The Highs and Lows of the Dot Com Era – How Money Can Still Be Made on the Internet
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In the passage of economic history, there have been periods when many become fixated with a given thing which seems the way to make lots of money. Regardless of what it is, its price skyrockets far above its real value, before crashing again making a lot of investors bankrupt. Examples include Tulip Mania in Holland, the South Sea Bubble, and in recent times the Japanese house price boom and slump. At the height of that, it is recorded that the area of the Imperial Palace in Tokyo were valued at more than the full surface area of Canada. In addition, even more recently, there was an example from the Internet business sphere, the famous “dot com” boom. However, the Internet is still a place where it is possible to make money from . So how can we find the truth behind the hype?
The beginning of this boom may be traced to the mid 1990s, when people started looking at the prospective ways the World Wide Web could be used to grow an online Internet business, create online jobs, enable employees to work from home, and of course to make a lot of money. Why should anyone need to travel to overcrowded shopping centres when they were able to browse for what they wanted without having to leave their homes? Similarly, it could be possible for people to work from home by means of the World Wide Web, as an alternative to travelling through rush hour jams to an office. Because the most widely used website suffix is “.com”, the businesses involved acquired the nickname “dot coms”.
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Notwithstanding that the boom ended, and a lot of businesses which had invested heavily in it went bankrupt, the Internet is still in use and is still going strong. Therefore, the underlying reasoning behind the boom seems sound. So what exactly went wrong? It seems that the problem was that businesses were over-optimistic, and were disinclined to grow their companies little by little over time. Most Dot Com businesses were not profitable for several years, as they tried to widen a customer base. That is a common experience for business start-ups. But the problem is that their stock values kept increasing, not due to their profitability but on a strange “growth over profit” business philosophy. The focus was on creating websites, offering online jobs and often lavish expenditure on high-speed network equipment. Once these companies had a big enough clientele, so the philosophy went, the profits would follow.
So great was the obsession behind the concept of Internet business, that businesses would see their stock values skyrocket when they simply appended an “e-“ prefix or “.com” suffix to their name. That is because investors were looking at the exterior appearance, and not with the financial realities of the companies concerned.
The ’bust’ occurred on the 10th March, 2000, when the NASDAQ stock index stopped climbing and went into a decline. It would appear that a lot of shareholders simultaneously decided that the dot com companies were massively overpriced. Disappointing sales figures for the previous Christmas may have made people aware that the projected profits for the dot coms were simply fanciful. Another problem was the existence of hold-ups to sites due to projects running late and bugs in the websites, in addition to non-user-friendly website design.
Undoubtedly hindsight is, as they say, that most precise of sciences. But ten years on, certain matters remain true. It is possible to make a profit by means of Internet business. But there’s no quick route to making your first million. Using World Wide Web technologies, people can in a range of online jobs and build up a profitable Internet business. It won’t allow you to retire in two years time, but it could offer a secure and enjoyable career.
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Yes.. there is no quick route to making millions online.. whatsoever. Being original, unique, and standing out from the big crowd online is a MUST.
Thanks again!
Michelle