To: ciVic who wrote (93545 ) 4/6/2000 8:30:00 AM From: If only I'd held Read Replies (1) | Respond to
He might have been a little rude about it but he is right. SOmething one should consider here. Many of these larger cap companies such as AOL. AMZN, YHOO, etc....are getting a large portion of their revenues from these smaller companies for their alliances. These smaller companies are paying huge premiums to be allowed to advertise with the big-boys. Problem is, the little guys haven't proven those alliances profitable. They spend all this money and get nothing in return. Sure, they get the hits, but that's not enough to bring them profits and not enough to justify the expenses they are incurring. So what happens is eventually, the little guys can no longer afford these alliances, and they start dropping off like flies. There goes a big portion of revenues for the big guys. It will all come together, and we will see once and for all, that the internet strategy is not working. YHOO is gonna be in a heap of hurting when their alliances start dropping off. AOL, AMZN, EBAY, etc....all in the same boat. Perhaps I am blinded by my own activities on the internet, but the only thing I do on the net is trade and follow the market. Occasionally, my daughter looks up some information for schoolwork, but we don't pay for anything on the net. The only thing I have ever bought on the internet is stocks. In my little world, that's just about all the internet is good for. I realize that many folks in different lines of work use the net for other things, I am not stupid. I just beleive the internet is about 10 years ahead of it's time. And the valuations of some of these companies are about 10 years ahead of their time. YHOO is valued at 90 billion dollars on about 1 billion in revenues and certainly nowhere near that in profits. The internet is gonna get a good flushing of the small companies that are ahead of their time, and YHOO, AOL, AMZN, EBAY, etc....that have come to rely on these smaller companies for their revenues will suffer dramatically. They may survive it, but they will suffer all the same. You all let me know when you see a Coca-cola, Pepsi, Walt Disney, etc... advertisement on the net. That's when it should get good. Right now, them boys ain't spending their money to advertise on the internet. Well, I haven't seen it yet anyway. Actually, from my standpoint, Coca-cola would get my eyeballs more on the net than anywhere else, since I spend more time on the net than on TV, Newspaper, etc...There must be a reason they haven't come around yet though. Perhaps, I am still in the minority when it comes to the time I spend on the net. I am not the average internet user, that's for sure.
