eBiz and answer the three questions Amazing things are happening on the Internet
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Question
eBiz and answer the three questions
Amazing things are happening on the Internet, things nobody would believe. Here are two stories that demonstrate how innovation, creativity, and a great idea can turn the Internet into a cash cow.
A Million Dollar Homepage
The Million Dollar Homepage is a website conceived by Alex Tew, a 21-year-old student from Cricklade, Wiltshire, England, to help raise money for his university education. Launched on August 26, 2005, the website is said to have generated a gross income of $1,037,100 and has a current Google PageRank of 7.
The index page of the site consists of a 1000 by 1000 pixel grid (1 million pixels), on which he sells image-based links for $1 per pixel, in minimum 10 by 10 blocks. A person who buys one or more of these pixel blocks can design a tiny image that will be displayed on the block, decide which URL the block will link to, and write a slogan that appears when the cursor hovers over the link. The aim of the site was to sell all of the pixels in the image, thus generating $1 million of income for the creator, which seems to have been accomplished. On January 1, 2006, the final 1,000 pixels left were put up for auction on eBay. The auction closed on January 11 with the winning bid of $38,100. This brought the final tally to $1,037,100 in gross income. See the Million Dollar Homepage on the next page.
One Red Paperclip
The website One Red Paperclip was created by Kyle MacDonald, a Canadian blogger who bartered his way from a single paper clip to a house in a series of trades spanning almost one year. MacDonald began with one red paper clip on July 14, 2005. By July 5, 2006, a chain of bartering had ultimately led to trading a movie role for a two-story farmhouse in Kipling, Saskatchewan. On July 7, 2006—almost exactly one year after MacDonald began his experiment—the deed to the house was signed. In September, at the housewarming party where 12 of the 14 traders were present, he proposed to his girlfriend and she accepted. The wedding ring was made from the original red paper clip he got back from the first woman to have agreed to trade with him.
Following is the timeline, based on the website and as summarized by the BBC:
On July 14, 2005, MacDonald went to Vancouver and traded the paper clip for a fish shaped pen.
MacDonald then traded the pen the same day for a hand-sculpted doorknob from Seattle, Washington, which he nicknamed Knob-T.
On July 25, 2005, MacDonald traveled to Amherst, Massachusetts, with a friend to trade the Knob-T for a Coleman camp stove (with fuel).
On September 24, 2005, he went to San Clemente, California, and traded the camp stove for a Honda generator, from a U.S. Marine.
On November 16, 2005, MacDonald made a second (and successful) attempt (after having the generator confiscated by the New York City Fire Department) in Maspeth, Queens, to
trade the generator for an “instant party”: an empty keg, an IOU for filling the keg with the beer of the holder’s choice, and a neon Budweiser sign.
On December 8, 2005, he traded the “instant party” to Quebec comedian and radio personality Michel Barrette for a Ski-doo snowmobile.
Within a week of that, MacDonald traded the snowmobile for a two-person trip to Yahk, British Columbia, in February 2006.
On or about January 7, 2006, the second person on the trip to Yahk traded MacDonald a cube van for the privilege.
On or about February 22, 2006, he traded the cube van for a recording contract with Metal Works in Toronto.
On or about April 11, 2006, MacDonald traded the recording contract to Jody Gnant for a year’s rent in Phoenix, Arizona. On or about April 26, 2006, he traded the one year’s rent in Phoenix, Arizona, for one afternoon with Alice Cooper.
On or about May 26, 2006, MacDonald traded the one afternoon with Alice Cooper for a KISS motorized snow globe.
On or about June 2, 2006, he traded the KISS motorized snow globe to Corbin Bernsen for a role in the film Donna on Demand.
On or about July 5, 2006, MacDonald traded the movie role for a two-story farmhouse in Kipling, Saskatchewan.4
Questions
1. How else can you use the Internet to raise money?
2. What types of businesses could benefit from trading on the Internet?
3. Can you think of any other disruptive or nontraditional ways that you could use the Internet?
Explanation / Answer
1. Internet offers endless opportunities and ways to make money due to the advantages of connectivity and global viewership it offers. To raise money from internet, the user needs to ensure that his/her movement/activity is being liked and followed by more and more people globally. I.e. if the activity goes viral (for the right reasons), the chances of making money from it grows manifolds. Internet can be used to find subscribers, and the more subscribers/followers a person can generate the more advertising revenue he/she can generate form companies willing to target those followers through that person.
2. All kinds of businesses will benefit from trading on internet, because it provides them a higher opportunity to connect with potential traders/customers which is difficult to find in such big number physically. Retail business will however gain more from online trading as internet trading will reduce their operational investment requirements (like that of brick and mortar stores, sales manpower, etc.).
3. IoT is a disruptive way or technology of using internet to benefit multiple industries. IoT works on networked sensors that enable the users to track the condition and location of their things, ranging from smart wearable to home devices. Another way would be of using crypto currency (through internet) for trading, that can help us generate money through internet, like Bitcoin did.
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