Yes, it is true that many high profile, high-tech Internet ventures are yet to generate even the merest hint of a return on their investments.
Web stores built as an extension to existing businesses are one successful model.
Let's take Coastal Tool and Supply for an example. They've been selling their range of power tools to the public from their store in Hartford, CT since 1981. The official launch of the store was March of 1996 and we received our first order in April of 96. We felt this investment was well worth the risk and at that time very few sites were in the business of selling over the web. Most sites were electronic brochures that showed a few items with prices and a pitch to receive a printed catalogue.