E-Commerce Times Talkback

ECT News Community » E-Commerce Times Talkback » Re: Who Pays When Dot-Com Partners Fail?

Re: Who Pays When Dot-Com Partners Fail?
Posted by: ECT News 2001-07-02 15:45:27

Today's e-commerce industry could not have been built without the
interconnecting threads of partnerships, affiliate programs, marketing deals and other
alliances. But the Web remains vulnerable in spots. eBay partnered with
Eppraisals.com, only to see that site go under two months later. Investments by
Amazon.com in relative startups like Kozmo, Pets.com and Wine.com failed to
return any profit.

When a dot-com teammate has to abandon the playing field, what is the cost for
the players left behind?

Re: Who Pays When Dot-Com Partners Fail?
Posted by: Henry 2001-07-05 07:27:26 In reply to: ECT News

I appreciate this article because it seemed to discuss some of the history and dangers of entering partnering agreements without performing sufficient due diligence on your partner. However, I was concerned by the author's tendency to focus on the negative. I am tired of hearing the "dark side" of the web. There is a terrific opportunity in all down markets and business cycles that could be articulated just as easily.

Consider the climate for web-based businesses today. Venture capital and Angel financing has become very difficult and the terms of such deals have become more risky for the entrepreneur than ever. This is a wonderful time for strategic partnerships to be formed--the deals are better now, the entrepreneurs' concepts are more fully developed, and the business plans are complete.

In every business sector there are better times than others to step out from the crowd. There are always good business models being developed, but not always an open environment for financing. Supply and demand cycles have swung heavily in favor of those willing to "venture" out. In the end, both will lose if the potential "big brothers" stay on the sidelines.

Re: Who Pays When Dot-Com Partners Fail?
Posted by: hillbilly 2001-07-03 14:48:42 In reply to: ECT News

Ultimately, as in all these commercial failures, whether web related or just "business as normal", the consumer, and thereby the taxpayer, pays. I could quote instances, but it would be redundant.