Nice article on GNET from ZDNET:
chkpt.zdnet.com
Secrets of a Rising Web Superpower
How the Web Was Won
Annette Hamilton, Executive ProducerZDNet AnchorDesk
Wednesday, August 04, 1999
It is the mantra of the frustrated mathematics student:
"Why do I need math when I have a calculator?"
Next time you hear a similar complaint, consider offering
this explanation: Because your future depends on it. If
the future involves doing business on the Internet, that
is.
Ask Russ Horowitz. He's the CEO of Go2Net, a hugely popular
(and profitable) network of stock, business and information
Web sites. Given that the Net is such a new business platform,
Russ is convinced the key to success lies in vector calculus
-- the process of using one known factor to systematically
determine other unknown factors.
The theory seems to be working for Go2Net, which is emerging
as a Web powerhouse. In June, the Seattle-based company
posted a $3.1 million profit Click for more. Became the
9th-most-popular network according to Media Metrix --
just behind Amazon.com. And claimed to host more than
360,000 small- and medium-size businesses thanks to its
HyperMart and Virtual Avenue end-to-end ecommerce services.
Click for more.
According to Russ, the company's secret strategy for success
began with identifying vertical markets that offered the
greatest growth opportunity. Then it set out to build
a network by acquiring sites within a handful of specific
categories that had a loyal following but relied more
on technology than an expensive staff. Click for more.
It looks for:
1. Highly-automated sites. Go2Net acquires scalable sites
that fall within certain categories of sought-after services,
such as Web searching and stock information. For instance,
its Silicon Investor site features a message board, which
allows users to create the content.
2. Internet-only businesses. The company goes after business
and services that could not exist outside the Internet.
3. Bottom-up marketing. You can't turn around without
seeing Web sites advertised on TV, radio -- even the sides
of wine corks. Meantime, Go2Net has relied mostly on word-of-mouth
to drive visitors to individual sites within its network.
Only now is the firm upping its advertising budget, from
$1 million in 1998 to $10 million to $15 million in 2000.
Doing business on the Net is a calculated risk, and Go2Net
could still be tripped up by a bigger portal -- Yahoo!
or America Online, for instance. Or -- gasp -- some as-yet
undiscovered factor. Have any ideas what "unknowns" Russ
may be missing? Scroll to the bottom of this page and
use the TalkBack button to share your secret with other
AnchorDesk readers. I'll post some of the best responses
beneath this column. |
