I am a victim of the internet boom twice over. Not one, but two e-commerce companies I worked for crashed and burned as a result of the internet boom of the 90’s. Well, it’s been about ten years, what’s changed? Everything.
Back when companies were springing up like daises in the web boom, the problem wasn’t money. There was money everywhere. The real problem was that there were too many companies selling too many things to not enough customers. Any e-commerce store you could think of was created. An over abundance of choices were possible that many people didn’t need or want. On top of that the advertising and resources used to promote these companies ran up bills and when profits did not materialize, companies started going belly up.
I am not an analyst, but as an insider working for such companies, the main reason besides supply and demand gone awry, was the lack of familiarity with this new way of doing business. The internet had been used for research prior to web commerce, so the idea of making money with a fairly new and innovative medium had people emotional, over confident and unaware of how to make these e-commerce sites perform successfully.
Fast forward ten years and we see the way things should have been back then. Websites are more streamlined and there is not a plethora of odd sites clamouring for attention and money. Advertising is not overwhelming and over fiananced. The web just makes sense now. So everything has basically evened out and the consumer is better off because of it. I guess I should be happy, but boy do I miss those over the top company launch parties.