THE DOT COM BUST- AN UNDERSTANDING

Investing time and/or money in a Dot Com requires an understanding of why that investment in 2005 is any different than it was 6 years ago when so many people thought the Internet had completely arrived.

Mark Cuban pocketed personally over $2 billion in the sell-out of Broadcast.com, a site which few people have yet to visit. That's because people thought the Internet was half media and half real estate and that the old mantra of location, location, location, still held true. They were wrong.

We now know why there was a Dot Com bust. The Internet has two clearly defined halves. The first half, the part that comprised the investment opportunity of the mid to late 90's was about URL address, the site, the technology, etc.

But most Dot Com's found themselves on the outside looking in when they realized they were still left with having to advertise on TV, radio, newspaper, etc., to drive traffic to the Internet.

Enter the maturation of the Internet Customer Delivery Channel. Now there is a back half and it is characterized by connectivity and exemplified by two year old MYSPACE.COM which recently sold to FOX for $1.3 billion.

You have to grasp the significance of that fact. A two year old company just sold for $1.3 billion to FOX and you cannot find this company on a Search Engine. Why?

Because the back half of the Internet is now very much connected and it is run through simple math that if you can understand the math, you can leverage unprecedented opportunity.