Re: A money-making web site (was: Cost/Audience Comparisons)

J. Ellsworth (je_at_world.std.com)
Mon, 22 Jul 1996 17:07:38 -0500

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I think so much of this is in the definitions. Amazon.com is making money.
CDNow is making tons of money, and that's a fact. FedEx is saving (some say)
$7.00 every time we hit the page to track a package instead of calling their
800 number.

The first honest question is: what is the business purpose of the site?
PizzaHut is not selling pizza, they are selling PizzaHut... making money
*on* the site? Donno. Are they making money using their site... it appears
to be a very successful marketing venture.

The Web/Net is a business tool -- in the same way that the fax, the
telephone, TV, ads in the New York Times are all tools for doing business.
Some involve marketing, some involve advertising, some involve selling, some
involve customer service, come are for communication; many involve more than
one of these.

The more important questions are these: what is the business purpose of the
site? Is the site fulfilling that purpose. How well? Do the benefits
outweigh the costs?

Cliff makes an excellent point too -- the businesses that I work with are
not about to let me share the specifics of their investments, receipts, etc.
but my research indicates that many sites are very productive.

Jill

~ J. Ellsworth, Ph.D. ~ je_at_world.std.com ~
Senior Partner, Oak Ridge Research ~ http://www.oak-ridge.com
Author: The New Internet Business Book; Marketing on the Internet

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