Monday, February 06, 2006

Remember when...reflecting on the Dot-Com busts

Here's a blast from the past...with some great lessons on what NOT to do with building your online business.

Some wisdom gained by the dot-com busts:

From Webvan: even if you have a good idea, it's best not to grow too fast too soon.

From Pets.com: advertising, no matter how clever, cannot save you from a bad business concept.

From Kozmo.com: even if you're selling online, the cost of the sale needs to be less than the amount your customer is paying (duh!).

From Boo.com: being a global business means knowing the language (and the currency) from around the globe.

From MVP.com: celebrity endorsements ain't worth Jack (unless Jack Nicklaus is behind it...then maybe...) in the long-run.

I started in "high tech" PR during the height of the dot-com era, though never landed any of those companies who had so much money they had to blow it on PR guys like me. In fact, I recall the one dot-com company that seriously considered us. Our proposal would have given them a great campaign for four-figures, but they went with an agency that their VC funder liked for five-figures (a month!). Simply brilliant...and of course the company no longer exists.

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