AU MA Social Media

A class blog about social media.

SOLD! For $500,000!

Posted by alprosp on July 23, 2012

In most cases $500,000 is a lot of money. (Think about it – you could do a lot with that kind of money! You could buy a house, buy a lifetime supply of red jelly beans, buy a super fast car, or feed the city’s poor.) But for social news site, Digg, $500,000 was its selling price. Yes, Digg sold to Betaworks last week for $500,000. (To put this into perspective, Instagram sold for $1 BILLION.)

According to Business Insider’s article (link below due to WordPress issues with hyperlinking), critics insist that Digg’s final sale price was a direct result of the platform’s steady decline. “Atrocious redesigns, sponsored links, and a failure to cultivate its community all lead to Digg’s decline.” Its attempts to make too many changes at once, drove Digg fans away and led to very dissatisfied users.  Digg’s inability to rise up from its slippery slope, not only led to its decline in popularity, but also to its depreciated value.

The lesson to learn?

  1. Listen to your users/audience/customers early on and test changes before making them.
  2. Know what keeps your users coming back and capitalize on those unique attributes.
  3. Don’t implement a new strategy, without a backup and/or reaction plan in the event that the change is not well received.

Betaworks plans on relaunching Digg August 1.

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