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Some of the buzz around the blogosphere is created by the heavy knocking sound on Gather.com’s (is it Gather, which is on the website, or Gather.com?) business model and a lot of questions about its future. They closed a $6 million round from Jim Manz…

Looking at Gather’s most popular (and OK it’s only been around a short while) the number of reads per story let alone click throughs wouldn’t sustain my cat in kitty food, let alone any other kind of food.

I wish them well, I really do. After all, it’s said everyone has at least one story inside them. But will enough people care?

I was chatting with a buddy on IM today about how Gather.com is getting raked over the coals by some bloggers following a story on them in the Boston Globe (reg may be required). Looking over Michael Arrington’s complaints about…

While I think that you bring up a lot of good points, I think that you’re missing out on the angle of community that Gather is trying to construct for people who were not trained as professional authors or have a burning desire to go in that direction. I agree that Rafat’s success is highly compelling and I applaud his efforts regularly, but there’s a middle ground between people like him and total obscurity that’s not well-addressed by plain old weblogging. The Gather model may have its weaknesses, but it offers at least a prototype of what a high-quality community built around professional and amateur content could look like. My suspicion is that others will be in this arena soon – perhaps with more open solutions. More commentary via our regular News Analysis.

All the best,
John Blossom
President
Shore Communications Inc.

Jason took issue with the notion that big media companies (Fox, Time Warner/AOL) were buying sites based on eyeballs (traffic without monetization) versus revenues (traffic plus monetization). The point was that valuations weren’t based on unique visitors (as you’d suggested), but rather on actual and forecasted revenues.

Now you’re talking about VC investing in startups, which, by definition, have zero eyeballs and zero revenues.

I totally agree that it is a sign of froth to see non-media types suddenly developing media guru-ness.

And of course (some) VCs are always prone to believe in the classic three step model:

1) get lots of traffic
2) ????
3) exit!!!

But I gotta stick up for Jason — this doesn’t negate his point at all.

When Tribune Co. buys “Gather” for $20 million before they have any real revenues — then you’ll have something.

But the takeaway? Yes, it’s getting overheated. For sure.

A stampede of capital is headling to content sites. Om Malik has written a sharp piece on Gather, a startup that pays content creators according to the amount of traffic they generate. A number of others are using a similar model: Squidoo, Backfence,…

thanks for the corrections. i made the one about his title. however, the mail client etc … the remark stands. they were horrible products that were difficult to use and hence microsoft was able to take care of them in the market place… using some of its dollars of course

i updated that bit, just to clarify. the damn nyquill is still in effect.

Unlike the vast majority of Web 2.0 companies, Gather seems to be trying to give back to its contributors.

I’m puzzled by all the negative reaction.

Couple correction Om,

1. Jim is not the founder of Lotus. He took over CEO reins from Mitch Kapor (Lotus founder).

2. Lotus Notes Mail Client and CC:Mail came to Lotus as part of M&A deals. Both products predate Outlook.