WritersWeekly Warnings Report
Date Filed:
01/02/02
Company: Suite101.com
UPDATE - 01/09/02:
While we'll accept emails for our files, we're not posting any more here. As you can see, the page is quite extensive already.
SUITE 101 RESPONDS:
Hi Beth, Greg and Angela
What Angela has uncovered is exactly the reason the Board of Directors made the decision that they did. The companies net worth on Dec. 31, 2000 was $5,668,923 and on Sept. 30, 2001 it was $4,412,552. A decline of $1,256,371.
In my announcement I advised that the Board (that represents the shareholders) feels that Suite101, as it is currently structured, will not pay the shareholders/investors a return on their investment. The board has a legal responsibility to watch out for shareholder's best interests. In face if we carried on without making changes the money will be gone in 24 months. If the board members are found to be disregarding the shareholder's best interests they can be held personally responsible. Needless to say this could put the family's retirement funds very much at risk! The board has been advised by some shareholders that changes must be made.
To day HO staff levels are 1/2 Sept. 30/01. Some senior management are working without remuneration (Peter & Julie) and rest of management is at approximately 1/2 our market rate. We have reduced the number of CEs down to 1000 so that they can be substantially managed by the MEs and SMEs. Those of us here day to day are devoting our time and energies toward revenue producing projects such as the B&N contracts and the SuiteU project.
The board is busy analyzing other options.
Mean while the community is here for those who wish to partake. I feel confident that we will find a way to keep it alive and well long term.
BTW my family provided much of the seed financing for Suite101 at $2.50, $4.50 and $5.00 and to date we have not sold one share. It is trading at 40 cents today. The idea that the Bradshaw's do not have substancial money at risk is just not true.
Barrie
Barrie Bradshaw
barrie@suite101.com
(604) 682-1400
Suite101.com
Real People Helping Real People
A WRITERSWEEKLY
READER WROTE:
I'm writing this to you strictly on an anonymous basis. It's concerning
the "financial trouble" that Suite101 claims to be experiencing, thus
"justifying" their decision to not pay their writers.
I've accessed their financial reports, and the findings may surprise you as well as the writers who are considering writing for free to help the big-wigs at the Suite keep their millions.
Take a look at this
link:
http://biz.yahoo.com/fin/l/b/bowg.ob_qb.html
Click on the tab "balance sheet" and then check out the "cash flow statement" tab.
The balance sheet for 2001 shows that they had a cash balance in the amount of almost $4.4 million at the end of September of this year.
The cash flow statement shows that they have *declining* losses, and that they lost around $370,000 for the three months ending on September 30 2001, much less than previous months. All while still paying their writers.
How can they claim that their investors were suddenly worried now about "getting a return on their investment" when their losses were actually *less* than they were in previous periods?
Put their financial picture together and you see a company that has almost another 3 years of life with their current burn rate. This does not take into account the fact that these losses are in decline. So the actual life expectancy is probably longer.
Most ".com" companies cannot boast of this type of cash to burn rate. So there seems to be no reason for them to cut out the pay of their writers with this kind of financial data.
Secondly, if you take the 1,024 topics they have (which aren't even all active) and multiply that by the maximum amount a CE can be paid ($25), the amount they'll be cutting out doesn't make much of a dent in their expenses- certainly not enough to offer much of a better return to their supposed investors. But it sure puts a heck of a lot more cash in their own individual pocket books.
Instead of actually working toward a way to bring in more revenue to offset costs, they took the easy way out by stiffing their writers.
What it looks like they're trying to do is keep more money for themselves and maintain a business to write expenses off of, all while expecting others to do the work for them for free.
Pathetic, huh?
WRITERSWEEKLY
READER LEE PARENT WROTE:
Thanks for your immediate response to Suite 101's 'retrenching' and decision
not to pay their editors. I was one of those editors, writing articles
on "Corvette Events". I received very little benefit from doing so, certainly
never gained any recognition that led to other markets for my writing,
and of course the editors get paid very little anyway, about $10 USD per
article.
