Spread The Wealth

Entrepreneur, June, 2000 by Amanda C. Kooser

There's more than one way to cash in on a technology boom.

Internet company CEOs and Wall Street investors aren't the only people getting rich from the technology boom. After all, it takes a village to raise a technology business. One sector that has found phenomenal growth by trolling in the wake of tech success is high-tech market research firms. In the information age, the phrase "knowledge is power" could be changed to "knowledge is profit." Companies that cater to the information needs of tech businesses have tapped into a lucrative area.

And they're not the only ones reaping benefits. PR firms are booming, thanks to waves of new hardware and software products and the millions of dollars dotcoms like E*Trade, CNET Inc. and Pets.com are spending on Super Bowl commercials. Technology lawyers are also watching their pay skyrocket, as every company needs a lawyer to keep abreast of the shaky area of Internet and tech laws. Law firms are paying higher salaries to keep the best and the brightest from running off to join Silicon Valley companies.

What does this mean for entrepreneurs? You don't have to start your own Amazon.com to cash in on technology. Providing services to tech businesses is another good way to get in on the wealth. You can capitalize by recruiting techies in today's tight job market, by making sense of Internet laws or by leveraging your knowledge as a consultant.

GIVE 'TIL IT HURTS

...or until you reach 2.2 percent of your colossal earnings, whichever comes first.

Bill Gates may be giving away billions through his various foundations, but other wealthy techies aren't following suit. A recent national survey by the Independent Sector, a coalition of volunteer organizations, showed a decline in giving among high-income households, Those in the over $100,000 bracket only gave an average of 2.2 percent in 1998, down from 3.4 percent in 1995. Compare that to those in the under $10,000 bracket, who averaged 5.25 percent in 1998 and 4.3 percent in 1995.