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The Internet has been "officially" open to commercial activities since 1992, and entrepreneurs are positioning themselves to earn profits from both new business opportunities and network-based variations on established ones. But is the Internet completely ready for serious business activities, for the exchange of money so necessary to commerce, and for the mass penetration that will give entrepreneurs sizable markets to sell into?
Actually, no! Not yet. But even as these capabilities ramp upward, you can already make a lot of money offering products on or for the Internet.
Don Logan, President and CEO of Time, Inc., has been quoted as saying: "Stop thinking of it as the Information Superhighway and start thinking of it as the marketing Superhighway." Once you put things in this perspective, you begin to realize that the possibilities are extremely exciting and wide-ranging, for example:
Category 1: Providers of Software and Hardware For Use With The Internet
Although at first glance this appears to be a highly technical business, it's possible to hire programmers and system developers to make any software you'd like to sell. Even if you are a programmer, you'll probably want to hire others to help you with any major software project.
The only real requirement for developing software to be used with the Internet is the traditional dictum: "Find a need, and fill it." Some examples of Internet business opportunities in this category include:
Jay Liebowitz is only 12 years old, yet he sells his software through CompuServe. His most important products are WinDOS, a file manager and computer tutorial product, $35, and BatchEdit, a program for controlling files, $15.
Mosaic, developed in an academic setting, is now being turned into a business by Marc Andreessen, who founded a company to distribute his version, called the NetScape browser.
There are other Internet browsers, including a browser on Prodigy, a browser on America Online, one called SlipKnot, and one from NetCom (itself an Internet access provider) called NetCruiser.
Category 2: Providers of Information and/or Services For Navigating and Using The Internet
Four11 is an attempt to provide both a "white pages" and a "yellow pages" for the Internet. Available through both e-mail and the World Wide Web, basic listings are free. But extended listings that can include advertising carry a small annual charge.
Access 2000 is one of many services offering full-featured access (SLIP, FTP, WWW) to the Internet. In addition, Access 2000 offers local access numbers, one of the world's largest CD-ROM and shareware library, multi-user games, Daily USA Today news & many others, more than 500,000 classified ads, Free Advertisements, and Global network access through Planet connect satellite, World link, Internet, and Fidonet. The cost of the service is $200 for one year. (Incidentally, Access 2000 also needs agents to sell memberships.)
Internet Voyager is a paid-subscription newsletter that focuses on "where to go on the Internet." It costs $39 for 12 monthly (printed newsletter) issues.
Mecklermedia Corporation, based in Westport, CT, produces magazines, newsletters, database directories, trade shows, and professional books on virtual reality, electronic media, and Internet World magazine, a commercial magazine covering the Internet.
Shopping 2000 makes available over the Internet information about products and services. Vendors must pay fixed price setup charges, plus monthly operation fees if they use space on one of Shopping 2000's own computers. Setups for computer space have been running $6,500 to $25,000, with most in the range of $7,500 to $15,000. This includes all consulting, design, graphic generation, forms, domain registration, and document translation. Monthly operation costs have been running $650 to $2,500 per month.
Category 3: Providers of Non-Internet-Related Information and/or Services Sold Via The Internet
This is the world of pure and simple marketing via the Internet. You can sell anything from shoes to salami, and do it via the Internet instead of--or in conjunction with--your efforts in other marketing channels. Here is a tiny sampling of what you can already find on the Internet--and remember, so far the 'Net is not fully set up to support business transactions.
Pacific Bell and realtors in the San Fernando Valley have established a database of available homes. Customers can sort and search through it, then right on the computer screen in their realtor's office view any houses they like. The paperwork needed to buy a home is also processed faster through network communications.
The Future News Network (FNN) is focused exclusively on forecasting Wall Street and global financial markets. FNN forecasters include 50 financial market traders, advisors, money managers, market analysts, economists, and financial publishers. Forecasts cover the major stock markets on U.S. & global financial exchanges; long-term bonds, with special focus on U.S. T-Bonds; all precious metals; energy, agricultural, livestock & metals options and futures; and major currencies.
"CDNOW" is just one of many online music stores. It boasts a "virtual inventory" of 250,000 or more CDs, records, tapes, and other titles. People can browse an electronic catalog, order over the Internet, pay by credit card or other means, and receive their goods by direct shipment.
CA Animation carries vintage Disney, Warner, MGM, Fleischer, Japanese, Star Trek, The Archies, Heavy Metal, Marvel and DC comics animation, and more. It claims to have one of the most extensive inventories of original animation art in the world.
The World of Maps, a Canadian store, is now accessible on the Internet. Brad Green, owner, invites everyone to drop in for a look. He and his partner, Petra, can help with all sorts of map and travel information questions and needs. World of Maps can supply the right map or travel guide to meet almost any specific needs.
The University of California, at Irvine, Bookstore has an extremely strong online advertising and promotional presence, attracting as many as 120,000 browsers per month, and selling about $5,000 worth of books per month through electronic mail orders.
The Internet Cafe is a public access site in Scranton, PA,. Dave D. Cawley, Internet Cafe Maitre d', says it offers "dial in" access and has terminals located in a local Bookstore and Cafe. While they compute, patrons can have coffee, a sandwich, and--on Tuesday and Saturday nights-- listen to live music. The Cafe offers full Internet access accounts for $10/month, unlimited usage.
Even TupperWare is now being sold via "TuppNet" on the Internet.
Clearly, the possibilities for using the Internet to create a new product or service, or to market an existing one, are limited only by your imagination. In the next few years, experts expect the world--and the world of marketing--to be entirely transformed by the yet-to-be-realized potential of the Internet.
This complimentary resource is (c) 1995 by Robert Moskowitz, who is available for consulting, speaking and strategic planning on a wide variety of white-collar productivity and technology issues. You can reach him at (818) 224-4224, fax (818) 224-4343, email: Robertam@ix.netcom.com or by mail to Box 6375, Woodland Hills, CA 91365.
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