If there is one thing I’ve learned about Start-Ups is that every day is an adventure; sometimes not necessarily a good one but an adventure nonetheless. Even in the healthiest economies, with the perfect product, solid vision and a fantastic team, tough situations come up that require tough calls. Sadly, in spite of an amazing community and one of the best teams anyone could ask for, we’ve got those tough calls to make in order to ensure b5media survives and thrives.
The Backstory
Over the fall we restructured blogger pay as well as over the winter restructured our back office team Through it all we’ve worked hard to keep costs down, people focused and b5 growing.
Thankfully, these efforts, as well as our recent reorganization of our blogs into larger content sites (Bizzia for business, Splendicity for beauty & style, EveryJoe for men and Blisstree for Lifestyles) have resulted in growth on all fronts and by all measurements. The team has been fantastic and the results speak for themselves. Our bloggers are great, the content is great, advertisers love it and, most importantly, our readers have responded with more page views, friend referrals, and some great complimentary emails, tweets, and blog posts of their own.
When we’d done the cost-cutting, we’d originally projected (in Q3 of 2008) the economy recovering late 2009, early 2010. We have a variety of trigger points, forecasts, and other tools we’ve been using to track all of this. Armed with all this data, we no longer see our original plan as being a safe bet. Given that there is nothing more important than b5’s long term growth, the management team decided to act now while we had plenty of cash, controllable costs, and (most importantly) time.
We decided to do what is rarely done; start at the top and protect the bloggers and the team as much as possible. It made no sense for the management team to sit around and cut bloggers, blogger pay, or the working team until every other penny was squeezed out of the system to extend the cash, keep the operational team rolling, and avoid harming the bloggers.
What’s Happening
Effective Tuesday, March 31st (no, this is not an early April Fools joke), there will be a significant restructuring of the b5media team, starting at the top.
First, I’ve cut my own salary to somewhat above minimum wage (by about 60%). Salim Teja, our COO, and Jon Prosser, our VP Finance are both coming off the payroll. They are top talent and they worked the budgets and supported the right things for the company knowing that it meant bad results for them. They have been amazing to work with and I’ve learned many things about true professionalism from these guys. I know that both will find fantastic positions elsewhere because both are absolute rock stars.
In addition, this also involves laying off three of the non-management team. Each of these people has our full support in their journey going forward.
What This Means
Clearly this is a significant change. But the biggest part of this is that the investors, the team, and I continue to believe in the value of the network, the quality of our writers, and the value of the assets we have created over nearly 4 years of working on b5media.
By taking this path, we have extended b5’s runway to the point where we can ride out this economic storm with no capital requirements, headcount adjustments, etc. Providing our bloggers and our team with this protection and confidence was one of the central goals behind this change.
To reiterate, b5media continues to remain a healthy, growing and valuable business. We continue to retain the confidence and excitement of our investors, advertisers, team and partners. And while this is a significant change, we believe that by starting the change at the top we will be able to continue to serve our bloggers, advertisers, partners and investors for many years to come.
What This Means for Me
I’m still involved in b5media. I’m not leaving, nor have I quit, I’ve reduced my salary. My first love, passion, and responsibility are to ensure the b5 family remains on the right track, continues to grow, while continuing to serve our bloggers, partners and advertisers.
Given the pay cut, though, I am considering writing a follow-up to Blog Marketing (which has sold incredibly well, and been translated into an amazing array of languages and resources over the last 4 years), since it’s become more than a little dated. I’m also available for Weddings, Bar Mitzvahs, and the occasional car washing opportunity.
If anyone has any comments, questions, concerns, etc, feel free to leave a comment, drop me an email (jeremy@b5media.com) or give me a call (details on contact page).
March 31st, 2009 at 10:42 am
Jeremy as one of your bloggers I wanted to say thank you for protecting us but even more importantly for providing a brilliant community for many people. I know writing Widows Quest B5 Media has changed people lives, or even saved peoples lives in the case of 2 of my readers….I know times are difficult for us all thanks for leading from the front and most of all providing a framework that I find to be one of the strongest on the web
March 31st, 2009 at 12:23 pm
FYI, Rick, one of our investors blogged his thoughts on this here: http://ricksegal.typepad.com/pmv/2009/03/in-tough-times-you-always-fin d-stars.html
March 31st, 2009 at 2:44 pm
Kudos. That you’re willing to suffer financially in order to help get the company through the recession really demonstrates that you believe in the company.
My last month full-time with b5 (others: I’m a part time consultant as of March 1st) was without a doubt the most exhilarating month since I joined. Necessity is the mother of invention, and we almost completely restructured the blog network (and not just in technical ways) in a matter of weeks, to great result. If the old model were working and we weren’t in a recession, that probably wouldn’t have happened. I see recessions as a good thing for competent companies, as it makes them focus that much harder and really get creative.
March 31st, 2009 at 2:56 pm
Yeah, the work you and the rest of the team pulled off on the restructuring was, to put it lightly: phenomenal.
It’s been an honour to work with such a great team, and some of the best talent imaginable is leaving or volunteering to go today. It’s been an honour to work with each and every one of them.
March 31st, 2009 at 3:03 pm
Thank you, Jeremy. It’s been a tough time for everyone. This decision shows that you and the management team truly care for b5’s bloggers. It’s one of the strengths of the company, and makes me really proud to be part of it.
March 31st, 2009 at 6:05 pm
Maricar, thanks for your support. The biggest reason we did this was to protect bloggers like you. So thank *you* for sticking with us!
