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SEOMoss – A Rolling Stone Gathers No Moss. How Moz Tanked

SEOMoss – A Rolling Stone Gathers No Moss. How Moz Tanked

Many people would think that Moz are a thriving business, with a bright future ahead. This kind of opinion couldn’t be any further from the truth…

A shiny apple on the outside, inside Moz, there are more than a few problems and they seemingly can’t stop the rot.

Interestingly enough the rot is to the tune of a $5,700,000 loss in 2013 –

Source: http://moz.com/blog/mozs-2013-year-in-review

A staggering $17,258,865.00 on personnel, compared to 2011 in which their spend on personnel was $4,763,895.00 (which is weird, as their spend has nearly quadrupled but their employee size has barely doubled) this represents a huge change. Especially when their just isn’t an ROI. They have also “invested” quite a bit into recruitment as well as private contractors.

In total, the Moz spend on Employees/People is 75% of the entire spend. Easy enough for anyone outside the company to know where to cutback. That kind of employee hiring as compared to having 0 ROI is just, plain reckless.

5% of their total spend ($1,345,982) went out on “office expenses” –

Now, you might think that “office expenses” covers rent of the building.. Which for a over 200 staffed company, is going to be quite expensive. Yes, it is expensive, and no.. That doesn’t include rent – expenses

So Moz, are you seriously spending $1.7 Million on some desks, chairs, doughnuts and coffee?! Or shall we look for something that should cost quite a bit? Well, we found what that cost is:

ALCOHOL.

Yup, according to this review and thanks to Jared –

It seems that Moz buys the employees alcohol, a LOT – “some weeks the company provided alcohol nearly EVERY DAY” – I’ve heard of having a good time, but jeez…

That’s just scratching the surface with the issues flagged in this employer review, though.. And we’ve managed to get an insider within Moz to tell us even more (that’s coming up later)

Apparently, Moz is supposed to be a hub of culture and a “home” for all the digital consultants to rejoice in “content marketing” – Which here at BH.C, we refute.

It turns out, that actually.. They have no idea how to run a technology company, their rampant bullying and sexual harassment, as well as a “cult-like atmosphere” around the Founder – Who has a cardboard cut out of himself in the lobby of the company, now that’s ok to welcome people with a friendly hello or something.. but having a giant, smiling Rand in your lobby in no-context what so ever, is.well..erm.a bit.. odd.

Now most of what I’ve just said could be classed as massive speculation. So, we decided to outreach (We thought Moz would love that) to someone who works at Moz, off the record, via an email that isn’t on the Moz servers. We’ll only be exactly quoting what was said in that email –

The Moz Insider Leaks –

I will be purely putting into this post exact and direct quotes from the email.

I haven’t been working at Moz for that long, as compared to a lot of the other staff. I’ve seen a real divide between the marketing team (included is the editorial/blogging guys, mainly) and little, to no praise for the guys behind all the software that the company actually makes revenue from. It’s gotten to the point, that a lot of the development team is in an on-going downward spiral, of serious moral issues. Who wouldn’t be if they never got any praise, even with amazing work being put out?

Ok, this seems to be an issue that a lot of people face – Appreciativeness. It’s nothing too big, and happens a lot over companies. Though it is unfair, especially as the companies revenue is based off their tools.

The real thing for me, and the reason why I’m probably going to be leaving soon.. Is that the higher-up staff have 0 idea on how to run a technology company – They spend fortunes on things that are unnecessary, because they simply don’t know much about technology. Probably why they undervalue the work of the development staff so much. I don’t think anyone wants to be at the helm of a sinking ship.

This is something that can seriously affect any company – CEOs and Higher up the chain staff not having a clue about the company they run and something that has killed off many a good business.

Partying is just too much – I get that having fun and blowing off steam is good for you, but when it affects our day to day lives and stops any work from being done it is quite saddening. I love my job and I love my work, I’ve never really been a big fan of drinking and the fact that I’ve out and out seen drug use in a work environment is absurd beyond comprehension.

Ok, so where the fuck is management at this point?! It seems that no one is around to monitor their staff and whoever has access to the company card is going mental.

I love the concept of TAGFEE and I think (from the little time I’ve spent with him) that Rand seems like a pretty genuine guy. The problem is, they just don’t seem to have any understanding for criticism and seem to think the word of Rand is the word of God.. Everything, especially from a Marketer transitioning into a technology company should be taken with a pinch of salt and advice is normally taken well. Google’s 25% free-time initiative has allowed criticism and advice to let the business flourish.

I’m sorry, but from all the things I’ve read from Rand and Moz.. The only “business” that comes close to them is the Church of Scientology – And Moz love sending out those lawyer letters, as well.

Conclusion –

Moz isn’t the happy go lucky company their Twitter feed seems to provoke. The company is suffering from massive losses, it’s being hindered back by reckless higher-ups and has rampant bullying, harassment and the formations of a cult, going on.

Buck ya ideas up Moz, before you become a distant memory in the continuing game of Dying Startups.

  • Mike Power

    Rand ceased to be CEO in December 2013.

