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why did so many .com companies go belly up?

Originally posted by: kei
how hard would it be to start up an internet company keep it running?
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It's difficult to keep investors and bring in any kind of money when you essentially have no tangible product.
 
there used to be a LOT of money in online advertising, making the absence of a physical product still a profitable model ..... this is circa 98-99

Now, we've all learned that this just didn't hold up.
 
Also I think people thought they were cool or trendy buying online at first but really it is easier to go to the local superstore and by something. You do not have to deal with shipping and returns are easier. Somethings are easier online but really I prefer a store to a web page.
I think porn is the exception.. 🙂
 
There were over 4 of them in this area that I know of that went under. Most of them were young investors with limited business experience. Most were jumping on the bandwagon because they kept hearing about how much money was being made...just like the gold rush. The problems that I saw was that everyone had this 'Unlimited' budget to work with and ended up overpaying the admins and getting too much equipment, but never stepping up to actually be productive. They simply wasted money.
 
Originally posted by: Viper GTS
The companies were based on piss-poor business models.

Viper GTS
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you mean some actually had models? Well, instead of thinking they'd be rich enough to date models...

 
explain the ebay phenomenon
what do you think it costs to run ebay for 1 day?





can't really reply to this thread that much
at work, internet is slow, and i'm not a subscriber yet
 
I don't blame the companies as much as the investors. Too much capital venture money was floating about spent on too many sites without a tangible business plan, product or service. Who's more at fault? The fool with no business plan or the fool who gives them piles of money ignoring the lack of a real business plan?
 
hey kei, what a surprise to see you make a thread! Are u interested in getting into the .com business yourself?

anyways, just wanted to say hi coz I really don't know much of anything on this. 🙂
 
Originally posted by: kei
explain the ebay phenomenon
what do you think it costs to run ebay for 1 day?





can't really reply to this thread that much
at work, internet is slow, and i'm not a subscriber yet
Click to expand...
I'm sure the cost of running ebay is negligible compared to their revenue 😛
 
Originally posted by: kei
explain the ebay phenomenon
what do you think it costs to run ebay for 1 day?





can't really reply to this thread that much
at work, internet is slow, and i'm not a subscriber yet
Click to expand...

ebay phenomenon... well it actually has a service that people want, and the price is such that people are willing to pay for it, and such that it is enough to turn a profit.
 
Q: why did so many .com companies go belly up?
A: Because of those damn Ferengi's who made PointClick, Mercata, Accompany/Mobshop, Shopss, 800.com, Reel.com, Furniture.com go belly up!

Oh wait a sec ... 😱

I miss getting my DVDs for $3 shipped from Reel.com
 
Originally posted by: RossMAN
Q: why did so many .com companies go belly up?
A: Because of those damn Ferengi's who made PointClick, Mercata, Accompany/Mobshop, Shopss, 800.com, Reel.com, Furniture.com go belly up!

Oh wait a sec ... 😱

I miss getting my DVDs for $3 shipped from Reel.com
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and you have a lot of them
 
They found out putting words like paradigm on a flash site and sitting in $1000 aeron chairs didnt make money
 
Originally posted by: vi_edit
I miss getting my DVDs for $3 shipped from Reel.com
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I was more partial to bigstar.
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Ah yes, BigStar had some kick ass promo's, coupons, free shipping, you name it.

Starting November I'll be selling the majority of my 300+ DVD collection (finally). I have located all of my DVD's, going to scam them all using my hacked free CueCat barcode scanner into DVDProfiler.com then show the list to friends & family who get first dibs. Then there's 5-6 AT'ers who PM'd me expressing interest before, they'll get 2nd dibs, then the general AT and DVDTalk.com public get 3rd dibs then the rest go off to eBay!
 
Originally posted by: BoberFett
Can you say Value America?

They sold products at a loss. That's not a good way to make money.
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they had awful customer service... probably because that was on the only one they could afford, but i like nordstroms better.
 
Let's say you have a company that sells cars. They buy the cars from the manufacturer for $15k, and then they sell them to the consumer for $10k. It won't be long before that company runs out of money and has no future.
 
Ebay enjoys substantial network effect advantages from their established position in the auction industry. It's essentially a monopoly position that no competitor can break into. Did you know ebay started when the founder wanted to set up a web site for his wife to trade Pez?

Furthermore it happens to be a heck of a business model. Build the software, and then just skim dimes from everybody who transacts through you.

Most dot coms failed because they were formed when venture capital was free flowing, and there were few solid businesses formed. Even if they had been well managed, particularly fiscally, most would have eventually failed anyway due to a lack of operating income. The only funny aspect of it is that with as much money as was thrown at start ups a few years back, some of them could actually have sustained operations for years longer if they had stayed small and not tried to make a splash.

Wall Street and VCs were totally complicit in the whole dot-com sham. In a large way, investment bankers' involvement in the run-up directly led to the tulip bulb bubble and subsequent burst.
 
Originally posted by: manly
Ebay enjoys substantial network effect advantages from their established position in the auction industry. It's essentially a monopoly position that no competitor can break into. Did you know ebay started when the founder wanted to set up a web site for his wife to trade Pez?

Furthermore it happens to be a heck of a business model. Build the software, and then just skim dimes from everybody who transacts through you.

Most dot coms failed because they were formed when venture capital was free flowing, and there were few solid businesses formed. Even if they had been well managed, particularly fiscally, most would have eventually failed anyway due to a lack of operating income. The only funny aspect of it is that with as much money as was thrown at start ups a few years back, some of them could actually have sustained operations for years longer if they had stayed small and not tried to make a splash.

Wall Street and VCs were totally complicit in the whole dot-com sham. In a large way, investment bankers' involvement in the run-up directly led to the tulip bulb bubble and subsequent burst.
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That's pretty much what I said, but you were more eloquent. 😉 Let's give a big hand to those investment bankers and fund managers everyone *wild applause*

 
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