I recently wrote about the role of ideas in the start-up concept.  Its one of the pieces every start-up needs, but I questioned the value of the idea without executing on it.  Like a car with one wheel, a start-up needs more than just a great idea.  You'll need some resources, time, lots of drive (i.e. tenacity) and some talent on your team.  I stated that an average idea with awesome execution, makes for a better startup than an awesome idea with lousy execution.   Execution is that important.

You've all heard those million-dollar ideas: "Somebody ought to invent a yada yada that can do dooby dooby.  Everybody would buy that".  Yes, but not unless somebody makes it.  Talking about it generates no profit, no matter how wonderful your idea is.   As a matter of fact, your idea may not even be worth 2 cents.  And that's where this story starts.

Meet Jackson Miller.  He's an entrepreneur, a blogger since 2001, and a keen observer of the startup scene.   He had stumbled upon several souls trying to trade ideas for cash and realized the potential these ideas had, but also the lack of current value since they were only ideas.

So Jackson, in a tongue in cheek gesture, pulled out his check book and on June 16th 2006, made a public offer to buy original ideas for 2 cents a piece.  He expected some humorous responses and hopefully some stimulating discussion about the value of ideas in the startup concept.   He got some of that, but more interestingly, he also got genuine offers.  Somebody from Venezuela offered to sell him an idea "for locating missing peoples".   Some people wanted to negotiate with him because they felt their idea was worth much more than 2 cents.   One person would not even mention what the idea was out of concern that Jackson might steal it.

It was interesting to see how strong people felt about the value of their ideas.  Apparently unaware that jotting down "must build widgy widgy that does doodly doodly", has no inherent value unless and until you write a business plan, confirm it can be build and sold at a profit, obtain funding, invest the time, manage it with talented resources, and work it like a hill of ants in a rain storm.  Throw in some luck and you may make some money.

Jackson responded kindly and graciously to all offers, explaining that an idea alone has no monetary value and that his post was meant to be humorous.  When needed, he kept his promise and offered to actually pay 2 cents a piece for original ideas.  The supply side of the market for start-up ideas is so strong that Jackson's post became (and still is) the number 1 search result in Google for "I will buy your idea".

The word had spread, in part because other bloggers like Dane Carlson had picked up the story and the flow of ideas offered for sale eventually became a nuisance.  So in December 2007,  Jackson blogged "I will NOT buy your idea".  He thought that would clear things up and the stream of idea offers would dry up.  Not so.  The passion from these budding entrepreneurs for their brain child was so strong, some continued to latch onto Jackson seeking offers.

Around that time Jackson made some updates to his website and since he was starting a new business, he added his phone number.   And on a fairly regular basis he started getting telephone calls from far and away places with people wanting to negotiate with him for a fair offer for their idea.  Even today, more than 2 years after his original post, he gets 1 or 2 calls a month.

I chatted with Jackson the other day about startup ideas and entrepreneurship.  I asked him what the key ingredients are for a successful startup.

JM: Focus is probably the most important ingredient of a successful startup.  Once you make the decision to go all-in on a new startup you have to remain focused on the goal.  For me the goal is creating something of value that people want to use.  This is different from having blinders on and just plugging ahead.  Which leads to what may be the second most important ingredient, adaptability.  Some things work, some things don't, and some things have potential to work if you can tweak it just right.

NCSUB: But how do you sift through all those ideas out there and decide which one to focus on?

JM: The one that sticks.  In order for an idea to stick, the problem it solves must be complicated enough that after sitting for a while you still don't find existing solutions.  Also, for an idea to stick there is likely some passion behind it.  Finally, you need to ask yourself: what do you want to spend 80 hours a week working on?  I know an independent movie house would do well in my neighborhood -- I also know I would be bored to tears running a movie theater 80 hours a week.

NCSUB: What was the reason that some people did not realize your original post was tongue in cheek?