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Why We Shut Newstilt Down

140 pointsby mchafkinover 14 years ago

25 comments

dannyrover 14 years ago
"There was a point when I was over in Cambridge with Nathan and the other developer, and I noticed that the developer wasn’t working on a Sunday... If your first employee doesn’t love what you do, doesn’t wake up each morning dying to work on HIS product, you have likely chosen poorly, and that’s exactly what we did."<p>I left a company before because I was being pressured to work at least 12 hours a day plus weekends. (I was averaging about 10 hours a day &#38; worked about 4-6 hours on weekends).<p>I asked the CEO that he should motivate me. He said that I didn't need to since I was already getting paid a lot of money. I gave my two-weeks notice the next day.<p>It's possible that you hired the person you want for your company but you were not motivating him enough to work long hours.
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rifferover 14 years ago
<i>And finally, they didn’t expect a cent back, telling us to give all the money back to our later investors. Not once in my whole time at YC did I believe that they valued their investment more than they valued us, and they were OK with us closing down. YC is a class act.</i><p>Personally I find this to be one of the best endorsements of YC that I've read. How people treat you when things don't work out is really, really important.
efsavageover 14 years ago
"I noticed that the developer wasn’t working on a Sunday"<p>There are many obvious reasons why this company failed, and I'm surprised that YC gave them any money, but that statement jumped out as a huge red flag of "bad founder". If you think you _need_ 80+ hour weeks, or _need_ to work 6 days a week, never mind 7, you are already failing. Not only are you burning your people out, you're setting a bad example and demonstrating that your business is not viable.<p>Your people should be working normal hours from day 1. Save the extra hours for emergencies, or big (big as in couple times a year at most) releases or deadlines. If they want to tinker from home or spend a Saturday morning writing an email with ideas, that's when you know you've engaged them, but buying into the "we run on midnight oil" story of startups is just plain not smart.
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wccrawfordover 14 years ago
2 other points he didn't grasp:<p>1) I had no idea NewsTilt existed. I make my living on the internet. I should have known about it.<p>2) The name suggests to me that they will put a slant on the news. I like unbiased news, and most other people at least pretend to. Also, 'tilt' is slang for 'fail'. That doesn't come to mind immediately from the name, but the association with the word is there subconsciously.
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ilover 14 years ago
"Getting traffic is really really difficult. We completely underestimated how difficult it would be, largely because I’d never had a problem with it in the past."<p>For anyone else building a startup without a concrete plan to get traffic, remember this post. Getting traffic will ALWAYS take more time and money than you think. The "if we build it they will come" mentality is a recipe for failure.
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bobdsover 14 years ago
Pretty thorough post-mortem.<p><i>"we weren’t intrinsically motivated by news and journalism"</i><p>This stands out among the numerous issues the company had. If you aren't passionate about something but still want to do it, make sure it's very easy and won't take up too much of your time. That wasn't the case with NewsTilt.
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albertsunover 14 years ago
Did either of the founders have experience in the news industry before starting the company? From a brief search, it doesn't look like it. And from the way he's writing about journalists it sure doesn't sound like it either.<p>I'd say that that doomed the company from the start.<p>Doing a journalism startup just doesn't seem like a good idea if you have no understanding or experience of how doing journalism works.
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steveklabnikover 14 years ago
Thank you for the intensely personal and heartfelt postmortem. It seems like everyone else in this thread is knocking you guys, but I'm glad to be able to learn from your failures.<p>I was sad to see you guys fold. I really liked your idea.
xentroniumover 14 years ago
1. It's okay to fail; if you never fail, you probably never try.<p>2. If I were you, I'd probably try to resolve the problems instead of closing the project. Things like facebook login not working on subdomains should not be show-stoppers, really. Find a workaround, I dunno, proxy login or anything.<p>3. Early releases are good, but you have to provide minimum viable product.<p>4. I didn't know a thing about newstilt till today which means you had some marketing problems.<p>5. Don't listen to the guys counting other people's money :) There's always some risk involved in startups, every investor knows that.<p>6. Probably you had to do some better research before launch. This way you'd know all about your readers.<p>7. As a developer I'm not with ya on those "should work at sunday" parts.<p>My 2 c.
robertgover 14 years ago
I stopped reading after this...<p>"None of these problems should have been unassailable, which leads us to why NewsLabs failed as a company:<p><pre><code> * Nathan and I had major communication problems, * we weren’t intrinsically motivated by news and journalism, * making a new product required changes we could not make, * our motivation to make a successful company got destroyed by all of the above. </code></pre> Overall, the most important of these are that Nathan and I had difficulty communicating in a way which would allow us save the company, and that this really drained out motivation."<p>Maybe you should figure this shit out before you take someone's hard earned money.
