E-Business

1. E-Business Getting Our Business Online An Internet Presence for Existing and New Businesses

2. Overview • Selecting and registering the domain name • domain name syntax • choosing the name • determining whether the name is available • registering the name • Selecting our host • Expanding our existing business online • how users typically will find us on the web • converting hard-copy assets to digital • spreading the word about our online presence • Generating revenues from our site

3. Selecting and registering the domain name • When it comes to choosing the domain name for our online business, the name we select is important as it becomes our identity on the World Wide Web. • Therefore, the name should be easy to remember, pronounce, and spell. Further, the name should be instantly associated with our company, product or service by our customers. • With all the hype surrounding the Internet, rumors are flying that all the domain names are being taken, and pretty soon there won’t be any left. However, with the .com domain alone, there are 31,700,000,000 possible names. Moreover, many other domains have been created, such as .tv, .info, .biz, .name, and .us .

4. Selecting and registering the domain name • When we select a new domain name, and want to register it, we will be required to provide an IP address for our site. • As we discussed in previous lectures, when a user types our website’s domain name in their browser, a Domain Name Server (DNS) associated with the client machine, automatically translates the website name into the corresponding IP address, which is needed to locate and access the appropriate Web page.

5. Domain name syntax • As we begin to think of the domain names for our online business, we need to consider the following in relation to the syntax: • Only letters, numbers, and the hyphen (-) can be used in a domain name. Punctuation marks, such as a period, exclamation point, colon, and forward or backslash are not allowed. In addition, no spaces are allowed in the name. • A domain name can be up to 26 characters long, which includes the main domain and the end of the name (such as .com, .edu, .org, .net) • The domain name we choose must be unique, therefore it cannot already be used or registered by someone else.

6. Selecting and registering the domain name • Domain names are not case-sensitive, so we cannot combine upper and lowercase letters to create a unique domain name. • As we promote our site, however, we can list the domain name using both upper and lowercase because the browsers will automatically translate the address into lowercase. For example, to make our name more memorable, we can promote www.ourdomainname.com as www.OurDomainName.com . Of course, the name www.our-domain-name.com is totally different name, which would need to registered separately.

7. Selecting and registering the domain name • Many users surf the Internet and randomly type website addresses based on the topic the are looking for, in hopes of luckily hitting a site that interests them. • Therefore, we would like our name to be somewhat obvious. This type of traffic is called “guess traffic”, as we would receive visits from people who do not specifically know our web address, but who find our site by guessing. For example, someone looking to order flowers online might instinctively try to visit the website www.flowers.com , as it is an obvious choice. • For that reason, many of the one-word generic domain names we may think of to describe our company, product or service might already be in use. Therefore, we would probably have a better luck selecting a domain name which combines two or three words.

8. Selecting and registering the domain name • The .com domain has been around since 1985 and most Internet users automatically enter a .com extension out of habit. • Thus, it’s an excellent idea to have our domain name end with .com, even though others are available. If we want to protect our company’s online identity, we can, at the same time, register our name with several other popular domains such as .net, .biz, and .org.

9. Choosing the name • There are three basic approaches we can take when deciding on an intuitive domain name for our online business: • Use our company name(www.ourcompany.com) • Use the name of our product (www.flowers.com) • Use the name of our service (www.pedicure.com)

10. Choosing the name • If we are planning on expanding by offering unrelated products, we could choose a name that sounds somewhat non-specific. We can consider Amazon.com for example. It started out selling books online. The company now offers books, music, videos, auctions, software, and countless other products. • However, based on that name, a consumer would have no clue what products “Amazon.com” offers. It’s only because the company has spent millions of dollars on marketing, that Web surfers now know what Amazon.com offers.

11. Choosing the name • If we are experiencing difficulties selecting a name, we may consider hiring an advertising and marketing agency that specializes in helping companies create names and slogans (for example www.NameStormer.com)

12. Selecting and registering the domain name • Other features of the domain names are: • It is possible to have multiple domain names which lead to the same website. This feature would entitle us to have multiple listings on the major Web search engines. This feature is called “domain forwarding”. • If we anticipate expanding our online business into new areas or believe that sometime in the future we might have a need for additional domain names, we could reserve a domain name, which we will not immediately use. This feature is called “domain parking”. In other words, we have the rights to it, however the address is not active and doesn’t lead to a website.

13. Determining whether the name is available • To determine whether a domain name is available, we could visit a domain name registrar, such as www.NetworkSolutions.com • If we enter our ideal domain name and get a message that it is for sale, this means that there is an independent company which has already reserved the domain name, but it is willing to sell it. In this situation, the price would range up to several hundred dollars. • Otherwise, if the name is available (is not reserved), it would cost about $1-$2 per year.

