User-generated content adds value to a site, but it comes with disadvantages as well.

The term user-generated content is popular among media sites and closely tied to the hyperlocal concept. It’s helpful to understand that user-generated content is not new or innovative, nor did it originate with Web sites, but it is an important part of any online operation.

What concretely is UGC? It is messages posted on forums; comments in blogs; press releases for news feeds; events for calendars; photos and videos for galleries. Consider that reader-generated content for newspapers includes letters to the editor (not unlike forums and blogs); press releases for news announcements; events for calendars; photos for press releases and Photo of the Day, etc. The parallels are strong.

Such content can be either moderated or unmoderated. Moderated UGC requires a higher labor commitment, but it protects the image and credibility of the site because of accuracy, reliable sources and tightly controlled editing. Unmoderated UGC requires minimal labor but carries with it a high risk because of inaccuracies, libelous content and other problems. Unmoderated content damages the quality and credibility of the content and eventually the overall site itself.

I ran a TV station Web site that generated more than 1 million unmoderated posts in a matter of weeks over a controversy about an Indian tribe that went whaling with harpoons. The site was buried in every swear word, threat and vicious attack you can imagine. The result was all cost and no benefit. The same moderated forum would have resulted in far fewer posts, but also far fewer attacks and more long-term loyalty among the site visitors.

Manage the content from your site visitors to create value. If you don’t manage it, you will destroy value.