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mikeklaasover 14 years ago
So, they decided to shut down after only two months, and if I understand correctly, during the first month (May) one of the co-founders was almost completely in absentia, according to <a href="http://www.poynter.org/column.asp?id=45&#38;aid=185999" rel="nofollow">http://www.poynter.org/column.asp?id=45&#38;aid=185999</a> ?
CapitalistCartrover 14 years ago
My law of girlfriends and employers: You learn more about them when you leave than at any other time. This speaks highly of YC.
JesseAldridgeover 14 years ago
"Motivation" is mentioned several times.<p>Reminds me of that quote, "Courage is not the absence of fear, but the overcoming of it."<p>Maybe you could say, "Success does not come from motivation, but from overcoming the lack of it."
brandnewlowover 14 years ago
This is a great, insanely useful, honest, and detailed autopsy on a startup. Thank you for writing it, Paul. You've done a lot of people a valuable service in sharing this information and your experiences.<p>I have to admit, a small piece of me is dancing a little jig, not at their demise, but because they ran into the same walls and hurdles I ran when I started WindyCitizen two years ago. I can't tell you how cathartic it is to read all this stuff. So much truth here.<p>Example: Working with journalists is tough because almost all of them overvalue their work to an extreme degree, especially older ones who wrote for print. Longtime print journalists were paid solid salaries to fill space in between ads in their papers. They figured if the paper's circulation was X, that a good portion of X was reading their stuff. In fact, it's quite possible no one was reading their stuff and their value wasn't in producing good journalism so much as it was in being able to write something vaguely coherent reliably and safely to fill up space between ads.<p>Try explaining THAT to an old hand print journalist. Those are fighting words.<p>But young journalists today understand this. They know that you're only as good as your audience so they're out building them. Check out my friend Tracy Swartz: <a href="http://twitter.com/tracyswartz" rel="nofollow">http://twitter.com/tracyswartz</a> She covers transit for the Chicago Tribune's commuter paper and is a rock solid reporter. I respect her work very much, but moreso I respect how aggressive she is in building a real following and brand around her work so that no matter where she goes after this job, she's got an audience to take with her. Older journalists don't get that. They were used to thinking the audience just magically appeared when they committed an act of journalism.<p>Anyhow, reading that stuff was like having a weight lifted off my shoulders. Thanks.<p>Background: My original idea (fresh out of journalism school) was to do a Huffington Post for Chicago. I was doing it solo and sans funding however. I was able to sign up about 20 writers, and they were the good hungry ones who want to stir stuff up, but as a solo founder I wasn't able to recruit writers, direct them, edit their stuff, post the stories (we went with Drupal and the posting ui is really terrible so our writers would e-mail me their stories), promote the stories to get eyeballs on them, then find advertisers and sell ads to them....etc etc<p>It just was a no-go. So after 8 months of that, I replaced our front page with a Digg knock-off and invited our readers and bloggers to start sharing and voting for their favorite local stories. Traffic slowly picked up to where we were hitting 100k uniques/month, I found someone to work on ad sales, and we eventually reached a shaky ramen profitability as a local Digg-clone with often-spotty tech.<p>Through this all though, a handful of our writers kept blogging and over the last year we have a few who've managed to build small but regular audiences for their stuff.<p>Two years later, we're starting to recruit writers and bloggers again and its fun to watch.<p>It took 24 months longer than I expected and there's still lots to happen, but Windy Citizen is definitely a worthwhile read for a certain segment of Chicago due to the ingenuity of our writers and community members.<p>Anywho, I'm sorry to hear NewsTilt didn't work out but thank you for your honesty and candor in sharing this. Cheers.
