Aardvark Daily aardvark (ard'-vark) a controversial animal with a long probing nose used for sniffing out the facts and stimulating thought and discussion.

NZ's leading source of Net-Industry news and commentary since 1995
Australasia's "New Economy" News And Commentary Site
Today's Headlines | Contact | New Sites | Press Bin | Job Centre | News Search
Where's The Money? 23 November 2000 Edition
Previous Edition

Less than a week after picking up a prize for its news website in the Netguide Awards, Wilson & Horton has announced that it's laying off 10 workers from the online division.

And of course we still remember the NBR's prestigious online version which crowed at regular intervals about the number of hits it was getting and how well things were going -- only to admit defeat and fold up when it ultimately proved to be economically unsustainable.

Then there's Flying Pig which found itself having to cut back staff and eventually being sold when the business plan obviously went off the rails.

Readers Say
(updated hourly)
No Comments Yet
Have Your Say

Look a little further afield and we see that right around the world there are bucketloads of Internet businesses folding through an apparent inability to spin a profit from an audience of more than 300 million Net users. So what's going on?

How can so many people have gotten the Internet marketplace so very wrong?

If all these businesses were started and run by non-business-savvy geeks or idiots then maybe we could understand -- but in far too many cases, the people behind these failed ventures are just as likely to be seasoned and skilled businesspeople.

The oft-touted goldmine of online retail has flopped so badly that some 75 percent of all dot-com failures in the USA during the 12 months have come from this sector. Another area which seems unable to spin a dollar's profit is that of online publishing which still seems to be struggling to find a magic potion which will allow it to turn an audience into cash.

If we look closely at what's going on here, I think the reason why nobody's able to make any money out of the Net is a very simple one -- it's just the law of supply and demand.

With every Ma and Pa retailer putting up their own cyberstore, and every print publisher and broadcaster in the world all pouring content on the Web then we have an unnaturally high level of supply -- and this means that the 300 million Net surfers are spoilt for choice.

When supply outstrips demand then it becomes very difficult (if not impossible) to make a profit -- and that's exactly the situation we have on the Internet today.

So -- how do wannabe Net-millionaires get around this problem?

Simple -- don't enter markets that are already saturated with supply.

Yes, there are still billions of dollars in profit to be made out there on the Net -- but to earn this money the smart businessman will have to come up with something new, something valuable, something the market wants, something for which they are the only source of supply.

Does it sound impossible? It's not.

Remember, as far as the online world goes, we're only looking at the tip of the iceberg. Over the next five years we will see more new products and services appear than you can possibly imagine right now. The secret to making money out of the Net is to be first to bat with one of these and you must back it up with an effective marketing, support, supply and operational infrastructure.

Simple eh?

(For details on how to do this, just send your cheque to... :-)

The Weekly
Yes, I know the first edition of the weekly has yet to appear -- but I'm still working on it.

Hopefully (if current leads pan out) it will include a very interesting expose' into the astoundingly bad behaviour of a group of local "new economy" company directors (some of who are also on the board of a public company). Just how competent and ethical are the managers of some of our hi-tech public companies?

If you want to receive the "all new" Aardvark Weekly in PDF format by email then please use the contact form to leave your email address.

You'll get a confirmation email within a day or two and you won't receive anything else unless you respond to that email to confirm your opt-in status.

As always, email addresses submitted for the purposes of receiving the Weekly will not be given away, sold, bent, spindled, mutilated or otherwise abused and you will not receive anything other than the weekly as a result of signing up.

As always, your feedback is welcomed.

Security Alerts
Sun advises of a potential compromise of 2 specific security certificates (CERT)

IE 5.5 hole lets hackers read files (CNet)

Bug hunter finds another hole in Microsoft IE browser CNet

Microsoft issues new patch for Windows 2000 Telnet security hole (Computerworld)

Windows ME Bugged by Flaw (Wired)

Microsoft adjusts sign-on feature to patch Windows 2000 (CNet)

Virus Alerts
Virus Wishes You A Merry Christmas (TechWeb)

Love Bug bites again  (ZDNet)

UBS warns of new virus (CNN)

Bookmark This Page Now!

