Digg created for $200 bucks

Cory Bergman January 20th, 2007

Kevin Rose, Digg’s founder, used Elance to hire a PHP programmer for $10 an hour to build the first version of Digg.com. Elance connects freelance programmers, designers and writers with available projects. Now, imagine for a moment if a traditional media company wanted to build a Digg. They’d ask for multiple bids from major web development companies, and the exact same site would have cost $50,000 to $250,000 or more to build over a much longer period. With the higher the cost to build and subsequently maintain, the less likely the site would turn an immediate profit. And low-risk, short-term profitability — not entreprenuership — drives traditional media companies.

  • Related: The new urgency for local TV

  • 7 Comments Add your own

    • 1. Steve Safran  |  January 20th, 2007 at 11:28 am

      Bah. You started LR for even less.

    • 2. david  |  January 20th, 2007 at 11:36 am

      You’re right. Here’s a local example: our local Economic Development Agency had an outdated website — picture of the agency president, who had departed many months ago, etc. I offered to help them (free) and teach them how to incorporate blogging (to some degree) so that they could update their website instantly and at no cost. Here is the response that I got one of their staff members, in trying to explain why he didn’t update the site to reflect the interim president and then the new president:

      “…t just didn’t make sense to me to spend the money on a website update only to do it again once our new president was on board…”

      None so blind…

    • 3. thedetroitchannel  |  January 20th, 2007 at 12:09 pm

      that $200 figure must not have included the obligatory “garage”.

      can you truly be a web wonder not starting out in one?

    • 4. Nick Geidner  |  January 20th, 2007 at 12:39 pm

      or a dorm room/slash shitty college apartment.

    • 5. ae  |  January 20th, 2007 at 8:01 pm

      Ugh, this “I’ll pay a pittance for your technology/programming/repair skills” attitude is why I got out of freelancing on the side.

      People will pay mucho dinero an hour for a plumber to show up to fix a leaky faucet, but not for someone’s programming skills?

      You may be able to sucker people into the TV biz for a pittance, but the other hemisphere of the telecommunications world were we IT workers reside is a whole ‘nother ballgame.

    • 6. Cory  |  January 21st, 2007 at 9:42 am

      My point is not that all web development should be outsourced for nothing to random freelancers.

      Kevin Rose had an idea for a community site, a fraction of what it is today, and he experimented by hiring some guy on the cheap to build it for him. Then he let the community help him improve it.

      This is different than improving a core site or launching a well-defined product, of which you want professionally done, and you’ll pay for it.

      Big media tends to put all web development in a single basket which excludes this sort of garage style of entreprenuerialism which has shown to be nearly unbeatable over the years for community sites (Craigslist, FlickR…etc).

    • 7. David Johnson  |  January 22nd, 2007 at 8:58 am

      all too true, but my gut statistical check says the hit rate vs. the fallout rate on garage startups is probably about the same as those who start blogs and then abandon them. we focus on the success stories, but for every internet millionaire, are there a million washouts that never clear the first breakpoint?

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