoo and not worthy of your time. Write what you know as you have always done. Assume that DS updated the format guidelines on the writing form itself. If you accidentally violate a new rule, the CE will let you know. A rewrite will be an inconvenience, but it is a far better use of your time than constantly keeping up with guideline changes.

Referencing Change
October 26, 2010

Demand Studios is adding an exception to one of their referencing rules. Normally writers are not allowed to use commercial sites as references under any condition. Now you can use an official website for a product if it is specifically named in the article title. This must be the official manufacturer's website and not a website that just sells the product. You can only use the official website as a reference for product stats, not testimonials about the quality of the product.

This is fine and logical, but beware copy editors who might not have read the memo. You could get an unnecessary rewrite if the CE is not aware of the rule change. When you are in this situation, write a note to the copy editor reminding them of the change before you submit the article.

Ever-Growing Blacklists
October 24, 2010

Despite the addition of the Demand Media Studios blacklist website checker, they continue to post additions to the various blacklists. Since the blacklist website checker was supposed to catch these banned websites, it would appear to be an unnecessarily redundant notice. This actually demonstrates the lack of faith Demand Studios has in its new tool. It is far from perfect and they don't want to take the human element out of the reference screening process. However, the new blacklist website checker invited writers to stop checking the ever-growing list since they assumed the blacklist website checker was doing its job. Don't put total faith in the blacklist website checker for now. It shows great promise but is still a work in progress. Avoid unnecessary rewrites by remaining informed.

Blacklist Website Checker Limitations
October 22, 2010

The new blacklist website checker is a wonderful tool, but it contains several limitations. The tool cannot be used until you attempt to submit an article. It does not work with drafts. You will not know that you are using information from a blacklisted website until you are already finished writing. You would then need to find another website with the same information to use as a reference or resource. This is often difficult or impossible.

I received several reports that the blacklist website checker contains flaws. Since it would be very difficult to block every page on every blacklisted website, the tool looks for root words in the url. These are words that are common to all the pages on a blacklisted website. The problem is that these words can also be in the urls of legitimate websites. Many legitimate references are being blocked by the filter.

There are also millions of blacklisted websites that are not caught by the blacklist website checker. Examples of these are blogs and forums that are not acceptable as references or resources. There are just too many to be included in the tool and it would be impossible to keep up to date.

The bottom line is that you still must be aware of blacklisted websites. Favor sites you know are legitimate and avoid ones you know will likely be blocked by the filter. If a website is a direct competitor of the publisher, it is probably blacklisted. If you are working with a questionable website, make sure you have a backup you can use. You don't want to be stuck with a fully written article and no references.

New Blacklist Website Checker
October 20, 2010

Finally! Demand Studios is installing a blacklist website checker. It will automatically block you from submitting an article if you include a blacklisted website as a reference or resource. Bravo to the DS techie who thought of this one.

Until now, DS insisted that writers keep up with an ever changing list of blacklisted websites. Not only were new blacklisted websites added weekly, the list is different for different publishers. There is no way anybody could reasonably be expected to keep up. It was far too cumbersome and time consuming. The blacklist website checker removes this hassle.

Applying to the Blog Distribution Network
October 18, 2010

You can now apply to the Demand Studio Blog Distribution Network at this link. You do not need to be an existing member of Demand Studios. You can sign up as you apply.

On the surface, the BDN appears to have many exciting possibilities. It could give some bloggers the exposure they crave, increase audiences, and generate some revenue in the process. Before you get too excited, keep a few things in mind. Demand Studios is looking for bloggers who contribute something worthwhile to the dialog on a particular topic. Crazy rantings filling most blogs are of little interest to them or anyone else. Many bloggers use their domains as a soap box to curse at the sky. DS wants "family-friendly" language and content. DS wants serious bloggers. You must show that you consistently post at least once per week. Finally, you must know how to write. They demand a "distinct, intelligent writing style." Assume that the equivalent of a copy editor will review your blog posts.

If you decide to apply to the BDN, clean up your blog. Get rid of all the posts that are not family-friendly, make sure the dates indicate at least once per week postings, and tidy up your writing and language. Also make sure you are blogging something of interest to other people. DS will not care about your personal views on a topic. They will take interest in an informative article written from an expert's perspective.

In regards to the income, DS is not explaining how that will be figured. That is no surprise. They never reveal the formula of any of their revenue share formats. At this point there is no way to know if you can earn any meaningful money in the BDN. The same goes for exposure. DS will be cherry picking the best blog entries to post on their network. There is no way to know how often that will be your posts. Please share your experiences with the BDN with Demand Studio Secrets so we can spread the word. Thanks!

Demand Media Blog Distribution Network

October 16, 2010

From KansasCity.com:

At the 2010 BlogWorld and New Media Expo, Demand Media™, a leading content and social media company, launched the Demand Media Blog Distribution Network. As the latest innovation from Demand Media Studios, the network helps bloggers expand their online brands by syndicating their blog posts to Demand Media’s highly trafficked sites including eHow.com and LIVESTRONG.COM in addition to Content Channels partner sites.

“This new offering on our studios platform expands our mission of publishing high quality content at scale. We are already a leader in publishing original, actionable, evergreen content. With the addition of the Demand Media Blog Network, we broaden our content offerings to include timely, topical and opinion-based content from the best of the blogospshere,” said Stewart Marlborough, general manager of Demand Media Studios. “Now highly-qualified bloggers will have the opportunity to extend their individual brands to the millions of people that visit Demand Media’s websites and those of our partners.”

The Demand Media Blog Distribution Network allows bloggers to continually grow their fan base, interact with larger audiences through new distribution channels and earn additional revenue through a revenue sharing program. Bloggers who are accepted into Demand Media Studios will have the opportunity for their blog content to appear in several premium categories including: Food, Home & Garden, Health & Fitness, Finance/Money, Beauty & Fashion and Family.