I got into it because I like to make some American money which I stash in a USDollar account. Then my husband and I use it for vacations to the States, because the Canadian/US exchange rate is so poor for us. Turned out that Suite 101 would only pay to my Canadian account so writing for them was no advantage. My Managing Editor is asking us all to keep writing while things 'settle in', but I agree that writing for nothing is fine if you're in high school, but defeating the purpose if you hope to become a professional writer .... also undercutting those who make their living by writing.
The hardest part of being a professional writer isn't the writing, it's marketing yourself, and lots of folks will never understand that. Thx for your newsletter. It boosts my spirits whenever I receive it and makes me wish that I could spend more time on this area of my life. Keep up the good work ...
WRITERSWEEKLY
READER MARCIA WROTE:
To add insult to injury, Suite101.com has offered "stock options" to contributing
editors.
This stock option is really, what seemed to me, to be a contract for 5 years of writing. If writers quit or are let go before the term is up, they would have 30 days to exercise their stock.
These "stock options" are nothing but indentured servitude.
Myself being a contributing editor since June1999, I decided not to submit my December article. My Managing Editor QUIT.
The new Managing Editor wrote to "give me a chance to stay on..." I wrote back and told them pulling my topic would be their loss and I retire.
Now, if the Suite101.com authors reflect on the articles, they have the power to edit articles. Suite101 only has rights to the copy for I believe 6 months. I will pull all my articles from their site.
I don't know if they have a database of back up articles, but they will not be using my content anymore, except for the past 6 months.
I hope other contributing editors will do the same.
WRITERSWEEKLY
READER JENNIFER WROTE:
I broke all ties with Suite 101 about two months ago. I selected the topic
interior design and submitted an application for which I had to write
an article. After they strung me along for 3 months I received an e-mail
stating that they were no longer going to accept new editors, but they
wrote in the same e-mail that they would look for a professional interior
designer to write about the topic even though I have written about interior
design in the past and had worked in the field. Talk about a slap in the
face. I was so insulted that I severed all ties with the site and told
all my friends to boycott it and that it wasn't worth their time. I guess
Suite101 was just starting to show its true colors then.
A WRITERSWEEKLY
READER WROTE:
I was one of the contributing editors of suite101.com. Before I applied,
I wrote to some of the editors to get reassurance that this site is worth
my time and effort and they assured me that although the site pays really
low, it does pay regularly. This I found out for myself, as the site regularly
mailed me my checks even though I live in a different country.
However, all my checks went straight to my savings account and in effect, I still haven't spent a penny of what I earned from this site. What was more important to me was that I was being paid for my work, which is the most valuable distinction between honest writing and vanity publishing. I wasn't ashamed to include my features published on this site in my resume. After all, it wasn't an advertising-motivated site, and the other articles on the suite101 community were scholarly, well researched and well-written. This was what made suite101 different from the other sites. It seemed more serious and credible than other sites.
Of course, it had problems. Our individual articles didn't show up using the popular search engines, and limited visibility meant limited usefulness. Sometimes, it felt as if only the members of the community were availing of the site's resources. A few ads to generate revenues would not have been objectionable, as long as they do not overwhelm the content. And the orange and green theme was really getting on my nerves.
I was surprised by the announcement that the site will no longer be paying its contributors. I only learned about it when our managing editor sent all writers under her care an email that opened with "I know you already heard of the sad things going on ..." and "This is a very emotional time for all of us ..." and informing us that she was resigning effective immediately. So I went to the site and read the really offensive golf analogy.
A lot of the contributors to suite101 have very good credentials. I know a lot who were armed with graduate degrees or years of teaching and writing experience. I myself am a lawyer. We didn't settle for the site because we had no other choice. Rather, we made it our choice because we believed in it. It's unfortunate that management didn't feel the same way.
WRITERSWEEKLY
READER SHERRY WROTE:
I am one of the unfortunate contributing editors at Suite101.com. I contributed
articles for over a year, mostly on a weekly basis until this October
when I went to monthly. I contributed articles to the Energetic Remedies
topic. In short, I wrote articles about the energy within our bodies and
how it can be manipulated to help us heal ourselves.
That said, I was floored with the announcement of work for no pay. Granted they didn't pay much to begin with, $25 a month for weekly articles of 400 words or more. But, it was something. My managing editor was wonderful and they paid on time. But, in hindsite, that's still giving work away considering all I put into it.
