We’re pleased to announce that we’ve received funding from the Investment Readiness Program, administered by the Community Foundations of Canada, to better understand and reach the market for the product that largely funds our social purpose organization.
We now have $23,500 to spend on market research and the development of a marketing plan for our briefings service, the innovation we’ve come up with so we don’t have to rely solely on membership or sponsorship to fund our local journalism operation. We’ve engaged Purppl to help us figure out who needs what we sell and how to connect with them.
How is Taproot a social purpose organization?
A social purpose organization, or SPO, is "a nonprofit, a charity, a co-operative, a social enterprise for-profit, or a hybrid structure with a clear social, environmental, and/or cultural mission at the core of their operation," says Innoweave.
As Futurpreneur puts it, it’s simplistic to imagine a dichotomy between profit-maximizing businesses versus charities that maximize social and environmental returns. Rather, it’s a continuum:
We’re in that blended returns zone as a for-profit company that exists to achieve social benefits, i.e. a more informed and connected community through sustainable local journalism.
What good do we do?
We believe a city works better when its people are informed about what’s going on and feel a sense of connection with each other. Local journalism plays a role in that, and the way we do it is particularly geared towards that.
The UN Sustainable Development Goals have become a guiding principle in the social enterprise space. Certified B Corporations measure themselves against the SDGs, and ventures applying for SheEO indicate the SDGs they are working on, for example.
The SDGs we address are Goal 11: Sustainable Cities and Communities, and Goal 16: Peace, Justice, and Strong Institutions. These are big goals, and the impact that any individual organization like ours can have is tiny, but it’s through the accumulation of all of these small actions in the right direction that we will ultimately make a difference.
This is why our journalism is free to read, even though it isn’t free to make. It’s also why we don’t have a business model that relies on traffic (and thus outrage). And it’s why we have embarked on projects like the People’s Agenda, even though there is no direct revenue from such endeavours.
So how do we pay for it?
As we’ve said before, our business model has three streams: membership, sponsorship and advertising, and our briefings service. The first two are pretty conventional in the media business, though even there, we differ from many legacy media outlets in that we don’t put a paywall on our stories and we don’t sell the kind of advertising that follows you around the internet.
Our third revenue stream is this business-to-business service we sell. It is separate from the journalism side, but we apply the same technology and methodology to pay attention to and convey what’s going on. We simply shift our focus to the topics or communities that our clients are curious about, which they then use for internal intelligence or external communications, or both.
This suits us better than other revenue streams that media companies have pursued, such as sponsored content or events. It’s definitely more aligned with our goals than, say, an online casino. And it has made it possible for us to hire journalists and advance our ambitions beyond Edmonton much more quickly than we would have been able to if we relied solely on membership and sponsorship.
We’re grateful to have access to the IRP grant to further develop that side of our business, and we’re pleased to have yet another signal that we’re onto something.
We’re working with Purppl over the next few months to develop a plan to take our briefings service to customers throughout North America. In the meantime, Taproot will continue to provide a daily look at what’s going on in Edmonton, along with weekly deep dives into tech, food, the region, health innovation, the arts, and business.
If you’d like to help, here’s what you can do: