Websites Must Die!!!

Since the beginning of the year, many media outlets have predicted doom and gloom for Internet companies. They point out that more than 41 major web sites, like ToySmart and Boo, have shut down this year. They point out that sites like DrKoop are on their deathbeds, and that funding has dried up for new sites. More than 5,000 employees have been let off from some of these failing sites. Many commentators and analysts are declaring doom for many web sites, and hard times ahead for the rest. 

Don't believe the hype!

For years, the Internet has been over-hyped. Many people had the idea that you could put up any site and starting counting the money coming in. Journalists focused on the high-flying entrepreneurs behind the most successful Internet companies.

Now the pendulum has swung the other way, and all you hear is gloom and doom. The doom and gloom crowd forgets to do one thing, though; they don't look at how dot.com businesses are fairing compared to businesses in general.

Most traditional startup businesses fail. According to US Census data, about half of businesses that employ people fail within 5 years of startup. Half! Next to that, 41 sites out of the millions of websites seems pretty insignificant!

Next time you read an article talking about websites that are failing, look a little deeper. Does the article discuss why the site failed? Does the article provide any perspective?

Most websites that fail do so for good reasons. They may be hard to navigate, offer unwanted services, or just be poorly thought out. There are tons of bad sites, so it's surprising how rarely you hear about sites failing.

The truth behind all the gloom and doom

Even while many journalists are declaring death for websites, many sites are realizing huge growth in online sales. Online sales are larger than ever. The number of Internet users increased 4.5% in July alone. Online shopping sites saw an increase of 3 million users in July, according to Nielsen Net Ratings.

For small companies, the Internet can be an especially important opportunity. Mid-size companies have been slow to adapt to e-commerce. This is allowing fast-moving smaller companies to dramatically increase their sales by moving into territory that mid-size companies are failing to exploit.

Ignore the web site death watch. Now is the time to expand your online presence. Identify areas where you have something unique to

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