Why Paying Yourself (Well) To Do Journalism Is Critical to Sustainabiltiy

Something that comes up repeatedly when I'm coaching local news publishers is that they're not paying themselves—or barely paying themselves—to run their companies.

I understand the sentiment. For 20 years, I underpaid myself (not to mention my partners and nearly the whole staff) to keep the for-profit Jackson Free Press afloat. Even when we had 7-figure revenue years, my paycheck was close to what I made after college in the 1990s—much less than I'd made as a freelancer in the late 1990s and early 2000s.

Through all that, I gained much experience and wisdom, some of which I can now use to make more money. However, I also got about 20 years behind on my retirement accounts and fell behind my peers with more steady-paying professional careers.

We did whatever we could to keep the publication alive and thought we were doing the right thing. But my advice is different today. Your publication isn't sustainable unless it pays its founder and principals a living wage. One of your most pressing priorities should be to work toward that.

A few thoughts:

1.) Even if you don't pay yourself a living wage immediately, budget for it. Your 1-3-year business plan and budget should include healthy salaries for founders, particularly if you're a non-profit. (If you're a for-profit, you can budget to take some of the profits.) Having these numbers in your budget gives you a target to reach and a justification for actually making those payments once you get them.

2.) Consider that a budget that doesn't pay the founders doesn't look sustainable to investors. Again, particularly for non-profits, it's not a long-term enterprise if the budget relies on underpaying the CEO, publisher, executive director and/or Editor-in-Chief.

3.) The Pay Yourself First principle helps you be a better business owner. Saving for the future—or a rainy day or a medical emergency—enables you to take risks as a founder. It helps weather uncertainty and mitigates some of the stress of running a lean startup. It also enables you to afford time off and vacations to recharge and return to work stronger.

I think paying yourself to do good journalism should be a top goal of your organization. Structuring your goals around paying the principals is more likely to lead to longer-term success. Thoughts? Disagree?