    • http://GodOfSEO.Co/ Charles Floate

      Indeed he did – The report was from 2013 and the Review of the employee was from 2013 as well.
      I’m slightly confused as to what you were getting at?

      • Mike Power

        I wasn’t “getting” at anything. I was simply adding a bit of information which was omitted from your piece. Not sure why you should be confused but if you’d rather commenters not add constructive facts in the comments section I won’t bother wasting my time in the future.

        • http://GodOfSEO.Co/ Charles Floate

          Ah, ok. I thought you were referencing the post – Doesn’t matter. Appreciate your input.

  • http://matthewhammond.com Matt Hammond

    Very insightful and somewhat startling – I hope they right their ship as I enjoy using their products and find them rather useful. (notice proper spelling/use of the word THEIR – several misuses in this article; but great content nonetheless).

  • Jack

    It’s hardly rot when the first things they talk about in the report is the investments they’ve made. Whilst I appreciate you run a huge 6 figure agency, you’ve omitted the fact that people invest in their company and thats how you grow.

    So whilst they’ve spent more money then they made in 2013, they have the capital and the funding to keep going. It’s not rot, it’s investment and it’s how business run. They have cash in the bank, their pro subs are growing year on year and they’re.

    And they wouldn’t be able to raise the 18 million in that series B funding round they did, if they didn’t have a product and service that actually made money. 80+% GPM isn’t something to sniff at.

    Also, employees are fucking expensive. Good ones at that. 17 million / 200 = 85000. Not really that much when you consider it’s dollars as well.

    But you run the worls best agency, and you’re the best thing since sliced bread so you know all about running a multi-million dollar business right?

  • AC Slater

    While I normally enjoy your posts, this obsession with Moz and Rand is getting a little tiresome.

    Like stated below, this is from a (probably) disgruntled employee back in 2013, who is more than likely out to deface the company. I wouldn’t take everything he says as actual fact.

    Plus Moz are a new company in the grand scheme of things, so a $5.7m loss isn’t the end of the world, they are growing at a fast rate, have made acquisitions, ones you haven’t even heard about.

    This is a nothing report about wild accusations about a company you have no inside personal knowledge. Saying they spend large amount of money on Alcohol with no proof what-so-ever shows slight desperation and immaturity. That review states: ‘some weeks nearly everyday’ – we have no idea what the circumstances were, they may stock alcohol for special occasions, you can’t go around stating that staff are constantly on drink & drugs.

    I think it’s time to move on from slating Moz and Rand. They aren’t going anywhere any time soon.

  • Joanna

    Charles, I agree with AC. One thing you really need to understand is that the SEO industry doesn’t forget people that attack others and you have a reputation for strictly hating them. That is the only thing I have known about you for the past year. I have no idea if you have any skills.. All I know is you are just a huge Moz hater.

    Not to offend you, but the other thing this post screams is you must be really young or in experienced. The numbers you are throwing around are not shocking or upsetting. Moz shared them months ago and people didn’t freak out because there is nothing wrong with them. This is how larger businesses run. Also, at SMX Advanced I was told Moz had substantially increased in regards to staff, so I don’t think your statements are correct.

    To be perfectly frank, I know your young and I know this because people point stuff out that you say and laugh. There have been many that came before you and acted like this. People don’t forget and you are killing any chance of building a good rep in this industry and growing by acting like a middle schooler with a grudge.

  • http://nickpierno.com/ Nick Pierno
  • Paul

    Why do you care? This is a pointless post and I really don’t see why you’ve written it?

  • Frank Dave

    Charles …Charles ….You will look at back these times in your life and wish you were not so childish…Look at jacob king or agentblackhat or ccarter…they are controversial too but they respect people. To think that you have parents who allow you do all sort of rubbish on the web. You should be layed down and flogged!!! Spoilt brat!!

  • YourMum

    lol baiters gonna bait – are you really that bored?

  • Don

    Who cares….give me more SEO info bro!

  • PaulG

    Hey Charles,

    As others have said your SEO posts are great stuff and that’s what you should stick to mate.

    You missed the mark with this post and showed an incredible lack of business, finance and investment knowledge. Basically you just came off as a Rand/Moz hating dick.

    Get back to the stuff you are good at and leave the business posts to Inc. magazine.

  • Andrew

    I have my issues with Moz, mostly due to their outdated info and suggestions, but I would be sad if they tanked completely. They sometimes put up good stuff.

  • Joyce Amri

    It’s now clear one cannot criticize the establishment. Anyway, opinions vary and nobody has the entire world on his side. But what is not true of Charles’ review on Moz? And what does it matter when people laugh at others? People laugh behind the back of Charles, your back, my back and even their own back. That’s life.

    Charles has guts and what he states are facts. He brings to light things many are ignorant of. Most of us are clueless of what the market offers; thanks to him, now we scrutinize things carefully. Charles SEO expertise is just as good as anybody’s and his young age should not be criteria to put him down. He’s saved many people including me from being ripped off. People who attack Charles are like people who like the food their cook prepares and force others to like the food even if it’s unpalatable.

    Last and not least, lacking insight is not a crime.