A dotcom, or dot-com, is a company that conducts business primarily through a website. A dotcom company embraces the Internet as the key component in its business. The businesses are normally conducted through a website with the domain “.com” in the URL. Popular dotcom companies include Amazon.com, eBay.com, Priceline.com, coupons.com, and shuttelfly.com. The companies survived the burst of the dot-com bubble.
The Dotcom Bubble Burst
People started a dotcom or a website for almost everything, right from buying groceries from nearby grocers to buying pencils, but they did not figure out how much money they spent on making the website and buying space and designing it. They did not even access how much money they should make by selling their products to recover the cost because they had funds from others supporting them. Later, when the supporting people who funded their website started asking how they would recover money, the founders were clueless. So, the website was shut down. This happened all over the world. Then, the venture capitalists or the VCs (the people who fund other people to start a business) became careful about the money they were spending to avoid losses. This caused a lot of disappointment among people who wanted to start a venture. Hence, the dotcom bubble busted.
It was like bargaining for onions
An eleven-year-old from Bangalore sold off his excess sandwiches, made by his mom to his friends; perhaps this was his first venture.
When he attended a lecture at Standford University, he learned about the history of founders like Steve Jobs or Scott McNealy. He thought to himself, “This is no big deal, I can do this.”
This is the story of none other than Indian – Sabeer Bhatia, the person who founded hotmail.com.
Working in Apple Computers, he hated it when others had access to his company email. He decided to form an email system that could be accessed only by the owner, and no matter where he was, he could check his inbox and receive emails for free.
He was rejected by 19 funding organizations. Finally, a company agreed because it felt introducing a free email service would revolutionize the Internet.
The day hotmail was launched; servers were flooded with people signing up. Thousands and thousands of people flocked to sign up every day.
By year-end, they were greeting their millionth customer. When Microsoft came knocking, 12 months later, they’d signed up nearly 10 million users. But what were 10 million subscribers worth?
Bhatia didn’t know how to sell a company. But he did know how to buy onions. “In India, you’ve got to negotiate for everything,” he says. “Even while buying vegetables, you’ve got to negotiate.” When the bargaining started, Bhatia felt right at home. “They came in low with $160 million, so I came in at $700 million! And when they said: that’s ridiculous! Are you out of your mind?” I knew it was just a ploy. Bhatia won’t budge and finally, they had to succumb.
Microsoft purchased hotmail.com for a whopping 400 million dollars.
There are plenty of options available to you if you wish to choose a career in a dotcom company. Here are a few of them :
- Venture Capitalist
- Web Developer
- Web Designer