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Im thinking of developing a little news portal for one of my car domains that gets decent traffic.
If i understand correctly there are some sites that pretty much have content built off random news feeds and with all the feed technology nowadays this should be very easy to take advantage of.
I know new sites do well but im unsure of what kind of potential i can get traffic and revenue terms since ive never built any similiar sites before.
Syndicating other people's feeds is not recommended. Its a common blackhat SEO method, and you just piss of the feed's original owners. Additionally, you miss out on original content and you don't get a regular reader base.
Of course, to some extent this is what Google News does. There is a right way to do it but not with the typical off the shelf solutions.
A better option is to hire a writer to make posts about to best stories he or she sees. This is what I would call the Weblogs Inc model. Check out a blog like luxist.com, they are just re-writing existing content and linking to it within the context of the luxury market. In this case only a real human can seperate the interesting from not so interesting.
if your using other peoples feeds to add related information to your site its a great idea. I have a poster site where I show related news from 5 or 6 film sites. Consists of the title of the news item and links TO the site where folks can read the news item. It adds relevant content for my readers and also sends people to the sites I use the feed from.