A Internet Business or Dot-com company, or simply a dot-com, is a company which does most of its business on the Internet, usually through a website that uses the popular top-level domain, ".com" (in turn derived from the word "commercial"). During the stock market crash ending the Dot-com bubble, many failed and failing companies became known as dot-bombs, dot-cons, dot-composts or dot-gones.
While dot-com can refer to present day companies, it is also used specifically to refer to companies with this business model during the late 1990s. Many of these startups formed to take advantage of the surplus of venture capital funding. Many were launched with very thin business plans, sometimes with nothing more than an idea and a catchy name. The stated goal was often to "get big fast" i.e. capture a majority share of whatever market was being entered. The exit strategy usually included an IPO and a large payoff for the founders.
Others were existing companies that re-styled themselves as Internet companies, many of them legally changing their names to incorporate a .com suffix.
After the crash, many of the surviving firms dropped the .com from their names.
There are a couple of ways to do business and make money with the internet. They are emphasized in the three C’s, which stand for Commerce, Content and Connection. Commerce is about selling products over the internet, like Amazon.com does. Content refers to placing content on the internet, varying from news headlines to blogs. Some examples are BBC News and Facebook. Lastly you can do business by supplying an internet connection, like AOL, one of the largest internet service providers (ISP) in the US.
Some companies, like Google, Microsoft and AOL, offer all three of them, which gives them an advantage on their competitors. This combination should be a success formula according to some information specialists.
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