Forty pc SMB lack online presence

Forty pc SMB lack online presence

A recent study conducted by 1and1 Internet stated that most SMB owners are misinformed about the cost of owning a business website

Thursday, July 30, 2009

PHILADELPHIA, US: Forty per cent of the small and medium business (SMBs) still do not have an online presence and amongst those without a website 53 per cent have no idea what a website would cost each month, said a recent study conducted by 1and1 Internet, a US based provider in Web hosting, servers, and Domain solutions.

SMB owners risk unnecessary spending due to confusion over the cost and effort involved in Web hosting, according to research released today by 1&1 Internet, Inc., the world’s largest Web host by known servers. The results from a study of over 1,800 US small to midsize businesses suggest that most SMB owners are misinformed about the cost of owning a business website.

These small business owners need more information about the features and benefits of Web hosting to broaden their range of possibilities to profit from the internet.

Oliver Mauss, CEO of 1&1 Internet Inc., said, “While many small companies today leverage the Web with increasing proficiency, too many businesses remain excluded from the online world. "

He added, "Although an online presence becomes more and more important for the acquisition of new customers, small business owners are still unaware of the true cost of Web hosting. They overestimate the necessary business investments for being online and underestimate how simple and affordable it is to source a website.”

Of those SMBs already online, 83 per cent report that their website was essential to their company’s success.
According to the study the average respondent without an online presence guessed that a business website would cost a whopping $67 per month.

91 per cent of those same respondents thought it would cost more than $10 per month.

Cost was found to be a major factor even for SMBs with an existing online presence.

The average SMB spends $45 per month for Web hosting. 84 per cent said they spend over $10 per month.
Cost has become such an issue that when choosing a Web host 64 per cent agreed that an inexpensive monthly fee is important, actually outranking service by 33 per cent and quality and reliability by 25 percent, said the study.

Mauss suggested, "Given that an online presence is a key to a business’ success, the Web hosting industry could be doing a better job at communicating the real price and value of being online."

He further added that the industry must put a stronger emphasis on the fact that additional revenues generated from having a business website can far exceed the cost of owning one. Especially by implementing a do-it-yourself solution, businesses can keep costs low as they watch their profits soar.

©CIOL Bureau