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  User: Guest - The Business Model
"Worldwide, e-commerce will generate USD95 billion in revenue by the end of this year (2000). Further predictions indicate that global e-commerce revenues will top USD1.3 trillion by 2003"*

Suddenly, this doesn't seem like just fun and games anymore!

The last two years have been a golden age for e-commerce sites, all you needed to do was add ".com" to your name, and instantly you were drowning in Venture Capital dollars. Now the first phase of the boom has passed, and some sense is returning to the industry. Companies on the net have heard the bells toll, and they start to realise that success is not the automatic guarantee they once thought. Recent studies have indicated that only 5% of the e-commerce companies active today will survive the next two years! The companies active today will have to consolidate their market, and start earning a profit. The surest way to do this is to turn first (and only) time visitors into return visitors, and then to leverage those return visitors into new customers.

E-commerce sites are going to become portals, offering pertinent and related news and information to their customers. The biggest problem they face is that they know almost nothing about creating and building communities based on shared content! Some of the better-funded outlets will attempt to build their own content departments, maintaining and seeding their portals with new information, but it is NOT their core business, it should be easier and more profitable to outsource this function. That's where Primal Content comes in.

We have built a system for acquiring, cataloguing, and distributing content for resale. The primary role of our company is concerned with building and maintaining this database, and serving these pages to our customers, wrapped in their own graphical form. It need not be apparent to the user that the content they view did not originate at the portal in question. In this primary role we also act as advisors for our customers, helping them put together the best mix of content for their purpose.

* Source: Activemedia Inc.

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