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

[Liberal Classic]

I've been posting here less than a year. I heard about a year ago, believe it or not through some left-wing site (Indymedia?) that was slamming it, and I had to check it out. The truth is, you have a real phenomenon on your hands. Some things just gain a life of their own.

The tough part is when things get a life of their own, there are often consequences. Just because it takes off doesn't mean it drives itself. This is true for opening a business, true for political clubs, and this is true for other things. I know most of the criticism has involved the finances, nor do I mean to imply that FR is a commercial enterprise. I mean that in today's world, the best place to hit someone you don't like is often the pocketbook. Running any website requires financial outlays. The more popular the website, the more expensive to maintain because popularity means hits, and more hits means more billable bandwidth. Whoever your detractors are, they have nothing but sour grapes. They are jealous of your success, and forget when they are in your house they are under your rules.

Are you afraid that FR will be a victim of its own success? I don't think so. I think there are too many people who care about it. However, I do think a bigger problem is those people who want to slug you in the pocketbook. It angers me that some people would be so petty as to try to bring legal action against you for a donation they freely made. They knew that money was going to you and that they didn't expect to see any tangible return, it was a donation. It pains me that there are people in the world that would stoop to that level, least of all otherwise like-minded people who can't get their way. But, as my grandfather used to say, "you get all kinds."

A lot of websites are turning to subscriptions to help defray the costs. There is nothing wrong with this. If this is what it takes to keep it afloat, if donations alone will not pay the bills, then by all means do it. I am sure the left-wing types may find having to pay a fee to get things they want disconcerting, but I don't think anyone around here thinks you can get something for nothing. Now, I know you wanted this to just be a gathering place, and any kind of subscription fee will certianly limit the number of people that post here. The real question is would any kind of fee destroy what it is now? It would certianly make the site smaller, since fewer people will pay to post. Is that all that bad? Maybe it would reduce the number of posts, but increase the quality? There wouldn't be any disruption posts, unless whoever it was felt so strongly about trolling FR that they would pay for the privilege. Maybe everybody might go away?

I don't know the answer to that, I really don't. Many websites are turning to fee services. That's just a fact. However, there are many creative people here that may come up with ideas. If donations are voluntary, how about some way to shame frequent posters who don't contribute. Make donations public affairs. Keep track of who donates by their screen names, and put a page up. Then people can say "you post alot and you sure are vocal, do you put your money where your mouth is? Look on the donation sheet." Is this wrong? Would it be illegal? I don't think there would be anything wrong with it, since participation is voluntary in the first place. Maybe the readership can shame people into contributing, or make them post less which might marginally reduce bandwith. Either way, it's a net gain.

You could try banner ads, ala Drudge. Slashdot has banner ads. Lots and lots of free sites have ads. Even if they don't completely defray the cost, perhaps they could help, even a little. The thing with ads is they pay by the hit. If you get hits, which you do, banners might actually mean a non-trivial amount of money.

Freepathons. How often will people stand these? I know you have considered incorporating FR. Have you considered 501(c)(4) tax status. 501(c)(3) is right out because Freepers support candidates for public office. This site seems to meet a goals of educational purpose, and it isn't a commercial enterprise in the usual sense. However, doing so requires paperwork, proper accounting, and auditing which is not without its costs. It means money coming is really isn't yours, but the corporation.

I wish I had the answers. I think one of the most important (an obvious ones) is get good legal representation. Even if your pro-bono attorney was a good guy maybe you need someone that doesn't feel you are being a burden. I would hate to think that legal fees sake the good ship FR. I'll glady send in a donation to help keep FR afloat, if only for a few minutes. It's been my online home for half a year now. I owe it something.

[rainingred]

Thanks.

BTW. I had already guessed you weren't a member of the mod squad, because you are far too nice of a guy. :-)

[1 FELLOW FREEPER]

G O D
L O V E S
F R

[kayak]

Jim ~~~ Please don't take my sunshine away!

As others have said, it is through FR that I have become more politically aware and active; that I now have facts with which to dispute others; that I become aware of situations and events that need attention.

There are still many fights to be fought; battles to be won ..... especially against the media. Just as FR has played a pivotal part in events of the last few years, it must continue to do so as long as there are so many in this country who want to destroy the Constitution and our freedom.

God bless you!

[YaYa123]

You said, "Sometimes these threads have an unfortunate (to my mind) "grovel" flavor to them, with effusive compliments directed your way and a whole bunch of backslapping going on. That's not really my style."

