Backfence was a citizen journalism site founded in 2004, allowing users to submit their own articles on local topics. It aimed to create "hyperlocal" content for 13 communities. Despite its innovative approach, Backfence struggled to attract sufficient traffic and ultimately shut down due to business issues.
What Was Backfence?
Backfence's main product was a citizen journalism platform enabling users to submit articles on local topics without editorial interference. Its unique value proposition lay in its "hyperlocal" focus, empowering community members to report on neighborhood issues. Notably, Backfence operated 13 sites and acquired Bayosphere, another citizen journalism pioneer.
What Happened to Backfence?
The story of Backfence is a compelling example of the challenges faced by early citizen journalism platforms:
Innovative Concept and Launch: Backfence was a pioneer in citizen journalism, allowing users to submit articles on local topics without editorial interference. It aimed to create "hyperlocal" content, empowering community members to report on neighborhood issues.
Expansion and Acquisitions: The platform operated in 13 communities across Washington, D.C., San Francisco, and Chicago. In a bid to strengthen its position, Backfence acquired Bayosphere, another citizen journalism pioneer, in the previous year.
Struggles with Traffic: Despite its innovative approach, Backfence never attracted significant traffic. It failed to meet the minimum visitor threshold required for measurement by comScore Media Metrix.
Unspecified Business Issues: The specific reasons for Backfence's closure were not disclosed. However, it was clear that the platform faced significant business challenges that it could not overcome.
Closure and Lessons Learned: Backfence announced its shutdown, citing business issues. Co-founder Mark Potts acknowledged the company's lack of success but remained optimistic about the future of citizen journalism. Jay Rosen, a journalism professor, suggested that Backfence's failure could provide valuable lessons for future projects in the field.
When Did Backfence Shut Down?
Backfence announced its shutdown on July 13, 2007, citing unspecified "business issues." Despite its innovative approach to hyperlocal news, the site struggled to attract sufficient traffic and ultimately could not sustain its operations.
Why Did Backfence Shut Down?
Insufficient Traffic: Backfence struggled to attract enough visitors to its 13 hyperlocal sites. The platform failed to meet the minimum visitor threshold required for measurement by comScore Media Metrix, which ranges from 50,000 to 100,000 visitors. This lack of traffic hindered its ability to generate revenue and sustain operations.
Business Issues: Co-founder Mark Potts cited unspecified "business issues" as a primary reason for the shutdown. Despite the innovative concept, these underlying business challenges were significant enough to force the closure of the platform, indicating possible financial or operational mismanagement.
Market Viability: The market for hyperlocal citizen journalism was not mature enough to support Backfence's business model. Jay Rosen, a journalism professor, suggested that while Backfence had good ideas, the market was not ready, and its failure could provide valuable lessons for future projects in the field.
Lessons Learned from Backfence's Failure
Understand Market Readiness: Ensure the market is mature enough to support your business model before launching.
Attract Sufficient Traffic: Develop strategies to attract and retain a significant user base to sustain operations.
Address Business Challenges: Identify and resolve potential financial and operational issues early on.
Innovate with Caution: While innovation is crucial, balance it with practical business considerations.
Learn from Failures: Use setbacks as learning opportunities to refine and improve future ventures.
We Shut Down Startups
Backfence's failure underscores the complexities and challenges that startups face, from insufficient traffic to unresolved business issues. If you're navigating similar hurdles, Sunset can help you manage the legal, tax, and operational burdens of winding down your startup.
Don't let the stress of shutting down a business overwhelm you. Book a demo with Sunset today to smoothly transition to your next venture without penalties or liabilities.
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