Can failure play an important role in developing a successful e-comm, dot-com, or Internet-based venture? This chapter shows that testing the firm’s business model provides quick feedback concerning what works and what does not. Often the only way to test the assumptions of a business model is through implementation. Failure can (and should) be a learning experience, whereby a venture confirms or modifies components of its business model and moves forward. This article starts with a review of business model literature, considers a recent start-up, and concludes with lessons learned. References and a glossary of key terms follow.