If you’re a long time reader of this blog you’ll know I despise businesses built on hype. Back when John Chow was regarded by many as the best source for how to make a living online, there was a little business called the “Million Dollar Wiki” that he pushed pretty hard that let users buy pages on a Wikipedia-like website for $100.

I can only describe this as probably among the worst businesses of all time, close second to the pet rock. I covered both the rise and the rapid fall of this business, and today I’m looking at a business created by the same crew (Graham Langdon) that brought you the Million Dollar Wiki.

The next business that has had a quick rise (and juding by the Alexa graph below) a quick fall is Entrecard.com. It is currently up for sale on the SitePoint Marketplace.

Here’s a quick excerpt of what I said about Entrecard last year:

This time Graham has come out with a glorified version of a banner exchange. This form of advertising died about the same time as the Macarena. Don’t be fooled by the “web 2.0″ spin, dropping a business card is the same as a banner impression. 

This post is not intended to pluck apart the business as a bad one. It has worked for thousands of bloggers who continue to use it and helps draw traffic to your site albeit untargeted in most cases. What I really wanted to focus on are the principles of starting something great – and getting over the finish line.

What surprised me most about the sale description at SitePoint is Graham’s admission of feeling defeated:

I recently met extensively with Venture Capitalists who were going to make a 700k seed investment and a 2-5m follow on Series A investment in 6 months. The deal fell through in the 11th hour, right before the terms sheet, because they lost faith in my ability to execute the plan after a series of tests in which I did not know I was being tested. The valuation we were discussing was 8 million. We were going to open a headquarters, hire 10 people, and go straight to the top. Then it fell apart, and after getting my hopes up, I just haven’t been able to get back on my feet. I’m a wreck and feeling like a failure to come so close only to drop it due to my idiocy.

 
Straight out of a Dr. Phil episode.

Graham cites the release of a toolbar that replaces the need to visit the site as an explanation for why traffic to the site has dropped dramatically. Is it not a no-brainer to take the StumbleUpon.com approach to the business and direct users back to the site for most activities?

It will be interesting to see how this sale goes. With 80M ad impressions a month this business is worth much more than the $100,000 the bidding is currently at. It would be a steal for larger ad network with a plan. 

Starting a business is much different than running a business. It takes a great idea to start a business, but it takes great passion to keep a business running.

Surrounding yourself with a complimenting business partner is one of the best pieces of advice I can provide. Having someone around to push you who has a different skill set and interest in the business can create the best working dynamics. 

Borrowing a quote from one of the commenter’s on the sale; “Sometimes the greatest temptation to quit comes right before you are about to succeed.”

Don’t give up on your ideas too quickly, and don’t quit something without taking it over the finish line.

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