(Note: Written in 1996. While some of the material is dated, most of the material is still very useful and its been proven to work!)


The Internet is a network of computer networks, loosely interlinked at various points around the world. Information divided into small "packets" of data flows through this weblike structure, hopping from one computer to the next on its way to far-off destinations. No single computer controls this traffic. Each packet carries with it an address, read by routers along the way as it streams down the line.

The Internet began as a small network project called ARPANET (Advanced Research Projects Agency Network) in 1969. The purpose of the project was to create a link between Department of Defense researchers in different parts of the country. This project arouse from a Cold War-era scheme designed by the U.S. military to withstand localized destruction and still function.

From the beginning, the ARPANET was designed not to have a central "hub" that might be vulnerable to attack. The network formed in a web-like fashion, with each computer being able to send data to its peers via several routes. Even if one or two computers on the network were wiped out, the others could still communicate with each other through the remaining undamaged routes.

The Internet lurched forward during the 1980s when the National Science Foundation built a new, faster backbone network, based on Internet Protocol to connect colleges and research institutions with five new supercomputing centers around the U.S.

By October 1995, parts of the National Science Foundation, still financed by the U.S. government, were sold off or reorganized as private companies. The present Internet is a loose collection of huge networks run largely by giant phone companies such as MCI and Sprint, connected at several major points with many smaller regional networks.

The Internet reached mass growth in the early 1990's; growth rates began to take off on an exponential curve. New popular search tools, such as Gopher and Archie, helped to fuel the growth, but these were eclipsed by the development of the World Wide Web in 1991 by CERN, the European Laboratory for Particle Physics. The World Wide Web took off in 1993 with the release of Mosaic, the first graphical Web browsing program. For the first time, Mosaic allowed "point-and-click" Internet navigation. Users could now put together Web pages, collections of text and graphics, for viewing by anyone else on the Internet. When a mouse was used to click special words or pictures, called hyperlinks, the browser would automatically load up a different page and the term "surfing the net" was born. Mosaic, and its successor Netscape Navigator, brought the Internet out of the technical realm and into the hands of average people.

The Faces Of The Internet

The Internet itself does not actually do anything. The Internet is not a place, or a destination. The Internet simply transmits data from computers connected to its many branch. This means the Internet has many faces depending upon what you want to do with it. Five broad representative categories of programs, each designed to use the Internet for a specific task, can be found in most Internet-connected computers.

The World Wide Web

The World Wide Web (WWW) is the fastest growing segment, and the most accepted place for commercial activities, on the Internet. The WWW is a client-server interface that started when Dr. Tim Berners-Lee created a program on which to record his academic conclusions. The program Dr. Berners-Lee developed, let him cross-reference his research papers using a single highlighted word, known as a hyperlink, as a gateway to an attached document that substantiated or supported that particular claim.

This ability to link documents, caught the attention of Dr. Berners-Lee's employer, the European Center for Nuclear Research (CERN). Dr. Berners-Lee and CERN decided that the natural extension of this idea would include a number of hyperlinked documents. The first Web site was created by a team of physicists at CERN assisted by Dr. Berners-Lee in 1991.

The World Wide Web should not be confused with the Internet. While the Internet is the physical network of interconnected computers, the WWW is simply the digitized information that can be accessed by the Internet. The WWW can only be accessed using a Web browser in conjunction with any Internet connection. Web browsers understand the Hypertext Markup Language (HTML), a rudimentary set of commands that indicate how a Web page should be formatted on the computer screen.

Each piece of information contained on the WWW is stored as a file of data, known as a Web page, at a centralized storage device. Each Web page is identified by its Uniform Resource Locator (URL). You can recognize this type of address by one of the following prefixes:

http:// (indicates a World Wide Web protocol address)

ftp:// (indicates an ftp address accessed via the World Wide Web)

telnet:// (indicates a telnet address accessed via the World Wide Web)

gopher:// (indicates a gopher address accessed via the World Wide Web)

mailto: (indicates an e-mail address accessed via the World Wide Web)

How To Make Money On The Internet

Only a few years ago, fewer than 1,000 businesses had a home page on the Web. Today, businesses of all sizes are opening a storefront on the Internet, lured by the potential of millions surfing the net. And when the Internet becomes accessible through cable TV, A consumer market of hundreds of millions of potential customers will open up.

Doing business online is definitely one of the most exciting opportunities today. With so much hype about the World Wide Web, many Internet users make the mistake of thinking that if you have a great site, thousands of visitors will magically materialize.

Cold reality sets in when your Web site has been operating for months and you are only receiving a handful of visitors per day - and traffic isn't increasing.

The reality is that it is not a "no-brainer" to make money on the Internet. There are unbridled opportunities, but like any legitimate business, they'll take study, work, and effort to realize.


Merchants selling goods such as Wines, Sandals, Chocolates, Autos, Fruits, Hot Sauce, Books, Computer Products, Music, Videos and CD Rom's are making money. Also selling on the Internet is Golf, Groceries, Health Care, Mental Health, Franchise Businesses, Recycled Jeans, Tennis, Sex, Information, and more.

While the percentage of online successes is smaller than the real world, their are still some companies making money right now as a result of their Internet endeavors. Their experiences are good guides to anyone considering marketing their products or services over the Internet.





In trying to determine what are the secrets of Successful Businesses on the Internet, I used the known Successful Businesses as my model to arrive at the following secrets:

Strategies To Help Make Your Marketing More Profitable


Demographics of Who's on the Internet

Henry Ford made history with his decision to mass produce his Model T Ford at a low price for the mass market. Ford quipped, "The public can have any color it wants, as long as it's black".

