The Greatest Dot Bombs (and What We've Learned)

CNET recently published an article covering the greatest now-defunct websites and internet disasters. It's an interesting read. Some were way ahead of their time. Many are now classic case studies in how not to run your online business.

For example, WebVan.com -- a company that went from being worth $1.6 billion to being bankrupt in only 2 years -- busted the myth that an internet based business only needs to get big and then the money will naturally roll in.

"One of the hallmarks of the dot-com crush has been the presumption that you needed to get big fast, which worked for Amazon.com and virtually no one else," commented Gartner analyst Whit Andrews in 2001. Still true today.

There are many differences between a brick & mortar business and an online business, but the need to carefully watch your balance sheet is not one of them.

The Takeaway Lesson: Getting big without worrying about profitability is a sure plan for disaster.

Read the full article to take a stroll through internet history: The greatest defunct websites and dotcom disasters [CNET.co.uk]