I resigned immediately after getting the announcement.
My theory is that Suite101.com wants to see itself as "academic". They are working with a major book seller to provide writers for "book jackets" for e-books of classic works. They also are recruiting proofreaders for this same project. It's all posted at their website.
It makes you wonder.
Whatever the reason, giving its writers a two day notice that they would no longer be paid is dirty business any way you slice it up. Someone at Suite101.com should have been thinking about what a terrible public relations disaster this would be -- or maybe they did -- maybe they want to jump onto the "academic" train and cull some of the non-academics.
Stranger things have
happened.
WRITERSWEEKLY READER JEAN LAWRENCE WROTE:
I am not involved with these sleazebags, fortunately, but I got mad just
reading that weasel letter. They didn't make enough money for their investors,
so they would stop paying people....and you're right, not ALL people.
I think a lot of these idiots are "shooken" out of the industry, tho--and
these can't be far behind. Oooo. Good rant on your part, tho!
A WRITERSWEEKLY
READER WROTE:
I wanted to thank you for reporting on Suite101.com! Although I am not
an editor, I am a frequent visitor to the website. Also, check this out--on
their website, you can click on "become an editor", and guess what it
says about paying editors? I've copied and pasted it below:
"In return for running a topic and contributing regularly, Suite101 provides Editors with a monthly honorarium (US $15-$25/month…"
It seems like their website would have been the first place they would have changed their policy in writing.
Finally, I found the press release to be vague and off point. Sure, the Internet may be having a down turn as opposed to three years ago, but don't blame the events of Sept. 11 for YOUR downfall of a website. There are plenty of great websites out there willing to continue to pay writers for their work, and not try and weasel work out of them for free. I understand the need to cut salaries in tight times, but don't sugar coat it or blame it on anything other than your website is not doing as well as expected. And don't try and sound like the good guy who is allowing the writers to have this place to still come and get published and be heard. While I appreciate that fact as a visitor to the website, I don't think it would sit well with me if I were a now unpaid editor of the website.
In conclusion, I hate to see the website suffer because of this decision. They do have quite a lot of topics, and I've put a link to their site on my own website, along with a client's website. Hopefully their content will remain good enough to keep the site going. Good luck to those editors!
Thanks for listening.
WRITERSWEEKLY
READER DEBBIE MCGUFFEY WROTE:
Thank you so much for sharing your article and the response letter from
Suite 101.com (Barrie Bradshaw )....
I'm so angry and fed up by these false companies!
They're so "full" of themselves (well, you know what I mean)! And that letter of response was pitiful! Paragraph after paragraph of.....take pity on us because we've made poor management and business decisions! I think Barrie Bradshaw needs to get busy writing articles for FREE, but I seriously doubt his words would hold anyone's attention! I would like to personally ask him if he'd like a little cheese with his wine (whine)!
The analogy about the golf course said to me that they may be considering charging the writers for publishing their articles! What a crock! I feel they perceive ALL writers as hobbyists, and feel we do not deserve compensation for providing content!
I look at it this way---if we must write for FREE we'd be better off shoveling manure for a paycheck! Writers must stop writing for these types of websites completely. If we refuse to provide FREE content....they don't have a website, and they don't have a company! They can shovel through the bullsh** they've heaped on themselves!
Thanks again Angela---you go girl!
WRITERSWEEKLY
READER MICHAEL MARTINEZ WROTE:
I'm writing in response to your alert about Suite101.
My, my, what a beehive you have burst. Nearly 1,000 contributing editors and managing editors and senior managing editors are still trying to figure out what they intend to do, and you've managed to tick off at least half of them.
I've been writing for the Suite since August 1998. I love getting paid for my work. But I've had far more lucrative contracts, and make more money from other Web-based writing (and other contracts I've gotten through the Internet). Writing for the Suite has always been a special situation for me. I don't earn a living from my writing. But I probably make more money from writing than many struggling writers who intend to earn a living from the field.
On the Internet, however, there are three kinds of writers: the Old School folks who insist on getting paid for everything, amateur self-publishing folks who just want someone to read what they write, and Internet marketers who want people to come to their content and then do something else which may put money into the marketers' pockets.
