What's the Trick?

This article assesses the profitability of Internet-based companies and the way they manage to succeed despite a decrease in funds in the overall market in 2000. Typically, Internet companies that make money posses a sustainable competitive advantage. One consistent plus on the Web is what economists call network effects. This notion contends that if more people use a system, its value rises geometrically. The use of core resources over and over also pays off. Even more important than technology and strategy are people. It is no surprise that the companies on the money-maker list are run by executives who came of age before 1998 and 1999. INSET: Net-powered Profits.