http://www.davykestens.be

Personal picture Mailing list Sign up for occasional updates directly by mail My opinion? I write guest posts for your blog

Reasons why my first project failed

01.04.10 - 14 comments

‏I still remember my first online business adventure as if it was yesterday! Good times!
After devouring a good amount of self-development and freelancing books, I was fired up with enthusiasm about my brilliant idea and was almost certain I would join the internet millionaires club in no time.

Back then, slicing services were booming. So, I decided to jump in and grab the opportunity.
Slicing service providers are small companies that specialize in turning graphic designs (using Photoshop for example) into HTML/CSS templates at highly competitive rates.

The Million-Dollar-Idea!

Since the number of slicing companies was growing so rapidly, the competition was fierce. As a result, it was very hard for potential customers to see the trees through the forest. This is where yours truly came into play!
‏My million-dollar-idea provided a clever solution to this problem. I designed a simple, one-page website which enabled companies providing these services to enter all the details and rates of the slicing services they provide.

Customers looking for slicing-agencies could visit my website ‘Slicejobs’, and automatically have the website deliver a list of companies who provide this service, immediately calculating their specific rates. Every slicing-agency could create a basic profile on the site for free, with the option to upgrade to a paid premium account to maximize their visibility and increase their value by displaying testimonials.

When I had the website developed, I created a system that the website would completely support itself. Payments, premium-accounts, price calculation, advertisements, you name it was fully automated. My only job was to enjoy spending the money I received on my PayPal account.
‏On top of that, the website immediately gained a lot of attention because Antonio Lupetti, a great blogger whom I feel so grateful for, published an entire article dedicated to Slicejobs. He was very excited about the idea and his article was the number one reason why I had thousands of visitors to the site from day one.

When I saw that such a great blogger was supporting my idea, it boosted my confidence that I was going to make it big time. As a result, I decided to put some of my hard-earned into the project. I had dollar signs in my eyes which gave me every motive to act fast and get as many agencies as possible to create profiles on the site, and eventually upgrade to premium.

I talked to the guys from Smashing Magazine and made an 800-Euro deal to put advertisements for SliceJobs on their website for the duration of one month. This bold move sent me heaps of traffic.
In addition, “SliceJobs” was featured on a great amount of CSS-galleries all over the internet, also sending a lot of traffic to the website.

Let’s look at the pros so far:

  • Clear and simple design
  • Excellent promotion
  • Huge amount of visitors
  • Completely automated (Carefree-life, Seychelles here I come…)
  • Taking advantage of a booming service and offering a unique solution to a growing problem

‏By now I can hear you saying: “So far so good Davy. Why on earth did you let it fail?! You had the best start imaginable!”

Well, there was just one important fact that I overlooked!
This project could easily turn into a smashing success if three key points were in place

  • ‏The website needed slicing-agencies to create profiles
  • Premium accounts and advertisements needed to get sold in order for me to earn back my investment
  • The website needed a lot of traffic from potential clients in need of slicing services

Point 1, Check! Great promotion on some high-traffic well-established web design blogs reached a lot of freelancers and agencies. Profiles were being set up every hour and the site was growing. All is well in the world of wonder.

Point 2, Check! Because the website had a nice amount of visitors at start and companies noticed that a lot of profiles were being set up, some made the sound decision to stand out from the crowd and immediately went for the premium option.

Ignoring point 3 was where the trouble started.

I thought my project was working well and I could make loads of cash out of it if I got even more slicing-agencies to create profiles on the site. I set up Google adwords campaigns promoting SliceJobs as a great website where companies could set up a free profile and simply get clients in return.

The premium members’ cash completely blurred my vision and shifted my attention from the simple fact that I should give my premium members a good reason to stick around. In other words, I needed to equally focus on promoting the site to customers who needed slicing done. As a result, 99% of my visitors were agencies providing slicing services and a very small percentage of the visitors were clients who were looking for slicing agencies.

After a while, premium payments stagnated and eventually died out. SliceJobs’ premium users weren’t getting any clients from the website and simply stopped paying for the service. The hype was settling down and my visitor-counts dropped like dead flies.

I was way over budget and had spent every earned dollar back into advertising to the wrong target audience.

Here comes the best tip of all!

Richard Branson taught me to “Never cry over spilled milk” and I’m NOT going to.
The SliceJobs-project was an amazing learning experience and offered me valuable hands-on knowledge that far exceeds years of “theoretical” college studying. It taught me how to effectively communicate with customers, set the RIGHT price for my services, handle PayPal and taxes, outsource parts of the project to external developers, use Google adwords, analytics & a/b testing, and more! It was such a blast I had so much fun!

It also gave me valuable insights on my Must-Dos, Nice-to-Dos, and the big No’s. Looking back at it now, I can honestly say that this project was a 1000-euro investment in my personal career which feels like nothing compared to the priceless knowledge that I gained along the way.

