| With all of the recent stories about the “dot-com” companies either folding or in deep financial troubles, you would think that the end of Web-based selling and retailing is at hand. Newspapers, especially the Wall Street Journal. have been full of announcements of struggling or closing “dot-com” companies, and of cautionary tales of roller coaster-like financial rides by a “new class of entrepreneur.” Is it true? Is ‘the Web dead?” In a word; no.
In the Tuesday, Nov. 14 edition of the Wall Street Journal, front page, above the fold: “Dot-Com Liquidator — New Breed of Vulture Gets Fat on Remains Of Expired E-tailers.” On the editorial page; “Dot-coms Won’t Die Alone” On the internet: “TheStreet.com Slashes Work Force, “Britannica.com to Cut 75 Jobs, 17 pct of Staff.”
It makes for grim reading, Very grim reading. But for most of us doing, or wanting to do, business on the internet it is not particularly germane. Essentially every single one of the troubled companies fed on investment money, not on real profits. When challenged, the response of the company bigwigs was that, “It’s a new economy.” Balderdash. It does not take a rocket scientist to figure gout. that if you spend $5 to generate a revenue of $4, you are going to eventually get in trouble. Somehow the heady glitz of the internet craze created a direct short between brain-and-wallet for too many investors and investment firms
So what is a poor Web-less company to do? Forgo? Plunge? Hope the hype was right and this is just a blip’?” Well. No. “None of the above.”
At the simplest level, think of a Web site as a twenty-four hour a day, seven-day a week, fifty-two-weeks a year advertisement. Put your name (name of your company), contact Information and a little bit about what you do on a basic Web site so you can be found. Then work with your friendly local ISP to register your domain name. You now have the ability to have, for example, the domain, “joes-pizza.com,” and your e-mail could be sent to “joe@joes-pizza.com.” (Sorry. You can’t have it. It’s already taken!) The point being that you probably could find some variation of your business name or personal name for a domain, and that becomes a part of your marketing.
Now that you have your basic Web site, make sure the address (Uniform Resource Locator, or URL) and e-mail address are on your business card, stationary, envelopes, and every piece of advertising and promotional items you own. Then make sure you keep the information on your Web site current.
Should you sell on your Web site? I don’t know. Only you know that. Is your product or service something that is or can be sold in a mail order catalog? If so, then it probably can be sold on the internet. Selling on the internet is not the most effective or best use of the internet resource, in my view. The big “dot-com” companies that are failing are failing exactly because of that. Grocer.com pets.com, and TheStreet.com really don’t offer anything that your local store or business does not offer, and probably for less. While selling on the internet literally extends your reach worldwide instantaneously, are you ready to take advantage of that reach? Most businesses, especially small businesses, are not. Certainly they are not prepared to base their entire business on the concept of selling on the internet, and that is the key.
The most successful “internet businesses” I deal with are almost exclusively “brick and mortar,” businesses that have a physical location that they then “extend” using the internet. Using the internet their customers can now make inquiries about availability of products or services, and place orders on line. The products are then either shipped or delivered per the customers specifications. At the most basic level, that is the what a Web site should do, and the successful companies will operate that way.
Do a test. The next time you are at a business meeting, or a PTA meeting, or a Chamber of Commerce meeting, ask everyone present who has internet access either at home or work, to hold up their hand. 80 percent or more will do so. Then ask how many of them have purchased something; online in the past 3 months. At least half will raise their hands. The point will be well made that the internet, like the telephone, is here to stay.
Is the World Wide Web an effective marketing tool? Emphatically, yes. Is it a magic pill that will lead to instant success? Emphatically, no. Should you have some form of internet presence to remain competitive and even grow? With 80 percent of your neighbors and associates accessing the internet, I think that question answers itself.
(Editor’s Note: Jim Kendall is the owner of Telebyte NW, and a board member of the Washington Association of Internet Service Providers. He may be reached at (360) 613-5220.). |