March 31st, 2009 at 4:48 pm
Thanks for sharing this. This is the sort of leadership that inspires people around you. Best of luck navigating the current environment. I have no doubt you’ll make it through.
March 31st, 2009 at 5:04 pm
As someone who actually had to remove his wife from payroll of my little web empire and then turn around and tell her she still had to do the work, I can appreciate the struggles of keeping a company the size of b5 afloat. Best of luck to everyone.
March 31st, 2009 at 6:06 pm
Yow… That must have been an … interesting discussion Brad! Thanks for the well wishes. Thankfully, assuming California doesn’t fall into the ocean, we’re now perfectly positioned to last through the downturn and to keep growing
March 31st, 2009 at 5:05 pm
Jeremy,
This is nothing short of remarkable. While I’m not familiar with the details of your story leading up to this point. The kind of dedication and commitment that you speak of, demonstrate, and exude sends one clear message to me. Follow this story. This is not the final chapter of this company.
Well done. Keep on keepin’ on!
Much positive vibes in your direction,
Mike Davis
March 31st, 2009 at 6:07 pm
Mike, thanks for the comment
I’d like to point out that it was all 3 execs who took a bullet on this. We all believe in the company, the team and the bloggers enough to do everything we could to ensure they were protected and not distracted.
March 31st, 2009 at 5:21 pm
I have been following your company because your a “local” plus I like your concept. You’re smart to dig in during the recession and I think it is important to see your staff as a valuable resource. Let’s hope your careful planning now, will set the foundation for the better times that will follow.
March 31st, 2009 at 5:23 pm
Hi Jeremy,
Thank you for your transparency with the team. I have enjoyed my time here at b5media. Through the changes on our writing canvas and the people that have come and gone, you have remained a constant in your approach to communicate the “state of the union.” Your willingness to ensure the success of your blogging team is refreshing and I count it a privilege to be on this team! Please keep on communicating with us!
Darlene
March 31st, 2009 at 6:08 pm
Darlene, yeah b5 was founded on trying to be as transparent as we could. Not every day, because that’d be a rollercoaster ride for folk. And we haven’t always succeeded (let’s face it, I’ve made more than our fair share of mistakes in that regard), but always *trying* to be as open as we could be.
Thanks for sticking with us. I know it’s been a hard year. Hopefully the year ahead, while hard, is invigorating as well
March 31st, 2009 at 5:41 pm
Thank you. That is true leadership. I’d love to see some other business leaders take a page from your book. A truly inspiring move that only makes me admire your brand and you more.
March 31st, 2009 at 7:43 pm
Thanks, Jeremy. Four years later, and I’m still as proud as ever to be part of the b5 team.
March 31st, 2009 at 9:02 pm
Noble stuff Jeremy. Tough decisions without a doubt, but your candor about things says a lot. The B5 team is lucky to have someone like yourself at the helm, clearly for you, the bloggers/writers content creators come first. As they should!
I can’t wait to see where the lean mean B5 goes as spending begins to come back over time.
cheers!
March 31st, 2009 at 9:12 pm
Once again, this is an example of why I wanted to write for b5. I enjoyed my short stay with the company and support your success.
It is so great to see change happening that is positive for bloggers.
Thanks again for being so candid.
Warmly,
Amy Jeanroy
March 31st, 2009 at 9:21 pm
Jeremy — from a fellow entrepreneur, just a quick note to say it’s so smart and brave and awesome what you’re doing. Been in that boat (we did this at Work It, Mom!), and it says a lot about your as a founder and CEO. Hang in there.
April 1st, 2009 at 7:33 am
Jeremy,
I applaud you guys on making these tough calls and on being so open about it.
You don’t strike me as somoene who’d go and do an MBA. Having done one, all I can say is don’t bother. What you have learned through the ups and downs of B5 can never be taught anywhere. You just need to live it.
Good luck!
Mark
April 1st, 2009 at 11:53 am
Jer: you are a super star! Yes, these are though decisions, though times but when you believe and have the courage to make the decisions that ensure the firm’s survival – and all that with transparency – well… what can I say: keep on trucking and may the force be with you (and your team).
April 2nd, 2009 at 1:03 am
What to worry – you are following in the right direction – now you’ll be able to fit in with all of the other investments Rick Segal “Mr. Penny Stock” has made:)
April 2nd, 2009 at 1:09 am
Oh darn – I didn’t expect you’d actually post my comment – where’s the editorial review, the rejection? No one’s ever published any of my comments – are you folks nuts?
April 2nd, 2009 at 11:23 am
[...] network b5Media Inc. has cut its team by a third, saying goodbye to two executives in the process. On his blog Chief Executive Jeremy Wright said COO Salim Teja and VP of Finance Jon Prosser will leave the company. Three other positions in sales [...]
April 2nd, 2009 at 12:21 pm
[...] take a look and tell me there are more companies like this one because it simply puts a tear in my eye reading about [...]
April 4th, 2009 at 5:39 am
[...] Our own Jeremy Wright cut his own salary, among other things, to ensure the health and continued success of b5media. [...]
April 16th, 2009 at 10:42 am
[...] Jeremy and his management team developed a survival plan. Jeremy took a salary cut to just above minimum wage. Other senior executives left the company. All [...]
April 21st, 2009 at 5:36 am
Jeremy, this is definitely a bold move, but I have no doubt that it will pay off when the economy becomes steady again. Good luck to you guys.