I feel no shame in admitting that I've been following the third path. There is nothing wrong with being Old School. It has produced some of the greatest literature our society appreciates. It's worthwhile. And there is nothing wrong with being a complete hobbyist. It takes a lot of courage to put your writing up where thousands of people will see it. Some Internet personalities are read by more people in a week than many professional writers reach in a month. Both groups seem to be satisfied with the goals they have set and achieved in such endeavors. Neither is entitled to look down its nose at the other.
But where does the Suite community fall? That's the question to be decided.
You have warned other writers not to have anything to do with Suite101. Something Barrie's press release didn't mention was that the Suite hasn't been accepting new applications for months. It's not like anyone could get in now if they wanted to. So the warning comes rather late.
When I was first notified of the changes, I wrote to Barrie as both a contributing editor and a stockholder. I bought my stock at a very low price and never expected to get my money back. I just wanted to own stock in the Suite. But I have long felt it would be nice to see the Suite make some money. I just never understood how or why they could or would make that money.
I can't share the details of Barrie's reply, but I learned some interesting things about the Suite's history and purpose. It has served its founders' purpose well, I think, and if it folds tomorrow for lack of faith by the contributing editors, no one can take away from the founders what they accomplished.
They paid up to 1,070 writers on a regular basis for several years.
What the board of directors is hoping right now, as I understand it, is that the contributing editors who want to make a go of it will come together and form some sort of coop that will produce revenue which they can realize. Whether that coop will be formed, whether it will succeed, remain to be seen.
But such an organization, if it is formed, will fall into the third category of writer I enumerated above.
I create a great deal of content. I put that content on the Web, and I promote that content, and I do what I can to see that the content pays for itself. It's neither cheap nor easy to get 200,000 people to visit a Web site or two or three in a month. It takes a lot of hard work.
And what many large, "professional", commercial companies have found is that there is very little money to be made in Web-published content. Most people won't pay for it. So you have to make your money by selling goods and services. And most Webmasters can only join affiliate programs and hope to squeeze an average 5% in commissions out of sales they help drive for online retailers.
I don't get paid by the word for publishing such content, but then, neither do newspapers and magazines.
If the Suite is to survive, it will do so because enough contributing editors decide to make it into a new kind of Suite. It will simply be a content marketing site, using the content to sell goods and services. Someone else's goods and services, perhaps. Will that be sufficient to recoup the money that the contributing editors are not being paid directly.
Frankly, I doubt it. But there IS another part of the Suite101 community from which we have yet to hear: the 250,000 subscribers who have paid nothing to join the service.
Those 250,000 people may stay, or they may give up on the Suite. If they stay, they won't generate enough money through affiliate commissions (in my opinion) to pay 1,000 editors even a pittance. But somewhere along the way, the new Suite might create something innovative, and that community may grow. And if the community grows, it may provide the revenue base the Suite needs to keep its contributors happy.
Right now, what we're looking at is another Themestream. 1,000 writers are being cut loose and set adrift in the dwindling sea of paying Web sites. The competition just got fierce.
The professional writing community had better hope that innovation wins out here, or else more pros will find themselves without paying jobs.
The dot-com meltdown is continuing and shows no sign of letting up. I say that based on my experience as a web marketer and my involvement in web marketing communities. A lot of companies are still trying to figure out if the Internet can bring them any profits. Content publishers are really struggling to keep their Web sites open, and their numbers dwindle week by week.
So, warn away all the writers you wish. That really doesn't matter. They couldn't get in right now even if they begged the Suite to let them in. But be patient and see if something new comes out of this. Maybe it will all just fail and go away. Maybe not.
A lot of people (including me) are sitting on the fence, trying to figure out what to do.
I've got over 100 articles on the Suite. Each one mentions my book. My book is selling pretty well. One of the reasons why it's selling well is that the Suite gives me good visibility. I've made more money from the book than I made from the Suite, but without the Suite I probably wouldn't have published the book.
That is how a Web marketer thinks and works. It's not how an Old School writer thinks and works.
I stand to lose a great deal if I stop writing for Suite101. I just have to figure out if I can replace what I'll lose in free advertising with something else, at no greater expense. If I get paid to write, great. Either way, I'm going to make money.
