After the dot com bust, Blue Mountain Cards is still standing

What is Blue Mountain Cards? It all started back when ecards became big in the 1990s. 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 has no changed with people wanting to know where the real revenue is coming from. However, there are some painful similarities in web 2.0 to this idea of building big applications that will make money only from advertising.
The ecard space is a funny one. The business model is essentially one where you are killing another business model, the paper greeting cards space. In some ways its a normal case study of technology advancement over a paper based product. But I dont think its that simple. An ecard is not the same thing as a paper card. Paper cards come from a store and require you to mail them. Electronic cards are bought online and never touch paper. The products here are just not the same. So we are actually seeing technology change the wants and desires of the buyer here. This is not unique, just look at tvs, video games or any other electronic based market.
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. An amazingly well-timed move. Ill bet many people wish they had that type of timing.
So now its 2008 and what is a business model like Blue Mountain Cards still doing around? One view is that the original builders of the business picked an once-in-a-lifetime period to exit the business and made an unprecedented amount of money.. I often wonder if management teams like that are really lucky or create luck due to their experience. This is not a small business. Flawed business model or not, Blue Mountain Cards made a big dent in a market worth billions. I am betting that this is why they are still around 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.

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