3 Reasons Digg Failed. 4 Reasons This Won’t Happen To Your Business.

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.

The following two tabs change content below.
Ramon Ray, Editor & Technology Evangelist, Smallbiztechnology.com . Editor and Founder, Smart Hustle Magazine Full bio at http://www.ramonray.com . Check him out on Google Plus, Twitter or Facebook

One thought on “3 Reasons Digg Failed. 4 Reasons This Won’t Happen To Your Business.

  1. Jasmine Sandler

    How timely, Ramon. I literally just came from Gordon Platts’ panel on curation this a.m. where the Digg discussion popped up between techies from about.com, news.me, aol.com and magnify.net. As a summary, these experts cited the future of content is narrowing versus what’s happened in the last 5 years with social(as you know this is my life running a social media/online pr agency) and that people now want to control and authenticate their own content and go back to the days of NYTimes as the voice – the only voice- lots of changes going on with social with FB/Instagram, etc. With one of my own current Agent-cy clients in the mobile app/productivity space, as we roll out phase 1 in September, we are seeing all of this muddling of content, but the key being to give the power to the user to choose their content and authenticate that content by credible sources. Will post a full summary and quotes from this a.m.’s event on my blog soon. jasminesandler.com.

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *