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	<title>Business Model Alchemist &#187; wikipedia</title>
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		<title>Wikipedia Needs a Business Model not Donations &#8211; plead-for-business model</title>
		<link>http://www.businessmodelalchemist.com/2009/01/wikipedia-needs-business-model-not.html</link>
		<comments>http://www.businessmodelalchemist.com/2009/01/wikipedia-needs-business-model-not.html#comments</comments>
		<pubDate>Fri, 02 Jan 2009 07:48:00 +0000</pubDate>
		<dc:creator>Alexander Osterwalder</dc:creator>
				<category><![CDATA[business model]]></category>
		<category><![CDATA[business model innovation]]></category>
		<category><![CDATA[donations]]></category>
		<category><![CDATA[jimmy wales]]></category>
		<category><![CDATA[wikipedia]]></category>
		<category><![CDATA[wikipedia business model]]></category>
		<category><![CDATA[wikipedia donation]]></category>
		<category><![CDATA[wikipedia founder]]></category>

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		<description><![CDATA[Wikipedia founder, Jimmy Wales, recently made a plead-for-donations for his extremely successful website (hat tip to Victor Lombardi). 
Dear Jimmy Wales, this looks really desperate and I think it&#8217;s the wrong route you are going down! A great website, such as yours, should not have to rely on the mercy of donors. I would suggest [...]]]></description>
			<content:encoded><![CDATA[<p>Wikipedia founder, <a href="http://en.wikipedia.org/wiki/Jimmy_Wales" target="_blank">Jimmy Wales</a>, recently made a <a href="http://wikimediafoundation.org/wiki/Donate/Letter/en?utm_source=2008_jimmy_letter_r&#038;utm_medium=sitenotice&#038;utm_campaign=fundraiser2008#appeal" target="_blank">plead-for-donations</a> for his extremely successful website (hat tip to Victor Lombardi). </p>
<p>Dear Jimmy Wales, this looks really desperate and I think it&#8217;s the wrong route you are going down! A great website, such as yours, should not have to rely on the mercy of donors. I would suggest you try to find a better business model, because donations are just not sustainable&#8230; Look at the lessons of long standing not-for-profit organizations: They are relying less and less on donations.  </p>
<p>With your foundation you are hoping to raise $6 million through your annual campaign. With such a valuable and successful website, I think you would better focus on your core competencies rather than fund raising. You have the assets to build a successful business model and still fulfill your vision. 8 years of track record, 275 million monthly visits to your website, 11 million articles in 265 languages and your 150&#8242;000 volunteers merit more than the mercy of donors. </p>
<p>Please learn lessons from companies like Google. Based on advertising they have contributed just as much to trying to make knowledge universally accessible than Wikipedia. Ok, you don&#8217;t want to use advertising, because your volunteers think that could compromise the content. Well, I think you have a much larger range of possible business models to explore than just one built on advertising based revenue streams. I think you should launch a plead-for-business-models rather than a plead-for-donations. </p>
<p>I don&#8217;t want to give you any recommendations &#8211; you and your board are smart enough. However, if I were to find money to fulfill Wikipedia&#8217;s vision I would look into other business models that are complementary to your overall not-for-profit goal. Examples: 
<ul>
<li>Licensing Wikipedia&#8217;s technology to for-profit-companies</li>
<li>Hosting other Wiki&#8217;s (similar to what <a href="http://wordpress.org/" target="_blank">WordPress</a> does for blogs)</li>
<li>Membership fees like <a href="http://www.amnesty.org/" target="_blank">Amnesty International</a> has</li>
</ul>
<p>Here Jimmy Wales&#8217; plead-for-donations:</p>
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<p>Personally, I don&#8217;t really believe in donations. Some of the organizations that I find most astonishing and have achieved a huge social and economic impact are not at all donation-based (some take donations, but it&#8217;s not at their core). Here I&#8217;m thinking of <a href="http://www.grameen.com/" target="_blank">Grameen Bank</a>, <a href="http://www.grameenphone.com/" target="_blank">Grameen Phone</a>, <a href="http://www.kiva.org/" target="_blank">Kiva</a> or <a href="http://www.wise.net" target="_blank">WISE</a>.</p>
<p>Any other suggestions for Wikipedia business models?</p>
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