Have you heard of Blue mountain cards? It all started back when ecards became big in the 1990s. It seemed like everyone thought somehow giving away ecards was going to be a business model. Business models based on advertising revenue were quite frequent back then. This is a difference with todays focus on real revenue. However, there are some painful similarities in web 2.0 to this idea of building big applications that will make money only from advertising.
Ecards are a difficult business space for me to understand. This is the space that is eating the lunch from the old paper greeting card space thats been around forever and a day. In some ways its a normal case study of technology advancement over a paper based product. But I dont think its that simple. An ecard is not the same thing as a paper card. Paper cards come from a store and require you to mail them. An ecard comes from a company like Blue Mountain Cards and is completely electronic. In this way, its a real product transition. So in essence, the technology is really impacted the very product. This is not unique, just look at tvs, video games or any other electronic based market.
How exactly did blue mountain cards dig out of this hole? Im not entirely sure, but I think that Blue Mountain Cards had a serious lead going into the game. They planned well.. It seems like the executives at Blue Mountain Cards new they were onto something big, but that it wouldnt last. So Blue Mountain Cards management decided to sell the company while everything was still red-hot. An amazingly well-timed move. Ill bet many people wish they had that type of timing.
So now its 2008 and what is a business model like Blue Mountain Cards still doing around? You could argue that the management team at Blue Mountain Cards were the luckiest people on earth to have gotten such a valuation at such a time when that was seen as appropriate. I often wonder if management teams like that are really lucky or create luck due to their experience. This is not a small business. Regardless of their underlying financials, this business made a name for itself in a multi billion dollar business space. I am betting that this is why they are still around today. They built a brand and have a name worth something. The part that is not text book is how Blue Mountain Cards got out at the top of the market. We should all be so lucky in our careers.
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