Subject: Profit potential? From: "Curt A. Monash" <0006058685@mcimail.com> Date: Wed, 5 Jul 95 16:31 EST

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Eric writes:

"Likewise, if you think you can make money on on-line ads or subscriptions
(to date, very few have), more power to you. 

.....

There are many, many ways to market an on-line service, and many 
different ways to set one up so that it best addresses those issues. 
Time and money aren't nearly as big a factors as are marketing saavy. "


While I tend to agree with both parts of that, I can't help but notice that
they seem very contradictory.  To date, nobody HAS broken the code about
making money online.  Why is that?

My conjecture is:  The technology isn't ready.  Online experiences with
pleasing amounts of graphics are horrendously slow.  There isn't enough
"added value" online of other sorts, either.  Certainly, there are niche
markets that are exceptions, but no mass ones except generic chat/e-mail/BB
communications.

Other reasons seem less compelling.  True, users don't want to either
experience ads OR pay for information, but analogies to other media suggest
they'll relent one way or the other if the value is sufficient.  Low
barriers to entry might mean the big guys will rapidly assimilate any ideas
small, innovative firms come up with -- but SOMEBODY will make money.
---------------------------------------------------------------
OK, I've argued that it's too soon to make money -- and, if you're a small
outfit, you may never make money.  For the little guys (a group which
includes me) -- now what?

First of all, I may be willing to buck the odds and try to build a big
entrepreneurial success.  I'll have to offer something that the NYT Computer
News Daily and CMP Techweb and ZiffNet can't easily imitate -- but I might
be able to pull that off.  Furthermore, even if I fail, I gain, so long as I
fail visibly.  What do I mean?

In a word, self-promotion.  Being a visible media personality is often a
good career move.  Build the audience now and worry about making money
later.
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I know all this is pretty general; still, I'd welcome comments.


Curt Monash
Chronicler of entrepreneurial ventures
cmonash@mcimail.com
 



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