(2007-02-14) Hong Second Startup

James Hong, rather doing a Sell Out of his HotOrNot Cash Cow, is using the proceeds to fund a Second Start Up (actually a second product from the same entity). There are a bunch of other notable S-Corp websites out there making money... At some point, you decide "ok, i need someone else to run this thing, but I don't really trust anyone to do it but people like me."... Simultaneously, watching your company continue as a cash cow can be painful. It was for us, at least. Sure, it was continuing to make a lot of money for Jim and I, but it was stagnant and boring. The downside of running a cashcow is that you don't want to do anything substantially different to make it better. The idea is that you milk the cow until it is dead, and hopefully invest that money into new things. Changing anything could screw the money machine up, so you tend not to take any risks. But it almost physically hurts to see the thing you worked so hard on be put into this mode, because you know that in this mode, death is inevitable. Nothing last forever without changing with the times.