Doom, Gloom and the Dotcom nosedive

[jelve]

Everyday, we are hearing more and more of these stories. Another biggie either bites the dust or their stock value is one-tenth what it was last year.
How will this affect us? How HAS it affected some of us, already? What should we do about it?
IMHO, we can do a few things, even though we are mostly only 'little guys' and near the bottom of the food chain in the internet economy.
The bubble seems to have burst and now we need to accept the fact that it WAS a bubble. We should look at what types of internet ventures/sites have actually succeeded and direct our own marketing/development in those areas. We need to understand that the net is a new means of communication and, regardless of its phenomenal growth, it's still finding its identity and purpose.
Despite all those news stories, the fact remains that internet use figures continue to grow, albeit a bit slower than previously. Demographic sector growth is an area to watch. In North America, the sector poised for the greatest burst of growth has been reported to be the Black and Hispanic market. Globally, the non-English spealing user base is growing fast. How do we capitalize on these trends?

The very nature of the web's purpose seems also to be in question. It has moved from a means for scientists and academics to exchange info through the 'brochure-ware' era and into the online store/auction house marketplace of today, with a generous sprinkling of porn and scams along the way. Do we think that this is as far as it will go? A few short months ago, 'entertainment' sites were assumed to be the next evolutionary step. The relatively slow acceptance of broadband has stifled those expectations. Too bad - especially, for Flashers.
One of the big coming things is now supposed to be online training and education. As with other analysts' predictions, we need to be aware of this 'trend' and ready to seize upon whatever opportunities it presents to us.

We are still, after all, among the 'pick and shovel' sellers in the internet gold-rush. We should be able to prosper as long as others are still prospecting. New, aggresive and ingenious marketing of our skills is, no doubt, needed as we move into an era of lower expectations and less speculation.

Comments? Ideas?

[thenewrules]

Getting depressed cause you're not making any money, huh?

[zacvin]

Ya, jelve I see what you are saying. It is really going to be the survival of the fittest, but in the end, that will only benefit the consumer.

The challenge for web developers and designers is to find or invent new uses for the internet, or more accurately, new ways of applying it. That way companies will see that their money is well invested.

[GreatGooglyWoogly]

Thousands of startup firms took advantage of foolish Venture Capital investors and spent billions of dollars - only to fail. The bubble burst - the companies spent all their money on parties, top notch office space, and talent that they had no work for - they went back to the well for more cash but the bubble had burst, suddenly the VCs woke up and asked the vital question of any business:

"Did you make a profit?"

Those that did not make a profit - the vast majority - were denied a second round of VC funding - and they died. Those few that did make a profit were mostly given more VC money, but they were also put on notice that they must stay profitable - so you have a few DCs left that did things wisely, and have demonstrated the ability to run a quality business model and return a profit to their investors. They are struggling along with everyone else in today's wonky economy to stay profitable. They are the real heroes of this story.

Don't cry for the DCs that are gone or the VCs that backed them - evolution in action.

A prime example of a DC that did things right is Zefer - http://www.zefer.com. They turned a profit in 18 months and seem to be on the road to survival.

[aa]

yeah zefer is pretty good and will remain strong i think.. my take is that the internet is not going away. despite all this bubble bursting, it's still too cost-effective for many companies to take advantage of it. i'm not too worried. well, i worked for an agency that sucked, then i'd be worried because they'll fail. up till now, you can suck at design for the web and still make money -- not so anymore.