marketing online: what you should know

The Internet is an ever evolving mechanism used to gather information. Since its inception, the net has become the most powerful and efficient tool to exchange information in the world. The true power of internet computing has yet to be discovered, however. Web-logs, online databases, and online stores are some of the ways that people have begun to utilize the internet. Every day the technology is getting better and faster. The bad news is that not everyone, especially small businesses, can keep up. This is especially true for small businesses and online marketing.

Small businesses often struggle with online technology. They either don't have the resources or the knowledge to use the technology available to them. The potential for profits exist, yet many small business owners have become reluctant to use the Internet as a tool to run a successful operation. However, many rely on government contracts in the early days of the business. And being online is vital if a small business owner desires to contract with the government.

In 1998 the Federal Government passed the Government Paperwork Elimination Act in order to reduce the amounts of paper used within the public sector. Government agencies have turned to an electronic system for information transmission. Many dot-gov sites have become efficient and profitable (ex. The U.S. Mint). In fact, most procurement processes have been turned over to the internet. The government can now solicit opportunities as well as make purchases through sites such as FedBizOpps and GSAadvantage. Though there have been some minor drawbacks, overall, government purchasing has become much better in the last few years largely due to internet technology.

So what does this mean for small business and online marketing?

First, small businesses who wish to contract with the government must have access to the internet. Second, small businesses must be able to market online to government agencies. For example, the General Services Agency (GSA) invites contractors to apply for a GSA schedule in order to sell its products to requesting agencies. Once all of the online applications have been filled out and the business has gotten on schedule, the business is ready to sell to the government. So why the lack in sales? Lack in sales comes from lack in marketing. And when it comes to the government, online marketing is mandatory.

How does a small business market itself online?

Small businesses must have a strong website. This is especially true for GSA Schedule contractors. But, this also goes for all businesses involved in any form of online marketing. A website is a central place for shoppers and contracting agents to learn about your company and its products. Without a website, consumers are left to guess at what you sell and who you are. Contracting agencies won't come to your store to buy your products and consumers cannot do business with you online unless you direct them somewhere. A good website will get you started in the right direction.

Qualities of effective websites:

Your website must be legible. Nothing is more harmful to good content if you cannot read it.

Make links easy to find. Do not make users search for links. They should be clearly defined and not buried in lines of text.

Do not overuse flash. Flash animations can add an artistic touch to your site. But if animations are irrelevant to the functionality of your website, cut them out.

Make content direct and to the point. Don't use jargon. Make your text scannable so that readers can easily navigate through the site.

Once you have a website, your next step is to attract visitors. Advertising on the Internet is another area that is growing in the e-commerce market. Early Internet advertising was expensive and not very profitable; only big companies were able to afford it. However, affiliate marketing has emerged and has greatly reduced the costs associated to selling your business on the Internet. Affiliate marketing is a system of revenue sharing between one site (the affiliate merchant) which features an ad or content designed to drive traffic to another site (the advertiser). Generally, affiliates receive a fee based on traffic or sales generated by the site. Though using affiliates can be expensive for small operations, some services, such as Terrecom.com, charge a flat fee for advertising on their site. The bottom line is that you need to generate traffic to your site and affiliates have become a good way to get people to visit.

Doing business over the Internet is still a fairly new concept. The technology is imperfect and therefore so is the business. However, many businesses are learning about what they can do with the technology. Small businesses have become successful in e-commerce. One such small business is textile company Rice Mills Inc. of Belton, South Carolina. Before going online Rice Mills was a small operation struggling to stay in business. Since utilizing the Internet, the small company has received orders from 32 states and four continents. This is only one example of the many successes of e-commerce. There are inexpensive ways to successfully market a small business on the Internet. Small business owners just need the right strategy.

The Nebraska Business Development Center does offer web development for small and medium sized businesses. Primary Web Solutions will take your ideas and launch an effective and professional website at a reasonable price. To learn more about Primary Web Solutions visit www.primarywebsolutions.com or call (402) 595-2900 for a free consultation or visit.

Sources:

Dot-Gov Success in the Online Marketplace Shirley Ann Becker. Journal of Electronic Commerce in Organizations Hershey:Jan-Mar 2006. Vol. 4, Iss. 1, p. I,II (2 pp.)

The Evolution of Affiliate Marketing Jeff G Molander. Target Marketing. Philadelphia: Oct 2005. Vol. 28, Iss. 10; p. 115 (4 pages)

May I help you? Ellen Neuborne. Inc. Boston: Jan 2006. Vol. 28, Iss. 1; p. 31 (3 pages)

On-Line Marketing: A Matter Of Survival Kathy Vass. Textile World. Atlanta: Jan/Feb 2006. Vol. 156, Iss. 1; p. 18 (2 pages