Web Economics 101

Part One: Americans Need Cash

In this short economic overview, which I call Web Economics 101, we'll examine the current state of the economy and the steps you can take to relieve the strain on your wallet.

Two years ago the housing market bubble burst. Suddenly mortgage brokers, developers, builders, construction workers and real estate agents who had been living “large” were scrambling for business.

By Christmas 2007, many in the finance industry had been laid-off. Citi Bank announced last month that it was laying off 9,000 more employees after first quarter earnings for this year revealed the bank’s worst loss in its long history. In December, Citi laid off 15,000. Bear-Stearns announced layoffs of 14,000.

The nation’s financial problems grow proportionally to rising gas, medical and food prices. The resulting belt-tightening is being felt in both airline and travel industries. High-end and low-end retailers report losses.

Even older Americans aren’t retiring, according to Parade Magazine in its annual report on salaries. In the mid-80s about 18% of people in their late 60s were still working. Today that figure is 29% and growing.

An estimated 600,000 in the US are working part-time because they cannot find fulltime jobs.

Parade asked "Is there any good news?" They found that the federal government claims it needs to fill 83,000 jobs. Teachers and nurses are always in demand.

The Department of Labor reports that many industries are downsizing because they have moved onto the internet. For large businesses, techies, and clever entrepreneurs the profits have been staggering.

Profits on the internet continue to soar luring even staid industry giants.

The insurance industry is one in transition. In addition to individual carrier-sponsored Internet sites, several “lead-generating” sites have emerged. These sites allow potential customers to input information about their insurance policy needs. For a fee, the sites forward customer information to a number of insurance companies, which review the information and, if they decide to take on the policy, contact the customer with an offer.

All organizations today rely on computer and information technology to conduct business and operate more efficiently. For that reason, application software and systems software, webmasters (publishers), servers and search engines expect to scoop up 49% of internet profits this year. According to the Bureau of Statistics traditional businesses, large and small, are headed online, in part, because of these online services.

In Web Economics 101, we will focus on your financial needs and your options. We will examine the ecommerce model since its growth is the most promising for all sorts of enterprises.

How successful are home-based internet businesses? We’ve all heard the 90+% failure rate of new businesses during the first five years. But is that fact or myth?

Part 2: Working From Home