Internet firms turn to old-fashioned fund-raising

Not-for-profit groups seeking money for a worthy cause often ask people to think of the children who don`t have enough to eat, families that lack housing, or communities with no arts endowments.

This week some for-profit Internet businesses are asking people to imagine a world where tourists would no longer have access to Yahoo Maps and home improvement buffs would not be able to order their power tools from Amazon.com.

Those companies might not be fall under everyone`s definition of neediest causes, but the fund drive was no joke.

Some 35 Internet sites, ranging from the niche content community ThemeStream.com to the major Internet service provider ExciteAtHome came together Tuesday behind the first-ever "Back the Net" initiative.

Together, they called on those who care about the future of the Internet to go out and buy something online, give money to an online charity, or purchase 10 shares of stock of their favorite dot-com company.

A letter from sponsors that was posted online and circulated through e-mail, alerted a Net savvy crowd: "Your help is needed. ... Imagine the Internet without Excite, Yahoo! or Amazon.com."

Software maker McAfee.com said it would do its part to restore confidence in Internet companies by offering its Internet security products at a discount.

"More than ever, Internet economy leaders need to step forward to instil confidence among users." a McAfee manager said in a statement explaining the company`s decision to participate in the effort. "Offering our products at specially reduced prices, we believe, will show Internet consumers that they can rely on Web-based applications and services to address their many security concerns."

And hopefully sell a lot of software, too.

Big Web companies bow out

The online news site http://www.Iconoclast.com, which organized the effort, spoke in similarly alarming tones, highlighting the plight of the industry.

"We need to recognize this is an industry that needs support and is a major driver of our economy," Michael Tchong said in an interview. "If it is shut down, we are going to drag the whole country into recession."

"I think technology is a core part of our economy. After entertainment, technology is perhaps America`s biggest export. If we are not showing our support for the medium, it will wither for a very long time to come. This one day (Back The Net) is sort of like Earth Day."

To be sure, the effort was controversial and many took issue with the notion that the Internet was in any danger of going away in the first place, or that consumers should be held responsible for keeping alive Web companies with shaky business models.

What initially looked like a long list of participants, was actually quite small considering the whole Web universe, and most major Internet companies did not associate themselves with the appeal.

Although Iconoclast was predicting a huge surge in Internet activity on April 3, the company was unavailable late in the day to provide an update, and the signs that were available suggested that Tuesday had not been the best day for Internet businesses.

The tech-heavy Nasdaq index fell more than 100 points and auditors of the once-celebrated Internet grocer Webvan Group expressed doubts about the company`s ability to stay in business.

For the record, Amazon and Yahoo did not participate in Back The Net, and Amazon said it begged to differ with the notion that it was on the brink of failure.

More interesting, though, was some of the unofficial support the effort drew. Greg Larson, president of the United Way`s Silicon Valley division, admitted he had a soft spot for the Internet, since it had made it easier for people to donate money to his organization.

"Over half of workplace giving is being done online," said Larson. Asked about the logic of presenting a dot-com as a needy cause, he replied, "If people want to invest in their community, I think the best way to do that is to give to the non-profit organizations that serve the most needy.

And Amazon said it was taking steps of its own to encourage Internet users to help out their favorite sites, whether they be dot-coms or dot-orgs.

"We recognize that good sites are not going to be able to exist on their own for much longer, and the advertising revenue model is not going to pan out," explained Amazon spokeswoman Patty Smith. In an effort to support some struggling sites Amazon two months ago launched a program for Internet users to "tip" their favorite sites, by linking those sites back to the Amazon billing system, which has millions of customer credit card accounts on file.

At least 70 -- mostly marginal -- Web sites, including the poetry site http://www.eMule.com, the quirky cartoon site http://www.KillFrog.com, and the online museum of Internet advertising, http://www.BannerAdMuseum.com are participating in Amazon`s program.

So now, Web surfers in search of nothing more than laughs or virtual conversation are given a little guilt when they visit their favorite sites.

"So you love the free cartoons over at KillFrog.com do you!," is the message that appears on that site`s start page. "Well now you can help feed them too! Cough up some dough so some of the poor little cartoons over at KillFrog.com can eat something other than Ramen Noodles four times a day."