I can’t tell you how eager I am to hear your comments on my first project!
Please do so below, and if you have had a different or similar experience in your career, please share it with me! Let’s learn from each other.

Thank you so much for allowing me to share my failure-leading-to-success story.
I invite you to join my mailing list or sign up for my RSS-feed to keep up with my posts.

Go make it big!

Want to read more? Sign up for my mailing list!

  • RSS
  • email
  • Twitter
  • Facebook
  • Digg
  • Google Bookmarks
  • del.icio.us
  • StumbleUpon
  • Technorati

Random articles

You might also be interested in these articles:

14 Responses to “Reasons why my first project failed”

  1. Jan Luts

    While reading this I was asking myself how I would have done it, just to figure out if I could see where you went wrong before you told it. But I probably would have made the same mistake, thought of all the things you mentioned but failed to see where it would have gone wrong.

    Nice read! ;)

  2. Andrew

    I can definitely relate to seeing something through to execution and then realizing where you went wrong when it “seems” too late – or too much work to replace / redo. Through experience and sticking my neck out creating websites / products for myself or with partners, that the MORE work you do in the planning and ideation phase, the less work AND re-work you’ll have to do in the future. It’s hard to foresee everything, but if you spend enough time on it, looking at things from every possible angle (not just optimistically) – then you can better plan and coordinate everything for that project.

    Good post overall! I always say there’s two ways to learn something – the hard and easy way. The hard way entails learning something for yourself, the easy way entails learning something from someone else’s mistakes / successes.

  3. Mohamed Ali hussain

    Really nice Article. Enjoyed reading it! :)

  4. Harsha M V

    I am starting a venture myself. thanks for the post. learnt a lot. hope not to make the same pit falls.

  5. Vivian Clark

    Amazing Davy, to be honest with you I don’t think you did anything wrong. You achieved so much with this project that I would never imagine myself doing in my entire life, and you are just 21! Learning experiences happen for a reason, and I’m pretty sure you are finding that now, your success is there already. Congratulations! I’m very curious about your book, “testing your passive-income generator”? Do you have an article about it already??

    • Davy Kestens

      Hello Vivian, thank you for your kind words!
      It is indeed a fact that I’ve learned a few great lessons out of this project, and those lessons are already preventing me from making the same mistakes in my new ventures.
      “Screw it, let’s do it” (thank you Richard Branson) should be your life-motto and if you have a project in mind, just go for it.

      About the book: It will be a highly motivating, step-by-step manual on setting up a passive money-generating business. It’s going to be huge :D
      Stay notified about my upcoming blog posts and book.

  6. Vivian Clark

    Thanks Davy, I already sign up for the email notifications. Let me know if you need an extra hand with testing or any of your projects. I would love to work with a such talented person like you. Keep up the excellent work!

  7. Clark

    Really enjoyed reading this Davy. Kudos on the lessons learned and most especially on having the wit and guts to understand clearly why things went wrong and treat it as first-class business school tuition. No doubt your newly acquired perspective will afford many successes in the future.

  8. dave

    Website is still live at the moment. BTW did you develop the CMS for it yourself? was looking for a similiar simple directory-like listing script.

  9. Phil

    What an experience! To be honest, those 1k are prolly the best bucks you’ll ever spend!

  10. [...] a sceptical maniac and assume the worst possible scenario: You set up an internet business and it failed miserably! Guess what, you’ve done yourself a great favour by testing the waters and learning the ropes. [...]

  11. Paz Aricha

    This is an outstanding article Davy! thanks for sharing this is certainly not taken for granted. I have one question though – Why did you close it ?! it seems you had something good in your hands so what if you made some mistakes, you can always improve as you go.. why did you choose to leave it instead of trying to save it ?

    Once again thanks a alot, I’m also looking forward to hearing updated about your upcoming book. I signed to your mailing list.

    Paz.

    • Davy Kestens

      Hi Paz, thank you for your comment!
      There were a few reasons why I decided to leave the project…
      It was my first project, and because I was excited, I rushed everything. The downside of rushing a web-project too much is crappy coding. To continue and easily expand the project, I would have to re-develop the entire project
      I am extremely interested in exploring a lot of different projects to see what type suits me best. When Slicejobs died out, I was already working on RunAddicts, which I was a lot more passionate about; I made the decision to put my time into this new endeavour, rather then trying to rescue what was left of the project that seemed to be doomed

      Now, a year later since the end of Slicejobs, I did not only profit a lot from the experience, but I also received a great deal of appreciation from clients, friends and fellow entrepreneurs who talk vigorously about this article. I realise that failing is the best thing you can do while you are young.

      “I failed my way to success.” -Thomas Edison

  12. john burnside

    Very nice article with a good lesson to be learned. Such a shame that it didn’t work out for you because every body loves automated income :)

Leave a Reply