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AOL: Doing the right things, is it enough?

goldfishI wanted to go on the record with my love of Tim’s decisions to go for big, big cuts.  As a start-up, bootstrappy guy, I am a believer that people need to run profitable businesses and the only areas where things shouldn’t be profitable are where the business is growing so fast that investing ahead of demand is critical or where a company is entering a new business.

I think the objective of a decision to make cuts is to cut the business to profitability.  Excluding AOL Access’ profits, there are clearly lots of areas losing money, so making these cuts is a great decision.

Despite this, I thought it was really eye-opening when Clickety Clack noted that bringing costs in line with revenue does not drive top-line growth.  Without a growth strategy, they are simply IAC.  Great point by one of my favorite blogs.  I actually think they have ideas for how to invest the access profits.  Will it work?  Don’t know.

(P.S. None of this is based on insider knowledge or is intended to disparage my former employer, it is simply an observation.  I no longer have any insider knowledge and frankly, I don’t think I have had any insider knowledge since Jeff took over!)

Love the fish, incidentally.  Everyone has heard my “naming and branding is over-rated”, but why not, I say.

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