Website Ownership: 4 Biggest Myths & Realities

According to a joint study conducted by Nielsen and WebVisible, 44% of small businesses do not have websites. What a shocking statistic! So what is stopping these business owners from getting on the web?

Well, there are a variety of possible reasons that vary from cost, technical ability, perceived usefulness, and preference for other methods of advertising. But the biggest obstacle overall seems to be misinformation. All around the web, there are many myths that scare business owners away from launching their own websites…

Here are 4 of the biggest myths out there.

Myth #1: Websites Are Too Expensive

Probably the most common deterrent is cost. Many businesses think that they cannot afford professional web development, along with all of the other upfront and ongoing fees that come with having a website. However, it is important to realize that there are affordable options for just about every budget.

Myth #2: You Need To Be Technologically Savvy

Many business owners also think that a person needs to be technologically savvy in order maintain the website after it is launched. However, this is also not true.

A good portion of websites today are built around content management systems (CMS), which enable you to easily edit content, all without any advanced skills. In fact, if you are familiar with using word-processing software, such as Microsoft Word, you will be easily able to use many content management systems.

Myth #3: Your Customers Aren’t Online

For businesses that target a wide array of customers in various geographical regions, the need to have a website is fairly obvious. However, if your customers come primarily from your local community, you might not think it necessary to create a website.

But according to the study, your customers ARE using search engines to find you and are often frustrated at not being able to locate information about their local businesses. Also, because of not being able to find the businesses that they are looking for, they might choose to go to a competing business.

An overwhelming majority of searchers (92%) say they are happy with the results they get when using search engines, despite the fact that 39% report frequently not being able to locate a particular known business. Webvisible said this means that while searchers don’t always find the specific business, they may choose to contact a similar business with a stronger online presence.

So, why might local customers look for your business’ website online? Some reasons include:

  • additional information about your products or services
  • exact store location and directions
  • contact information such as a phone number, fax, or email
  • store hours

Myth #4: Traditional Advertising Methods Are More Effective

According to the study, many small businesses still rely heavily on traditional methods of advertising such as placing ads in the local newsletter or yellow pages. But the study also showed that people who are looking for companies are moving away from these methods in favor of the internet. So if potential customers are moving online, you should consider moving your business online as well.

Additionally, internet advertising has proven very useful and cost-effective. Some reasons why you need to consider the internet in your marketing strategies include:

  1. You can reach more people. Your website can be accessed by anyone with an internet connection. So you can definitely reach more people than via other offline advertising methods.
  2. Your website works 24/7. A website is also available all the time. What this means is that when you close up shop for the day, or late at night when newsletters are no longer being distributed, your website is online, easily accessible by all of your potential customers.
  3. A website is cost-effective and sustainable. Advertising in the newsletter or yellow pages can be very expensive. But worst of all, it only lasts a short period of time. The yellow pages is typically only used 1-2 years, and newspapers are typically discarded within 1-7 days. With a website, you have a longer period of time to recoup your investment. And, based on the nature of the web and search engines, you will be able to take advantage of free advertising.

 

For more information about the survey, see the Marketing Charts‘ article "‘Great Divide’ Separates Small Biz, Online Customers".

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12 Responses to “Website Ownership: 4 Biggest Myths & Realities”

  • On February 18, 2009 at 7:28 am,Ben Pei wrote:

    Why would they say website is too expensive? I guess thats the reason why their business remain small..

  • On February 18, 2009 at 10:02 am,Kurt Avish wrote:

    You are right. Mainly about myth 3 where for example in my own country when I look for a company, I either only find a classified listing for it or nothing.

  • On February 18, 2009 at 10:16 am,Velvet Blues wrote:

    @Ben: Well, some web development companies quote outrageous prices. So if this is something that a company sees, they might think that all websites are expensive to build.

    @Kurt: Yes, I find it frustrating when businesses do not have websites. As someone who works online, I just EXPECT everyone else to be online too! :-)

  • On February 18, 2009 at 8:23 pm,Nihar wrote:

    It is a shocking stat. but if the study is made for my country India. it will be more shocking.

    This is because lack of knowledge and exposure to the web/internet.

    Lot of people think that you need have good knowledge in computers to run a website.

  • On February 19, 2009 at 8:55 am,Kim Woodbridge wrote:

    Personally I think it’s worse to have a poorly designed site and outdated information than no web presence at all. For example, my daughter’s school has a pretty website but if you go to the news section the most current information is for signing up Kindergartners in January 2007!! That’s two years old. They also have to make sure that they respond to inquiries – I have asked questions on numerous company websites and it isn’t uncommon to not receive a response.

  • On February 19, 2009 at 1:50 pm,Velvet Blues wrote:

    @Nihar: Yeh, I bet. The lack of exposure is probably the biggest thing. So in your country, traditional methods of advertising are indeed more effective.

    @Kim: I couldn’t agree more. I actually wrote about this topic once before… Many people try to build their own websites, assuming that any website is better than no website. But a bad web presence could be very detrimental.

  • On February 19, 2009 at 1:52 pm,Kim Woodbridge wrote:

    LOL – Maybe that’s where I got the idea in the first place ;-) I’ll have to see if I commented on that.

  • On February 19, 2009 at 1:55 pm,Velvet Blues wrote:

    @Kim: Nope, that article received no comment love. :-)

  • On February 19, 2009 at 9:55 pm,Ajith Edassery wrote:

    Good points. In fact, there’re some truth in the myths as well. Sometimes, the site maintainence can be really troublesome. Especially when people use CMS programs that needs frequent-unfriendly upgrading.

    Another point, traditional advertisement (television, newspaper, national radio, local FM) still works great as online advertisement share is still below 7%.

    And like Kim said, if it’s a one or two page site with timeless info it’s okay to maintain it. But if you have a site that needs to be updated often, and if that’s not happening probably that’s a worse situation :)

  • On February 20, 2009 at 7:20 am,Dennis Edell wrote:

    I have to agree with some here, regarding sites that need constant updates; especially for sites that are product based and the like.

    If it’s a true small business…the owner also runs the counter…this just isn’t going to happen. Granted he/she could probably hire a high school or college kid, but most don’t understand that.

  • On February 21, 2009 at 5:30 pm,Velvet Blues wrote:

    @Ajith: Well, yes, I suppose that maintenance can be troublesome. (Note: Upgrades aren’t really required. They’re just nice to have. ie. I checked out your WP version, and it isn’t 2.7.1. ;-) )

    As far as traditional advertising methods vs. the internet, there is one huge difference: cost. I am appalled when I see how much people pay to advertise on television, radio, or in newspapers & magazines. But yes, choosing the right kind of advertising would also depend on the target demographic. ie. Advertising online in America is more valuable than advertising online in China, India, Africa, or other countries where there is not that much access to the internet.

    @Dennis: Yeh, there is a learning curve with some content management systems. But I am talking about an ideal case where the person who creates a website understands the needs of the client and chooses the best and simplest CMS, not the one that needs an expert to maintain it. And yes, if the small business owner cannot maintain the site via the CMS, they could easily hire someone for a few cheap hours of maintenance every so often.

  • On October 31, 2009 at 5:13 am,Karl wrote:

    I used to work with a local website design company here and you’d be surprised the amount of small and medium sized business owners give the same reasons to not having a website as found by the research.

    Karl

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