A peak behind the curtain for anyone interested.
Here are the financial details of the Sports territory for month two and cumulative.
Jan 6-Feb 5- Month 2 Territory Revenue: 2953 sats Territory Monthly Cost: 100,000 Territory gross profit/loss: (97,047)
Territory Posts: 77 Territory Revenue per day: 95.25 sats Territory Posts per day: 2.48 Territory Posting Fee: 21 sats
GrayRuby earn Jan6- Feb5: 106,224 sats Territory Rev+ GrayRuby earn: 109,177 Net Profit including GR earn: 9,177
Cumulative- Dec 5- Feb 5 Territory Revenue: 8678 sats Territory Cost: 200,000 sats Territory gross profit/loss: (191,322)
Territory Posts: 209 Territory revenue per day: 142.26 Territory Posts per day: 3.42 Territory Posting Fee: 21 sats
GrayRuby Cumulative earn: 223,368 Territory Rev+ GR cumulative earn: 232,046 Net Profit including GR earn: 32,046
Takeaways: Territories are still terribly unprofitable unless you include your own earn. It is difficult for me to assess what portion of my earn comes from interaction in the territory and what comes from interaction outside of the territory. Maybe 70-30 in territory I would guess.
A significant increase in posting fee may help the gross profit line but disincentivizes other stackers posting in the territory so is not something I want to test quite yet. I will be leaving it at 21 sats for this month and then reassess. May increase it next month as a test.
Ultimately the only way territories are going to be profitable are if: a) they come down significantly in price b) territory founders keep almost all of the revenue plus have other rev generating sources (charging for pinned posts, or boosted posts or selling ads or licensing) c) SN user base grows dramatically
Thoughts on a) Personally, I don't want to see a reduction in price until we finish the territory attrition phase (maybe after 6 months) and have some territories die off and others essentially become pseudo sub territories within other territories. I saw @jeff posting about crowdsourcing half the monthly territory fee from people who really wanted to see econ stick around. This might be a good idea in the interim for struggling territories that have built a decent following.
Thoughts on b) SN should earn some revenue from the territories and at this point because territory rev isn't a significant amount 50% is fine. Eventually this will need to come down. I think territories are analogous to franchises in the meat space world. Typically a franchisee would pay a franchise fee and then an ongoing royalty on the sales. Generally around 8%-12%. Territories should also have more ways to generate revenue. Options to charge for pin/promoted posts, a static bio instead of territory detail expand where you can possibly add a simple sponsorship link. For instance (stacker sports is brought to you by xyz, check out xyz for all your sports betting needs). This doesn't have to be an immediate thing and the community should have a say in whether we want these kinds of promotions on SN but some way to generate some sort of ad revenue without having the site/territories littered with ads might be helpful.
Thoughts on c) This is the most important one. I think SN and all of us stackers need to do a much better job of marketing. Maybe there needs to be specialized territory referral links that give new users 5 free posts and 100 sats or something like that but it is shocking to me that probably half of bitcoin twitter has no clue what SN is and marketing on Nostr has been a complete bust so far. People seem interested but then never follow through. I know once they join we will convert them, as SN is a great experience, but we need to get them to visit our frontier town. I expected territories to be a gateway for this but so far it hasn't happened. We should all be thinking about ways to get this done if we want SN to continue to grow towards being more like a reddit style platform than hackernews niche style platform. I know all of us don't want that but for long term viability it probably has to go that route. I will be creating a territory account on twitter and see if I have more luck there than I did on nostr. As much as I would prefer to stay nostr only, sometimes you have to meet the people where they are.
Anyways, that's the low down on the financials and my two sats on the first two months of territories