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Fast Talk

April 4, 2008

Q: Why didn’t AOL leverage its community to become what Facebook is? | posted by Fast Company staff

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April 4, 2008 at 11:24am by Nathaniel Binion

The problem with success is the it quickly can become blind to others and their potential to leverage a culture in whom you take for granted. We must always stay aware of the infinite possibilities of our accomplishments. We have never reached our potential, or else, we have reached the end of innovation.

April 4, 2008 at 11:45am by Thomas Weber

Shortsightedness and a deaf ear toward what the young and influence leaders want. Their IM was huge, but that is where they stopped innovating.

April 4, 2008 at 12:34pm by

Two quick reasons I see.

1. Office bureaucracy and office politics. Unlike Facebook who initially started with startup mentality with employees with very little to lose you have AOL who people have built there lives around and and not just a few people thousands of people. It is funny what happens to most companies once they "make it" usually they don't want to risk anymore.
2. It is not what it does. They way that AOL has marketed its previous product is not that same.

April 4, 2008 at 2:03pm by Bradley Joyce

The same reason Microsoft didn't invent the iPod

April 4, 2008 at 3:24pm by Gavin Ellzey

Simple --- AOL is old-school media and has a corporate culture that is antithetical to innovation and the way folks communicate in the 21st century.

April 4, 2008 at 5:18pm by robert quashie

Their roots were sunk in old media models that push content rather than organize markets and channels, allowing users to provide the content.

April 4, 2008 at 9:22pm by Jeffrey Olchovy

AOL was covering too large of a landscape (their target social demographic was all of America; children, teens, adults). Also, they were hard selling. Facebook was a free social media community. America Online was charging a ridiculous monthly fee for internet service provision, and they continued to do so long after the advent of hi-speed internet. When you are more-so concerned about the value of a dollar than about providing a service with unmitigated marketing passion, you will always, undoubtedly, lose out to your competitors.

April 5, 2008 at 2:12pm by

Because AOL was a scam! They didnt know anything about technology, but alot about scamming investors and clients.

April 5, 2008 at 3:01pm by RJ Wiles

Because they are caught up in red tape aka the approval process and their leadership is worrying aboout who ccame up with the idea. They are not challenging themselves positively.

April 5, 2008 at 6:20pm by Michael McGregor

I don't think anyone thought of it.

April 5, 2008 at 9:02pm by waqar malik

AOL IS TIME CONSUMING FOR NOTHING

April 5, 2008 at 9:07pm by waqar malik

BECAUSE OF JOB IN SECURITY. THEY THINK IF THEY GO ON VACATION, THE EMPLOYEER WILL HEIR SOME ONE AND THEY TO FIND AN OTHER JOB. WHICH COULD BE PAINFUL.

April 6, 2008 at 8:49am by Paul Griffith

here's the short answer: EARLY is good and LATE is bad.

April 6, 2008 at 2:11pm by Frank Feather

Short-sightedness, arrogance, and probably because it was taken over by Time Warner, a moribund analog company which has no clue about the digital age.

April 6, 2008 at 10:39pm by Patrick Devlin

As a former AOL employee, I was there for the rapid decline that occurred after the Time-Warner merger and the dot.com collapse.

AOL stopped being the internet juggernaut who would take on the world and became a risk-adverse organization with a corporate parent in Time-Warner who liked the boatloads of cash the subscription business continued to deliver each quarter.

The layoffs started and along with those cuts, good people started to leave AOL in droves. It was a very difficult time, with very little appetite for innovation.

I believe the best thing that could happen to AOL now is for it to be spun-off in some way so it could be independent or purchased by a company with a high tolerance for risk.

There were many times in the 90s that AOL was going to die. Microsoft was going to get us, the internet would bury us, Yahoo was the next big thing, etc. But, the company had a survival instinct at that time and we worked very hard to make everything look so easy.

I think it's time to see if there is any of that instinct and ability to innovate left. There is a still a large group of people that depend upon AOL properties each day. There has to be a business in there somewhere that can be successful in the long-term.

