Startup cost
$200–$4k
TRUiC Business Ideas
How to Start a News Website
Decision Snapshot
News Website
Idea Score
51
Profit margin
6%
Break-even
4 mo–12 mo
Time to launch
12 wk–36 wk
Demand trend
Stable
5-yr failure rate
—
Capital intensity
Low
Time commitment
Flexible
Part 1 - How to start a News Website business - Background
A news website brings current events to its audience that can be told from a variety of angles. For example, some websites tell the news with a financial spin, or they offer a clear right- or left-leaning tone. Offering a unique point of view is one of the best ways to draw attention to your website over your competitors.
Our guide is in 3 parts:
- Part 1 - How to start a News Website business - Background
- Part 2 - Our planner tool to see if this idea is the right fit for you
- Part 3 - Action plan to get started
What are the costs involved in opening a news website?
The cost to get started are extremely low. Services like SquareSpace offer newcomers the chance to design, host, and maintain their website for pennies a day. You may also want to advertise your news website on related blogs or sites as well. Advertising costs vary from site to site, but usually average around $.15 paid to the proprietor of the site for every click.
What are the ongoing expenses for a news website?
Website owners may have to pay for the following:
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Advertising costs
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Website maintenance
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Writer salaries and fees
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Cost of travel/expert opinions
Who is the target market?
Online target markets can vary, but can include liberals, conservatives, investors, or intellectuals. Many busy professionals today are looking for easily digestible news that can be easily accessed and consumed.
How does a news website make money?
News websites usually make money based from those who advertise on the pages. Advertisers can post their products or services on the side of news stories, and then pay a fee every time a reader clicks on their ad or buys their product. The more interest the advertisers get from your audience, the more you can charge for each click.
Owners may want to consider putting up a paywall instead of doing advertisements. A paywall essentially asks your readers to contribute their own money for the stories. Paywalls can be dangerous because the news can be easily found online for free. However, there is a growing demographic of people who are tired of slow-loading sites because of all the advertisements on a page. If your content is addictive enough, using a paywall may be a smart way to make money.
How much can you charge customers?
How much you charge will be heavily dependent on your audience. The Wall Street Journal famously has a paywall, and they charge more than $400 for a yearly subscription. If you choose to use advertisers rather than charge your customers, you may be able to charge closer to $.50 a click or more if you can grow your audience.
How much profit can a news website make?
Runaway successes can be extremely profitable. The Drudge Report has extremely low operating costs, and may generate up to $15 million of profit a year according to some estimates. TheSkimm is another success that delivers news to their audience’s emails, as well as having a rich website filled with informative facts. Due to their subscriber list, they can charge up to $100 for every thousand impressions. With 1.5 million subscribers, their profits can be substantial. However, it should be noted that these are anomalies in this industry.
How can you make your business more profitable?
Increase your profits by selling your own related merchandise (e.g., T-shirts, hats, etc.) or by holding events for your audience. You may want to start your own convention where people can get together to discuss and review recent current events. News websites can start movements on either a local or a national level that can ultimately take a business to the next level.
Day-to-Day and Growth
What happens during a typical day at a news website?
A news website owner may have the following tasks in their day:
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Finding/writing stories
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Creating layouts/logos
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Soliciting advertisers
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Maintaining social media channels
What are some skills and experiences that will help you build a successful news website?
Strong writing skills are imperative for getting started. Even if you hire a team of writers, you need to be able to spot talent and a strong voice before even putting up a Help Wanted ad. Websites are extremely competitive, and it takes a lot of drive and talent to make one stand out.
What is the growth potential for a news website?
Growth potential in a news website can be slow, especially when first getting started. Some people caution that no one should create a news website with the hopes of making money. Most people already have a trusted source for their news, which can make it difficult for them to switch brands. However, there are plenty of passion projects that have skyrocketed to success by building up a loyal online audience over time.
What are some insider tips for jump starting a news website?
Look for niches that currently are not being filled that also happen to fit your own ideals. For example, you may want to start a news site devoted completely to covering virtual currency. Writing for a very specific audience can be one of the best possible ways to distinguish yourself from other websites. Use social media and other free resources to try to build your audience, and advertise where you know your audience will be. For example, if you’re writing solely for investors, partner with an blog that gives advice about the best ways to optimize a portfolio.
How and when to build a team
Unless you’re able to get investors on your side before you open, you should probably not hire anyone until you have enough revenue to justify anyone on the payroll. However, you may be able to hire fledgling writers to help you get started without having to dip into your budget. Some writers who are looking to get started may be willing to trade compensation for a byline. The more exposure and samples your writers get, the more they can use that experience in their future endeavors. You can either pay them when the site begins to make money, or offer them a share in the company.
Part 2 - Is a News Website business the right fit for you?
Business Evaluation & Strategy Tool
We'll walk you through the four pillars every business needs: Points of Leverage, Marketing Strategy, Financial Model, and Personal Compatibility. At the end you'll see a personalized report and your action plan below will be tailored to your answers.
Step 1 of 4 — Points of Leverage
Every viable business has natural advantages. Below are common leverage points across four categories. Pick the ones that apply to your News Website business. We've pre-suggested a few based on your idea — review and adjust.
Step 2 of 4 — Marketing Strategy
Without a way to connect with customers, even great businesses fail. Pick the channels you plan to use to reach your customers.
Step 3 of 4 — Financial Model
Enter your monthly baseline costs — the minimum overhead to keep the business running. Then we'll calculate how many sales per month you need to break even.
Step 4 of 4 — Personal Compatibility
A business that doesn't fit your life will fail no matter how good the numbers look. Tell us how this business fits you.
Your News Website Evaluation Report
Complete the four pillars and your personalized summary will appear here.
Points of Leverage
Marketing Strategy
Financial Model
Personal Compatibility
Part 3 - Action plan to launch your News Website business in 90 days
Nine concrete steps to take you from idea to open business, grouped into 30-day phases. Complete the planner above and we'll highlight what's most important for your situation.
First 30 days — Foundation
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Form your legal entity
An LLC keeps your personal assets separate from business debts and lawsuits — the most common reason small business owners choose this structure. Sole proprietorships and partnerships do not provide this protection.
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Get an EIN and register for taxes
Apply for your free Employer Identification Number through the IRS, then register for any state or local taxes that apply to your business (sales tax, franchise tax).
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Open a business bank account and credit card
A dedicated business account is required to maintain personal asset protection. Mixing personal and business finances ('piercing the corporate veil') can void your LLC's liability shield.
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Set up business accounting
Recording expenses and income from day one makes tax filing easier and lets you see when the business is actually profitable. Use software (QuickBooks, Wave) or a part-time bookkeeper.
Days 30–60 — Compliance & Risk
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Get permits and licenses
State and local requirements vary widely. Brick-and-mortar businesses typically need a Certificate of Occupancy; service businesses may need specific professional licensing; food businesses need health permits.
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Get business insurance
General Liability Insurance is the most common starting point. If you'll have employees, most states require Workers' Compensation. Specific industries need additional coverage (product liability, professional liability, etc.).
Days 60–90 — Launch
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Define your brand
Your brand is how customers perceive and remember you. A clear name, logo, and visual identity make every later marketing decision easier and protect you legally as you grow.
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Create your business website
Every legitimate business needs a website. Social media pages are not a substitute — you don't own the platform. Modern website builders mean you can launch a clean site in a weekend without a developer.
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Set up your business phone system
A dedicated business number keeps your personal life private, makes the business look legitimate, and lets you route calls professionally. Cloud phone services start under $20/month.