AOL Senior VP of Programming Marty Moe held a conference call for all the bloggers in the Weblogs Inc. network this afternoon, a week after cutbacks and work slowdowns across the network put staff into a panic and shed a negative light on the business of blogging in general. Moe told staff that in fact, Weblogs Inc. is growing fast, seeing record traffic and consistent revenue growth.
Immediate staff reactions though have been anything but positive. While Moe tells a story of aggressive growth, we're hearing that the bloggers who made the business are feeling manipulated and let down.
Aggressive international expansion has already begun and more is expected. Why the cutbacks and slowdowns? Moe said that blogger compensation costs were exceeding allocated budgets and needed a breather before major restructuring. From now all on each Weblogs Inc. blog will have its own budget and run as a semi-independent business.
Posting schedules should be back at or near what they were before once budget bumps are resolved, Moe said.
Moe told bloggers that the network saw record traffic in July, with more than 300million page views this month from 41m unique visitors. There was not any mention of how those numbers were distributed, though Moe emphasized the success of properties other than mega-blog Engadget. It's notable that Engadget founding editor Ryan Block recently announced his departure from the company.
2007 revenue grew by 115% and 2008 is on track to grow by "solid double digit margins," Moe said. Despite widespread unrest among staff, blogger compensation has also continued to grow, he told staff. Budgets for blogger pay grew 35% in 2008 and full time staff has already grown by 20%.
Moe emphasized that the company plans aggressive expansion outside of US markets, some having already begun. Properties have been launched in Germany, Poland, Korea and Spain but haven't been announced as AOL sites yet.
These claims are corroborated by reports we're hearing of AOL headhunters contacting top bloggers about expansion of new and existing properties.
Some bloggers complained in the call that they had not recieved a raise in more than 2 years, despite their properties seeing growing traffic. Moe told them that breaking the budgets out blog by blog would make those kinds of decisions "easier to make."
Moe also explained that many of the blogs that have faced cuts were struggling to reach a point of profitability that was desired. The same markets, from DIY to weddings, would be engaged with in the future - the company just hadn't decided how to yet.
We're hearing from sources inside the company that morale is at an all time low and today's call may have made things even worse. Moe's denial that deep cuts are what is occurring was not well received. Smart bloggers on staff are cutting right through the corporate-speak, we're told, and it isn't a pretty picture. The rank and file is putting up a bigger fight than corporate apparently expected and things continue to be messy.
Update: Some Weblogs Inc. bloggers have responded in comments below that they are not upset at all. Note taken. We have received confirmation from multiple AOL employees that this post is an accurate representation of how many people inside the company feel.
If Marty Moe was describing the situation accurately, then Weblogs Inc/AOL is not at all an example of a blogging down turn. It's instead a story of one of the biggest blogging networks in the world getting lean and mean as it shoots towards the stars.
Maybe it's just a matter of whose framing of the events you believe. A blog network needs happy bloggers though, and AOL seems to have anything but that. What does it say for the business of blogging and new online media in general? That's what we'll be watching for.
Comments
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All I know is that I've spent the past 2 weeks trying to get them to remove a picture of my wife from a post on one of their properties. They don't have the rights to use it and it's killing me!
Sloppy work, sloppy blogging, and sloppy social skills. Certainly doesn't help their blogging cachet in my eyes.
Posted by: Jed | July 31, 2008 4:44 PM
I was on the call---- I think Marty laid it out appropriately.
I like how Brad runs the weblogs sites and I support him and the rest of the team.
If others don't then it is easy, go blog for someone else.
Thanks Marty for taking the time to talk to all of us. I appreciated what you walked us through. Not sure what this blog posts is stating as morale is higher now then in 2007 or 2006.
lets keep growing
Posted by: blogger | July 31, 2008 5:27 PM
I am a blogger on the WIN team.
I am not angry - anything but.
I too thank Marty for taking the time to walk us through everything that is going on with the WIN business. It is clearly heading in the right direction and it makes sense in how Brad is going to be managing blogs going forward.
No one big budget but each blog has its own budget to manage.
If you are on the WIN team and don't like Brad or Marty then don't post tomorrow or the next day or the next -- go to another outfit (Judith keeps calling - never.)