Double Ditto

FreeRepublic ain't no stinking charity! I hate it when it's made to look like one. Who are we anyway?
We're capitalists, conservatives... we aren't children, and for sure we aren't gimme gimme liberals who expect something for nothing. We shouldn't need to be blungeoned with PBS/Jerry Lewis type telethon tactics.

Jim has created a one-of-a-kind product we value highly. To "use" it, we should be willing to pay for the privilege. I think we are. Seems to me, an eye-catching, flashing "Keep FreeRepublic Up and Running" icon at the top of each page, one that takes you to a brief explanation of the ongoing financial situation, and linking to the donations page, would keep enough money coming in on a regular basis, so that Jim wouldn't have to resort to these periodic desperate pleas for support.

[Brian Allen]

He who takes offense when no offense is intended is a fool, for they have made an enemy needlessly in their own mind.

He who takes offense when offense is intended is an even greater fool, for he has given their enemy satisfaction.

Should read:

He who takes offense when no offense is intended is a fool, for he has made an enemy needlessly in his own mind.

He who takes offense when offense is intended is an even greater fool, for he has given his enemy satisfaction.

[Sorry -- couldn't help myself -- I hate PC lingo!]

[alcuin]

Four years on the board and you consider tinfoil to be something new?

The foil has ALWAYS glittered (BEVARE!) but in relative moderation, and can be used for preserving dead horsies and creating new ones.

Where do you go . . to rock and roll?

FR!

[america-rules]

Yes charge a monthly membership fee for the right to post and view. Have it free for 30 - 60 days then you pay to stay. I'd start with 19.95 per month on a recurring basis.

[classygreeneyedblonde]

NOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO YOU ARENT GOING ANYWHERE WE WILL HELP YOU OUT EVEN IF EVERYONE GAVE A DOLLAR A MONTH THAT'S 50.000 WE WILL HELP YOU

[budwiesest]

This rainy weather's got me down too (just north of Fresno a few hours). No trouble sending more to support this great site as I've only got to spend less on andhowsherbush. (hehe!)

[The Shrew]

I've asked BadJoe to double my monthly contribution. This site means more to me than any organization I have ever participated in save my Church and the United States Marine Corps.

I don't feel the same way about my OWN business. Like it or not you have an ally.

Regards,

TS

[Gracey]

Nice note, Rocketman. Come around more often. This is like a neighborhood, or an office setting.... You stay gone too long and the scenery will change...People move in and out...people grow up and OUT. Hang around more often. Are you a REAL rocketman?

[mjaneangels@aolcom]

If I wanted this site to end in my life, I could simply not click on it. Instead it is usually the first and most of the time the only site that I click on.

Jane

[PartyofOne]

I've lurked since the election and only recently signed on, but I can't imagine life without FR! It's the one place where I can read ALL the current articles--much better than subscribing to any one newspaper. I've just signed up for a monthly $ 20 donation to help pull my share of the load. I almost never post, but the access to the articles is worth way more than I'm paying. I'm sorry that so many malcontents are making this seem like such a thankless endeavor, but I hope you are seeing that the "silent majority" really appreciates this site and all your hard work.

[MississippiMan]

It isn't the non-profit status that would be lost by charging fees or accepting ad revenue; it's the fair use claim under which full text articles from other sites are posted here. We cannot use those articles as a lure to a site which is charging fees or bringing in ad revenue. I wasn't aware of that restriction and it does throw a wrench into my thought processes re: subscriptions. Look, I think people will step up to the plate with the donations. That's not the issue. The larger problem remains, that continuing down the current path is IMHO (and I'm not a lawyer, just a pretty savvy guy who's been around) an invitation for trouble. And on that point, I think I'm gonna cease my thinking out loud here in public, lest I give ideas to the enemies that they don't already have. MM

[Lucius Cornelius Sulla]

it's still what it was when Clinton was in office.

A.J., I'm really sorry to see you taking this path. The fact is that being in a war for survival does make a difference. Things which once would have been crucial, and needed debating must be put aside until our lives have been made secure. It is true that this limits freedom of speech, which is just one of the reasons why a war must be fought with the greatest energy and to a swift conclusion, so as to keep the necessary restrictions on liberty to to a minimum.

If you really think that there is no difference between the Clinton/Gore/Reno administration and the Bush/Cheney/Ashcroft administration you have allowed disagreement over policy to drive you into the arms of the bin Laden supporters. In a war there is a front line, and the opposition front line. I am on the side of President Bush and the American people. Up to now, I had thought that you were there also.

