How to Become a Dot Com Millionaire (Part 1)

Written by Jim Barrington

The news is full of bright young things earning instant fortunes fromrepparttar Internet. Virtual businesses are not justrepparttar 119089 domain ofrepparttar 119090 young. In this 2-part article, James Barrington of shows you how to joinrepparttar 119091 growing ranks of successful e-entrepreneurs and get wired for success.

Firstly, it is important to remember that over 80% of existing Internet firms will dissolve withinrepparttar 119092 next year without making a single penny in profit. Stories about instant fortunes made fromrepparttar 119093 Internet are often hugely inflated and, whilst founded in fact,repparttar 119094 money is often invisible and has not been converted to cash inrepparttar 119095 owners bank account. The title "Internet Millionaire" is not simultaneous with profit or hard cash. For every successful Internet business, there are hundreds still trying to attract repparttar 119096 attention of investors, and many will simply not succeed. It is expensive and very hard work to start a long-lasting and profitable Internet venture. This is reality and it is fickle. Still want to proceed? Read on.

>Fromrepparttar 119097 very beginning you need to understandrepparttar 119098 Internet will take you in front of a worldwide audience of potential customers. An understanding of howrepparttar 119099 Internet works is desirable but not essential. You only need to know that one computer containing your information can communicate with others on a global scale and this can be used for selling your services usingrepparttar 119100 Internet asrepparttar 119101 road network. Similar to repparttar 119102 way you would stop at a motorway shopping mall to make a purchase on your journey, people also stop at your virtual shop (website) to browse around and buy your products. The rest is all mechanics and if you have no wish to be technically literate, then leave it up torepparttar 119103 programmers and designers, as this will be their job.

Rules for Success Setting up an Internet business is notrepparttar 119104 same as setting up a venture inrepparttar 119105 physical world, howeverrepparttar 119106 same basic tenets of business apply. They are: - (a) Research (b) Planning (c) Positioning (d) Forecasting (e) Market Testing

Broadly speaking this coversrepparttar 119107 following research areas: - 1) Viability - Is there a need for your concept, products and services? 2) Market - How big is it? Who arerepparttar 119108 competitors, customers, and suppliers? 3) Trends - What arerepparttar 119109 buying habits and market influences? 4) Triggers - What turns people on to make their purchases? 5) Positioning - What will make your venture different from others? 6) Costs - How much will it cost for you to service/supply torepparttar 119110 market? 7) Revenue - How will you generate revenue in order to achieve profits? 8) Profitability - How much profit can you make over a given time period? 9) Growth - How willrepparttar 119111 venture grow and evolve in a controlled way?

Rethinking Free

Written by Elena Fawkner

"I have had to change my email address to [deleted], as is no longer offering their services for free, another indicator that repparttar internet business environment is not what it used to be."

This is an extract from a "change of address" email I received a couple of weeks ago from a subscriber. No, indeed,repparttar 119088 internet business environment is most certainly NOT what it used to be. More and more we are expected to pay for access to services we used to be able to get (and expect to get) for free.

Why do we expect so much for so little online? Because that's howrepparttar 119089 internet evolved. Originally a network of computers designed to facilitate an exchange of information and resources between academics,repparttar 119090 fact that purely academic pursuits wererepparttar 119091 goal naturally meant that it was perfectly appropriate forrepparttar 119092 educational institutions involved to put that infrastructure in place without expectingrepparttar 119093 end users to directly pay forrepparttar 119094 content.

As recent history has evolved, of course,repparttar 119095 internet has expanded WAY beyond its humble academic beginnings to its current status as a primary medium of exchange of information, products and services for virtually every sector ofrepparttar 119096 economy. How often do you see an advertisement, whether print, radio or television that doesn't giverepparttar 119097 advertiser's web address as a matter of course?

Although business has becomerepparttar 119098 hugely predominant exploiter of repparttar 119099 medium,repparttar 119100 fascination withrepparttar 119101 technology has, until now, somehow keptrepparttar 119102 focus off business basics ... you know, all those minor issues such as actually making a profit and pesky details such as hang-on-a-minute-how-are-we-going-to-pay-for-all-of-this?

So enamored were we, as consumers, withrepparttar 119103 sheer power and brilliance of being able to access, with just a few keystrokes, information on literally any subject underrepparttar 119104 sun that took our fancy, coupled withrepparttar 119105 not-for-profit academic beginnings ofrepparttar 119106 internet revolution,repparttar 119107 idea that someone, somewhere, presumably had to footrepparttar 119108 bill for all of this was nothing more than some sort of abstract issue we needn't concern ourselves with. It was someone else's problem. Someone else was profiting from all of this and whoever that was should pay. It really didn't dawn on us that we wererepparttar 119109 ones who were truly profiting.

This "free" mentality was a major contributor torepparttar 119110 downfall ofrepparttar 119111 first e-commerce wave. Venture capitalists, probably more caught up in repparttar 119112 promise of this bright new technology than anyone, were prepared to throw money at this thing withrepparttar 119113 curious blind faith that somewhere, somehow, this new playing field was a source of riches never before dreamed of. So quarter after quarter, year after year, undeterred byrepparttar 119114 red ink dripping like blood off corporate balance sheets,repparttar 119115 VCs kept sinking more and more money intorepparttar 119116 black hole, holding steadfast to their irrational faith that somewhere in this brave new world was a rich reserve of untold wealth that they would reap if only they drilled deep enough and long enough to reach black gold.

The recipients of this free-flowing cash, of course, had to find a way to make money so they could eventually pay it back. Business models were created that revolved around providing free content (becauserepparttar 119117 internet, after all, was a "free" medium) and charging third party advertisers exorbitant prices forrepparttar 119118 privilege of displaying their advertising torepparttar 119119 vast numbers of site visitors clicking in and out of their websites every few seconds. Perfect! Site visitors receive their *entitlement* of free information and we'll make our money from advertising revenue, these site owners decided.

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