Blog posts that are syndicated carry an identifying byline to ensure that the blogger’s brand goes wherever their posts appear. As an added benefit, bloggers will also receive backlinks to their blogs with each post, which may help bloggers improve the rankings of their content in search engine results. All eligible blogs will be part of the Demand Media Studios revenue share program, where bloggers have the opportunity to earn revenue based on the pageviews that their posts receive on the company’s and its partners’ sites.

To join the Blog Distribution Network, bloggers need to apply to Demand Media Studios. The Demand Media Studios editorial team thoroughly reviews and examines the content on each applicant’s website for frequency of posts, family-friendly language and a distinctive, intelligent writing style. Qualifying bloggers will then be matched with appropriate websites using a combination of editorial selection and contextual matching that map the engaging first-person perspectives of the blogger with other relevant how-to or informational content on each page.

Bloggers will also have access to key analytic insight via their Blogger Workdesk. The online tool powered by the studio’s proprietary technology platform provides valuable insight into where their posts appear, the number of views their posts receive, how much traffic was driven back to their blog and how much money they’ve earned.

New Work Desk
October 14, 2010

Demand Studios is unveiling a new Work Desk. It looks a little different but basically functions the same way. The writing is bigger which makes the Work Desk appear brighter and friendlier. Instead of the major blocks being Claimed Assignments and Recently Rejected Articles, you see three sections: Work in Progress, Recently Submitted and Recently Finished. Status buttons tell you what happened with each assignment instead of similar results being lumped together, like Rejections. The Earnings Goal tracker and the recently added Share Your Work feature appear in the right margin along with the Find Assignments Saved Searches. That's new. There are also new links to DS resources like guidelines and the help desk.

Don't get too excited about these changes. They are primarily cosmetic. Still, I have no complaints about what they've done. I would just prefer if they spent more time fixing the site's technical issues than making the Work Desk prettier.

Hotels.com Project
October 12, 2010

One of the more prolific contributors to the Demand Studio Secrets Forum submitted this post about the new Hotels.com project. It is an especially astute observation, so I am publishing it here for you to see:

DS closed the USA Today project and subsequently opened the Hotels.com project. If you are a travel writer cleared for either, you already know that.

Part of the Hotels.com project is a new format called "Topic View." This is an effort to clean up the problem with topics that were assigned as Lists or Abouts, but were a poor fit with the selected format. It looks like an evolution of the thinking with the changes made to the List format to accommodate only 1 or 2 entries. The general idea is that a writer is empowered to choose to do an article as an About, a List, or something in between.

This ought to be great news. Johan wrote in his News Bulletin on the subject:

"This new format gives the writer more freedom when determining the article’s approach. Editors will place more weight on whether the article fully answers the intent of the title (while conforming to Demand or AP style) than whether it fits a particular format. In other words, fulfilling the intention of the title with solid content will trump all other factors. "

I'm sure he and others at editorial actually think that, but the problem is that they aren't the people who oversee the CEs and the appeals process. That would be Lally, Eve and Co. In practice, you can guarantee that if a CE disagrees with your choice of using About style or List style to ground the article for any reason, you will be sh*t out of luck. Plain english and the Google Test are no defense, as we all know.

The proof is in the way the old Travel/Product Review format was handled. Ostensibly the writer was supposed to have actually used or visited the subject in question, and the original format has small 50-100 word sections that tightly constrained what could be done. Our network reported a very high rewrite rate on these articles (well over 3 out of 5), and always about the same thing: the CEs wanted more details, nevermind that a 75-word section already had 73 words in it.

Appeals on this should have been a slam dunk, because the limits were both statutory and technical. Every member of our little group made at least two appeals on these articles because of that, and no one EVER reported an overturned rewrite. Not even one. Instead, the usual response was an ego sop to the CE: orders to substitute one fact for another... nevermind that the writer ostensibly had first-person experience with said subject, and was therefore the person best placed to decide what was important!

Anyway, the bottom line here is to expect lots of trouble with the Topic View format. It's new, how it works is vaguely defined, and it leaves a lot of open questions that even a pretty good CE who is just trying to do his/her job doesn't have the answers to. My standing rule about new formats like this is to approach them cautiously, never doing more than one or two at a time until at least several weeks have passed and some of the issues have already been argued over and sorted out.

Also, as a brand new project, the CEs will be extra harsh on the first batch or two of articles sent over to Hotels.com. Lally & Co. will be militant with the CEs about all sorts of things, both real and arbitrary, and that militancy will be passed down to writers. Once again, approach the material gingerly, and don't do a bunch of titles at once. The rewrites and abandonments that result will totally screw up your pay rate for the week if you take on too many of these at once during the initial period.

New Share Your Work Feature
October 8, 2010

Demand Studios quietly added this new feature at the bottom of the Work Desk. It allows you to conveniently link one of your recently approved articles to Facebook and Twitter. This is indeed convenient, but you must understand that using this feature only helps Demand Media. If you sell an article to Demand Studios, you relinquish all rights to your work. All profits from the article belong to Demand Media. Publicizing the article is doing free work for them.

The only exception to this is if you are promoting a revenue share article. Then you should promote away. When there is more attention on a revenue share article, both the author and DM profit. My advice is to only use this new feature with revenue share titles.

Title Drought
October 6, 2010

Many DS writers report that they are having difficulty finding titles to write. This is the result of the cyclical ebb and flow of DS assignments. DS is constantly experimenting with new formats, publishers and subjects. Sometimes the assignment list is flooded with all sorts of interesting titles. DS also adapts to the changing business climate. Sometimes, like now, they eliminate formats, publishers and titles that are proven to be ineffective. DS recently axed most Tip format titles and LiveStrong Health titles. They also yanked titles that sat in the assignment list unclaimed for months.