April 7, 2008 at 2:20am by Ekachai Tharngtrakul-Jantawong

AOL miscalculated the speed at which they handled speed.

April 7, 2008 at 9:04am by Troy Dixon

Because AOL was never innovative past its conception. They exist on the notion that most consumers are uninteligent and therefore would never try to use another service. Even when you try to cancel an account, they will still try and convince you to stay by telling you about some useless feature that does not apply in any way to the issue at hand. This isn't the year 1999 anymore. People want to access the Internet... For the Internet. Not for everything else that AOL will throw at you. They missed the boat, and they will suffer far more than they are now. Only time can tell.

April 7, 2008 at 9:14am by Howard Greenstein

Lack of ability to innovate.

April 7, 2008 at 10:45am by Ben Murphy

The success of sites like Facebook, MySpace, and Google came from their culture. The idea was sound, sure, but the culture of each of those founders/businesses is what allowed them to succeed.
It sounds like (just finished FastCompany's article on the subject over the weekend) AOL's culture has never been what is needed to foster ideas like this.
So, "AOL leverging its community to become what Facebook is" was probably never possible simply because of the way things are run at AOL... The philosophy of open thinking and running-with-ideas just isn't there. The way a Time Warner has been successful doesn't translate to how AOL will have to think and operate to be successful in the future.
Ben Murphy / TheFatherLife.com

April 7, 2008 at 2:01pm by Whelan Mahoney

They were mired in their paid dial-up internet access model which has almost become a footnote in the medium's history. They didn't focus on what could have been a new lease on life in the community space. For shame.

April 7, 2008 at 2:11pm by jaymes westfall

I feel as though the goals of AOL were skewed. AOL you paid monthly. Facebook is free. Consumers what would you like something that is $29.99 a month or something that is FREE

April 7, 2008 at 9:55pm by Ron West

You have to remember what the AOL customer base was like. In 1996 we started an ISP which completed directly with AOL and did really well. At the time AOL = "easy" and local ISP = "hard". The people that used AOL were not "movers" by any means. Most of them didn't know that there was an Internet. They actually thought that AOL _was_ the Internet.

Although, they had dedicated users that would have followed AOL wherever they went, the demographic was filled with non risk takers. Facebook (which started out as a site for college - risk takers) succeeded based on their demographic. The features catered to the "hyper" connected individual that needed instant gratification and ultimate communication with their friends. AOL would not have succeeded because they didn't have the right user base.

April 8, 2008 at 10:15am by Richard Mancine

I read this article. I was admazed how cutting edge AOL was. In my view, AOL got too big. They had the mindset of big execs, not small scappy operations. In this light they simply were blinded to see the inventory of tools that they had. Instead they please the suites and not thier customers.

April 10, 2008 at 6:37pm by Ryan Duffy

because they're idiots.

April 11, 2008 at 11:29am by Keith Schilling

Corporate barriers. Theres no innovation when the company gets to that size..at least with new social media marketing.

April 14, 2008 at 3:57pm by Spasen Tsenov

No web 2.0, moreover people like more innovative stuff.

April 17, 2008 at 4:48am by Purnima Aiyar

There is nothing unique abt AOL...nothing new to offer..Moreover, the Ad campaign that was run ( In India atleast ) was not attribute/benefit focussed that would compell anyone to log on..It was too generic.

April 19, 2008 at 1:47am by Ray Gardner

I'm reminded of Taleb's book "Fooled By Randomness" in which he dissects and ridicules the obviousness of hindsight predictions.

Facebook wasn't started by a billionaire, but by people just like myself and other posters. If AOL is a bunch of idiots for not starting their own Facebook, then we're al just as idiotic.

Or think of it this way; we're all in the process of "lacking innovation" as we plug away at whatever it is we do while the next Facebook (or AOL for that matter) is incubating in someone's mind, even as I write this. . .

Point being, and this gets back to Taleb's book, is that these things are the infamous black swan type of events. There's too much randomness in life to simply say "they should have 'gotten' it."

September 18, 2008 at 12:55pm by Jon Payne

They still though of themselves as an ISP rather than a community.