- Out With The Hype, In With The Business
Model
- BY ANTE MILJAK
The Internet, 2002!!!
Will it bring us a sound business
model?
Yes!
During 2001, two simultaneous
and drastic changes took place on the Internet. Thousands of
unprofitable websites closed down and the business philosophy
of “FREE” changed to “PAID”.
Economic reality has forced
webmasters to realize that spending lots of time and money attracting
thousands of freebie hunters to their websites is a ruinous business.
Although one can still pick
up some useful free software here and there, most freebies are
either outdated e-books or disguises for entry into paid programs.
The realization has dawned
that it is better to have 10 buying customers than 10 000 bandwidth
wasting freebie hunters. Bandwidth costs money.
Another notable change on the
Internet is the rapidly diminishing number of programs making
“overnight millionaires”. Not only has the hype become
ineffective, but it is also counterproductive. What sounds too
good to be true, normally is.
A sound business model is gaining
the recognition it deserves. The calculators are out. Quality
is replacing quantity. Prices are rising.
Hosting, time, bandwidth and
other fixed costs are becoming powerful catalysts that are forcing
a rethink of business strategy and philosophy.
What does this mean for Internet
business in 2002?
An escalation of profitable
business models. Flexibility will be a decisive factor in the
long-term success of any business enterprise. In an environment
of rapid technological advances, a business model has to be able
to adopt new technologies as they appear to avoid becoming obsolete.
Businesses in 2002 will have
to become one stop shops to save time and increase efficiency.
They will have to offer a combination of products, traffic generation,
marketing strategy and all other aspects necessary to run a viable
enterprise. Navigation and technical terms have to be simple
to accommodate the thousands of newbies that are joining the
Internet daily.
Entrepreneurs with business
experience and not technological wizards will dominate the Internet
in 2002.
Scams will become less effective.
Underhand practices are being exposed by emerging Internet watchdogs.
They have justifiably turned scam investigation into a profitable
business. The names of individuals and companies that perpetuate
scams are being uncovered and spread over the Internet. The same
goes for affiliate programs that exploit unaware associates.
A network of entrepreneurs
is the business model that will dominate the 21st century. They
will operate across international boundaries to form global enterprises.
The businesses that will prosper
will be those that maximize the gains for all members of the
network, instead of just a few at the top.
Rising unemployment seems to
be entrenched in the global economy. It will force more and more
people to turn to the Internet to achieve a secure income. It
is the only way they can own a business without spending tens
or hundreds of thousands of dollars.
With careful management of
funds and by choosing a sound business model, they are able to
start a successful business with a thousand dollars or less.
Another advantage is that they can build this business in their
spare time, while still earning a salary.
To provide for these needs,
Internet companies will be forced to create comprehensive business
structures that will mark the turning point for Internet business.
Welcome to 2002!!!
© Copyright 2002 Ante Miljak
_______________________________________
Author:
- Ante Miljak
- Email at: ante@activeweblogic.com
Author of Click & Grow
Rich, the business that integrates products, traffic-generation
programs and marketing strategy. All you need to do is Click
& Grow Rich. http://www.clickandgrowrich.biz |
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