If you find that your favorite subjects, formats and publishers are unavailable, it is time to branch out. Try some new types of titles and expand your expertise base. It will force you out of your comfort zone and reinvigorate your writing spirit. Your P/T Ratios may take a small hit for a while, but you will have a much wider range.

DS is already replacing many of the recently removed titles with others. The drought wont last long. Besides, there are still hundreds of thousands of titles available. You should be able to find something.

Saved Search E-mails
October 2, 2010

The saved search emails are finally finding their way to writer email boxes. The saved search feature first appeared on DS about one month ago. However, even those who signed up for daily email updates were not getting these emails. There was no explanation from DS. Suddenly, the emails started appearing this week.

Those expecting a list of available titles were disappointed. All the emails tell you is how many new hits there are for each saved search. In order to find out what they are, you have to log on to DS.com. Another problem writers are having is that many of these new titles are gone by the time they do log on.

My only tip here is an obvious one. If you subscribe to these emails, log on immediately to see if the new titles are there. Don't hold your breath though. There appears to be a significant delay between new title postings and the emails. Unless this is tightened up, the email are of little use.

Past Work/Searchable Guidelines
September 30, 2010

Demand Studios is changing the Published Work tab on the work desk to Past Work. The page features a sleek new design and better interface with the Track Changes tool. Other than that, it is basically the same.

They also improved the new Online Resources tool to make it easier to find the information you are looking for. It is now searchable. You can type in a format or form and the tool finds it. Of course, you still have to read the piles of incredibly boring information. Check Demand Studio Secrets to see which parts you should pay attention to.

Internet Gossip
September 28, 2010

It never ceases to amaze me how people just make up stuff and post it on the Internet as if it was fact. My 23 years in journalism prevent me from doing this. Everything I write is supported by verifiable references or identified as opinion.

From time to time my readers bring my attention to comments about Demand Studio Secrets or me that are posted on a website, forum or blog. I don't pay much attention to it. I figure that anyone with half a brain can do the research to find out the truth. Those who don't bother checking deserve to be misinformed. Besides, I am uber-accessible through email and the DemandStudioSecrets.com forum. If anyone wanted to know about the book or me, all they have to do is ask.

I have received a number of questions lately regarding some of these Internet rumors. I am getting tired of answering them, so I am posting the truth here for the record:

Writing Demand Studio Secrets was entirely my idea. Nobody asked me to write it and I do not have any secret partners. My desire was always to show writers how to maximize profit from this cutting edge freelancing platform.

I was never "fired" by Demand Studios. My status with them has never changed. I continue to work for them to this day.

Demand Studios is not "pissed" at me for writing the book. Nobody from Demand Studios has ever told me that they did not like the book. Why would they? It shows writers how to improve the quality and quantity of their work. Why would they be pissed about that?

All the claims about my experience and revenue share earnings on the DemandStudioSecrets.com website are true. The claims are supported by references and screen captures. I am not an idiot. If I claimed something that was not true, there would be a record of it somewhere. Demand Studios or someone else would slap me in the face with the inaccurate claim. I would not take a stupid chance like that with my credibility. Remember, I was a journalist for a long time.

I do not hate Demand Studios and I am not trying to bring them down. This is among the most ridiculous rumors out there. If I hated them why would I be encouraging people to work for them? I am often critical of some things they do, but that is my obligation as a journalist. The success of the book depends on the success of Demand Studios. I have no desire to bring them down.

The Demand Studio Secrets eBook is not a scam. It is tips from my experience as a journalist and as a Featured Creator for Demand Studios. It only costs $19.99 and is full of ways to make more money with Demand Studios. There are hundreds of readers who can testify to this. Just check out the DemandStudioSecrets.com forum.

Categorization Problems
September 26, 2010

Demand Studios is alerting writers about problems with categorization on their site. One of my forum members reports that she could only select "birth control" as a subcategory under "parenting." While this is annoying, it is hardly unusual. Even when the system is working perfectly, the DS categorization system is somewhat limited. Many titles defy the available categories. Others could easily fit in several categories.

The best strategy for categorizing titles is to do the best you can. Since you are required to enter the title in some category, you don't really have a choice. Start with the general subject matter then try to get more specific. If the title is about elbow pain but that isn't an available category, try joint pain or arthritis. I have never heard of an article returned for a rewrite because it was categorized wrong. If you are way off, the copy editor should fix it. Don't give it too much thought or let it take up too much time.

Demand Media IPO
September 24, 2010

It turns out that Demand Media picked a bad time to announce plans for an IPO. According to Bloomberg.com, companies have raised less from IPOs this year than any other time in a decade.

The numbers are grim. More than half the companies that planning IPOs in 2010 haven't completed them. Buyers suffered losses with 61 percent of this year’s IPOs. IPO companies raised less than expected 68 percent of the time. Demand Media hopes to raise $125 million with their IPO but wont proceed if projections are much lower. Unless economic conditions improve, the IPO might not happen for a while.

What does this mean to you? Not much. Demand Studios might be secretive and concerned with their bottom line for a while, but business-as-usual wont change much.

Talent and Experts Network
September 22, 2010

Demand Media is recruiting people into their newly named "Talent and Experts Network." They make it sound like a huge, prestigious honor. It is not.

Demand Studios filmmakers recruit so-called experts to be in their instructional videos. This can be anyone from a personal trainer to a flower arranger to an auto mechanic. Basically it is anyone who knows how to do something specific. These people are not paid to appear in the videos. Their supposed compensation is the publicity they receive from appearing in the videos.

What Demand Studios is doing with their "Talent and Experts Network" is building a database of suckers willing to work for free. Until now it was up to the individual filmmaker to recruit their own "experts." A database will allow Demand Studios to have more control over what filmmakers do. Sure it could help a filmmaker find an expert, but it can also steal away a prized expert discovered by a resourceful filmmaker.

