An idea unimplemented is worthless

As I develop my own ideas, and as the recipient of the occasional unsolicited business proposal, I am increasingly convinced that an idea unimplemented, is worthless.

The problem is that ideas are cheap. Anyone can have think up an idea, even dozens in a day. Implementing them however takes dedication and persistence. And money, to hire people whose skills you need beyond your own.

My skills are in programming, and I seem to get a lot of ideas from people who want to build things. They frequently think that once it’s built, it will magically make money, and that I (as the programmer) should be happy to work on a deferred or profits-only basis.

Which brings me back to the point – the idea is worthless.  If you think it has potential, then you will need to put your money where your idea is, and build it.  Then it is worth something.

If your only contribution to a product was the idea, I would probably value the contribution at 1%.  Not 5% or even the 50% that I have been proposed in the past.  Now if the creator of the idea contributes funds or effort (and I don’t mean just standing there dictating features), that’s a different story.

Like the Mark character on The Social Network said to the Winklevoss twins’ lawyer: “If they had invented Facebook, well they would have invented Facebook!”.  Sure they had a good idea, but they were more focused on their rowing and grades (nothing wrong with that) and didn’t implement it quickly, or as well. In short – who really cares if the ideas were similar?  Because the idea itself has little value.

One only needs to look at the dollar valuations to back this assertion up. Facebook, (the implementation) is today worth $25bn, the Winklevoss’ (allegedly: the idea) got $100mil in a settlement.  In percentage terms: almost nothing.

In short, if you have a great idea. Then pay up and get it made. Then the world will decide if it’s actually good. But don’t expect people to fall over themselves trying to be part of your idea or expect people to work for free.

I was discussing this theory that ideas are worthless with Rhys on Monday. He linked me to a post on Scott Adams’s blog from this month talking about this very issue. I like Scott’s thoughts, and his summary is probably catchier than mine: “Ideas are worthless. Execution is everything.” :)

So keep dreaming up cool ideas, and if you feel confident, raise the money and make it.