The Do’s

Do have a marketing budget for your website. Launching a website without a marketing plan usually always results in a zero return-on-investment. Why? Because there are millions of sites on internet, and if you don’t market your site, no one will come. Unlike a typical brick-and-mortar establishment that benefits from exposure to passersby, your website will not be seen by anyone until you tell people that it exists. Take advantage of fact that your website can reach more potential customers than a small storefront ever could. Set aside marketing funds at onset of your project.

Do prepare a timeline for project. Many developers work virtually, that is, directly through internet such that you may never meet them in person. This style of work is very different than conventional, and lack of face-to-face contact makes it easy for both parties to simply forget about project as time goes on. Ensure that your project won’t stagnate. Prepare a solid timeline with clear milestones, expectations, and deadlines so that it is easy for both you and developer to stay on target.

Do provide feedback in a timely and detailed manner. Although you are paying a design firm for its creativity, remember that ultimately what you say goes. You must be sensitive of fact that development is a step-by-step, layer-by-layer process. If you don’t respond with feedback immediately, developers will have already completed other layers of site before your feedback reaches them. This means that they must not only re-work layer in question, but also following layers. Some developers have been “burned” so many times in this manner that they will wait patiently for your feedback before they go on to next layer of work. This means that development comes to a screeching halt until they hear back from you. They may get so fed up that they take on another client while they wait, leaving you at 2nd priority.

Do research developers before setting a budget. There are two reasons to do your homework before you decide on a budget. First, setting a budget without understanding a particular industry is simply nonsensical. You must know price ranges of development and also what type of service to expect within each range. Second, a small business website, unlike a typical personal expense, is an investment. The goal of launching site should be to aid company in making more money. If site won’t make money, don’t create it! If you limit your budget at $1000 without understanding investment or industry, you may get an excellent site in that price range that makes no money. You would be better off if you do your homework, however, and find that spending more will likely yield a return. For example, you might spend $4000 on a site that actually makes you and additional $20,000 annually.

Do plan to keep your site up-to-date. One of biggest advantages to having a website is that you can quickly and easily update information. Nothing sends a more powerful message to a potential customer than a website that hasn’t been updated for several months, or even years! You are telling people that business is defunct or unpopular. Make it a point to update your site frequently, even if you don’t have much to say. It will let your customers know that things are going well and that your company takes an active interest in keeping them informed.

Although above Dos and Don’ts are definitely not comprehensive, they are a good set of guiding principles for any individual or small business owner looking to create an online presence. No set of rules if foolproof, however, and there are always exceptions. My suggestion would be to always err on side of caution. Many of cliché statements we’ve all heard will come in handy: there is no such thing as a free lunch, and, if it sounds too good to be true, it probably is. Finally, don’t be afraid to ask questions to people who know more than you. In fact, feel free to contact me if you ever get into a jam: adil@steezo.com. Good luck!

- Upside to eBay Shoppers: Access to more products and increased price competition.

- Upside to Online Merchants: Access to lucrative community of eBay shoppers.

- Downsides: eBay sellers will face increased competition.

2) eBay could be buying Shopping.com to simply enhance its value to both eBay shoppers and eBay sellers. Shoppers would benefit from product reviews and price comparison technology that Shopping.com owns. Sellers would benefit from enhanced shopping experience because demand for their products will further increase.

- Upside to eBay: Increased customer loyalty and listing fees.

- Upside to Shoppers: Better version of service they’re already comfortable with.

- Upside to Online Merchants: None. Many online merchants have been reluctant to establish an eBay presence because they’ll have to maintain two separate stores.

- Downsides: Online merchants won’t have streamlined access they’re looking for to reach eBay community, and value of advertising on Shopping.com would be diminished.

My Take

I can’t imagine that eBay would spend $620 million on Shopping.com only to disband its network of online merchants who pay a lot of money to be featured there. Accordingly, my prediction is that eBay will maintain a version of Shopping.com’s current advertising network where merchants acquire clicks from buyers (contrary to eBay’s model where buyers never click to leave eBay website).

If I’m right, eBay’s acquisition of Shopping.com will be huge for advertisers. Advertisers will be able to advertise on Shopping.com like they always have. The only difference will be a massive influx of quality traffic from eBay.

I am concerned because eBay’s press release only talks about creating an enhanced shopping experience for current buyers, and mentions new opportunity for current eBay sellers. The press release does not mention Shopping.com’s advertisers at all, which makes me question eBay’s true motives. In other words, I may very well be wrong.

Bottom line: Watch this closely. eBay’s acquisition could be a tremendous boon to online advertisers, opening up a fertile new market for online marketing. Or, eBay could be acquiring Shopping.com purely for its technology and product review network with singular goal of enhancing eBay.com. If so, online merchants will be missing out on a big opportunity.

Online merchants should watch this very closely.

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