web revenue

Jennifer Keiser (Jennifer_Keiser_at_inspiration.com)
11 Sep 1996 10:00:59

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web revenue
Been following your conversation about profitable websites with interest.

The discussion so far seems to concern how many sites collect advertising
dollars, and whether those sites are profitable. However, Harry Wolhandler
actually wrote:

"Two in five websites in our study (commercial sites with 2+ months web experience,
randomly sampled over the entire range of business types) generate revenues
(39%), ___of which only a few rely solely on advertising revenue (2%).___ Most
of these (37%) generate sales revenue, nearly a third of all websites currently
consider their site profitable (31%). ___Sales revenues over the web ($129
million in June) are nearly seven times ad revenues ($19 million in June) for
the same period.____"

(emphasis mine)

This is an interesting point. If you want to see profitable websites, I think it
would be better to look at sales-generating sites (like Amazon.com).

As another alternative, look at software sites. Ours, for example, is a very
small, very simple site which contains some product information and a
demonstration version of our software. If a customer likes it, he calls us &
buys it. (We also have salespeople call the potential customer a short time after
the download.) In the few months that we've had our website in place, it's
become one of our biggest sources of single-user sales.

We don't advertise on other websites; our website *is* our ad.

Jennifer Keiser
Inspiration Software

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