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 How else can use the Internet to raise money?
With ecommerce being as big as it is, it is nearly impossible for people to not be able to make money on the internet. Creating PayPal, Google Wallet, or ClickBank accounts can create opportunities online to receive payments through affiliate programs, or whatever you are doing to receive your money. The Internet gives you the freedom to sell whatever you wish to online. People can sell items on websites such as Ebay or Craigslist, and they can set up charities that are completely web based and collect the money to turn into an organization. Another thing that is popular right now is the use of ad's on your web page. Using sites such as AdSense by Google to put ads on a Facebook, Tumblr, Twitter, and etc. allows one to receive a certain amount of money every time the ads get clicked on. As you can see, using the Internet provides you with an endless amount of opportunities to make a commission online to make a living with. Using the internet is different from some your traditional brick and mortar businesses.
2 What types of businesses could benefit from trading on the Internet?
Retail business can benefit from trading on the Internet because instead of making sure they have a store set up in every city, they can reach more people by having a website that allows their consumers to shop online, also cutting down on their overhead expenses. Having a website can also help them spread internationally as far as their sales go because the internet gives them such a broad reach to the consumers. Although it is great, they also have to be aware of the competition that surrounds them. The Internet also gives them a option of keeping a close eye on the competition and if the prices are low on certain items, they can quickly pick up and find out what they need to accomplish to give a better deal. Shopping online makes the retailers happy as well as the consumers.
3 Can you think of any other disruptive or nontraditional ways that you could use the Internet?
At the moment I cannot think of other ways you could use the Internet. Selling, buying, blogging, tracking, advertising, communicating, creating videos, and making music are pretty much the only nontraditional ways you can use the internet that is already put to use daily. However, I feel that in the future we will of course come up with a plethora of ways to continue the use of the internet. Who knows what will happen next with the Internet, anything is possible now. Maybe we'll be able to drive our cars to pick up the groceries that we ordered online and without physically being in there to pick up the groceries, a bagger would load the car up for us and the car driving ability is of course done via Internet and virtual steering wheel. I have seen too many Sci-Fi movies, wishful thinking.
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