14. Registering the domain name • The concept of registering a domain name is very similar to getting a new telephone number from the phone company. Registering a domain name does not give us ownership of it. The process gives us the exclusive right to use the domain name as long as we pay the annual fees. • If the name is available, we will be instructed, by the domain name registrar site, to complete an online form, in order to provide contact information about our company.

15. Registering the domain name • It will include: • Full name • E-mail address • Company name • Mailing address (street, city, state, ZIP) • Phone number • This information is required by law for all registered domains, and can be found in the WHOIS.com database. However, for an additional fee, it can be arranged to have our personal information kept confidential, so it is not readily available to anyone who looks up the database. • If we have a long-term service agreement with our Internet Service Provider (ISP), they may offer to register our domain name for free.

16. Selecting our host • As an online business operator, unless we plan to install and administer our own web server, we will need a web-hosting service to provide a server on which our website will exist, and be made available on the Web. • All of the turnkey solutions, we discussed in the previous lecture, include website hosting in the monthly fee. • Clearly, we will also need an ISP, to provide us with access to the Internet from our home or office. At the same time, many ISPs also offer website hosting services. Therefore, it is possible, that we will only need to find one company to offer us web hosting and Internet access.

17. Selecting our host • Finding an ISP is as easy as doing the following: • Seeking out a reference from someone we know • Using a web search engine • Checking the Yellow Pages • Calling any of the turnkey service solutions we discussed previously

18. Selecting our host • Some of the considerations we need to inquire about when investigating a possible ISP/Web-hosting service include the following: • Rates – includes setup fees, monthly rates, and additional charges • Amount of storage space offered – we may be limited to a specific amount of file storage space on the web server, for our website content. Typically, 20 – 30 MB, which is sufficient for most sites. • Passwords – can we control / select our won logon passwords

19. Selecting our host • Domain name registrationservice – is it offered • E-mail – does the service include e-mail accounts (someone@OurDomainName.com), needed for employees, so that we can easily accept e-mail messages from customers; and, how may mail boxes we receive. • Monitoring software – is there software available for monitoring traffic / load to our site. • Compatibility – does the web server support the programming language used for the website, and credit-card processing module? • Backup services – are redundant servers / cluster / network load balancing available? How is server down situation handled?

20. Selecting our host • Secureservices – does the ISP offer secure connections for online credit-card processing? • Bandwith – can the ISP accommodate the load / traffic of our site, without users noticing slowness? • Terms of contract – what is the minimum length of service/penalties if agreement ended • Tracking – what reports/log files are available for recording visitors information, such as: which site they linked from, which pages they browsed to, pick times, any errors they received, etc. • The process of uploading our website to the web server and making it available to the public is called publishing of the website.

21. Expanding our existing business online • Some established businesses identify an immediate benefit for creating an Internet presence, whet it is to sell products to a potential worldwide audience, offer potential customers information about their products, or offer improved and more convenient customer service. • Other companies are establishing themselves on the Internet now because business operators understand that having an Internet presence is critical, and they need to offer what their demanding customer expect, or keep up with the competition.

22. Expanding our existing business online • As millions of people from around the world continue to gain access to the Internet, their buying habits are changing rapidly. For example, if we are looking to buy a major appliance, we no longer need to spend hours driving from one appliance dealer to the next to learn about the latest models, features, and costs. We can research products and comparison-shop online in far less time and without need to discuss with sales people, or looking for a parking spot. • Best of all, as a consumer, we can do our shopping any time, day or night, without ever leaving our home. Using this example, if we are an appliance dealer, we could miss out on many sales if our business isn't represented on the Web, and easy to find on using search engines.

23. Expanding our existing business online • Many established businesses are using the Internet simply to improve their customer service and cut costs. For example if our business receives many phone calls from potential customers requesting information (sales brochures) for our products, there is a cost associated with handling the phone calls, printing the brochures, and mailing the requested information. • Once a web site is established, those same brochures can be re-created online. Next, the company can simply promote is website’s URL, and potential customer can quickly obtain the information they need, at any time, with no wait.

24. Expanding our existing business online • Some of the ways an existing business can benefit from a website are: • To sell products/services online to a broader customer base. (an e-commerce solution needed) • To enhance existing customer service and technical support efforts. This can be achieved by posting technical (how-to) articles on the website, offering live chat with company representatives, posting a Frequently Asked Questions (FAQ) document, or developing a message board area for customers to communicate with each other. Also, an online-based newsletter can be offered on the website.

25. Expanding our existing business online • To disseminate information about the company and its products/services by offering electronic versions of catalogs, brochures, press kits, marketing materials, etc. • Communicating more frequently and efficiently with our existing customers by creating online newsletter and promoting sales and events online. • To gather useful market research data from our customers, and potential customers, to help us offer better products/services (ask for customer feedback/comments online) • To promote our latest products/services to potential new customers, which not be normally reached through traditional means. • To recruit new employees and accept electronic applications / resumes.

