From
about 1997-2001, the Western-world
economy saw the stock prices of newly-formed
Internet-based companies increase
with incredible rapidity. It was called
the "dot-com revolution."
For
a while, it seemed sure that "real"
stores, called "brick and mortar
businesses," would simplyfade
into antiquated oblivion, and that
we would become one big cyber-world
dominated by fabulously successful
companies that had the foresight to
either found Internet companies or
invest in them through stock purchases
or by providing venture capital. Most
of the new dot-com's founders were
20-somethings, some still in their
teens, and lacked experience in business.
This made plenty of economists nervous.
They termed the new businesses "over-exuberant"
and warned that there were no sound
business plans or models beneath the
companies' appealing websites. Still,
investors poured their money into
the companies, dreaming of the fortunes
to be made.
"It
felt a little like our wildest expectations
about the transformational power of
the net were being exceeded at a faster
rate than we thought," recalled
developer Tristan Louis in a recent
Guardian article.
In
the third quarter of 2000 and the
first and third quarters of 2001,
the US economy experienced negative
growth-a less-scary way of saying
"a mild recession." By 2001,
the "dot-com bubble" had
burst. The economists had been right
in many cases. When the stock market
took a turn for not just the worse
but the worst after 9/11, investors
in tech stock lost up to 85% of their
money, and many of the dot-coms went
bankrupt or were bought out by traditional
companies or by other dot-coms that
had remained profitable: Everyone
knows and uses Amazon.com, Yahoo!,
eBay, Google, and Paypal.
Is
there still room for e-commerce entrepreneurs?
Absolutely! In fact, they can learn
valuable lessons from those who went
before and failed.
A
web-based business has much in common
with a "brick and mortar"
business. It is essential that both
have a sound business model and plan.
Both need to offer something that
their customers want, and be able
to give them a reason for buying it
from them, such as low cost, high
quality, guarantees, and so forth.
Basically, both types of businesses
will be involved in the same market-buy-sell-distribute
pattern of doing business.
But
virtual businesses have many advantages
over "real" stores:
You
can sell to customers without
stocking items yourself. You get
the orders, and the manufacturer
ships the items directly to the
customer.
You
can be open 24 hours a day, seven
days a week, without actually
being there minding the store.
You can communicate effectively
with customers through auto-response
messages-for example, a receipt
for something they just ordered
is sent immediately to them by
e-mail.
Your
advertising can be done by means
of small online ads, through links
with other sites, and other methods
like Search Engine and pay-per-click
Search Engine marketing.
In
order to use Internet technology to
make money, your online business must
have certain essential characteristics:
An
attractive website.
Websites that look like they were
created by someone who didn't know
what they were doing are a complete
turn-off to customers. The image projected
by a professionally-developed site
is well worth the cost because of
its customer appeal. You wouldn't
want to go into some sub-par-looking
restaurant to eat, so would you want
to go to a sub-par-looking website
to do business?
Your
website should also be easy to navigate.
The customer should be able to easily
tell which part of the site to go
to in order to find the information
he or she is seeking. At the same
time, your server should be consistently
dependable.
An
easy and secure way to pay.
Credit cards and Paypal are the most
commonly-used payment methods on the
Internet. In addition to offering
these methods, you must assure your
customer that the information they
provide-their credit card information,
for example-is absolutely secure.
Value
and service.
As at any business, customers are
looking for good value for their money
and good service. Selling shoddy goods
won't fly. Because people who use
the web are accustomed to things moving
quickly, you should acknowledge the
customer's order right away and then
keep them updated on when to expect
their order to arrive.
What's
the Best Way to Use Technology to
Make Money?
As you've read, some people took big
risks and lost. You don't have to.
When you start a home based business
with a solid company, the company
has already "done the homework"
for you. Everything is in place for
you to step into your role as business
owner. The only "technology"
you will need to worry about is a
computer and a telephone. On of the
best things about using technology
to make money is that you won't be
stuck in the 9-5 grind. You can say
goodbye to long commutes and moody
bosses and co-workers. You will decide
when, where, and how long to work.
Best of all, as a home-based business
owner, you'll decide the size of your
paycheck.
To Find Out More About Using Technology
to Make Money
Simply fill out the form below to
receive free information.
world
dominated by fabulously successful
companies that had the foresight to
either found Internet companies or
invest in them through stock purchases
or by providing venture capital. Most
of the new dot-com's founders were
20-somethings, some still in their
teens, and lacked experience in business.
This made plenty of economists nervous.
They termed the new businesses "over-exuberant"
and warned that there were no sound
business plans or models beneath the
companies' appealing websites. Still,
investors poured their money into
the companies, dreaming of the fortunes
to be made. 
A
web-based business has much in common
with a "brick and mortar"
business. It is essential that both
have a sound business model and plan.
Both need to offer something that
their customers want, and be able
to give them a reason for buying it
from them, such as low cost, high
quality, guarantees, and so forth.
Basically, both types of businesses
will be involved in the same market-buy-sell-distribute
pattern of doing business.
What's
the Best Way to Use Technology to
Make Money?