If that's really all that matters, then your condemnation is misplaced -- or at least premature -- as far as this web marketer/writer is concerned. Your mileage may vary.
WRITERSWEEKLY
READER GREG MELIKOV WROTE:
I've been a contributor to Suite101.com since just about when it started.
When I learned the contributing editors, who were nothing more than writers,
would no longer be compensated, but the managing editors would remain
to be paid, I e-mailed my managing editor:
Linda:
I guess I should have written you earlier, but I didn't hear from you about the shakeup. You probably read some of my comments in the editor discussions.
If not, here is what I wrote to Barrie (biz development boss):
In a nutshell, this means I no longer will be paid after my last contribution that was posted Jan. 1, right? Why all the gibberish. Hey, you don't expect writers to give away their articles, do you? Well, if you're not going to pay the pittance you did for some pretty damn good stories, I demand you pull all my archived articles as well as my name and profile. That's only fair. I don't believe you can make it the direction you're headed. I'll be checking to see if you will shoot yourself in the foot. If there's a change of heart, let me know and I'll have an article for Jan. 15. If not, I'll be checking and expect to have all my offerings removed as well as the topic.
Greg Melikov
Barrie's answer:
Hi Greg
Thanks for your thoughts.
Barrie
Here is what I wrote to Jason (editorial director):
I'm saddened Suite101 in going down the forsaken path. Frankly, I believe you all would do better retaining quality writers and cutting back on editors. During my long tenure with S101 I only heard from a managing editor twice: once to tell me about tech changes and once by a new ME.
I've done my own editing, often going back to correct mistakes or update action. I believe that was above and beyond the call of duty for the small payment I received. Hey, without articles by pros who love to write about their favorite subjects S101 won't be around much longer. Too bad. If you decide to retain the present payment method for horse racing, count me in. If not, count me out and pull my archived articles, my name and profile. That's because you all are breaking the contract without much notice.
Greg Melikov
No answer from Jason yet, but I hope it is more intelligent than Barrie's.
Anyhow, unless there is a change of heart, the latest article posting is my last for Suite101. I love to write, but I refuse to do it for nothing, no matter the amount of payment. You must admit my stories were worth more than $10. I'm retired and am set for life, drawing four checks a month and I haven't tapped two retirement funds.
I'll miss Suite101,
but I always look to the future. As Satchel Paige said: "Don't look back.
Something might be gaining on you."
GREG
WRITERSWEEKLY
READER TRUDY W. SCHUETT WROTE:
I gave up on Suite 101 almost a year ago. An editor was leaving and offered
me her spot, with links, etc. intact so I'd have a starting point. I filled
out the application as asked for, up to the point where they wanted 15
links in the topic area. Since this topic area was domestic violence against
men, not a major area of interest, nearly all such links and resources
as existed at the time were already on the site, and didn't need to be
repeated.
I tried to e-mail management to inform them of this unique situation, but when they finally responded, weeks later, all they said was to fill out the application. Again I tried to e-mail them, and the answer I got back another few weeks later had nothing to do with what I was trying to communicate. Again I filled out an application, but by this time the site had been taken down. At no time were my queries ever responded to in such a way that suggested anyone was even reading my e-mails, so I gave up.
WRITERSWEEKLY
READER LESLIE TRUEX WROTE:
I just wanted to comment on your Suite101 report. It just goes to show
that I should pay better attention to my email. I have been a Suite 101
Editor for two years. However last week I decided to quit ... and I didn't
even know about this new policy of not paying. I quit because the pay
was so little for the amount of time I put into it. I had become a burden.
What really got me was that they had implemented some new policies about
article length. When one of my articles was 400 instead of 450 words,
I got an email saying I had to change it or I'd be fired. I felt like
Suite 101 was asking too much considering the return I was getting.
I figure now, I can write the same sort of articles and offer them for free to ezines and probably get a better return on my investment (promoting my website and book). Or, gosh, maybe I could get paid! Now there is a concept.
Thanks again. I really enjoy your newsletter and web site.