26. Expanding our existing business online • To disseminate investor and stockholder information • To inform customers about hours of operation for our retails tore, or office • To provide customer with business mailing address, phone number, or other contact information • To distribute online coupons and special offers that customers can redeem online or at the retail store • To reduce costs, and personnel needs, which would otherwise be associated with the above

27. How users typically will find us on the web • For an established business looking to go online, the same considerations apply to choosing the domain name. It should consist of the existing company name (this is where companies are willing to pay for already reserved names, which are for sale), should be easy to remember and be intuitive. • Users who choose to find us on the Web will discover our domain name in one of the following four ways: • Will obtain domain name because it was printed on the company’s advertisements or traditional marketing materials (brochures, catalogs, business cards, letterhead, press kits, signage, etc.)

28. How users typically will find us on the web • Will use an Internet search engine to find our domain name, usually by typing the name of our company or the products users are looking for as the keyword or search phrase. • Will experiment, using common sense, and enter the company name in the URL when trying to find the company online. For example, if a user wants to find IBM’s web site, most people will try www.ibm.com . • Will respond to online advertising and promotions implemented by the company, such as banner ads, promotion e-mails, links from other websites, etc.

29. Expanding our existing business online • The established corporate and brand identity should remain completely consistent as the Web content is developed. This means, for example, that the color schemes used on the web pages should be consistent with the look of our traditional printed materials. • The look of the company/product logos needs to remain constant, and the overall “attitude” of the site needs to be consistent with the corporate image. • Not maintaining strong continuity online may be detrimental to developing the corporate and brand identity in the offline business world.

30. Converting hard-copy assets into digital • During the life of our existing business, we have probably created or acquired a variety of artistic assets, such as: logos, product photos, line art, and other materials that could be incorporated easily into our website to maintain continuity between our company’s online and offline branding and overall image. • To create electronic versions of existing assets, a flatbed scanner, photo/negative scanner, or high-end digital camera can be used.

31. Converting hard-copy assets into digital • Once the image is in digital form, we can use a graphics program such as Photoshop, to edit, crop, or digitally enhance the photo or image. • In order to achieved the desired effect the graphics program may substantially increase the size of the file. We need to make sure our file sizes are reduced to minimum for use on the Web, as they impact loading times. In other words, our users may experience delays when visiting the web site. • Adobe Acrobat software (www.adobe.com) offers easy and inexpensive conversion of existing printed materials, such s full-color brochures, advertisements, and annual reports, into the popular PDF format.

32. Spreading the word about our online presence • There are several ways to spread the word that our business now has a website, and promote our URL to our existing customer’s once online: • Add the URL (website address) to any sales and marketing material our company uses. This includes all of our traditional advertising, such as print ads, radio and TV adds, billboards, etc. Along with the address and phone number, we can add a line for our website’s URL. • Add the URL to our company’s letterhead, envelopes, business cards, brochures, sales receipts, invoices, press releases, or press-kit folders. If we have retails store, we can consider having the URL printed on our shopping bags, and cash-register sales receipts. Larger retailers, such as Gap and Barnes & Noble, display signs in their stores encouraging people to visit their websites.

33. Spreading the word about our online presence • Knowing when people are accessing our online business, particularly what pages of our website, and what keywords or search phrases were used to find our site, are all pieces of information that can help us better manager our online presence. Keyword marketing is an excellent and low-cost way to drive traffic to our website. Yahoo Search Marketing (http://searchmarketing.yahoo.com), and Google AdWords (http://adwords.google.com/select) provide these advertising opportunities. • If the products our company sells include packaging or manuals, we can add our company’s URL to these materials.

34. Spreading the word about our online presence • If our business as an “on hold” message when people call us, we can announce our website as part of this message. • We can display the company’s website on our company-owned vehicles.

35. Generating revenues from our site • There are several ways we can generate income from the site. These include the following: • Taking orders for our product or service online using automated shopping cart application with credit-card processing. • Using our site as an interactive brochure and encouraging people to visit our retail store, call our toll-free number, or send a check to make a purchase. • Offering software or information that can be paid for online, and downloaded.

36. Generating revenues from our site • Selling online advertising space to other companies or using affiliate programs. • Selling access (membership) to our site

37. Using our site to accept purchases • The purpose of many online businesses (e-commerce websites) is to encourage visitors to make purchases directly from the site, typically paying by credit card. • If the customer is purchasing software or information that can be downloaded, our e-commerce site can become a fully automated business; a client can pay by credit card, and next download the software or information, such as an eBook, directly from the site. • Offering information for sale in the form of electronic books or documents if relatively easy.

