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Dot Bomb part duh

Written by David Harry   
Friday, 15 September 2006 09:56

I have been on a rant for a while about some of the crazeeee money being thrown around the social networking world. It was the Google and MySpace deal ($900 Million search deal) then we had earlier this year the NBC goes iVillage ( $600 million) and now Face Book thinks they're worth $2 Billion.

I just know there are Venture Capatalists everywhere smuggly sipping brandy and waiting for the 1st shoe to drop. This is all so familiar to those of us that were building the internet back in the late 90's and early 21st century. The numbers are just to far fetched to be stable in the longer term and viable in anything but the strongest of economies.

There are many grumblings in the real estate and financial sectors to give one pause these days. Worsening problems in the middle east will likely come into play as will the consumer debt load problems that currently exist. The economy seems to be at risk and we haven't had a good recession in a while. Just this morning the auto industry coughed up 14 000 jobs.

The last Dot Com bust was, for the most part, restricted to the tech sector. This time, a weakening ecmonomy would likely cause some of these 'tech' investments to look far less viable than they presently do.

I for one, am watching intently and with a sense of deja-vu

 

 

Comments  

 
0 # Shawn 2006-09-25 15:10
I agree. I've been in the corporate sector for quite some time, and have noticed an increasing trend among high profile sales.

i.e. - Old timer business men own valuable property and have cash to back it up. Then some hot shot young gun comes along is able to spout percentages, roi, blah blah blah, and before you know it, $2 billion leaves one bank account and into another.

This is in direct relation to why companies fail. Do you really think GM and Ford would be having trouble if they would've just focused on the product and internal pay structure instead of millions upon millions of marketing campaigns? I think not my friend.

We are in a new market age and it no longer revolves around quality product and services.... just plain old 'Buy Now, and our elite team of semi-profesionals are ready to tell you why!'
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0 # Dave 2006-09-25 15:48
We’ll see how it shakes out, but a nice little recession would put some perspective back into things for folks. Many young folks in the Tech sector were still in High School during the last tech bust. Memories fade it seems.

The numbers are getting higher than the market can bear in my estimation. We’ll see though. Who ever really knows. I am but a twig upon the shoulders of the mighty river called Life...lol….


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0 # Shawn 2006-09-26 08:11
Your right, much too high for the market to bare. I'm just thinking some punk came along and said.. "Ya know, Facebook has 7.5 million registered users. If we can get 10 percent of those people to click on one of our ads per year, then we will make up that money in xx years."

Meanwhile, punkboy gets a nice bonus check from facebook.
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