No. Many reputable studies predict billions in commercial revenues via
the Net within the next 2-7 years. For 1996, it's just hundreds of millions.
The fact that every Tom, Dick and Harry can cheaply put up a WWW site
and offer merchandise/service/information in no way speaks to the
quality or uniqueness of their offerings. If you're after "Browsers" on the
Internet, you're in trouble. If you offer solid value for business, you've got
a real chance at success.
Marketing fundamentals rule all media, and now the Web as well. No single
locale has more rubbish per mile than the Net, hence it's lack of general
money making performance for the majority of entrants. Software companies
are being jostled into giving away software in part as a reflection of the true
value of their content. It's true the Net has accelerated competition to a point
where many are running scared and most don't understand where exactly
profits will come from, but not so in the case of those offering true value.
The Net isn't lowering the price of cars, carrots or lingerie. The fact that a
given product is best exposed on the Net does not dictate conforming to the
"free products" model. In addition, Stu, you can always lower your price, but
going up (from zero) won't work. On the other hand if you have a loss
leader and use it as a market share acquisition tool, that's a marketing
decision for you to make.
Regards,
staff@hpp.com
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