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The Honolulu Advertiser
Posted on: Sunday, March 16, 2008

When it comes to profit, Wikipedia says 'no, thanks'

By Alana Semuels
Los Angeles Times

SAN FRANCISCO — The new headquarters of one of the world's most popular Web sites is 3,000 square feet of rented space furnished with desks and chairs bought on the cheap from eBay and Craigslist.

A sheet of printer paper taped to the door says the office belongs to the Wikimedia Foundation, the nonprofit that runs Wikipedia, the online almanac of anything and everything that users want to chronicle, from Thomas Aquinas to Zorba the Greek.

With around 300 million page views a day, the site by some estimates could be worth many hundreds of millions of dollars if it sold advertising space. It doesn't. Wikipedia's business plan is, basically, to hold out a tin cup whenever it runs low on funds, which is very often.

When it comes to money, "we are about as unsophisticated as we could possibly be," executive director Sue Gardner said as she swept up Styrofoam packing nuts in the office, the foundation's home since it relocated in January from St. Petersburg, Fla. "It's time for us to grow up a little bit."

Growing up can be hard to do.

Wikipedia, the "encyclopedia anyone can edit," is stuck in a weird Internet time warp, part grass-roots labor of love, part runaway success. A global democracy, beloved by high school term paper writers and run largely by volunteers, the site is controlled for now by people who seem to view revenue with suspicion and worry that too much money — maybe even just a little money — would defile and possibly ruin the biggest encyclopedia in the history of the written word.

"Imagine if the other top 10 Web sites in the world, like Yahoo or Google, tried to run their budgets by asking for donations from 14-year-olds," said Chad Horohoe, a 19-year-old college student in Richmond, Va., who was until recently a Wikipedia site administrator, one of the 1,500 or so people authorized to delete pages or block users from making changes to articles. "It isn't sustainable."

Looking at it one way, it's cheap to run Wikipedia and the Wikimedia Foundation's other endeavors, which include an online compendium of quotations and a multilingual dictionary and thesaurus. The annual budget is $4.6 million, more than half of it dedicated to 300 computer servers and other equipment. On the other hand, the foundation has a tough time raising a few million dollars. The last fundraising campaign featured a video of co-founder Jimmy Wales literally wringing his hands in desperation.

The 45,000 or so individuals who contribute annually give an average $33 each, so campaigns, which are conducted online, raise only about one-third of what's needed. For the rest, foundation directors have to hit up outside donors, such as Stephen J. Luczo of Seagate Technology and U2's Bono.

Recent money-making proposals include a Wikipedia television game show, a Wikipedia board game and Wikipedia T-shirts. Gardner said a board game might by OK but that a game show would be problematic, because game shows are competitive and Wikipedia is collaborative.

How about selling advertising space like most big-time Web sites do? Don't go there unless you want to start a Wikipedian riot. Some members of the foundation's board of trustees and most of the site's editors and contributing writers zealously oppose advertising.

The debate over Wikipedia's future took a tabloid turn last week when gossip sites started buzzing over allegations by former Wikipedian Danny Wool, who recently launched Veripedia, which claims to authenticate Wikipedia articles. Wool posted on his blog claims that co-founder Wales had, among other things, been imprudent with Wikipedia funds, asking the foundation to pay for visits to massage parlors and other non-Wikipedia-related activities.

As those scandalous tidbits zoomed around the Internet, the Web site Antisocialmedia.net (which says it is in the business of "exposing user-generated discontent") posted a rant about Wales supposedly having fiddled with one Wikipedia article on behalf of a girlfriend before he broke up with her and of doctoring another in exchange for a $5,000 donation. Tech industry gossip site www.valleywag.com got involving by posting what appeared to be instant message exchanges between Wales and the ex-girlfriend, political commentator Rachel Mardsen, who put some of his clothes up for sale on eBay.

Wales and the Wikimedia Foundation said he had never misused foundation funds, and Wales posted a statement online saying that he cared deeply about Wikipedia's integrity and would never abuse it. Gardner said in a statement that Wales "has consistently put the Foundation's interests ahead of his own."