News startups are hardly spending money to make money, survey reveals

News startups spent less than 20 percent of their budget on making money to run their business, according to a survey sample of 48 publishers who provided information on their own expenses.

News startups spent 55 percent of their total budget on creating editorial. That was more than half of what they spent on sales, revenue development and marketing, according to the survey conducted by media consultant Michele McLellan.

If those figures are true and representative of other news startups, it “may spell trouble for longterm sustainability,” McLellan writes on her blog.

McLellan also cited INN member City Limits as an exception for devoting 45 percent of its budget to revenue development.

To see the full results of the survey, click here to visit McLellan’s blog at the Knight Digital Media Center.