Dot-Com Failures
Why are Dot-Coms
Failing?
Short Term Profits
• Many Dot-Coms focus
on short-term profits
rather than long-term
profits.
• Studies show the 71%
of Dot-Coms will fail
within the first two
years.
Costumer Comes Last
• Many Dot-Coms are
focusing less on their
costumers and more on
their leadership and
strategic partners.
• Dot-Comers say that
long-term success factors
are viewed differently
than those needed to make
a short term impact.
Bad Business Plan
• Another Dot-Com
failure is due to bad
managed business
plans.
• Some of these bad
business plans contain
unrealistic sales
projections, bad
money management
and bloated payrolls.
Bankruptcy
• Many Dot-Coms burn
up capital trying to
establish a global
footprint.
• Dot-Coms require
millions to return a
profit and focus their
money in the wrong
places and soon
become bankrupt.
Key Components for Online
Business Success
• Find a target market • Write a persuasive
that has a specific sales letter that shows
problem it wants customers the benefits
solved. of purchasing your
product.
• Find or create a • Build a website, drive
product that solves a large amounts of
common problem traffic to the website,
experienced by target and build an electronic
market. newsletter.
Lauren Green
Tues./Thurs. 8:00-10:45
IT 3700