Digg was, for a season, one of the most popular sites on the Internet. I personally never was much into it, as it was geared towards tech heads – I’m sort of one, but I’m more of a business guy who happens to be interested in tech.
The Wall Street Journal writes that Digg sold for $500,000 to a NY based company, and it was worth $160 million in 2008 – big loss in valuation for sure.
This happened for a few reasons:
- It attempted to relaunch itself but responded slow to criticism. In an interview I had with Scott Hintz, founder of TripIt, he said always listen to your customers.
- Digg’s competitors Facebook and Twitter evolved and Digg never did – at least not fast enough. Not enabling people to easily SHARE the news they read about.
- Digg was not able to migrate from one database to another without some serious problems.
How can you insulate your business from failure:
- Listen to your customers.
- Listen to your competition
- Do tech upgrades or any changes slowly and with lots of testing
- Innovate (or die)
Of course it’s VERY easy to speak about something in HIND SIGHT. Kevin Rose, founder of Digg is a smart guy – can’t wait to see what he does next.