The problem I have with the process is that Demand Studios is blatantly exploiting the experts. Demand Studios is making money off of their expertise and work, yet do not pay even a token fee. The expert has no control over the finished product, how it is used, or how long it is used, yet they are required to sign away their rights forever. Say you become super famous later. You will have no way to squash the use of the videos you did as an expert for Demand Studios. They can edit it, put it in any context, and exploit it forever. There would be nothing you could do about it.

I worked in television for a long time. When you lend your image, voice and expertise to a broadcast medium and sign away your broadcast rights, you should be paid well for it. If you are not being paid, you should have some say in how it is being used. My advice is to avoid the Talent and Experts Network.

LiveStrong.com Changes
September 20, 2010

Demand Studios announcing some major changes from the publisher LiveStrong.com. It will now focus on nutrition and fitness titles and phase out health titles. LiveStrong, LiveStrong Nutrition and LiveStrong Lifestyle titles are unaffected. LiveStrong Health might soon be dead.

If you already claimed a LiveStrong Health title, you can go ahead and finish it. Otherwise, you probably wont be able to claim anymore LiveStrong Health titles. They have been removed from the Find Assignment list and probably wont return. This is somewhat unfortunate since many of these titles paid $25 or $30.

To soften the blow, Demand Studios announced that they will add featured articles on LiveStrong.com. I discussed the new Features Format in an earlier update. They pay between $80 and $100. You must have specific experience and apply to be eligible to write these. They also involve quite a bit more work than typical articles. Your P/T Ratios might be lower than with plain old $15 titles. Only do these if you like the idea of being featured and don't care about the pay.

New Demand Studios Online Resources
September 17, 2010

Demand Studios has finally put all their Editorial Guidelines, Format Style Guides, supplemental documents and tips on a website. Now writers can easily access this information instead of downloading each and every document. This was always confusing since DS used nonsensical codes instead of explanatory titles on their downloads. I spoke with DS editors about this a year ago at their first ever creator conference in Santa Monica. It is good to see them finally getting around to addressing the issue. I advise all writers to bookmark the page for easy access. This will be a huge timesaver. Here is the link:
new DS online resource center.

Ever Changing Blacklists
September 15, 2010

Lately Demand Studios has been updating blacklists at a staggering rate. Every few days they add more websites that cannot be used as references for certain publishers and formats. Since there are different blacklisted websites for different publishers and formats, the only way to keep up is to look up the list each time you write. This is proving to be a huge problem for writers.

Many report to me that they submit articles with valid references only to have those references added to the blacklist while it sits in the editing queue. Since the editing times are stretched to a week or more because of the mysterious slowdown, they are really getting screwed. The writers end up getting a rewrite and chastised for using blacklisted references even though they were not blacklisted when they were submitted. DS needs to step up and cut writers some slack in this situation. It is clearly not the fault of the writer that the blacklist changed while an editing slowdown delayed approval.

I advise writers to remind copy editors of this situation if they get a rewrite for this reason. Don't let them reduce your scores for a situation that is clearly not your fault.

Editing Slowdown
September 12, 2010

There is a noticeable slowdown in editing time on Demand Studios. It started just before the Labor Day weekend when the waiting list topped 15,000 articles. At first writers wrote it off as a holiday slowdown but the list kept growing. By September 10 the list approached 20,000 waiting articles. Suddenly, today, it rapidly shrunk it dropped by more than 3,000 in a single day. The strangest part of all this is that Demand Studios is saying nothing publicly about it. They are always diligent explaining outages and delays. Yet with this serious backlog, they are conspicuously silent. The official Demand Studios forums are likewise silent, prompting accusations of censorship. The Demand Studio Secrets forum is ablaze with talk of the slowdown. Visit it to see what everyone is saying. The link is on the left.

New Saved Search Feature
September 9, 2010

This is another brilliant innovation from the tech guys at Demand Studios. Many writers specialize in specific subjects and prefer certain pay rates and formats. The new Saved Search feature allows writers to save up to five of these search combinations so you can scan for them quickly every time you return to the Find Assignments list. The tool will also send you email daily when new titles appear matching your searches.

This is all wonderful for those who want to get in and out of the Find Assignments list as quickly as possible. I recommend using it as often as possible. The only possible downside that I can see is that the email notifications will be too late for hotly contested titles. If the email goes out to everyone at the same time, you will only have a few seconds to log on and grab that hot title. Still, any notification is better than no notification at all.

New Features Format
September 7, 2010

DS is offering a new exclusive format for selected writers called Features Format. It will pay $80 to $100 per article. They have actually been doing these for years on a contract by contract basis. I was involved with many of them. This is a formalization of the process making it an actual DS format with rules and a selection process.

DS says the Features Format will be "extensively sourced, magazine-style articles that will be prominently featured on Demand Media properties including eHow and LIVESTRONG.COM, as well as content channels on partner sites." Categories include family, nutrition, fitness, home, food, health, money and style.

Here's the catch: you must have at least three years experience as a print publication writer or an online equivalent. Some categories also require specific experience in the subject. For example, food writers need two years specific food writing experience. Health writers need four years, money writers need 2 years, style writers need 2 years.

Also, Demand Studios is putting together a special editing staff to copy edit this format. They are paying them $40 per article. At that elevated rate, you can expect heightened scrutiny and extensive rewrites. That means it will take much longer to complete and cut into your P/T Ratio.

You must apply to be a Features Format writer. Published clips must be submitted with your application. Email your application to: Special.Assignments@demandmedia.com with the subject line "Features Writers -- (your desired subject)." Include the following information:

Name:

Email Address (preferably the same one you use in DMS):

Applying for:

Qualifications:

Specialties:

External writing samples:

What's your favorite past article or assignment? Why?

DS will only respond to those they accept. This format is proof of the rising quality of DS writers. They can now select the best and brightest among their writing ranks. If you are not there yet, don't despair. You are gaining experience with every article you write. DS values writers with a long history of good work for them. If you have a great track record, they might bend the rules for you and let you in.

