Mediabistro: It Started Over Cocktails
The fourth of eight ways entrepreneurs, investors and savers have made a million. Find out how they did it and read all eight.
Millionaire Lesson No. 4
Success on the Internet isn’t serendipitous. Don’t court investors until you have adequate traffic and initial revenue.
Laurel Touby’s $23-million Internet bonanza started with a time-honored tradition of social networking: the cocktail party. Touby was a freelance writer working out of her New York City apartment in 1994, and she was eager to connect with other creative professionals who spent their days trapped in cubicles, studios and home offices. So she began sponsoring middle-of-the-week cocktail parties at a bar in the East Village, where guests bought their own drinks and swapped business cards (and where Touby donned her trademark feather boa as a way of identifying herself to new arrivals).
The media mixers were an instant hit, and by 1996 she had built a database that included thousands of names. Touby took the growing community online and dubbed it Mediabistro.com. Soon, people from all over the country were posting job listings and clamoring for local parties, and she was happy to oblige.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
At that point, Mediabistro was still a hobby, and Touby was supporting herself by freelance writing. In mid 1999, she began asking people who posted job ads on her site to send $100 per listing to a post-office box. She received $2,200 the first month -- not bad, she told herself.
Two months later, she collected more than $3,800. By the end of 1999 she had taken in more than $65,000 -- nearly twice her earnings as a writer. "That’s when I realized that I’d better invest in this baby," says Touby, 45.
So she tapped contacts to help her write a business plan and find investors. By 2000, she had lined up $1-million commitments from two investors in exchange for an ownership share. Mediabistro managed to weather the bursting of the dot-com bubble, the stock market’s nose dive and the 9/11 terrorist attacks. Frugal with her investors’ money, Touby created a new revenue source by offering online classes and seminars for a fee.
Last year, Jupitermedia bought Mediabistro -- and its robust online traffic of seven million page views a month -- for $23 million. Touby’s personal share is $12 million before taxes -- and more if future financial goals are met. She and her husband, journalist Jon Fine, continue to live in their Brooklyn apartment while searching for a loft in Manhattan. "After getting this huge amount of money," she says, "we want to be careful not to lose it."
EIGHT MILLIONAIRE PROFILES
1. The Video That Took on a Life of Its Own
2. Know When to Make the Call
3. Pounce When the Time Is Right
4. It Started Over Cocktails
5. A Thirty-Year Plan to Make a Mil
6. Breaking With Family Tradition
7. Accumulating A Fortune on $11 a Hour
-
Pros and Cons of Waiting Until 70 to Claim Social Security
Waiting until 70 to file for Social Security benefits comes with a higher check, but there could be financial consequences to consider for you and your family.
By Patrick M. Simasko, J.D. Published
-
Now Could Be Time for Private Investors to Make Their Mark
The venture capital crunch may be easing, but it isn't over yet. That means there could be direct investment opportunities for private deal investors.
By Thomas Ruggie, ChFC®, CFP® Published
-
403(b) Contribution Limits for 2024
retirement plans Teachers and nonprofit workers can contribute more to a 403(b) retirement plan in 2024 than they could in 2023.
By Jackie Stewart Published
-
Roth IRA Contribution Limits for 2024
Roth IRAs Roth IRA contribution limits have gone up for 2024. Here's what you need to know.
By Jackie Stewart Published
-
Best Foreclosure Sites for Finding Properties
Making Your Money Last Wondering how to find foreclosed homes for sale for your next residence or to flip for a profit? These websites will guide you to foreclosures and real estate-owned properties to buy.
By Bob Niedt Last updated
-
Four Tips for Renting Out Your Home on Airbnb
real estate Here's what you should know before listing your home on Airbnb.
By Miriam Cross Published
-
Five Ways to a Cheap Last-Minute Vacation
Travel It is possible to pull off a cheap last-minute vacation. Here are some tips to make it happen.
By Vaishali Varu Last updated
-
How Much Life Insurance Do You Need?
insurance Instead of relying on rules of thumb, you’re better off taking a systematic approach to figuring your life-insurance needs.
By Kimberly Lankford Published
-
When Is Amazon Prime Day?
Amazon Prime In 2023 Amazon had two Prime Day events — one in July and another, called Big Deal Days, in October. We expect 2024 to follow the same schedule.
By Bob Niedt Last updated
-
How to Shop for Life Insurance in 3 Easy Steps
insurance Shopping for life insurance? You may be able to estimate how much you need online, but that's just the start of your search.
By Kaitlin Pitsker Published