Smart Questions to Ask to Make Money on the Web

Over the past two years, it seems like just about every business has developed a Web site on the Internet. So why even ask how to make money on the Internet? Surely, prudent business managers wouldn't rush to pump hard cash into something without having already answered that question. Or would they?

Truth is, few of the companies with sites on today's Web ever stopped to ask how, or if, they were going to make any money from their exposure.

The Internet has caught our captains of industry totally asleep at the wheel. Grab the team at your company responsible for getting your Web site up and ask them a few basic questions: How many people surf the net each week? What percent of that number falls within your target audience? What method of payment do your customers prefer for Web transactions?

These are basic questions you'd expect smart people to ask before they fork over their shareholders' dollars. The trouble is, nobody is asking.

The vast majority of Web sites have not earned back the money invested. The reason is that almost nobody is making money on the Net because almost nobody is applying sound business principles to their involvement.

To be sure, there are companies making money on the Internet, thousands of them. Here are a few tips for companies interested in something more substantial than an address at something-dot-com.

Decide What You Want to Achieve

There are a lot of good reasons for businesses to create a Web location. You'll be more successful if you begin with some clear objectives. Start by asking these questions:

Do you want to build brand recognition among new audiences or reinforce your name with existing audiences?

Do you hope to build shares by out-marketing the competition in this arena?

Are you a regional company interested in attracting national business?

If you typically sell your products through retailers and/or dealers, do you see potential in marketing directly to the consumer?

If you aren't interested in selling directly, can you enhance your position with your retailers or distributors by communicating with them on the Net?

If you have a large, geographically distributed sales force, can you keep them better informed by setting up a private Web network?

Can you increase the effectiveness of your sales force by letting prospects preview your products and services on the Web, leaving you with better qualified leads?

Is your only goal to trim costs by using the Web as an alternative customer service channel?

The best way to get results is to look at your Web presence as an extension of your overall business plan. A company driven by its sales force may prefer to use the Web to generate leads instead of providing a channel for direct selling. If your plans call for building a reputation for customer convenience, you can provide 24-hour accessible service through your Web site. The more compatible your Internet efforts are with your overall plans, the more support you're likely to get from within your organization.

Think about the computer on your desk. What do you use it for? To read things or to do things? Most people will say that a computer is a tool they use to get things done. So why do so many Web sites offer so much to read with so little to do? Web sites that make money use the power of the computer to make the experience dynamic and draw users into activity. If your company markets screen printing supplies, let users describe their needs, and then let the computer suggest certain types of investments. If you operate a signmaking company, build a Java program that allows customers to design their own artwork. When they've got it just right, they can press a key, and the signs and supplies will be delivered to them. Now you're making some money.

Beat the Competition

Just as in any business activity, your Web strategy will improve if you have a healthy fear of the other guy. If you do your homework and look at every competitive site available, you can find better ways of doing things. Try not to look just at what the competition is doing today; consider what they may be doing tomorrow. As an exercise, gather your Web team in a room and tell them you've learned that the competition is about to complete an Internet site that will give it a powerful competitive advantage. Tell them you don't know what it is, and go around the room asking for suggestions of what they might be doing. Chances are you'll end up with some really great ideas.

Be Aggressive

The Web is the most competitive business environment on earth. Regardless of the type of business you operate, you'll find more competition on the Web than in your Yellow Pages or business telephone directory. If you aren't thinking aggressively, you don't stand much chance of making money. If you're an industry supplier, how will you pull business from hundreds of other vendors? Bigger selection with automatic inventory searches? Special pricing or packages? Faster shipping? Sometimes the best way to stand out in a crowd is to aim at a smaller target. Maybe your company can offer a superior selection of environmentally-friendly emulsions. Chances are business as usual won't make it on the Internet. What can you think of that will increase your odds?

In a world where business -- wherever it's conducted -- has to be better, faster and cheaper than ever before, there is no magic to making money on the Web. Use common sense and the same smart business strategy you apply to other situations, and you're well on your way.