Why Today's Blogs Are Nothing Like The Dot Com Bubble

by Robb Sutton

In the late 1990’s and early 2000’s, there was a huge phenomenon that swept the world. Huge amounts of investment capital was hitting little unknown ideas with the dreams of making it big online. These small companies banked on the fact that they would be able to turn huge profits in the future with enough money today. With interest rates at an all time low, venture capitalists were begging to get on board and make money hand over fist. In the early 2000’s, interest rates rose and the anticipated profits were never realized. “Dot Com” stocks plummeted and the short lived Dot Com era was over.

This is an over simplified summary of what happened over a 7 year period, but what is important to the story is that the investors were investing in air. Individuals and groups were throwing money at ideas that had little to no chance of actually making it big. It was the biggest gamble in recent business history.

Why blogging is not a dot com bubble ready to burst…

Fast forward to today…now we are seeing large profits from individuals running small websites only working several hours a day. To many that saw and lost during the dot com bubble of the late ’90’s, everything is starting to look the same. There are several key differences that make today’s online companies much different than those of the last extreme fall.

Blogging Requires Little To No Venture Capital

When you hear JohnChow.com, Problogger.netEntrepreneurs-Journey.com, Shoemoney.com and other sites making huge profits through their blogs and services, there is no mention of huge start up venture capital. All they needed was an internet connection, a computer and a the ambition to start something on their own with the dream of one day owning a site that would support them and their families. Through a lot of hard work and little investment, they grew their online ventures into money making machines.

The beautiful thing about blogging and the web is that you can’t buy popularity and traffic. It has to come over time through hard work and a lot of writing.

Blogging Is Profiting From Actual Sales

Since these blogs are not making their money through capital investments, 100% of their revenue comes from selling a product or service. It can range from ad sales, affiliate commissions or direct product sales, but a clear exchange of resources is taking place. The money from these websites are finally coming from a specific exchange of products and services. In many ways, blogging has become the new sales force by creating sales and promotions for companies to large global audiences. Money does not exchange hands unless there is a mutual benefit. This is the key ingredient that was missing from the dot com era. People are no longer investing in air. Instead, they are growing real companies that have staying power for years to come.

If A Blog Fails…No One Knows About It

Its a harsh statement, but it is true. Most blogs never make it to that elite level. In all reality, most blogs are actually forms of self expression to friends and loved ones rather than businesses. With the absence of large money investments, blogs are able to come and go without any realized losses. Even some of today’s larger blogs would not have huge capital losses if they decided to close the doors. The owners would lose some revenue (or all if they took it down completely), but families are not going to get kicked out of their homes for a simple site losing its presence on the web.

Are You Seeing A Theme Here?

It all boils down to two major factors. With no capital investment and the trading of actual goods and services (large and small), blogging is set to take on the future of web publishing. Never before has an audience had more buying power and a larger voice. Are you going to be the next blogger to hit it big and enjoy the fruits of a real dot com lifestyle? All it takes is a firm commitment and the willingness to adapt and learn. Just like with any startup company…you have to be ready to make the sacrifices and put in the time…nothing is free and great things come to those who work hard for it…

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