I am staying and I too like it here better then in 2005, 2006 or 2007.
thanks for the opportunity to work on a world class blog with distribution through aol and thus a big and growing audience. my blogger friends are all jealous of me :-)
Emily
Posted by: Emily | July 31, 2008 5:37 PM
Clearly not everyone is upset. Thanks to those above for commenting.
Posted by: Marshall Kirkpatrick
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July 31, 2008 5:41 PM
I too was on the call and appreciated Marty doing what he did. I thought the information he walked us through was very helpful and although I am sure he knew some of it may leak he still was open and transparent in his discussion of the good and the bad.
I have been with WIN for 3 years and am happier now then ever.
Angry - not me or the bloggers who blog on my site.
Posted by: Sarah | July 31, 2008 5:43 PM
this post is being IMed to the whole WIN team in real time. Some of the team is not happy - there is no debating that. But I think that is because some did not want to be held to any budget - no matter how big or small. We liked to post and get paid without anyone telling us we could or we could not. With the new plan, each blog will have a budget and the lead producer will be in charge of how best to spend the money. I think that makes good business sense and empowers lower management and I am confident it will be good for me personally but some of my fellow bloggers prefer nobody telling them what they can and cannot do. they think they run WIN not their producer or Brad or Marty. I too am more satisfied with WIN now then anytime in the past. AOL actually has increased the spend and budgets -- at least I am making 30% more now then in 2006. Go WIN team.
Posted by: Stephanie | July 31, 2008 5:51 PM
I listened to the call.
Marty - thank you. Don't let the few ruin it for the many.
You are a great supporter of the WIN team and have been for the past 18 months. You have been more communicative and transparent then any of our previous leaders.
Thanks for not bullshitting us. Certain blogs were over spending -- we all know it and can see it on a daily basis you called it out and are now letting each producer make the calls. Glad we are not going the Gawker route of paid by PVs. that would suck as then we spend time spamming the system to get paid. AOL could make us go that route but glad they are not
I see more brand advertising in the past 12 weeks then ever before on my blog.
All good by me
Posted by: Will | July 31, 2008 5:57 PM
Not sure everything is fantastic -- that was not my takeaway from the call. Shit, we are now going to have some controls in place by producers to make sure we are doing the right thing. Controls suck regardless if it is from Brad, Marty or Willy. I want control. I made this blog. I made Jason rich. I made Brian rich (dude just more funding today - do you need it man, share it with the folks who made you). although I hate conf calls, I give AOL and Marty props. Man told it straight - no bull. I may have to adjust but I'm in for the long haul...go WIN, we are taking over the world now. Poland here we come.
Posted by: roger | July 31, 2008 6:08 PM
I was in on the call too. I thought Marty did a great job explaining things. It was clear, transparent and straightforward.
I don't know who your sources are, but it's important to remember that WIN has many blogs, each with its own culture, history and expectations.
Posted by: Anonymous | July 31, 2008 6:34 PM
@Jed Which post, which picture?
Posted by: Anon | July 31, 2008 10:32 PM
If I was angry, why would I ask to post for free? Because we love what we do and who we work for and the support WIN and AOL provides us. We all know the deal. We were spending hand over fist with no one telling us too much or too little. Management by producers is best for the business to make sure we continue to grow and thrive. I am loving what I am doing. I appreciate the opportunity. No anger here.
Posted by: Allan | August 1, 2008 4:34 AM
I agree with this post regarding the WIN call by Marty Moe- http://www.sequence-inc.com/fraudfiles/2008/07/31/it-seems-we-had-a-mole-on-the-aol-blogger-conference-call/ - not sure why Marshall distorted the facts but it is clear as day that he did.
Marshall - maybe you can write the next story on WIN and the record traffic growth and international expansion.
Check back in 6 months if you would or simply go back the last 18 months and write about the amazing growth of WIN.
We will still be here - creating the best sites day in and day out.
Posted by: Brian | August 1, 2008 4:57 AM
Jed -- please use the "Notify AOL" link at the bottom of any blog page to send a notice about your wife's picture. My apologies in advance if we have inadvertantly misused it.
You may also send a link to the page containing her photo directly to me: brad-at-weblogsinc.com.
Posted by: Brad Hill | August 1, 2008 10:34 AM