The Million Dollar Homepage – A Case Study

Alex Tew is a 22 year old student from Wiltshire, who first came to prominence as an entrepreneur when he created the website ‘The Million Dollar Homepage’ on 26th August 2005. Alex was a prospective undergraduate student at the University of Nottingham, about to embark on a course in Business Management before his sudden success. He started the website as a form of raising money for his university education. The site has been estimated to have earned Alex an estimated $1,037,100.

The website consists of a main grid of pixels, 1000x1000 in total. Each pixel was sold for $1, however each company must purchase a minimum of 10x10 segments, thus a minimum $100 spend. The space purchased must then be used in the form of an image or URL link, advertising the buying company’s website with a particular slogan attached to the appropriate image. Alex set out with the aim of generating $1 million. Having sold the first 999,000 for $1 each, he achieved his goal of selling the final 1000 pixels on eBay for $38,100.

Alex first had the idea when brain-storming for ideas to make money in order to subsidise his impending university enrolment. Essentially, Alex had very little to lose aside from the €50 investment he made by purchasing the domain name and hiring the server. The popularity of the site quickly grew, primarily due to word-of-mouth and self-promotion via the use of the internet: through the use on blogs and online articles. Quickly, national newspapers had discovered the story and the popularity of the site increased further.

After only one month of the site ‘going live’, it had earned a profit of $152,900. The website became an internet phenomenon and word quickly spread through various forums and message boards. Alex soon reached his target, but soon began to think about the next step in his entrepreneurial quest.

In October 2005, Alex made the decision to hire Imal Wagner as a full-time PR advisor (she had also wanted him to write a book based on his experience, however Alex declined due to his busy schedule), a decision that would prove to be very prudent and profitable for Alex’s future.

He chose not to stop at the ‘Million Dollar Homepage’, but has announced plans to start a new website entitled ‘Pixelotto’. The idea is similar to that of the ‘Million Dollar Homepage’; however each pixel costs $2 instead of $1. When the final pixel has been sold, a random advert will be chosen one month later. Half of the profits earned will go to a lucky contestant who has signed up to the website, ten percent will go to a charity nominated by the winning contestant and forty percent will go to Alex. The idea looks set to be as successful as the original website, clearly demonstrating Alex’s entrepreneurial spirit and personal philosophy.

(For further case information, please visit www.milliondollarhomepage.com, www.pixelotto.com, www.imalwagner.com)

Discussion Questions

• Why was such a ‘simple’ concept so successful?
  Consider: The role of ease of use, originality, cost-effectiveness and media coverage.
• Do you think Alex Tew is a traditional entrepreneur?
  Consider: What is an entrepreneur? Which of these traits does Alex demonstrate? Have his entrepreneurial ventures added anything to the traditional notion of entrepreneurship?
• If you were Alex’s PR/Business Advisor, what recommendations would you make for the future of his businesses and his personal development as an entrepreneur?
  Consider: Would you make suggestions as how to invest his money? Do you think he should continue to create online marketing websites? How could he use his creative skills to generate more money for himself, his businesses and others? Do you think he would be a good consultant? Would you recommend he writes a book? Becomes a guest speaker? Do you think he should go to university and secure a ‘traditional’ business education?

A word document version of this case study is available here.