How much is an idea worth? Between $100 and $1000 is what I got.
If you are an engineer or a programmer I’m sure people come to you with “awesome” ideas all the time, and they probably are protective of their ideas as if they have a brick of rhodium in their hands.
Now if you have some experience trying to convert an idea into a profitable business then you know that ideas aren't worth very much. And a lot has been said about this.
Here, as I always try in my posts, I would like to give you another point of view, approaching this issue in a more mathematical way of reasoning. So let’s use something similar to the beautiful logic tool of proof by contradiction.
Let’s think that you have a great idea. Let’s suppose you have an idea for a search algorithm that is ten times better than Google’s algorithm and let’s suppose that nobody will have a similar idea and nobody will be able to copy it or steal it.
Now you need to think if it is possible to implement it. Is it theoretically, technically and economically possible and you have enough money to implement it? Let’s suppose the answer is yes.
Now you need to make people use it. Do you have the money to advertise it and attract users? Let’s suppose the answer is yes.
Now you need to earn money each time people use it. You can charge them or put advertising. Let’s suppose here that you copy the advertising model of Google.
Now you need to make sure that your revenue is greater than the operating cost and taxes. Let’s suppose you can achieve this.
Now you are rich!
Like you can see its not impossible but there are a lot of suppose between the idea and the “you are rich” and each suppose seems to be pretty hard.
In general, and theoretically, the best idea would be something that only you can do (or you can patent), that is very simple for you to do it and that you can charge other people a lot.
An important thing to consider is that there are a lot of people in the world and the way all think is pretty similar so probably there are a lot of people thinking about something that is very similar to your idea. In fact I’m sure that this already happened to you. You have an idea then you search on the internet and there is someone already trying to do the same thing. It probably also happened to you when studying science, you read a couple of theorems in a book and you came up with a new one just to realize that it is in the next page of the book.
Beside all of this I really like to think about new ideas. I have a lot of ideas written down and I usually sell them or give them for free if I think that I can’t implement them or I can’t get enough money or I can’t achieve any of the issues I mentioned before. Lately I’ve been participating in idea generation contests on TopCoder where you submit your idea and if the client chooses it then you get paid. I got paid between $100 and $1000 per idea and I’ve been quite successful there, some of my ideas where selected by companies like Alcatel-Lucent, PayPal, AOL, Truveo, Ribbit, BestBuy, TopCoder and others. It’s not a lot of money but I think it’s fair enough for just an idea.
While what I have stated before is kind of disappointing about ideas this shouldn’t discourage you to pursuit your idea, it should motivate you because making that idea a reality is what it worth a lot. In fact besides that I have sold a lot of ideas I’ve been working for more than three years now on my own startup which is now profitable and growing. Maybe it’s not the coolest or innovative idea but it’s the one that I thought it was achievable considering where I am (Latin America), the money I got (almost nothing) and a lot of other aspects. And I have to say that I’m pretty happy with the choices I’ve made.
Now if you have some experience trying to convert an idea into a profitable business then you know that ideas aren't worth very much. And a lot has been said about this.
Here, as I always try in my posts, I would like to give you another point of view, approaching this issue in a more mathematical way of reasoning. So let’s use something similar to the beautiful logic tool of proof by contradiction.
Let’s think that you have a great idea. Let’s suppose you have an idea for a search algorithm that is ten times better than Google’s algorithm and let’s suppose that nobody will have a similar idea and nobody will be able to copy it or steal it.
Now you need to think if it is possible to implement it. Is it theoretically, technically and economically possible and you have enough money to implement it? Let’s suppose the answer is yes.
Now you need to make people use it. Do you have the money to advertise it and attract users? Let’s suppose the answer is yes.
Now you need to earn money each time people use it. You can charge them or put advertising. Let’s suppose here that you copy the advertising model of Google.
Now you need to make sure that your revenue is greater than the operating cost and taxes. Let’s suppose you can achieve this.
Now you are rich!
Like you can see its not impossible but there are a lot of suppose between the idea and the “you are rich” and each suppose seems to be pretty hard.
In general, and theoretically, the best idea would be something that only you can do (or you can patent), that is very simple for you to do it and that you can charge other people a lot.
An important thing to consider is that there are a lot of people in the world and the way all think is pretty similar so probably there are a lot of people thinking about something that is very similar to your idea. In fact I’m sure that this already happened to you. You have an idea then you search on the internet and there is someone already trying to do the same thing. It probably also happened to you when studying science, you read a couple of theorems in a book and you came up with a new one just to realize that it is in the next page of the book.
Beside all of this I really like to think about new ideas. I have a lot of ideas written down and I usually sell them or give them for free if I think that I can’t implement them or I can’t get enough money or I can’t achieve any of the issues I mentioned before. Lately I’ve been participating in idea generation contests on TopCoder where you submit your idea and if the client chooses it then you get paid. I got paid between $100 and $1000 per idea and I’ve been quite successful there, some of my ideas where selected by companies like Alcatel-Lucent, PayPal, AOL, Truveo, Ribbit, BestBuy, TopCoder and others. It’s not a lot of money but I think it’s fair enough for just an idea.
While what I have stated before is kind of disappointing about ideas this shouldn’t discourage you to pursuit your idea, it should motivate you because making that idea a reality is what it worth a lot. In fact besides that I have sold a lot of ideas I’ve been working for more than three years now on my own startup which is now profitable and growing. Maybe it’s not the coolest or innovative idea but it’s the one that I thought it was achievable considering where I am (Latin America), the money I got (almost nothing) and a lot of other aspects. And I have to say that I’m pretty happy with the choices I’ve made.