Holiday Slowdown

September 5, 2010

One of my readers pointed out that the CE queue at DS passed 15,000 over the Labor Day weekend. The time allowed for review has also been extended from 4 days to 7 days. There are two possible explanations for this. Either it is because of the holiday weekend or there is an intentional slowdown in progress. My reader wonders whether it is a cash flow issue. He wonders if the CEs were told to slow down to temporarily to reduce what DS pays out. I believe this to be a likely hypothesis.

Demand Studios has dealt with holidays before and we have not seen backups like this. In fact, they often provide incentives to writers to get them to increase production over holidays. Extending the article review time from 4 to 7 days would seem to indicate a deliberate slow down. Everyone is still being paid on time, but DS is paying out less for fewer articles. It is logical to assume that this has something to do with the IPO. Maybe DM is trying to improve their cash flow. Let's see how long this continues before reaching any conclusions.

Vanishing Tip Titles
September 3, 2010

Some bad news for those of you who love Tip Titles. Answerbag, the leading source of Tip Titles, is making some dramatic changes. DS released this statement:

"As some of you have already noticed and pointed out, there have been fewer Answerbag titles available for you to claim in recent days. We are currently in the process of winding down our production for Answerbag. Titles are available based on the individual needs of our publishers and it’s difficult for us to know when and how these needs will change over time. We know many of you enjoyed writing these articles and favored the short answer & tips formats. We are exploring the option of moving these popular formats over to other sites so they remain available for you as writers."

You can still find an occasional Tip Title in the Find Assignments list. This happens when someone else deletes it, their time expires or the article is rejected. Hopefully Tip Titles will be back soon with other publishers. Until then, look to the Short Answer, Decision and List formats for fast writes.

Decision Format Change
September 1, 2010

Demand Studios is making a change to the Decision Format. It has always been about presenting two different view points then giving the reader the bottom line. However, many topics do not have strong counterpoints. In the past, DS has accepted Decision Format articles that had a strong argument for one course of action without much of an argument for another course of action because it is unlikely someone would choose that. They say they wont do that anymore.

If a Decision Format title does not have a strong point and counterpoint, it should not be accepted. It is not enough to say you could do one thing but you shouldn't do the other thing because that would be stupid. Any Decision Format article that does not present a balanced argument will be rejected. Avoid these titles.

UPDATE: August 30, 2010
New Publisher

Email went out today to Demand Studio business and finance writers announcing a new publisher called eHow Business and Personal Finance. The email says that only certain writers were selected for this "exclusive writing team" based on "high quality of work on eHow." They are trying to make writing for this new publisher exclusive. It is not.

EHow Business and Personal Finance is just another eHow topic guide. See their page here. I used to manage three of these. They are a collection of articles on the same subject concentrated in one place. The issues are topical these days, but not exclusive. The selection of assignments is ordinary and there is no extra pay. There are most $15 How To formats with plenty of $7.50 Fact Sheet formats. Write for them if you like, but understand that there are no special incentives there.

UPDATE: August 27, 2010
Monthly Earnings Goal

After polling my readers, I have concluded that the new Monthly Earnings Goal is a popular new addition to the Demand Studios work desk. It is a bright, visual way to track progress and motivate toward an earnings goal. Bravo DS! Some writers questioned whether it needed to go all the way up to $5,000 per month. Absolutely. There are some Demand Studios writers making that much. It comes out to $60,000 per year. This is a feasible goal if you use the Demand Studio Secrets method.

UPDATE: August 25, 2010
Rejection Reminders Removed

Well, they must be listening to us over at Demand Studios. After years of lobbying, and discussion right here on the Demand Studio Secrets forum, DS has decided to finally get rid of the eternal rejection reminders. They will now only appear on your Work Desk for just 7 days instead of forever. We applaud the move while we ask. "what took so long?" I personally discussed the issue with DS back in September 2009. I know tech guys can be slow sometimes, but come on.

If you miss your rejected articles, you can click on a link called Show Older Rejected Articles. When you do, you are reunited with your old failures. Be careful if you do this. There is no link to get back to the rejection free Work Desk. You must reload the page. I wonder how long it will take to fix that?

UPDATE: August 24, 2010
Photo Requirement

DS just posted a reminder that you should not attach a photo if it does not perfectly suit the article. They say no photo is better than a bad photo. While I would love this to be true, the grim reality is that no photo will almost always result in a rewrite. The CE does not want to hear that you couldn't find anything. They are inclined to assume the writer is lazy and, at the very least, will ask for a rewrite so the writer can try again. This cuts into your P/T Ratio. When it is possible, always include a photo the first time. Leaving one off invites a rewrite.

UPDATE: August 23, 2010
Demand Studio Secrets, third edition

The third edition of Demand Studio Secrets is now available! It has expanded to 182 pages and is updated from cover to cover. There a more detailed revenue share section plus new chapters on health insurance, taxes, new writer probation, contests, photos, instant rejection, site glitches, new formats, and the future of Demand Studios. I also talk about using Demand Studios to help you finance travel around the world. I am currently writing a companion book on that subject that will be available in the fall.

UPDATE: August 22, 2010
Is Demand Media In Financial Trouble?

Ever since Demand Media announced its initial public offering, it has been under attack by the mainstream media. They question Demand Media's claim that they are profitable. The mainstream media is ultra critical of Demand Media. After all, Demand Media's model is putting the mainstream media out of business. All their talk is stirring up doubt about the company.

Corporate finance is a complex thing. Money is moved around, they carry debt to keep things operating, and all sorts of things are shifted for tax purposes. No one really knows what is going on with a company until they pay dividends or someone is indicted. The bottom line is that I don't know what is really going on with Demand Media's finances, and the so-called experts don't know either.