WRITERSWEEKLY
READER CYNTHIA WROTE:
I almost wrote for Suite 101 until I received their "contract." After
reading it, a bunch of red flags went off. I e-mailed the editor to inquire
about certain specifics and when I got his response, I told myself that
writing for them wasn't worth it. I don't remember what exactly he said
that turned me off, but my gut told me to stay away. Glad I did. I find
this quote in their press release to be rather interesting:
"Management's recommendation is that we stop paying the Contributing Editors and assist the CEs in implementing programs that will cover the balance. This program will require the Community to pull together in the common cause of having a place to be published and have their voices heard and words read."
They can change their "program" all they want in order to give us poor, starving writers a place to be published, but what they don't realize is that there are many places to get published, online and offline. If they think all writers are desperate to get published and will do it for free, then they aren't working with professionals in my opinion. And, their Web site isn't the be-all, end-all!
Based on their press release, I'll bet Suite 101 will be going out of business soon.
WRITERSWEEKLY
READER STAN SEARS WROTE:
Against the possibility that you might be interested in your readers'
response to Suite101.com's decision to quit paying their contributing
writers, I'm sending you a letter that I emailed to them today.
I was disappointed to learn that you are no longer paying your contributing writers who are--by your own definition--"the heart and soul" of Suite 101.com. It would seem to me that if there is a financial crisis, the place to begin cutting back would be somewhere below the heart and soul of the organization. If passion is, as you claim, a driving force in the organization, then perhaps some volunteerism is due from your staff, rather than your contributors. I know, of course, that the "business is business" approach is the true heart and soul of any profit-making enterprise, and I don't expect my suggestions to be taken seriously. I am a professional writer, and although I have never tried to write for Suite101.com, I always believed that it was, as alleged, a writing community. At some point I might--at my own discretion--have been willing to submit something for free, but as a professional I would have had to be already paid for prior submissions.
I will retain Suite101.com as a secondary reference source, but considering your demonstrated perspective toward writers, I will no longer participate at any other level. Writing is also a business.
Sadly,
Stan Sears
WRITERSWEEKLY
READER LISA WILLIAMS WROTE:
Upon reading your latest on the demise of the Suite 101 contributing editors,
I was surprised. Somehow, I must have been left out of the mass mailing,
as I never received such notification. I have been writing for them for
over 1 1/2 years, and have always received updates and payments on a timely
basis. Oh well, guess I will have to find another viable source for that
big deposit of $15 per month.
The constant changing and downfalls of the writing sites will continue, and we will soon be in it just for giggles. I am glad I have a magazine to write for, and will now pursue the local small town papers for avenues for my writing.
I have included your online newsletter on my web site.
WRITERSWEEKLY
READER GAYE WROTE:
Just wanted to say "BRAVO" for giving the "thumbs down" to Suite101. I
checked them out last summer and was appalled at the rates they paid.
I think I went as far as building a profile with them, but then didn't
pursue it further. It also took a lot of effort just to find out what
the rates were.
I've worked for free in the past (and just recently), but I am very picky about for who and why I do it. If the exposure will give me a probable payback in dollars from another source, and I don't have to put hours or days into it, I'm inclined to try it once. I do not write for fun or because it is my hobby. I write for a living.
Suite101 asks for a lot of time and effort with very small payback. . . and now, no material pay and only a small probability of payback.
All I can say is, WORKING WRITERS UNITE TO BOYCOTT THESE COMPANIES!!!
Thank you for letting me contribute my two cents. Please keep up the wonderful Web site, which I look forward to every week.
A WRITERSWEEKLY
READER WROTE:
You asked what my experience is with this company - you didn't specify
negative or positive. I am giving you the positive experience, but asking
you keep my name out of it. I don't want to hear from negative people.
Suite101 came along just as I was emerging from 3 babies in 4 years - the 3rd one was in and out of hospitals for the first 2 years of his life and I had little time to even think of writing. It was through Writers Weekly that I found Suite. I enjoyed reading the articles and postings, getting involved in discussions and meeting other writers in a "family-style" environment. Many of those writers have become friends and we share ideas frequently.
Suite not only gave me an outlet for my writing, it encouraged me from the head office through the fellow writers and readers. My writing world has expanded ten-fold in the past year. I had been out of the writing/publishing loop so long that I had no idea where to begin again.
