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How Demand Media’s Business Model Can be Applied to Niche Sites

November 24, 2009
by Vadim Lavrusik
Contributor, Poynter Online

Vadim Lavrusik

Demand Media has advertising-driven content down to a science. Instead of creating content for the Web and hoping that it generates revenue, the company works backwards by determining how much revenue each piece will generate before anything is produced.

The company uses a series of algorithms to pick through keywords that people are searching for on the Web and aims to create content unique enough to rank highly in those search results. It also determines how much advertisers would pay to be next to that content.

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