Here is what I know: Demand Studios has never failed to pay writers in their history. They took it upon themselves to pay twice a week even though no one was complaining that they paid once per week. They continue to increase the number of assignments available while increasing pay.

Are they in financial trouble? I don't know and I don't really care. Anybody working for any company could have an employer in financial trouble. As long as they get paid, who cares? Demand Media and Demand Studios offer a no strings attached arrangement. Do some work and they give you money. As long as this continues, there are no problems.

UPDATE: August 20, 2010
Demand Studio Secrets, Third Edition

Demand Studios is constantly changing. Over the past few months we have witnessed some of the most profound changes in its history. Demand Studio Secrets is adapting right along with DS. I am in the process of writing a third edition of Demand Studio Secrets. This is essentially a complete rewrite of the book. Every section contains updates and it will contain all sorts of new stuff. There is a revamped Revenue Share chapter, SEO tips, and new sections on taxes, health insurance, probation and the future of Demand Studios. Look for it in a week or two.

Everyone who previously purchased Demand Studio Secrets has "legacy status." They are entitled to a free copy of the new edition of Demand Studio Secrets when it comes out. I will make the announcement here in the Free Updates section. Just send me an email with your name and original purchase date. I can only send the new edition to the original buyer at the original email address.

I am extending "legacy status" to anyone who purchases Demand Studio Secrets through September 30, 2010. Tell your friends. Legacy status entitles you to free new editions of Demand Studio Secrets for life. (for the original purchaser at the original email address) Free updates will continue to be offered at demandstudiosecrets.com, but the actual free eBook of each new edition is for legacy status only. Thanks!

UPDATE: August 18, 2010
Demand Studio Secrets Forum

The new Demand Studio Secrets forum is a huge success. Writers are welcoming it as a much needed outlet for alternative views and questions regarding Demand Studios that wont be heard on the company forum. It is completely anonymous, so there is no fear of repercussions. You can ask any question you want and get candid answers. Check it out on at this link: Demand Studio Secrets forum. You can also click the "forum" navigation link on the left of this page in the blue box.

UPDATE: August 11, 2010
NEW Rejection Appeal Process

In response to overwhelming demand from this website and others, Demand Studios is finally overhauling their poorly designed rejection appeal process. Before you get too excited, let me tell you how it works. It will be like asking for an instant replay review in professional football. You will have two "flags" that you can throw to appeal a rejection. If you win your appeal, you will not be charged an appeal credit. If you lose, they take it. You get an additional appeal credit for every 20 articles you get approved, but if you use them up before earning more, you are out of luck. The best part about the new process is that you no longer need to fill out forms and send email to appeal. You can just click a button next to your rejection on your work desk within 7 days of your rejection.

They have come up with a very interesting system. I am conflicted. On one hand, it is commendable that DS is making an effort to address the horrendous unfair rejection issue. It alienates writers and reduces morale. Writers feel like they have no voice and that they are oppressed by faceless copy editors who arbitrarily hand out rejections and rewrites. This new process is a simple way for writers to stand up for themselves and save their work without consuming too much time.

On the other hand, this makes the whole process seem like a game. One month you might get no unfair rejections. Another month you might get five. The process should be about need, not limits. I understand that they must curb chronic appealers, but I think a better way to do that would be to just warn and penalize abusers of the system. It is like their system for flagging bad titles. They ask you to volunteer your own time to alert them to bad titles, then threaten to punish you if they don't agree with your selections. It doesn't make a lot of sense. The appeal credit system will make writers hesitant to use them for fear that they might need the appeals later. Maybe that's the point. Giving writers this tool makes DS look like they care, but will actually just reduce their appeal workload. They can guarantee that no writer can complain more than a few times per month. It is brilliant.

UPDATE: August 10, 2010
NEW Demand Studio Secrets Forum

I have created a new forum on the DemandStudioSecrets.com website. It is a place where writers can make comments, ask questions and level criticism that they don’t necessarily want on the Demand Studios forum. It is completely anonymous. Just make up a username that differs from your Demand Studios username. If you need help, advice or just want to vent, please feel free to utilize the forum on DemandStudioSecrets.com. I promise not to pull any punches. To visit the forum click the link in the blue box on the left of this page.

UPDATE: August 9, 2010
Demand Media Goes Public

Demand Media is preparing to go public, offering stock for sale. This promises to be one of the biggest IPOs in years. Demand Media had revenues of $114 million in the first half of 2010, up from $91.3 million for the same period in 2009. They also cut their debt in half. The company is in solid shape and is growing fast. I've been asked if I plan to invest. I preface the answer by saying there is no question that Demand Media is positioned to go huge. The infusion of cash that an IPO offers will allow them to go after some big time acquisitions and play with the big boys like Google and Microsoft. They could soon become another giant or could get gobbled up by a bigger giant. Either way, the stock price promises to rise. However, all IPOs are about hype. The more buzz you generate about a new stock, the higher it gets bid up on the day of release. This makes the company owners very, very rich instantaneously. The stock price inevitably adjusts to reasonable levels over the following months. In my opinion, Demand Media is an excellent long term investment. However, trying to buy stock on the day of release would be foolish since you will never get the preferred price enjoyed by insiders. Keep an eye on the stock price, then leap on it when the price bottoms out. See and hear co-founder Shawn Colo and Steven Kydd, executive VP of Demand Studios, talk about it by clicking this link.

