What is Blue Mountain Cards? Back in the 90s there was a huge rush of companies trying to provide online ecard services. 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, with web 2.0, you could argue that its started all over again.
Ecards are a difficult business space for me to understand. The business model is essentially one where you are killing another business model, the paper greeting cards space. It seems like the classic case of doing something through technology that was previously manual. But I dont think its that simple. eCards are not exactly the same product as paper greeting cards. You buy a paper card at a store and physically write on it. Electronic cards are bought online and never touch paper. The products here are just not the same. So in essence, the technology is really impacted the very product. You see this also in pcs, telephones, tvs and other electronic products.
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. What a move that was.. Looking back, there are many things I wish I had done differently.
How is that in 2008 Blue Mountain Cards is still a going concern? 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. However, these were experience people who were also making a serious move in a serious industry. 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 think this accounts for why they are here today. Its a textbook case of building a brand in a new market. The part this is far from any text book case study is how they exited at the height of the crazy valuations. I guess thats where a little luck goes a long way.