Is Free Republic a Fraud? Is it time for Free Republic to go away?

Free Republic | 11/28/01 | Jim Robinson

[Jim Robinson]

Free Republic has had one helluva run over the last five years or so. We helped impeach one president and helped get another into office. We've been active in demonstrations and protests in nearly every city across the nation. We've participated in conventions, petition drives, activism campaigns and projects for dozens of conservative causes.

We've grown from a tiny web site with a few hundred posters and readers from the time of inception in 1996, to one with tens of thousands of participants today. Along the way we've made lots of great friends and, unfortunately, also made lots of bitter enemies.

We've grown from a small web site that I could manage myself on a part-time basis to a huge monster that has totally consumed all of my time and resources plus nearly all of John's time, plus the time and resources of many dedicated FReepers who volunteer or contribute large amounts of their own time and money.

The site is now consuming all of a 10 mbps dedicated line with two servers and we're still growing, and it consumes large amounts of money to keep all this running. In the early years, it only took a few thousand dollars per month to keep Free Republic on the air, but it is now costing over $20,000 per month to cover all expenses.

The major costs include approximately $8,000 per month for bandwidth, 3,000 for systems management and programming services, 7,000 for management, operating and administrative services, plus two or three thousand per month for miscellaneous office expenses, telephone, communications, repairs & maintenance, travel & lodging, postage, rentals, insurance, legal fees, accounting fees, etc., etc.

We anticipate a reduction in bandwidth costs next year as we renegotiate our contract (the market price for bandwidth has fallen recently), however, that will be more than offset by an expected increase in costs of our legal expenses. As most of you know, our pro bono attorney has left us and we've hired a new attorney to continue with our case, plus we have the suit against eschoir to pay for. My projections are that our regular monthly expenses for next year will be running in the neighborhood of $22,000 per month, or approximately $264,000 total for the year. This means we will need to raise approximately $66,000 per quarter.

Talking about making enemies, we've got several ex-FReepers and other detractors who are claiming on their anti-freeper web sites that I am ripping off the donors and that Free Republic is a fraud. Now, Free Republic is what it is, and it is definitely not a fraud. It is a conservative news discussion forum that encourages participation in politics and activism projects. It is not being billed as anything else. We are not selling or promising anything. And I am being up front about our operating costs. The costs of running Free Republic are what I've stated above and they are necessary to keep FR on the air. I do not have the financial wherewithal to operate this site without your help. If the majority of the FReepers feel that these costs are out of line or too much to bear or that Free Republic is no longer wanted or needed, then we will either cut it back or shut it down or do something altogether different.

I've also been criticized about not making our financials public. Well, the reason I do not want to do this is that I have been sued, both personally and as Free Republic, LLC. The people suing us want to bankrupt us and shut us down. They subpoenaed our financial records, but we refused to turn them over. The judge agreed that the plaintiffs have no right to the information, thus I have no intention of making any more of it public than I absolutely have to, until this lawsuit is resolved. You all know the amounts of money we raise if you follow the fundraising threads. It is all above board and out in the open. The totals posted by BadJoe are usually pretty close to the actual cash received and the amounts expended are pretty close to the amounts projected. No one is getting rich here and no one is being ripped off. The funds raised are being used for the purposes stated, and that is keeping this website on the air and that's it. Nothing fraudulent about it. Those who want to help fund us freely do so with nothing expected in return. Those who do not want to contribute do not have to.

There was a thread running this morning where people were making all kinds of accusations about Free Republic "hiding the truth" or whatever. These accusations are being made by Chuck Allan and others and fall along the same line with the accusations being made by some of the earlier banees or AFers including Mojo, Inspector Harry Callahan, Arator, keep U.S. Sovereign, TKEman and others. Some of these people are existing FReepers and some are banned. I am going to reinstate Mojo, Inspector Harry Callahan and Arator's accounts so they can join Chuck Allan, TKEman, K.U.S.S. and whomever else wants to get involved, and I invite them to come onto this thread and make their accusations public. As long as they do not go onto other threads and make a nuisance of themselves, I will let them have their say.

Like I said above, if it is time for Free Republic to go away so be it. Those who want to keep it going speak up. Those who want it to go away, tell us why. But if those who want it to be gone lose out in the debate, then I'd say they should just go away themselves, or, in the very least, shut up and quit whining about it.

Thanks,

Jim

[Dr. Zoo]

The crack scientists of the Institute of Phenomonology and myself have read about 93.72% of this thread.

I am not able to typo good enough to put the 10 or so names of the dissenters in the "To" box, so "All" will have to do.

We have developed some processes which we think may be helpful to you , and offer them at NO COST!

If after administering a brain pressure test we find some abnormalities, we can preform a Brain Marrow Transplant, or some Psychic Lyposuction, which ever seems will produce the desired results.

Z2, I don't know if I am "libel" to include you or not, but I do have a fondness for "zzzzz"'s.

Dr. Zoo

Doctor of Phenomonology

[A Navy Vet]

"We will allow you to report whatever evidence it is that you may have backing up your various charges and then we will let the readers decide."

Well done.

[Howlin]

I knew somebody would get it!

[unsycophant]

ta

You acknowledged that this group of people are 'enemies' of Free Republic. They say they are. Do you believe that we should turn our backs on our enemies? Does this belief extend to other groups like the Taliban, or not? Or is it that you want to pick and choose what is "important" and what is not? Things that affect our real lives are important enough to compel passion, but websites can't?

Even if the behavior of a group of enemies could have real life consequences for any person here? Even if that group of enemies thinks that Jim Robinson should be "ROTTING ON A COLD JAIL CELL FLOOR"?