UPDATE: August 7, 2010
New Publishers

As I consistently remind readers of this website, Demand Studios is the future of media content. While the traditional media of television news, newspapers and magazines whither and die before our eyes, Demand Studios flourishes. Take a look at the latest two publishers doing business with Demand Studios. They are SFGate.com, the online version of the San Francisco Chronical, and Chron.com, the online version of the Houston Chronicle. These A-list media websites now use the Demand Studios content you create. The old media model of in-house content production no longer works. It is too expensive and revenues are no longer there as audiences abandon traditional media for the Internet. Publications are forced to increase their online presence if they are to survive. Instead of maintaining their own newsrooms, they are farming out the work to Demand Studios. As a 22 year veteran of the traditional news media, I can tell you that everyone in the traditional media sees the specter of death hanging over their newsrooms. That is why I got out of the traditional media and into this. Demand Studios is the future and will only get stronger as it feeds on the remains of traditional media. Be happy you are a part of the new era and strive to be on the crest of the swelling wave. Pay close attention to my chapters on Getting Promoted within Demand Studios. There are many more opportunities than simply writing freelance articles. You will be in a position to piggy back on Demand Media's success.

UPDATE: August 4, 2010
Demand Media Studios

Demand Studios is now re-branded as Demand Media Studios. What does this mean? Absolutely nothing. Demand Media is the parent company of Demand Studios. DS is the wildly successful content creation division of the company. Since it is getting so much attention, Demand Media is making an effort to direct more of that attention to the entire company. Besides the new logo, you probably wont notice any difference. The website will not change and people will still call it Demand Studios. I mean, Demand Media Studios just doesn't roll off the tongue. I will continue to abbreviate it DS, not DMS. That extra key stroke cuts into my P/T Ratio.

UPDATE: August 1, 2010
Format Changes

Demand Studio has a new format for LiveStrong writers called Lifestyle Product Descriptions. This is similar to other consumer oriented formats like Travel Review and Product Review with a few notable differences. Even though the forum post announcing this new format calls it a "review," it is not actually critiquing the product. It is strictly a description of the product pulled from a variety of sources that can be seen in a single article. The viewpoint is supposed to be neutral. Unlike other formats, you are allowed to use commercial sites for reference, even if it is not the manufacturer. They don't encourage in-text citations unless they refer to studies or expert opinion. DS wants them written in the second person. They want a lot of "you can do this" and "you will find that" in the article. Writers will find this format strictly grunt work. There is no creativity, just the simple gathering of facts and summarizing. On the other hand, the format is straight forward so you shouldn't get many rewrites.

Another recent format change affects the Fact Sheet format. You are now only required to write three sections instead of five. I did not write about it earlier since this change is insignificant. A Fact Sheet is a miniature About format requiring only 150 to 200 words. Since each section is no more than two to three sentences, you will probably write at least five sections anyway. Still, it is nice to see DS loosening up their formats. There is nothing worse than forcing yourself to write more because of a format requirement.

UPDATE: July 30, 2010
Rewrite Dilemma

I am being inundated with email from Demand Studio Secrets readers complaining about increased rewrites and rejections from copy editors who seem to be unnecessarily harsh. I first wrote about this back on May 3. (see archive 1) One writer had an article that called for a "remedy" to a dog disease. It was sent back for a rewrite with the following comment from the CE:

"Some good information here--but, when I read "remedy" I think of a home remedy--such as the homeopathic remedy you allude to in your tip. Your article, essentially, says take the dog to the vet--and the vet will perform the following tests. In my mind, this does not answer the title. I've queried my lead to be sure. (Maybe a vet is the only way, but then you really would have needed to contact titling to get them to change the title)".

Apparently there is no home remedy to the disease and you can kill your dog if you don't take them to the vet. The writer sent an email to Joey Campbell informing him of this and suggesting that the title be changed to make the article more accurate. She never heard back from Joey Campbell. Instead, Content Curator Richard Lally wrote her saying:

"As you realized, taking a dog to the vet is not a remedy. If there are no remedies for this, you should have reported the title as unfulfillable, as company policy dictates.

I'm sorry you've invested time in this, but the rules require you to send this back to the editor for a rejection/deletion. You may not let it expire.

Please flag or report any "bad" titles you encounter in the future. If you're unsure whether a title can be fulfilled, contact the Title Clarification Forum before writing anything.

Regards,
Richard Lally
Content Curator "

There are several issues here. The writer is in an impossible spot. Work and time is already investing in writing the article and now DS is saying more work and time must be invested since the rewrite cannot be abandoned. This is a contradiction since they are also saying the title is impossible to write. This goes back to the title issue I often criticize. Demand Studios should not be offering bad titles that are impossible to write. The titles are computer generated, but they are also screened by title editors. If a bad one slips through, DS should stand by it instead of hanging writers out to dry when they do the work in good faith. Their policy is generated a lot of bad will in the DS writing community.

That being said, it is important for writers to understand that they must work within the constraints of the DS system. DS may address this issue someday. Until then we must adapt to its limits. Also understand that DS does not change titles to accommodate writers. The titles are worded specifically to generate page views and revenue.

In Demand Studio Secrets I recommend only accepting titles that are clear and concise. Any title open to interpretation, inaccurate or impossible to write in less than 600 words should be avoided. This title never should have been accepted. I do not understand why Lally says rewrites cannot be abandoned. They are abandoned all the time. In fact, there is a counter for them on the Scorecard. You should not abandon too many of them since that could get you fired, but putting more work into a rewrite you know will be rejected makes no sense. This writers should also not have wasted time appealing the rewrite. There was no way the writer was going to win and another article could have been written in the time it took to appeal.

The key is to follow the guidelines in the Demand Studio Secrets book and keeping your P/T Ratio high at all costs. Wasting your time on efforts to save a lost cause will only lead to frustration and lost revenue.

UPDATE: July 28, 2010
Plagiarism and Content

One of my concerned readers wrote me concerned about a passage in the new Demand Studios Editorial Guidelines. It reads:

"Demand Studios requires all articles to be unique and original. We have a zero-tolerance for plagiarizing the work of others or repurposing (duplicating) your own content. You may quote from other sources, but only if you accompany the quoted material with an attribution. It’s never acceptable to plagiarize the work of another writer. Every article you submit must be original unto itself. Our in-house editors conduct reviews of each writer’s accepted articles. If we find that you’ve claimed similar titles and submitted the same or similar content—or chunks of content—for any of these articles, you could permanently lose your Studio privileges. We advise writers to avoid choosing similar titles, as it's difficult to provide fresh content for each title, and the penalty for repurposing content is so severe."

