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   February 10, 2000


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         Thursday, February 10, 2000

         
         Six Revelations For the Internet This Year,
      by Lee Simonson

You've heard all the news stories about how webmasters are desperately trying to get people to come to their sites and to make them real "sticky."

Tens of millions of dollars were spent on SuperBowl commercials to get consumers to visit websites and to hopefully have them stay a little longer than just a few minutes. It's the Wild West in the Internet business and the web-people are up to their necks staking their claims.

The year 2000 is going to be a big year in the Internet business. Let me tell you why.

1- Websites that are supported by outside advertising revenue will find themselves going a zillion miles an hour into a brick wall. Why? Because the advertisers and the ad agencies they deal with are going to be looking for results. No one is going to invest an unlimited amount of money to secure a new customer. The advertisers will no longer look at Cost Per Thousand, or Cost Per Impression or Cost Per Eyeball. None of that matters anymore. Throw it out the window. What matters is: Cost Per New Customer.

Till now, advertisers have been patient knowing that the Internet is still developing and emerging as a new media. But patience will run thin in 2000, and advertisers will find other ways to spend their money.

2- Someone, somewhere, will finally have the nerve, and courage, to admit that banner ads do not work.

3- Wall Street will pour billions into Internet start-ups. However, Wall Street will not do it out of the kindness of its heart. Sooner or later, it will ask the big question: "What is the return on my investment?" That one question will send shock waves through the Internet industry, when the "future" finally becomes the "present" and web company officers can no longer put off answering the question. Investors will be very forgiving to places like Amazon, but not many more.

4- It will be discovered that e-Bay has the perfect Internet business model for several reasons. No inventory. No deliveries. Little overhead, and nothing more than a conduit for needed and valuable information -- and, isn't that what the Internet is all about in the first place? It's as close to the perfect business as you can get, except maybe the Internet itself, which has no employees and no overhead. Only one problem, you can't own the Internet. Meanwhile, copy the e-Bay model (and it doesn't have to be auctions) and you've got yourself a winner. Remember -- NO inventory and NO deliveries.

5- The whole philosophy of the Internet is going to change. For example, here at Heartwarmers.com "we don't wait for people to come to us, we go to them." The only captive audience anyone has in this business is the audience that asks for information, automatically and conveniently. That delivery system is called "email." Simple and very effective. It has been stated in JaydeNews before by many experts -- who are all correct -- that opt-in, permission based email, is the single most effective, and sticky, tool you can use to get your message to the masses. One of the best sources for finding opt-in email (or ezines) is the Directory of Ezines at:

www.lifestylespub.com

6- Expect a BIG push to make SPAM illegal. Don't be surprised to see some Federal legislation.

All in all, 2000 will be a shake-out year. Big monied novices will painfully discover that "if you build, they will come" does NOT work on the Internet. Just because they have a fancy .com address does not mean it has any value. The value of the Internet is no different than anything else in this world -- real or cyber. The value of a site will depend on how well it can make someone's life more fun, convenient, profitable, healthy, safe, romantic, or whatever else humans need to use the Internet versus conventional media.



Lee Simonson is an e-publisher and reaches 1.5 million subscribers a month with his opt-in ezines. His site can be found at:

www.heartwarmers.com



Expert in your field? We're looking for ARTICLES on web site design and development, promotion, positioning, and e-commerce. Articles should be in the 700 to 800 word range and include a one paragraph bio of the author. Submissions can be sent to:

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