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by wpietri 5166 days ago
It's very rare that I see the "my idea alone is worth money" thing from people who have built actual businesses.

I know that I would never pay for an idea alone. That's partly because it's not like we have a dearth of them. If we didn't have a new idea for the next year, that wouldn't be a problem; we have a giant backlog of excellent ideas. But we'll keep having new ideas. We're constantly looking at user experience and usage data, and ideas keep happening.

More than that, though, I don't think an idea from an inexperienced person generally has a lot of merit. With a surface understanding, I think their ideas can have only surface appeal. Once you get into the nitty-gritty of implementation, you need a lot more depth than an amateur can provide.

Imagine somebody going to a well-known chef and saying, "Hey, I don't know how to cook and I've never run a restaurant, but I go to them sometimes and I have this great idea. You should pay me 10% forever!" The would-be genius knows nothing about food costs or good staff or marketing or how to shmooze a critic. Nothing about relative real estate costs or buildouts or decorating or who to pay off to get a permit expedited. Nothing about balance sheets or seasonality of demand or tax regulations. Nothing about nothing, basically, except that they think it would be fun to go to a tiki bar/restaurant. They would be lucky if the chef doesn't answer with knife in hand.

Having ideas is easy when you don't know anything.

2 comments

pretty much a copy of http://news.ycombinator.com/item?id=3868084, but:

The case of having ideas when you don't know anything, I think we all agree, is silly for having a "secret sauce." The more interesting discussion is what to do when you have an idea and you know a helluva lot?

This is the case where I think you have to be careful. Yes, ideas without execution aren't worth much- but if your executable idea lands in the hands of somebody who can out-execute you, you are sunk unless you protect it. In fact, you are probably sunk even if you do protect it, but at least you may have a life raft.

If you have that much depth of knowledge, then I think the idea is going to have similar depth. In which case you come up with a short summary that doesn't give away any of the key insights.

But even if you're generous with information, the idea probably isn't at that much risk. The idea would have to end up in the hands of somebody who not only could out-execute you, but also has the time and interest to do so, is smart enough to recognize the value of your idea, and isn't already attached to some idea of their own.

I think that last sentence deserves emphasis. There's a lot of "NIH syndrome" ("Not Invented Here") around -- and the deeper someone's domain knowledge, the more likely they are to suffer from it.
I agree. When you put that much value in an idea it means you don't have enough dots to connect, and don't know the enormous depth of starting a business.