Let me be clear. You should never plagiarize anyone's work including your own. Once you sell an article to DS, it belongs to them. However, DS is being ridiculous and hypocritical if they are suggesting that you should never select a similar title. For example, it is to the benefit for DS for a doctor specializing in back ailments to write as many articles as possible about back pain cures. Tell the doctor to write about car repair because they wrote too many back articles is ludicrous. We all have our areas of expertise and should be encouraged to write on those areas. DS cranks out countless redundant titles. If they don't want similar articles they shouldn't offer redundant titles. They claim to like writers who produce high quality and quantity. It is impossible to write several thousand articles for Demand Studios without claiming some similar titles.

What DS is doing here is warning writers not to plagiarize themselves. Cutting and pasting entire passages from one article to another is plagiarism. They call it "repurposing." Demand Studio Secrets shows writers how to write fresh articles from familiar material. Information is information and facts are facts. There is nothing unethical or improper with using similar info to write multiple articles as long as the writing is different and it answers the specific title. Plagiarism is the copying of text. Don't do that.

UPDATE: July 21, 2010
Book Review

Hundreds of writers are benefiting from the knowledge contained in the Demand Studio Secrets eBook. You can read testimonials from some of these writers on the home page of this website.

Many independent sites are also posting reviews of the Demand Studio Secrets book. One we recently came across is on CashCampfire.com. They are in the middle of a "Demand Studios Work Challenge" and decided to test the information in the Demand Studio Secrets book. Here is an excerpt:

"The eBook consists of 138 pages and is surprisingly well written. Basically, Kent shares his story on how to make pretty good, often full-time, income with Demand Studios. I’ve found the whole book useful, though one of the most astounding things I picked up from the eBook was that you can actually get promoted on Demand Studios. Kent shares how he is often asked to participate in special projects for Demand Studios, has access to assignments that pay $100 per project, has an increased assignment limit of over 50, is asked on many occasions to attend special Demand Studios events, and how to become as successful as he is by making Demand Studios a full-time career. After finishing the entire book, my mind started doing cartwheels just thinking about what could be achieved, whereas I would have had no idea it was possible to achieve so much if I hadn’t read this eBook."

You can read the entire review by clicking here.

Many of you have asked what Demand Studios thinks of the Demand Studio Secrets eBook. They officially have no comment. My contacts at Demand Studios say they know that all the information in the book is factual and does not harm the company in any way. In fact, it helps DS by making their writers more efficient and productive. They might resent that the book reveals some of the DS loopholes and that I call them out in the Free Updates section when they make a blunder. However, they have made no attempts to stop the distribution of the information in the Demand Studio Secrets book. I also continue to work with them, so they can't be too upset.

UPDATE: July 14, 2010
Working and Traveling

As I write this, I sit is a charming street side cafe in Paris sipping an overprice latte gazing at impossibly beautiful people walk by. It is Bastille Day in France, so the atmosphere is electric with anticipation of the night's festivities. Right now I am working, but it sure doesn't feel like work.

I tell you this to point out how writing for Demand Studios can actually change your life. Since your office is your computer, you can take your work just about anywhere in the world. I have traveled to more than 100 countries around the world. Some of them very remote. In the past five years, I have always been able to find Internet access. Free Wifi is available almost everywhere.

If you apply the method outlined in the Demand Studio Secrets book, you can do whatever you want, go wherever you want, and set your own schedule. You can finance your travels as you go. Many of you are asking for more information on how to specifically use Demand Studios to finance a trip around the world. I am currently working on another book on just that. It will contain tips on equipment, locating Internet access, working offline, data dumping, and other unique issues you need to beware of when you work while traveling. I will keep you informed.

UPDATE: July 3, 2010
LiveStrong Contest Falls Short

The two month LiveStrong contest ordeal is over and Demand Studios wants you to know that you failed, but they still love you. If you recall, DS offered a $30,000 bonus to be distributed among 1,000 LS writers if they got 30,000 articles approved in May. When this didn't happen, they offered a $55,000 bonus for 55,000 articles in May and June. They ended up with 46,000 articles.

If you regularly read this update column then you know that I was cynical about the contest from the start. Do the math and you find that the bonus would have been $1 for each article written. You also have virtually no control over the result since 999 other writers also need to write the requisite number of articles.

Demand Studios is throwing the writers a bone. They are distributing half the reward to qualified writers. That comes to $27,500, which is about $27.50 per qualified writer. It might be less depending on how many qualified.

There are two ways you can view this:

Demand Studios is being really cool by paying something even though the goal was not met.
This was an evil plot by Demand Studios to squeeze more work out of writers even though they knew they wouldn't reach the lofty goal.

You can decide which you think is true. It is probably somewhere in the middle. The right thing to do would be to pay a proportionate amount of the reward. That would be a $46,000 reward instead of $27,500. That sounds fair, right?

UPDATE: July 1, 2010
Revenue Share Articles

I want to remind my readers not to neglect revenue share articles. They don't pay up front, but the income they generate can be significantly higher. The example I site in the Demand Studio Secrets ebook continues to set new records for income. In the month of June 2010 alone it generated income of $314.80. That puts the total income for its first year at $2,090.89! Here are the screen captures to prove it:

The article took just 30 minutes to write yet it will continue generating income for many years. The monthly earnings have steadily risen throughout the year. Once you get a few articles like this working for you, you can work a lot less or even retire. Pay close attention to the chapters on Revenue Share Strategy in the Demand Studio Secrets ebook. They detail how to identify profitable revenue share titles and how to make them pay. If you haven't bought the book yet, you can purchase it here.