The contacts and exposure I've gained through Suite FAR outweigh the monthly pay, which was enough to put gas in the car. Ah, but there is the validation of writing and being paid anything at all for it! This is a statement appearing a lot on the Suite site these days. Sure, it was only a few bucks a month, but the validation.....
Give me a break. If those few dollars is all the writers are getting from Suite, they aren't trying hard enough. They aren't using the contacts, they aren't cashing in on their "editor" title elsewhere. They are short-sighted and didn't read through the lines that this is a temporary fix to a problem. Their writing world is limited. What I have received from Suite FAR outweighs gas money - which I fully believe will increase in the future.
Why? Because I believe in the integrity of the Suite folks. Blind faith? Don't think so. They have been helpful to me from day one and aren't out to intentionally screw anyone. Even if Suite folds in another 6 months and I was wrong about the pay part (which I don't expect), I STILL will have increased my circle of fellow writers, contacts, knowledge and use of my title as writer for Suite101.com. There is a knee-jerk reaction going on there now - people are shaken up and giving up without giving it a chance. If all they expect out of writing is gas money for their cars, they are in the wrong business, anyway.
A WRITERSWEEKLY
READER WROTE:
I've been a journalist for nearly 14 years and never have I been so insulted
in all my professional career.
I've been writing for Suite101.com since July 2001. Recently, I finished my sixth article for them, and they only just now got around to paying me for them.
In August, I asked to take a three-month writing sabbatical so I could recover from a back injury. My managing editor had subsequently approved my time off, and I thought when I was ready to return, everything would be fine.
Upon my return, however, not only did I find my topic retired, it took my managing editor nearly three weeks to respond to the e-mail I sent concerning the situation.
Suite101.com wouldn't even exist if it weren't for us; the hard-working, under-appreciated writers who accept low pay for some well-deserved and long-delayed recognition.
Telling us that the management would still remain on the payroll, while we, the writers, would get nothing, was bad enough; then they had to stick it to us with that asinine golf analogy. I almost got physically ill. What an insult.
We, the writers, who compose probably 95 to 100 percent of the content, are now being asked to do it for free. It is not only a breach of our contract, but of our trust!
Suite101.com was slowly on a downward spiral for months; however, we, the writers-their lifeblood-were the last ones to know. What a colossal insult and a travesty! They should be ashamed of themselves.
They are in this mess due to their own mismanagement and lack of strategic and business planning. And now they want us to help them clean up the mess they created by asking us to help bail them out for free! While at the same time the management remain on the payroll? What an insult!
I enjoy getting my
writing out there as much as anyone; however, I don't like being insulted
while doing it.
Summary:
This communication was forwarded to us by several contributing editors of Suite 101.com:
Hi and seasons greetings to the Suite101 Contributing Editors:
The following Press Release went out Friday Dec. 21, 2001:
"Vancouver, British Columbia, December, 21, 2001 - Suite101.com, Inc. (OTC BB: BOWG) announced today that its Board of Directors is engaged in a review of the company's activities with the view to the possible redirection of its operations in an effort to enhance and maximize shareholder values. No definitive agreements have been entered into at this time."
I would like to share with you some thoughts that have emanated from recent Board of Director meetings (the latest being Dec. 27) and discussions with management over the past few months.
Please stay with me as I give you a short history of the financial journey we have been on over the past 6 years. For the first 3 years Suite101 was financed by i5ive Communications, a private company that was owned by the Bradshaw family and partners. The funds invested were totally at risk, as no one knew what business opportunities the Internet and Internet Communities would offer. About 4 years ago the public markets began to identify extraordinary opportunities in Internet based companies and investors were lusting to get involved. This lust for gains offered by Internet companies drove the investors to invest in companies that did not have revenue models as part of their going ahead business plans. Suite101 was one of these companies. After funding we looked at a number of revenue models and since our funding was modest in comparison to other Internet companies we decided to wait and watch before adopting a revenue plan. Over the past 3 years we have observed the demise of several what were well-funded Internet companies. In retrospect doing nothing was good strategy. If we had adopted and invested in what turned out to be flawed plans we very likely would not be here today.