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marknutterover 14 years ago
I can see 37 signals writing a big fat "told ya so" post about this soon.
gurramanover 14 years ago
So I guess that this is the best coverage these guys have had so far as I'd never heard about the site before.<p>I know nothing about the history, but what about a little patience?
hugh3over 14 years ago
Article could have used a bit more explanation of what newstilt was, given that (a) I'd never heard of it and (b) it's been shut down so I can't look at it.
waxmanover 14 years ago
Thanks for writing this detailed postmortem!<p>The entire story, though, can really be distilled into one idea: expectation settings.<p>You always want to under-promise and over-deliver, but it sounds like, in multiple domains, the Newstilt team did just the opposite. They promised a lot to their writers, to their investors, to each other. This happened in both obvious and subtle ways.<p>What's the problem with the wrong expectation settings?<p>Where to begin... First of all, it is human nature to raise expectations. You're afraid investors won't invest, developers won't work for you, journalists won't contribute to your site, your co-founder won't carry on: so you raise expectations.<p>The critical dynamic that screws everything up, though, IMHO, is that <i>inflated expectations attract the wrong types of people</i>. That's the killer.<p>Paul provided many examples of this. Over-promising to journalists attracted the wrong types of journalists; over-promising to users attracted the wrong types of users; over-promising to potential employees attracted the wrong hire.<p>If there's one lesson to takeaway from Paul's story it's: under-promise and over-deliver.<p>Start simply. Don't worry about being too simple. Just be honest, so you attract the right people at the right time.
annajohnsonover 14 years ago
"Lesson: Deeply care about what you’re working on"<p>This was one of the lessons-learned that resonated with me. My husband and I lacked passion for the first startup we co-founded back in the late 1990s and although we were profitable and did sell the business, I know that had we cared deeply about it we would have been 100x more successful. When you care deeply about something you do all the 'little' things that make ALL the difference.<p>More generally, I would like to thank Paul for his post. In fact, it may just be mandatory reading for anyone starting or planning to start a business. Even if you don't agree with Paul's assessment of NewsTilt's demise, it makes for a great case study, precisely because it inspires us to think about what went wrong, what should have been done, etc. In fact the combination of the post and this thread is precisely the kind of discussion I find so instructive.
muhfuhkuhover 14 years ago
Online content syndication, aggregation, or publishing schemes tend to see alot of troubles because the founders make the technology the value proposition rather than the content, which is relegated to commodity (at best) status.<p>I mean, look at how low an opinion brandnewlow (haha) has of veteran journalists. "Working with journalists is tough because almost all of them overvalue their work to an extreme degree". Oh, but I'm sure "digg knockoff + Chicago" is an earth-shattering technology well worth its price in Flooz.<p>As soon as you realize doing a content play based on writing is very similar to any other creative industry like movies, TV, or music, the sooner you'll respect the people who write for a living. They're not just replaceable crotchety cogs that make your content engine move. They're your sole source of revenue (if you do make an money at all).<p>Sincerely, A writer.
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pointsover 14 years ago
"Lesson: If you think you should build it, not buy it, you’re wrong"<p>That's bad advice IMHO. There is far more value to building than buying - the amount you learn, and the extra optimization you can put in there.<p>If you have the luxury of being able to build it yourself, do.
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petefordeover 14 years ago
I tried to get involved in this early on, but I was quickly turned off by the way the project was being run: it felt like the founders were promising a vague end goal and trying to make too many groups of people happy.<p><a href="http://groups.google.com/group/newslabs-qa/browse_thread/thread/33881e2ab3d629be" rel="nofollow">http://groups.google.com/group/newslabs-qa/browse_thread/thr...</a><p>Kudos for writing all of this down, Paul. Next time, stick to your guns and do the simplest thing that works!
markkatover 14 years ago
That's too bad. Thanks for the honest insight, and best of luck on your next ventures.
medianamaover 14 years ago
You gave up too soon. It take much longer to solve any marketplace (chicken-egg) problem
VladRussianover 14 years ago
So, basically an attempt to racket 20% off the money earned by other people failed. Nice try.
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