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YOU GET WHAT YOU PAY FOR
A patient goes to a dentist with a
terrible toothache and would do anything to have it fixed.
Patient: How much to have this tooth pulled?
Dentist: $190.00, and it will take just a few minutes.
Patient: $190.00 for just a few minutes work???
Dentist: I can extract it very slowly if you like.
According to data collected by ActivMedia's annual study of
electronic commerce; website development costs have grown into a
$10+ billion industry. While online revenues reached $95 billion
in 1999, they are also expected to reach $226 Billion in 2000.
- · The average budgeted
investment for e-commerce website development in 1999 across
all websites was about $37,000.
- · Business-to-consumer
(B2C) operations that sell exclusively through the Internet;
budgeted an average of $68,000.
· Typical retail and
business-to-business (B2B) site expenditures were in the upper
$20,000's.
According to this study, online growth is exploding particularly
among mid-range and smaller online operations, as companies gear
up to meet anticipated demand: "Internet-generated
revenues in 2000 will reach $226 billion, nearly six times the $38
billion observed in 1998. Typical growth rates for many mid-range
players are even higher, and some companies will experience online
revenue growth of over 2000%!”
Naturally, e-commerce programs that see growth rates that are
higher than average are going to budget more for website
development today; in order to handle the expected future
business. These companies understand that with a successful online
presence will create the leading
companies of the new century.
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Additional points to analyze:
- This year, European
websites committed to spending better than twice as much
per website on development costs than what is to be
spent in North America ($77K vs. 34K).
- Websites anticipating
profitability in two to five years had far higher
development budgets than web sites that were already
profitable or expecting profitability in the near term
(averaging $59K vs. $26K).
E-commerce revenues, aggressive
promotional plans, and length of online experience correlate
with larger web site budget levels. Website development
budgets for 1999 were skewed upward for firms with larger
promotional budgets, larger revenues, a greater number of
registered domain names, and total staff sizes greater than
100.
Mortgage companies need to have a firm and clear financial
commitment to budget their web site development. Your
corporate web site needs to look as good (or better) than
E-Loan, IF you want to compete with E-Loan.
A patient goes to a doctor with a stomachache; finds out
that he needs to have his appendix removed.
Patient: Doctor how long will it take and how much will it
cost?
Doctor: About 1 hour minutes and $10,000.
Patient: $10,000 for 60 minutes worth of work????
Doctor: Yes, it is a basic procedure. I could even
show you how to remove an appendix in one hour... but it
would take me 10 years to teach you what to do if something
goes wrong.
And in closing, there is a web development adage; with
top quality web design, you always get what you pay for.
Web site: www.mortgagepromote.com
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