And yet here they are, having lost that percentage of revenue because they had this mindset. I don't think she needed a six figure salary necessarily, but BF made exactly no attempt to do _anything_. Unlike an unpaid intern, McMahon could have kept doing this indefinitely, not just for three summer months.
But the larger point is that economically productive employees in their early career are almost always exploited, so it wouldn't have been hard for Buzzfeed to throw some relatively token amount towards her and have her be over the moon with it. Most college students would love to get $20k for doing something they were procrastinating and doing for free, especially if you package it with an ego-boosting title.
In some cases, it could be less output, or lower quality. Money (or other explicit rewards) changes the psychology of doing work vs. volunteering it. It adds pressure, makes the work feel like a job instead of a hobby, and can lead the person doing the work to choke on deadlines, slack off, look for shortcuts, or even give up entirely.
Of course, people providing valuable services to a for-profit business should be fairly compensated, and companies shouldn’t be trying to exploit volunteers.
But monetary “incentives” are in general quite a terrible system for eliciting good work.
It's hard to make money for creative endeavors, for several reasons, and there are generally two ways to make money from them: put everything into it and hope for the best, or have a "real job" and do the creative thing on the side. Regardless, and personally-speaking, I prefer doing creative things for free because that's the best way to keep my interest-level high.
I'm glad I don't work for you.
edit: More to the point, I think this idea that people don't work for money is one pushed by management at the expense of the workers, and when I hear employers putting that out there, I assume those employers are... bad to work for, because they think that by being manipulative, they can get you to work for less.
Usually, those employers have less pleasant cultures and pay less than employers who simply pay more than their competition.
I don’t employ anyone, so you don’t need to worry about whether I would hire you to keep doing your hobby and kill your love for it.
Myself, and a few other developers, refuse to monetise our third-party apps for the video game Destiny because doing it for free means we have no obligation to any customers. If I was being paid to do this, I would enjoy it a lot less.
And they're probably not wrong. Bright-eyed teenage students are a self-renewing resource. Industries like BuzzFeeds thrive on them. As long as they keep them coming in as content consumers, they'll never be lacking of people willing to spend time creating content for them. BF can dole out status in a semi-respected field. That alone has value to the students.
This isn't that new. Plenty of companies seem to be A-Okay not paying interns to do real jobs. Apprenticeships in the UK pay just £3.70/h. And every junior position requires 3 years industry experience. It's no surprise that people are forced into working for pennies.
The only real problem for BuzzFeed here is people being able to kick up enough fuss that makes them look bad. Given how the rest of the world treats young workers, I think they'll be fine.
Let's say that quiz interactions from McMahon come out to 5% of ad impressions for all of BF. What would a site as big as BF pay to ensure that those 5% of impressions don't disappear overnight? At most companies, I'd imagine quite a bit.
Even if we look at the low number for revenue generated from McMahon's quizzes ($200k), it's easy to imagine a company paying that much or more to continue driving those numbers. If someone is providing you a service for free that accounts for a very meaningful percentage of revenue, how much revenue could they be generating for you if you actually incentivized them to do that work? 1.25x? 1.5x? 2x? More?
It would seem to me that BF never had the realization that "huh, maybe we should protect this asset instead of protecting our short-term profits and praying she keeps doing this for free forever."