October 5, 2010

Why Online Companies Prefer Economic Websites, Even When They Don't Work

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Due to low computer literacy and a limited budget, companies are choosing to acquire economic websites even though they're found to be useless for promoting their business.

Despite the poor performance of many businesses in Internet marketing projects over the past decade, companies are still deciding on the purchase of web pages based on price in most cases, hoping the investment will generate the results they expect, but that's usually no the case.

Even when those responsible for acquiring a site for business, whether the purchasing department, systems, marketing, sales and sometimes even the very secretary if the general manager of the company, make the attempt to acquire a quality service based on the needs of the company, the reality is that the final decision is in most cases made by managers or directors who are not familiar with these technologies, who too often end up deciding based on price and rarely based on whether the chosen product meets their business requirements.

By not having enough information about the key factors for success on the Internet, managers and directors make their purchase decisions based on the recommendations, not just made by Internet marketing specialists, but from other executives who have gone through the same process. The purchase decisions of web pages are usually taken from a budget that was defined based on reference prices obtained from the market, not based on strategic information.

This purchasing methodology seems to be the right one. However, in practice few companies are achieving the desired levels of promotion. The reason is simple: companies are not buying the product they need, ie they are not buying the type of website that will help them promote their business online. A website is not very useful when it's not accompanied by a system of promotion in search engines.

The problem stems from the lack of knowledge about best practices for online marketing and aggravated when project managers defines the budget without having clearly defined their requirements. This logically leads to having to decide between three or four proposals of various kinds, mixing in the decision process prices and proposals of financial products and specialized agencies and having to compare prices from very different price and scope.

This working system seems to simplify things to the steering group that makes purchasing decisions, since proposals that are well above the originally approved budget can be quickly ruled out, thus leaving the groundwork for selecting a financial website, although it will probably not produce the desired results.

The stage is then set for the sale of cheap web pages. We should not say bad quality, because in reality an economic website can be done as well or better than a professional website. They are just products for different markets and the mistake may well be done due to a poor selection of the type of website that your business requires. It is a fact that small companies are not prepared to invest significant resources in a professional website that includes search engine optimization (SEO), although this option offers a much higher return of investment.

Much of the problem lies with the design and web hosting agencies that have been responsible for limiting the flow of strategic information to customers, so they have no choice but to acquire economic services as a package, although they do not help companies to achieve the main goal of Internet marketing campaign which is the promotion of products and services, branding, customer service, and as natural consequence, the increase in sales.

Due to its complexity and specialization, search engine optimization (SEO), which is the most effective online promotion today, simply can not be included in a package of web design services that is affordable, since it would be unprofitable for the service provider agency. Therefore, many web design firms try, based on deceiving tactics and false promises, to make customers fell that the search engine positioning service is included in the proposal, when in many cases the agency is not even a positioning specialist.

Do not forget that what is at stake is the promotion of your business. Take special care when you purchase your website because, in an online marketing project, cheap can turn out to be quite expensive.

About the Blog Author: Timpa has the mission of providing all entrepreneurs, whether experiencied or not in online business strategies, with the right information to help them manage their businesses online in the best, most time-effective and cost-effective, smarter way.