When Spending Outperforms Growth
That means trouble; even the most seasoned business people have been in that position. Did I mention the idea behind a business plan? The purpose of short and long-term goals?
I probably did, but nobody was listening.
Ok, here we go. On the menu today, "Medium!"
Medium is a publishing platform, online since 2012. The owner of medium is "A Medium Corporation," the CEO and Founder is the all mighty Evan Williams.
For those of you who don't know, Evan Williams is the Co-founder of "Twitter." A savvy businessman. He hasn't been in the industry since yesterday, and yet, Williams Medium is in trouble.
Funny how things can go wrong for the ones that are as big as they are.
Medium has cut 50 jobs and is blaming ad-driven media. Williams is blaming the same media, for his company woes, that he used for his business model.
To clarify, Medium is an online publishing platform that is meant to encourage writers to write more than the 140 characters that are available on Twitter.
Williams raised some serious cash ($132 million) from Venture Capital Firms such as Greylock Partners and Andreessen Horowitz.
That money is investment funds, whenever "Medium" fails, say bye bye to all those millions of investment dollars.
What I can't get over is the fact that Williams is pointing fingers at the very media that he based his business on. It's pretty obvious that medium thus far did not get the appreciation it should have gotten, but that's beside the point.
Mr.Williams is planning on restructuring medium and come up with a better business model. I explained on my website, in blogs past, the importance of a business plan as well as the wise choice of a business model.
The only option Mr.Williams has got available is a subscription-based platform, but who's to pay for what?
The writer for publishing, I say that's financial suicide!
The audience for reading, not likely!
So, let me ask you, what's so bad with the ad-driven business model?
I tell you, nothing! It's an excellent idea employed by many companies, past, present and for sure, future.
The management of medium has got to go to the board room and start working on a budget. Once the management actually visualizes the numbers, they will understand where they went wrong. I'm very confident it all has to do with a poorly executed budget.
I'm reading on "Medium" on a regular basis, and I do hope that the boys and girls figure it out, eventually. It would be a shame to put a site like Medium to rest.
Cheers,
-Danyel
Recent Comments
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Wow, had no idea about Medium. Thanks for this info which is very interesting! Please update us when you find out what he's going to do. :)
I love Medium, hopefully they keep it running as is.