Please fast forward to today. Our Board of Directors is made up of investors and Suite101 management. (BTW the Board in total is answerable to the investors and legally must represent investors over all other considerations). Two of the questions the Board has been wrestling are "How will our investors get a return on their investment?" And "Can the funds in Suite101 be put to a better use"? In today's market-conditions, which includes the general recession, .com downturn, and the events of Sept. 11/01, the company's capital will be close to impossible to replace. This dilemma and the questions rising from them have been put to management from our Board and our job is to provide realistic answers.
In addressing these questions we have come to two conclusions:
1. Suite101's community as it is currently structured will not offer our investors a satisfactory return on their investment. (Community)
2. There are business opportunities in using the Internet, as a communications back- bone for business and Suite101's Community could be a component in B to B and B to C transactions. (Business Unit)
It is very important in our going forward plans that we find a way for the Community to carry on. Our founders and management have strong feelings toward the social values the Suite101 Community offers. Our feeling is that to protect the future of the Community the Community must become "financially self-sufficient". The cost of running the Suite101 community alone (does not include the Business Unit) is approximately $35.00 per topic per month. This includes the CE pay, which is approximately 50% of the total per topic cost.
Management's recommendation is that we stop paying the Contributing Editors and assist the CEs in implementing programs that will cover the balance. This program will require the Community to pull together in the common cause of having a place to be published and have their voices heard and words read. If my passion were playing golf I likely would have to pay fees at a golf course. Seldom do the fees cover more than the operating cost of running the golf club. Without the green fees or dues there would be no one to cut the grass and maintain the asset and game would be over on that course.
I appreciate that these recommendations will cause a great deal of negative comment and disruption but if we act now the community has a good chance to have a long and secure future. If we do not act quickly we run the risk of having our funding withdrawn without ample time to reorganize. The suggested steps and timing are:
* Stop paying Editors as of Dec. 31/01 - last check Jan. 15/02
* SME , ME, and Community Manager pay will continue to be paid.
* Cancel contracts for news feeds, weather, and horoscopes contained on the My Suite page - 30 days notice to be given Dec. 31/01
* Reduce head office overhead in January-February.
* Roll out Contributing Editor's book recommendations on all Topic Pages during Jan. 2002, as well as other programs directed at immediately bringing in revenue.
I apologize that the time frame is so short but events of the past few days and the current recession and market downturn have made it necessary for us to move very quickly in order to keep Suite101 viable from this point forward. I hope the long-term outcome of these changes will prove to be positive for the community once we are through the pain of implementation. Our number one goal in regards to the Suite101 community is to develop a plan that will allow it to survive for the long haul. We welcome your suggestions and comments on how we can best accomplish this. A copy of this letter has been posted in the Editor Discussion Area:
The SMEs and MEs received this letter in advance over the past couple days. They are available for your comments and to help answer questions as things unfold. There are many decisions still to be made and the staff will be keeping everyone informed about new developments over the coming weeks.
I will be checking my email and monitoring the discussion threads over the remainder of the Holiday Season. I expect to be back at my desk Jan.2/02 and would be pleased to discuss the ramifications of these steps with you then.
Regards
Barrie Bradshaw
Director of Business Development
Suite101.com
WritersWeekly's Comments:
Despite the fact that their website still says they pay, Suite101.com gave notice to their editors this week that they'll no longer be paid. Included in the lengthy letter, which does NOTHING to satisfy the editors, is a stupid analogy about paying to play golf and how the fee doesn't cover the costs to run the golf course. Huh?
Anyway, we find this
new policy grossly unfair, an insult, and nothing short of a middle finger
to their writers…the ones who have created Suite 101's most valuable asset…their
content. Not only that, but they want the editors to keep writing for
them for no pay. In exchange, they get…you guessed it! "A place to be
published and have their voices heard and words read." What a load of
garbage! Hey, if you can't afford to pay for your most valuable asset,
it's time to close your doors and stop asking for freebies from people
who need to feed their families. You can bet Suite 101 didn't also ask
their management to work for free, nor their ISP, their doctors, their
grocers and their mechanics. Nope, just the writers…who they obviously
perceive as the least valuable piece of their existence.
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