This story in the Times points to a counter-intuitive example - a thriving print paper that has eschewed the web completely. But the funny thing is, they are following the kind of hyper-local model that people like Jeff Jarvis have been preaching for a long while now:

TriCityNews employs 3.5 people (the half-time employee handles circulation), has a print run of 10,000, and has a top line that can be written in six figures. Still, by setting rates low almost 10 years ago and never raising them or offering a Web option, Mr. Jacobson has built a reliable cadre of advertisers who call for ads, sign up for full pages, and pay in advance. There are no people working for sales commissions.

Editorially, the newspaper is boosterish -- "we want people to think of Asbury Park as the center of the universe," he said

I think that model works online as well, but note the main points - keep costs down, build up a trust relationship with your sponsors (advertisers), limit the waste (sales staff). In other words, deliver a great product, be true to your niche, and don't go overboard.

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