38. Selling advertising space • Once our online-based business is established and we have a steady flow of visitors who fall into a specific niche market or demographic, we can sell banner ads or advertising sponsorships on our site to other companies interested in reaching our audience. • There are many independent services, which we can use to monitor website traffic. Advertisers use these independent services to verify Web traffic and determine ad rates.

39. Selling advertising space • If we plan to sell advertising space on our site, we will need to be a able to track the number of visitors to our site, and create specifications for developing fair ad rates. Many agencies specializing in online advertising help businesses sell available ad space on commission basis. • This however, is becoming less popular because banner advertising tens to be less effective than other forms of online advertising. Also, it could detract from the brand we were trying to create by establishing the website.

40. Selling advertising space • However, if our site offers information our visitors perceive to be valuable or unique, the will be more willing to accept seeing the ads from which we derive income. Also, if we spread the advertising throughout the site, and keep it relatively subtle, visitors will be more accepting of it. Therefore, placing banner ad just at the very bottom or top of a page can be effective. • For example, if we look at Yahoo.com we will see banner and often animated display ads interspersed throughout the site. This site receives millions of hits per week and generates its income by selling ad space and sponsorships to advertisers in order to offer, for free, a popular and powerful service that Web surfers want.

41. Selling advertising space • It is a good strategy to have advertising that somehow relates to our online business, so that we are offering visitors additional links to information, products, or services they are likely to be interested in, without creating competition for ourselves.

42. Membership fees • Another way companies generate revenues from their website is by charging a time-based membership fee to access the specialized information or content on the site. If we are planning to make people pay to access our site, it is necessary to provide them with information or services they perceive to be valuable and not readily available elsewhere. • Some print publications, such as newspapers and magazines, often charge subscription fee for their Web-based content. The Wall Street Journal is an excellent example of a well-respected publication that charges a subscription fee for its online and traditionally printed content.

43. Membership fees • On the other hand, many mainstream businesses that have attempted to charge membership, subscription, or access fees for content have had a much more difficult time getting people to pay for access to Web content. • This is because many Web users believe browsing the Web should be free, once they pay for Internet access through an ISP. In addition, it is believed that no matter what type of “premium information” or content a site charges users to access, chances are good that similar content is available elsewhere on the Web for free.

44. Membership fees • Therefore, the success of such a site will depend on how well we are able to alter this popular perception, at least among our target audience. • This type of business model works well if the information we are offering on the site changes regularly, and users will be returning to our site often to obtain the information. (ex. industry oriented publications or high-priced newsletters)

45. Affiliate programs • Affiliate programs are a way for site owners to be compensated for driving traffic to online merchants’ sites. • Some merchants will pay a percentage of all the sales they make when visitors from our site click on a link, go the merchant’s site, and buy something. Other merchants will pay simply for sending the traffic their way, on per-click or per-thousand-clicks basis. Still others will pay for impressions. Merchants may also offer to pay for combination of these. It’s a win-win partnership because we get increased revenue, and merchants get increased traffic.

46. Affiliate programs • To take advantage of this option, we need to becoming an affiliate with companies that offer such a program. For example 1-800-Flowers.com, and Amazon.com . If we display a 1-800-Flowers.com link on our site, each time a someone links to 1-800-Flowers.comand places an order, we will earn a commission on the sale. • We can also operate our own affiliate program, and drive traffic to our site to hopefully generate sales without having to pay any fees in advance. This can be done by using a recognized service such as LinkShare. We will be obligated to pay our affiliates a commission based on sales generated by their referrals. For companies with limited advertising and promotions budge, establishing an affiliate program is an excellent way of boosting traffic to the site, and a marketing tool online businesses have found useful.

47. Selling downloadable goods • When we think of the ultimate online business model, being able to sell downloadable software, information, photos, etc. is ideal. There are no products to ship and no inventory to maintain. • If we have a software package to sell online, or are creating electronic documents, we can use our site to promote that. The site will accept and process real-time credit-card payments, and next allow the customer to download the software or information they’ve purchased directly. • In most cases there will be no in-person, fax, telephone, or e-mail communication with the customer. Therefore, our business is truly virtual; and, once it is setup, it will be almost completely automated.

48. Selling downloadable goods • This type of online business model works well if we have a unique software program, information, or digital art, users are willing to pay for and will want almost instantly. • The Learn Crochet Now website (www.learn-crochet-now.com) is a good example of a site, which charges for some of its content. It offers instructional DVDs and videos about crocheting and knitting. Many of the videos can be purchased, downloaded and viewed right away using a media player software.

49. Selling downloadable goods • MovieLink (www.movielink.com) is the ultimate in high-tech video-rental stores. This website allows users to rent popular videos and then watch them real-time via streaming video, or download them for later viewing. • The cost of renting a downloadable or streaming movie is similar to what it would cost to rent from the local video store, only the user never leaves his/her home or office, and there are no actual DVDs or videocassettes.