[Arator]

Is Free Republic a Fraud?

On the financial front, it could be. But, whether it is or not, no one outside a closed circle of FReeper elites knows for sure.

There are, however, some facts which have recently come to light which should raise concerns to all donating FReepers. Two leading former FReeper powerhouses, Cal and Clarity, apparently pursued their own personal pique against arch-AFer Eschior and, unbeknownst to Jim Rob or anyone else on the forum, ran up a $100,000 bill in the process. This is a strong indicator, if nothing else, that there is a lack of accountability at the top of FR. Abuse is possible, even abuse of the owner and host of this forum, not to mention everyone who has ever donated to FR in good faith. Greater financial transparency would, it seems, protect not only you, the FReeper doner, but Jim Rob himself from possibly unscrupulous hangers on who may gravitate toward him and seek to use the big FR money pot for their own nefarious purposes in your (and Jim Rob's) name.

FR may or may not be a financial fraud, but it IS without a doubt a political fraud, and that is what is at the heart of all my disputes with Jim Rob.

Jim Rob claims to value freedom. But the way he manages his forum screams otherwise.

Too many of my FReeper friends to count, too many current and former FReepers, not to mention myself, have been abused, bullied, censored, and finally banished merely for expressing CONSERVATIVE political opinions. The abuse continues. Now, "Jim Rob" has a gang of stealth bullies I like to call the "Anonymoderators" to do "his" dirty work.

It may even be that, unbeknownst to Jim Rob, these "Anonymoderators" have abused the trust Jim Rob has given them. The proximate cause of my last banishment was my attempt to bring to Jim Rob's attention possible rogue behavior by one "Anonymoderator". Whether I actually ever corresponded with the actual Jim Rob or not I cannot say, but, if I didn't, whoever was acting in Jim Rob's name that day made sure that I never would, for he banished me for the attempt.

But, whatever the case may be, these "Anonymoderators", by virtue of their anonymity, are absolutely unaccountable to you. And, for all we know, they may -- like Cal and Clarity -- be virtually unaccountable to Jim Rob himself.

One thing's for sure: The carnage they have inflicted to this forum since their stealth appointment over one year ago ought to be unacceptable to all self-respecting freedom-loving FReepers. I would urge you all to stand up this fundraising cycle and demand an end to draconian censorship, moderator abuse, and Soviet-style banishments. Demand that FR live out its claimed political aspirations first and foremost in its own method of operation. Make your donations conditioned upon same. If you do, you can save not just this forum's body, but it's soul as well.

Like many other once-enthusiastic FReepers, I have no interest in posting (or donating) to FR as long as its present draconian regime of censorship, banishment, and general FReeper abuse continues.

To see why, consider the last thread of mine summarily pulled by Jim Rob's rogue gang of "Anonymoderator" thugs:

The Price of Empire is Now Higher Than Any Sane Nation Would Willingly Pay

On this thread, Torie, Diotima, and I were enjoying a wonderful philosophical exchange regarding US foreign policy. Now, as old time FReepers know, I am a Paleo-con. Torie is a Neo-con. We disagree on nearly everything. Nevertheless, or rather, for exactly this reason, we enjoy debating each other. She respects me and I respect her, even though we disagree. THIS is what FReeping OUGHT TO BE ABOUT.

But, it's not. Instead, it's all about some small-minded "Anonymoderator" who, drunk with his/her own power to stifle debate and squelch views he/she can't understand, summarily flushes the entire thread right out from under us.

Now, why on earth would I (or anyone) want to subject themselves to such abuse, much less pay for it?

This is why FR will die unless it changes. Only YOU can force such positive change by demanding it. I would urge you all to screw up your courage and do this, before it's too late for anyone to save FR from itself.

Since, barring significant changes in FR's moderation policies, this will be my last post to FR, I leave you all with links to some of my censored samizdat advocating FReeper freedom:

First, here is a link to my "epic" poem, There Once Was A FReeper Named Arator.

Finally, here is a link to my clarion call for FReeper freedom, My Appeal To Jim Rob: Let Us FReep FREE!

Enjoy. I urge each and every one of you to make your own stand for FReeper freedom before it's too late.

FReegards,

Arator

[pattycake]

Like hell I will give up Free Republic. I have been a member a long time and some posts you can trust and others you learn how to disregard. Jim R. is going to be around a long time. This is the best forum for all of us to vent, bring news, other ideas, etc. Give up or shut, FR belongs to the Free World. Thank you Jim for this forum. Money in the mail.