Website Management Needs Cost Controls in Slowing Economy

Smart website management requires a balance of both revenue and expenses to achieve a healthy profit and healthy growth.

Revenue decline
© Promise Media LLC
Smart website management requires a balance of both revenue and expenses to achieve a healthy profit and healthy growth.

When the economy is growing strongly, it is of course much easier to grow revenue as well.

Businesses spend more on advertising, they make more money and they often increase their advertising budgets in response to their growth in revenue.

Websites that rely on advertising for most if not all of their revenue will benefit greatly from this increase in advertising.

They may even be tempted to increase their expenses by using the profits to invest in content, people and technology.

So revenue in a strong economy drives growth and brings the expenses along with it.

Continue reading “Website Management Needs Cost Controls in Slowing Economy”

Website Profit Balances High Margin, High Growth

Website profit is often a choice between high profit margin versus high revenue and audience growth.

Online profitWebsite profit is often a choice between high profit margin versus high revenue and audience growth.

It is one of the most important choices a publisher or webmaster can make for a Web site financial plan.

It is tempting to chase a high profit margin, but excessive margins are a positive in the short term and a negative in the long term. No business can maintain an unreasonably high margin over time without undermining growth or creating an opportunity for competitors.

Media sites in the early days lost a great deal of money and were seen as a drag on their parent companies. Now the opposite is true for some sites: Their parent companies need to boost sagging profits and are pushing for higher margins out of their Internet operations. Continue reading “Website Profit Balances High Margin, High Growth”

Efficient Website Management Pushes Profits Higher

Efficient website management requires quick responses to problems, initiatives, changes in competition, and new products.

Online profitThe website support ticket went to the vendor on Nov. 10. The answer came back on Nov. 17.

The ticket had a simple question, but the vendor somehow was so inefficient with customer service that it took an entire week to reply.

Efficient website management requires quick responses to problems, initiatives, changes in competition, new products, etc.

If a simple question requires one full week for an answer, both that site and that vendor have big problems with efficiency.

Continue reading “Efficient Website Management Pushes Profits Higher”

Multiple Revenue Streams Build Business Success

Content and media Web sites that develop multiple streams of online revenue end up with better odds of meeting or even exceeding their advertising goals.

multiple_streamsContent and media Web sites that develop multiple streams of online revenue end up with better odds of meeting or even exceeding their advertising goals.

They also increase their odds of surviving as a business.

Online banner advertising — including contextual ads such as Google AdSense — dominates many articles and discussions about Web site management.

But robust sites have eight to 10 or sometimes even more revenue products as part of their business strategy.

Here are 13 options common among many content Web sites: Continue reading “Multiple Revenue Streams Build Business Success”

How to Choose a Web Site Management Service

Web site management services are no different than any other service business: Some will deliver great value and others will suck the life out of someone’s dream of online success.

Online sales contractWeb site management services are no different than any other service business: Some will deliver great value and others will suck the life out of someone’s dream of online success.

It is no exaggeration to say that a management service can charge thousands and even tens of thousands of dollars for work that could be done for hundreds. Plenty of real-life examples exist.

It also is no exaggeration that some of these services will provide expertise in one area while falling short in another.

They will pursue the contract because it means more money for their own business while planning to make up for their lack of skills by hiring a contractor or just figuring it out on their own. That’s an understandable thought, but it puts the client’s business at risk.
Continue reading “How to Choose a Web Site Management Service”

Online Advertising ROI: 3 Useful Metrics

Online advertising ROI or return on investment is a major consideration for anyone focused on response rates more than branding.

Online advertising ROI
Acquisition is the top goal. It can be in the form of registrations, transactions, ad views, etc. © Promise Media

Online advertising ROI or return on investment is a major consideration for anyone focused on response rates more than branding.

Response and branding are the two primary benefits of any advertising campaign.

ROI is difficult to track for branding because the results are not always immediate or directly measurable.

That is not the case with response, which can be immediate in the online environment. Continue reading “Online Advertising ROI: 3 Useful Metrics”

Paid Search Advertising Brings Quick Profits, Narrow Margins

Paid search advertisingPaying Google and other search engines to advertise a site is an easy path for driving audience, revenue and ideally some profits.

But sites often don’t make big profits that way because they underestimate the amount of labor involved on top of the actual ad costs.

And then there is the issue of return on investment.

What happens when a visitor reaches the site? Do they generate enough sales to make the campaign worthwhile?

Even higher profits are found via search engine optimization — if the site manager limits the amount of time required to build and maintain SEO — because that audience doesn’t cost a dime.

Again, it’s only the labor that costs with SEO. Continue reading “Paid Search Advertising Brings Quick Profits, Narrow Margins”