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.


