I liked your game. I think you managed to create a great atmosphere, without the generic "silence followed by a loud scream" shit. In my opinion, your game was a little too easy. You basically had to click the things in the right order in order to beat it.
If you have a good idea for a second, I say fuck the haters and go for it. What the previous game lacked the most is variety. Try adding some puzzles, or some traps that force the player to do something against their will (example, free a monster in order to obtain an item).
As for selling your game, I suggest you stay away from exclusive sponsorship deals. If you can make a quality product and manage to sell licenses to multiple websites, it can earn you much more (you can also publish a public, limited-content version for the websites that don't want to buy a license, and use them to redirect traffic to your website)
Oh and one last thing... Spell check your dialogs. The amount of typos, especially in the first few conversations, was horrendous, and that's a big turn-off
flailthefox
THe main theme that all those horror games out there is mostly music, art and the suspense. they seem to be able to join them together to scare you enoughy into giving 5, basically. all you need to do is add a lot of big loads music at scarty places and stuff, know what I mean? Example: at a house, and you see something in a mirror. allow the player to turn around, and they freak out and jump at loud music and a flash of soemthing coming at you with a knife ofr something. you just need the right balance of music, art and drama(lol) to make a great game.