I think that comments like THOSE are enough; enough to make it worth MY WHILE to speak passionately against my enemies who would destroy me or any of us (including you) if they could. If you don't like it, tough.

[Jim Robinson]

I posted on your comment (or maybe it was Aligyrl's) on this topic somewhere above. You can search it out if you are interested. I did review a smattering of the info on the CA AG site last night. There were a few defintions and some other information on their website that I could read, but most of the links went to Acrobat Reader documents and everyone that I clicked on did not open. From the information that I did see, it does not look like we fit their definitions of a charitable trust or a professional fundraiser or whatever. I doubt that we are subject to the regulation, but I will consult with an attorney to make sure.

And I will repeat: The purpose of this thread is for you AFers to formally post your accusations against me and FR. I may or may not attempt to defend myself here, now or later, but I want you to post it. Be specific. If you people are saying that I am a criminal and that I belong in prison, then you are making some pretty serious charges. It is now time for you to shit or get off the pot. You have been called. Anti-up or fold.

[Arator]

And I've never seen anything by you indicating a desire for ill-will upon FR or JR, although I think you've been uneccessarily insulting on occasion.

Thank you, and no doubt I have been unnecessarily insulting on occasion. But, considering all the crap sent my away, I think I've kept it together pretty well. ;^)

I can vouch for you as well. During the hey-dey of Reunion, when it really looked like it could be the platform for a very positive exchange between frustrated AFer's, exiled FReepers, and FReeper PTB's, you were one of the best contributors to that dialog, both in defense of FR as well as in reaching out and grappling with the beefs of us critics on the outside. Few FReeper reps represented FR as well as you did. In fact, I'd say the only one who did as well was John.

OK, I could resist giving ANV his kudos. Now, back into the mist go I...again. ;^)

[WIMom]

Why don't you post what you have on your site? I can only assume the information you have is inaccurate if you are unwilling to post it here for 1000's of people to read. Of course, include all those complimentary statements about people who post on FR.

[Arator]

A quick correction: OK, I couldn't resist giving ANV his kudos. Now, back into the mist go I...again. ;^)

[bjs1779]

Nothing in between? Do you think Jim and John should live like monks? Maybe in a cave?

You are not off target most of the time, but this is an instance where you are. I wouldn't care if they lived in a manson with a Rolls Royce parked in their 6 car garage.

I can only tell you that I was not talking about Jim or John. Keep up the good fight.

[Liberal Classic]

BTW, did you ignore my question about California laws governing charities, or did you simply overlook it?

Your question regarding charities is irrelevent. Jim runs his website as a limited liability company, which I gather in California is a hybrid of limited liability corporation and partnership. It's like a partnership in that it can be owned and operated by one person, and it's like a corporation in that Jim is personally shielded by outstanding debts it may owe. It is not a charity, or a non-profit corporation, so your question is not applicable.

[alcuin]

Kinda like Swamp Thing ...

With the soul (and verbiage) of Professor Irwin Corey.

Is Steve Allen on this thread? (Everyone else is . .)

[Z2]

Has Free Republic ever employed a display board at CPAC and elsewhere purporting to represent its "Nonprofit Corporations?"

[Howlin]

I jumped the gun and misinterpreted what you posted, I apologize. Obviously, it went over my head.......LOL.....I was wondering why there was no middle!

[John Robinson]

From tpaine's Freepmail:

BTW, would a suggested donation of a penny a post cover FR expenses? -- Answer on the thread, if you please.

A quick analysis of the dailies shows:

Month	MoCost	MoPosts	AvgDlyUsers	CostPerPost	CostPerUserPerMo
January 2001	22000	240340	2258	0.09	9.74
February 2001	22000	376329	2384	0.06	9.23
March 2001	22000	424025	2287	0.05	9.62
April 2001	22000	405577	2237	0.05	9.83
May 2001	22000	398020	2218	0.06	9.92
June 2001	22000	423346	2333	0.05	9.43
July 2001	22000	459326	2418	0.05	9.10
August 2001	22000	484542	2427	0.05	9.06
September 2001	22000	570433	2928	0.04	7.51
October 2001	22000	625872	3351	0.04	6.57
November 2001	22000	568688	3110	0.04	7.07

Where

CostPerPost = MoCost / MoPosts (monthly cost / monthly posts);
CostPerUserPerMo = MoCost / AvgDlyUsers (monthly cost / average distinct daily posters for the month).

In summary, a penny per post would not cut it. FR is somewhere within the four pennies mark; a nickle per post would be a safe bet. This assumes 100% participation in fundraising, which just doesn't happen in real life.

[Howlin]

Can somebody help me find an empty room, a chair, a really bright light, and a hose?????

[A Navy Vet]

"Few FReeper reps represented FR as well as you did."

Correction: I've never been a "rep" of FR...just another guy working with some great people. But thanks for the kudos. And truth be known, I had hoped your site would build bridges. The downfall IMO: Eschoir & NIC (aka Mojo)

[Howlin]

Whew! I'm just relieved they weren't all mine!

[IronJack]

Our site is a free site. We make no money, charge no money, spend no money. The administrator works for free. Consequently, we require no fundraisers. ;-)

Of course, with a hit rate in the single digits daily, our server is a Commodore 64, and we use less bandwidth than bin Laden's fanzine. Our costs include $5.80 for stamps, and that dollar we split up to buy soda. And our revenues amount to $4.36 last quarter alone, mostly from picking aluminum cans out of dumpsters and selling our bodies for sexual purposes.

There. Now the AFs have made complete financial disclosure. Unless they have to buy another stamp.

[Howlin]

That's 4.

[Howlin]

5.