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A dot-com company, or simply a dot-com (alternatively rendered dot.com, dot com, dotcom or .com), is a company that does most of its business on the Internet, usually through a website on the World Wide Web that uses the popular top-level domain ".com". The suffix .com in the URL refers to commercial as opposed to non-commercial companies such as non-profit organizations that use .org. Since the .com companies are web-based, most of their products/services are delivered via web-based mechanisms even when physical products are involved. On the other hand, some .com companies do not offer any physical products at all.
While the term can refer to present-day companies, it is also used specifically to refer to companies with this business model that came into being during the late 1990s with the rapid growth of Wide World Web. Many such startups were formed to take advantage of the surplus of venture capital funding. Many were launched with very thin business plans, sometimes with nothing more than an idea and a catchy name. The stated goal was often to "get big fast", i.e. to capture a majority share of whatever market was being entered. The exit strategy usually included an IPO and a large payoff for the founders. Others were existing companies that re-styled themselves as Internet companies, many of them legally changing their names to incorporate a .com suffix.
With the stock market crash around the year 2000 that ended the dot-com bubble, many failed and failing dot-com companies were referred to punningly as dot-bombs, dot-cons or dot-gones. Many of the surviving firms dropped the .com suffix from their names.
Notes and referencesEdit
- "dot com company". TheFreeDictionary.com. Retrieved 2018-07-01.
- Investopedia (2018). "Dotcom". Investopedia. Retrieved 10 October 2018.
- Inc.com (2018). "Dot-Coms". Inc.com. Retrieved 10 October 2018.
- "What detonated dot-bombs?". USA Today. December 28, 2000. Archived from the original on June 26, 2001. Retrieved May 1, 2010.
- Skillings, Jonathan. "Explaining the "dot-cons"". ZDNet.
- From dotcoms to dotgones.. - News - London Evening Standard. Thisislondon.co.uk (2001-12-13). Retrieved on 2013-07-19.
- Glasner, Joanne (2001-08-31). "Dot's In A Name No More". Wired news. Archived from the original on 2006-07-16. Retrieved 2005-12-27.