The paper reviews seven types of Internet-based technologies and services that may be especially suitable for rural areas. Its main focus is to analyze, which of these applications could promote rural development and prevent further economic and socio-demographic decline in peripheral rural areas. In particular, we will analyze whether these technologies have the potential to create income alternatives for the rural population. The paper also criticizes the current rural development policy of the European Union, which is heavily biased towards the agro-environmental measures, largely ignoring the potential of Internet-based businesses and services for rural job creation.