"We were problem- solving and troubleshooting when the effort should have been solely focused on the marketing," said executive director Stan Hooley.
Posted on 11/29/2006 8:43:24 AM PST by thackney
A less-than-successful gamble on Internet marketing has left the Iditarod Trail Sled Dog Race hundreds of thousands of dollars in the red.
Costs largely associated with the startup of what the race had hoped would be a money-generating Web site -- Iditarod Insider -- forced the organization to borrow about half a million dollars this summer to cover costs associated with gearing up for the March 2007 Iditarod.
It could take years for the race to pay off that loan, but race administrators are projecting the event will be back in the black again by next summer.
"The approved budget," according to the minutes of a June board meeting, "includes an ambitious increase in revenues from sponsors, Insider subscriptions and other revenue sources. The budget calls for revenues of $3,829,283 and expenses of $3,719,085. Assuming the projects are reached, there will be adequate funds to make the loan payment to Wells Fargo of Alaska."
Iditarod budgeted $675,000 to get the Insider program mushing across the Internet but reportedly spent somewhat less than that. One board member said Iditarod officials started cutting costs quickly when they realized revenues weren't going to come anywhere close to meeting projections.
Iditarod executive director Stan Hooley warned the board a couple weeks before this year's race that "there need to be between 40,000 and 45,000 Iditarod Insider subscribers if we are to meet projections."
At the time there were about 400. The number has continued to grow steadily ever since, according to Iditarod officials, but has still not met hoped-for goals.
The $19.95-per-year Insider Web site offers daily video clips and updates during the race, plus live streaming coverage of the race start and finish. There are also virtual trail fly-bys and the option to view video archives of the race for a whole year.
(Excerpt) Read more at adn.com ...
"We were problem- solving and troubleshooting when the effort should have been solely focused on the marketing," said executive director Stan Hooley.
Almost 4 million dollars to run a dogsled race-GO FIGURE
I have often wondered why anyone would spend a million on a webpage. Or expect registration revenues to amount to anything.
$20 bucks a year? For Iditarod? Sounds as if someone has never heard of microeconomics to find the correct market price for your product.
Leave it to MBA's and other marketing types to make expensive what should be cheap.
A tee-shirt and coffee-cup with some kind of dogsled design printed on it might be worth the $20 annual membership. The real business is tourism, the kind that actually comes to Anchorage for the festivities and start of the race and then forgets about it. Some also go to Nome for the finish, but real jet-setters are off to Aspen or the Riviera or Dubai by then.
Alaska — Population: 626,932
Breakeven subscriptions required: 40,000 and 45,000
7% of the state would be expected to subscribe at $20?
What is the non-Alaska market?
Somebody grossly miscalculated.
The dot.com failure I was with relied on subscription revenue. We offered a money-back guarantee for a trial membership. Everybody asked for their money back as their tial periods ended. I was thrown overboard with severance about the time the hemorrhaging really got bad. They didn't get rid of the crazy executives who thought up this fraudulent business plan until 3 months later.
Even Britannica had to drop the subscriptions. Nobody has more info to sell than they do, and even that wasn't bringing in the revenue. I can't imagine NYT drawing a profit on their internet subscriptions.
My wife and are were planning to burn some frequent flyer miles and go to Anchorage for the Iditarod but it's blacked out so no trip for us.
Iditarod.com is a great site during the race to follow the mushers as they compete. We decided to forego the Insider because our dial up connection is too slow.
Alaska's public schools continue to fail to teach their students how to spell "idiotic."
???
I mean, that's nuts!
Fairbanks-Whitehorse have been staging a far more adventurous and more Alaskan dog race for many years. Anchorage has not been Alaska for many years, and Fairbanks isn't particularly Alaska either anymore, but it is more Alaskan than Anchorage, so check out the Yukon Quest.
Iditarod ping.
Yes, it's been a long time since I've used this ping list.
If you want on, say so.
I thought the Iron Dog where the riders duct tape their faces to prevent frostbite inside a full face helment was a good example of an "Alaskan" style race.
The husband of the new Governor won the Iron Dog. Twice. It is kind of surprising anybody wins that piece of insanity.
I just wish that Dowd, Krugman, Rich and the rest were paid based on the amount generated by the internet sales.
heh heh heh
Quest is great race; I've run downriver 50 miles with my dogteam when its minus 55 and forever mittens in mouth, so you can chip ice off eyelids or they freeze shut. Couldn't imagine doing it for over a week.
Quest runs thru our village, and locals volunteer for a couple weeks, but actually the crowds only 2-3 days. I have broken trail 100 miles up to canadian border on 40 mile, knee on seat of skandic wide open to stay on top of 5 foot deep snow. Helped break trail down to Biedermans cabin on Kandik; the circle/central people come up to there; pretty good bunch of old goldminers. Stay overnight at mormon's homestead near Nation river. Last time we all pulled in, entire family run out to greet us; first people they had seen in 4 months. Nice to meet real River Alaskans; still living how it once was.
Ya know Race people always promise fuel, ect but I never have seen any and don't really expect it. Glad to break trail and put a few people up if it helps the race; and its awful nice to look over quality dogs.
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