Sites In Trouble


NZL Sites
NZ Netguide
NZ Herald Tech
PC World NZ
NZOOM Technology

AUS Sites
Fairfax IT
Australian IT
AFR Tech
AUS Netguide
NineMSN Tech
APC Magazine
Corporate IT

USA Sites
CNNfn Tech
Yahoo Tech
ZDNet Tech
USA Today Tech
7am.com SciTech

UK Sites
The Register
BBC SciTech


The Day's Top News
4 = open in new window
New Zealand

4  Computer name tussle heads for High Court
A protracted dispute over trademarks between listed technology company Advantage Group and Palmerston North-based Advantage Computers remains headed for the High Court...
NZ Herald

4  Internet inertia leads to job losses
Wilson & Horton, publisher of the New Zealand Herald, is laying off about 10 workers from its W&H Interactive division, blaming the market's slow uptake of internet products...
NZ Herald

4  NZ leads world in IT spending as percentage of GDP
A global study of spending on hardware, software and other technology items, including wages for IT workers, shows New Zealand leads the world in IT spending as a percentage of GDP...


4  Report finds risk but supports Carnivore email surveillance
The Illinois Institute of Technology released its analysis of the FBI's controversial email surveillance system Tuesday, concluding that Carnivore "does not provide protections, especially audit functions, commensurate with the level of the risks."...

4  eBay API Gets Put On The Block
Going once. Going twice. EBay is offering developers the ability host auctions on their own sites -- but there are security and privacy issues, some analysts said...

4  EMusic Software to Hinder Napster Use
Internet music company EMusic Inc. said on Tuesday it will start using new technology designed to hamper distribution of its songs over the controversial song-swapping service Napster...

4  Click Here to Buy Nothing
Friday isn't just the busiest U.S. shopping day of the year. It's also international Buy Nothing Day, which, thanks in part to the Web, will be observed in more than 40 countries this year...

4  The Furor Over Web Disclosure
Is it OK to post the name of a sex offender online? What about quacks and free-spending political lobbyists? Government institutions big and small continue to grapple with the issue...


4  Judge rules ISPs must join complaints scheme
A challenge against a key plank of the nation's scheme for investigating complaints about internet service providers has failed, with the Federal Court on Wednesday ruling that two providers were legally obliged to join the Telecommunications Industry Ombudsman...

4  Remove pirates before Christmas, says Sony
Operators of open-air markets are being urged to crack down on software pirates in time for the Christmas holiday period...

4  Chaos for Telstra - services hit above and below ground
Australia’s biggest ISP has suffered two major blows to its network in as many days. First, a deep sea cable accident leaves half a million Internet customers stranded from the rest of the world. Then...

4  Make or break for e-tailers this Christmas
The nation's struggling online retailers will mount a huge advertising and marketing blitz in the lead-up to what is shaping up as a make-or-break Christmas...


4  Intel swats Pentium 4 bug
The chip maker delivers a fix before the processor ships. The BIOS code glitch determined how the chip handled some instructions...

4  Yahoo! vows crackdown on pedophiles
Yahoo!'s UK managing director promises to personally oversee the appointment of an inspector who will crack down on chat-room pedophiles...

4  How Greed Ruined the Web
Easy-money-hungry execs and investors who followed the first wave of Net visionaries nearly wrecked it for all. Now, sanity has a second chance...

4  Alanis Morissette to Sell 70,000 MP3.com Shares
Pop singer Alanis Morissette intends to sell 70,000 shares of online music firm MP3.com Inc. , a filing made with U.S. regulators showed on Tuesday...

Looking For More News or Information?

Search WWW Search Aardvark
Try the Aardvark News Search page or look here.co.nz

Copyright © 2000, Bruce Simpson, free republication rights available on request

jet engine page