"A penny saved is a penny earned." It is still true today. If your business is an internet-only company, you probably don't realize how good you've got it. Traditional companies are seeing these significant cost savings available on the internet and taking their businesses online to capitalize on them. The internet can help you cut costs in the following areas:

1. Staff

Internet shoppers fill out their own order forms and payment information. Do you think this saves your staff time? You bet. Your staff will change from lots of order takers and cashiers to a smaller number of "experts" that can answer all the questions customers might have about your products or service. It's really easy to ask questions on the web, so guess what? People ask lots of questions. You will need to be prepared to answer those question. You can answer questions by automated response and FAQ's (Frequently Asked Questions) for the simple inqueries and have your experts handle the really tough ones. When all is said and done, you will need less staff to run an internet business compared to a bricks and mortar establishment.

2. Catalogs and Sales Material

Don't you think that J. Crew could save a lot of money if all their customers went to their web site instead of needing a printed catalog? J. Crew still sends out millions of catalogs but they are also saving millions by having an effective web site which includes their whole catalog. Every customer that is contacted by e-mail and reminded of the new online catalog is a customer that doesn't need a printed catalog. Think of the savings!

"But I'm not a huge catalog company" you say. That may be true, but if you currently print and distribute printed sales materials you can save money with the web. Less printing and less postage. You probably won't escape printed sales materials altogether but you can dramatically reduce the amount you spend on them. And once your site is online, it costs virtually nothing to keep it there. And that's whether hundreds or hundreds of thousands of people visit your site. The last bonus is that it's easier to update your site than to print new material. And you can do it instantly.

3. Marketing

Marketing is building a relationship with your prospective customer. The analogy of dating is a good one. There is no better (or cheaper) way to make this relationship flourish than on the internet. Once a customer has expressed any interest in your product, it is very inexpensive to continue the relationship and move them along towards the sale (marriage). Personalized e-mail about your products or services direct them to different areas on your web site that pertain to their interests. This approach is also much more effective than traditional marketing where each ad that is run is targeted at getting the sale. This is similar to proposing marriage on the first date. I think we all know how well that works! So use the interactivity of the internet to build relationships based on relevant information and trust. That way when you pop the question, you are fairly certain of a positive response.

4. Start-Up Costs

It's just plain cheaper to build an internet business than to open a new bricks and mortar business. The internet provides a great way for your business to establish a global market. Doing this with a traditional business would simply be too expensive for most businesses. 

You should be aware of and utilize the many ways your organization can save money on the internet. >>