On Thu, 30 Aug 2001 02:52:33 -0500, "Richard Lynch" <[EMAIL PROTECTED]>
wrote:
>Which dot-bomb had a business plan, with a revenue model, which did *NOT*
>involve going into heavy debt and blowing huge piles of VC money for several
>years in a market-share grab on the Internet, where the barrier to change
>brands is one (1) click
Internet market share is an illusion when you can change brands with a
few clicks. The only way to keep Internet customers is to provide
good service and products at competitive prices, and continue doing so
year after year.
It's virtually impossible for big corporations to compete on that
playing field, because their overhead costs are too high. The only
way they can sell at a competitive price is to lose money on every
sale, a dead-end tactic that only works until you burn through all
your investors' cash.
Businesses need profit to survive. So why would any business be
willing to lose money on a sale? To gain Internet market share which
is an illusion in the first place? Obviously, that's a fundamental
mistake made by many large corporations trying to grab Internet market
share.
Small businesses, like CDBaby, are the future of this market.
Egan
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