their sites; this was measured through page-views and unique Web server hits
(Trueman et al., 2000). Advertising was used to keep a steady stream of “eyeballs”
(Stone, 2000) coming to Web sites. Bell (2003) discussed the fundamental
reasons for the failure of dot-coms including the following:
✦The myth of advertising—although the “first-mover” advantage is important
in many markets, too many dot-coms put undue faith in the belief that adver-
tising would get them market share quickly
✦Inappropriate business models
✦Selling at a loss
Many early startups had a business model in which time-to-market and a focus
on increasing valuation shifted the focus ...
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