Failure is a startup's best friend

[mandy]

Since its launch, Dogster has indeed failed, repeatedly, in ways its founders never imagined.

But that, it turns out, has been a good thing. Dogster has found a way to turn its mistakes into better features. With virtually no promotion, Dogster (along with sister site Catster.com, launched in August 2004) has become a leading social network for pet lovers, boasting more than 275,000 human members, 340,000 photos and profiles of dogs and cats, and a stable of blue-chip advertisers such as Disney, Holiday Inn, and Target.

Dogster has even done something Pets.com never came close to doing: It has turned a modest profit. While site founders decline to give details, they claim that Dogster has been running in the black since July 2005. Last year the company said it earned more than $1.1 million in revenue and nearly doubled its number of users...

full article: http://money.cnn.com/magazines/business2...2007022808