Focusing on selling at the lowest possible price rather than on product variety, Ford sold millions of the Model T's. However, other manufacturers, especially General Motors Corporation, believed consumers wanted more choices and the market was becoming a segmented market. So General Motors began producing cars in different price levels, different sizes, and offering different brands, styles and colors. The result - GM's sales took off ! Ford's sales fell!

General Motors recognized that in affluent economies there are few completely homogenous markets; that is, markets of people wanting identical products of identical prices and quantities. In fact, markets for most products and services are heterogeneous; that is, they consist of diverse people with diverse needs.

These large, fragmented markets require a diversity of marketing mixes to satisfy their needs. The firm that offers a single marketing mix to everyone wastes its efforts. These fragmented markets actually contain many smaller submarkets (segments) of different needs best served with a unique marketing mix.

Since a firm's resources are usually too limited to serve every customer need, market-oriented firms select target markets from the larger number of market segments. The firms then develop unique marketing mixes to match these target markets.

Demographic Segmentation

Most firms segment their markets by demographic factors such as consumer age groups, income level, occupation, sex, and other descriptive characteristics of populations. Demographic statistics of the Internet are widely available. I summarize some of these findings:


19 yrs and under 7%
20-39 44%
40-59 46%
60 plus 3%


male 70%
female 30%


grammar school 1.7%
high school 6.3%
some college 22.2%
college graduate 34.8%
masters degree 19.5%
doctorate 7.4%
professional degree 4.8%
technical/vocational 2.5%

Martial Status

married 50.3%
single 40.0%
divorced 5.7%


Computer 31.4%
Educational 23.7%
Professional 21.9%
Management 12.2%
Other 10 .9%

Geographic locations where users live

North America 86.4%
Europe 9.8%
Australia 1.8%

Preliminary findings of FeMINA's Survey of 1150 women surveyed found:

62% were between the ages of 18-35
64% had either some college or bachelors degree
34% made between $20,000- $40,000

Used alone, Demographic factors often don't measure precise differences in product and brand purchasing. It is the buyer's attitudes and interests toward consumption that influences buying preferences and not the buyer's age, income level, or other demographic characteristics.

Psychographic Segmentation

Measuring buyers' attitudes, preferences, and activities is known as Psychographic Segmentation. Consumers are asked to respond to numerous statements about their activities, interests, and opinions (AIO statements) that reflect consumer lifestyles. Next you look for patterns of responses that are used to group consumers into lifestyle profiles such as "leisure-oriented", "retirees", "traditional housewives", or "feminists and moderates".

Based on survey findings, the Psychographic makeup of Internet users could look something like the following:


The most common use of the Web is browsing 76.0%
entertainment 63.6%
work 51.8%
shopping 11.1%
other 10.8%

Preliminary findings of FeMINA's survey of 1150 women surveyed found:

33% said their main reason for going online was for research
30% said email
13% said community
23% specified other reasons
1% said shopping

What They Do

go out to movies more than non-users
are more likely to vote than non-users
are avid readers of newspapers and magazines and watchers of TV

Getting Connection to the Net

25 % access the Web using 14.4 Kbps modems
39 % access the Web using 28.8 Kbps modems
48.5 % of people access the Web through local service providers
9.2 % of people access the Web via major commercial online services such as America Online, CompuServe, and Prodigy

Results from a survey of Internet users by the Graphics, Visualization, and Usability Center at the College of Computing, Georgia Institute of Technology Survey.

Main Problems With Using The Web

The most widely cited problem was that it takes too long to view/download web pages.
Perceived weakness in web security - 60% site security concerns as the primary reason for not buying merchandise!


2.5 million (27% of www users) have purchased something over the Internet.
Approximately one third of American consumers plan to access the Internet in 1996 and therefore, expect online shopping to grow significantly.
Computer software is the most popular item bought over the Internet.
84% who surf the Web, believe they are likely to purchase one item over the Internet in 1996.

What They Buy

Research Survey Results of $125 million spent online:

PC Hardware/Software 55%
Informational Materials 30%
Airline(and other) 10%
Misc 5%

Some Facts About Online Shopping

The most-cited perceived benefit of online shopping:

24-hour availability (86%)
Access from any Web-ready PC (83%)
Less Travel (77%)
Time Savings (73%)
Privacy (47%)

The most popular items being purchased over the Web:

Software, publications, computer hardware, entertainment, and online information

People's Concerns About Shopping On The Internet:

Credit Card Fraud (see security)
Lack of data privacy
Unsolicited mailing lists
Merchants Legitimacy (see testimonials)
Lack of sales assistance
No cash payment option
Lack of Social Interaction


People also do not like to have to pay time-fees to their Internet service in order to shop. Entrepreneurs and students account for close to half of heavy Internet users.

Forty-six percent of users said it was highly likely that they would buy less via mail-order if they started shopping online.

- Survey results based on 300 telephone Surveys with a random sample of U.S. consumers with daily access to a PC, over 400 online surveys, and four focus groups.
Results collected from a survey by MasterCard International for the National Retail Federation.


How To Drive Traffic To Your Web Site

When you launch a web site, one of the first steps you should take is to let the right people know you exist. Promoting your site online is the most targeted and least expensive way to build traffic. Since the audience is already on the Internet, you know they can access your site. And most online promotions can be done for free.

What follows are descriptions of key sites where you can possibly promote your web site: