Hi friends!
I can’t quite believe I’m writing you this newsletter.
Back in August, when we were six months into quarantine and New York City restaurants were still serving curbside drinks, I thought about quitting Fenix.
At that point, I was still rehearsing my pitch every time I got on a call. I had to muster up the courage to open up my inbox, afraid of finding new rejections hiding there. I had no mentor or boss to tell me if I was making the right decisions about this business, so every choice felt uncertain. And Fenix felt heavy.
On this particular afternoon, I swiveled my chair around and asked my husband what would happen if I walked away. He paused to consider the question. Then simply said, “Don’t.”
The conversation that followed explored the ups and downs of Fenix. Our launch in early 2019 had been successful. We fully crowdfunded all of our initial stories. People cheered us on. Many of you reading this probably signed up for this newsletter at that time.
Back then, we hoped to crowdfund on a story-by-story basis. A good idea in theory, but harder to execute in practice. Here’s why:
The lag between when readers fund a story and when they get to read it was too long. The enthusiasm we gathered at the launch of a campaign dwindled by the time the story published.
Our product didn’t fit the crowdfunding model. Crowdfunding works best with big one-time projects because you can garner the crowd’s energy and spending power toward your goal. But you can really only do that once as it takes time for the crowd to recharge that enthusiasm. You can’t keep going back to the well on a story-by-story basis.
So, as we wrapped up 2019, I got to thinking: How do we pivot?
There were aspects of our company that still held true — like our desire to cut advertisers from the publishing cycle and our belief that the best way for journalism to succeed is to answer directly to readers.
We needed to iterate in a way that kept these aspects of the company but moved away from crowdfunding. The question was toward what?
Fenix 2.0: A New Business Model
The idea came to me while having coffee with one of my best friends and entrepreneurial inspirations. She’s a fitness instructor and was explaining how payment structures at boutique studios are based on a per-class basis.
That’s when it hit me — if people can purchase credits to attend a spin class, then why couldn’t they spend credits to read a story?
It was perfect. Just like our crowdfunding model, a credit system would empower readers to make choices about what they wanted to read. It would also cut the time between paying for a story and reading it to zero — instant gratification guaranteed.
And it would be a low-commitment option for readers who are very interested in a story but can’t afford another subscription (hello, Pile of New Yorkers shaming me from my living room).
Access to get behind the paywall would be easy, and the reader would be at the center of all of our decisions.
Think of the final product then as SoulCycle, but for journalism. Instead of buying credits to take a spin class, you buy credits to read stories. One credit is $2 and will give you access to one story of your choosing.
You can, of course, subscribe and get a regular influx of credits at a discount. And even then, you can choose which stories you want to read with those credits. If you don’t see anything that’s interesting, no worries. Your credits rollover.
And finally, all of our stories are in-depth, investigative features. They include interviews with experts, document analysis, and captivating narratives that help us understand the world better.
Our first story: The Disaster Flashpoint
This Sunday, we’ll share with you our finished product. We’ll kick things off with a story called “The Disaster Flashpoint.”
In it, reporter Colleen Hagerty explores how, in the wake of unprecedented disasters, 2020 became a flashpoint in which we can rethink old systems and old norms. From the COVID-19 pandemic to devastating storms and wildfires, change has occurred in how we deal with disasters. This story explores how progress is possible — but it’s not inevitable.
Tomorrow, we’ll be back in your inbox with an exclusive Q+A with Colleen sharing some behind the scenes and a link to the new Fenix website.
(Pssst. Your first story is on us. If you’re a new subscriber, you’ll have a free credit automatically loaded into your account when you sign up. And if you contributed to any of our crowdfunding campaigns, you’ll have a few credits already loaded as well!)
Until then, I want to thank you for signing up for this newsletter. Because back in August when I was talking about walking away from Fenix, I saw the signups coming in. Each one reminded me that people believe in a better future for journalism, and if there are people sharing that dream with me, then the only choice is to keep going.
It would mean the world to me if you shared Fenix with your friends, family, colleagues, anyone you think values and believes in journalism. The more people we can reach, the closer we are to creating that better future.
Thanks for being part of the team! Don’t hesitate to reach out with questions about our launch or new business model or any thoughts or comments. I’d love to hear from you!
Mariana