Frankly, as a consumer I thought his talk was a major bust, BECAUSE HE DID NOT DELIVER VALUE TO HIS AUDIENCE. It’s one thing to show the technology of manipulating databases, and another altogether to make these actions PROFITABLE. Here was a technology expert representing a business that hasn’t produced a dime in profit (sound familiar?) talking down to an audience of businesspeople who ran profitable enterprises.

During the next few years we’ll likely see articles called something like, “The Return to Value,” as businesses rediscover the joy of profit and avoid e-speculation. That’s where traditional-profitable-businesses will once again take the forefront of industry attention. If you run a successful business, a related e-business SHOULD PROVIDE A NEEDED SERVICE FOR YOUR CUSTOMERS, whether it is information, goods, a means of communication, or all three. If your e-business does not have a PLAN to deliver any (or all) of these benefits, STOP NOW. You’re likely wasting your money.

This past year fewer than 10% of all Holiday retail sales derived from the Internet. If you didn’t have an e-business, you were part of the “minority” of the 90+% of holiday business! To get this incremental business, you would need to invest in a workable e-commerce site, pay for personnel to maintain it, and of course (but so often forgotten) pay to promote it. (As I write this, I’m also reading about the $2 million Super Bowl commercial flops by myriad dot-coms. The long bomb isn’t limited to a football pass!) Figure that kind of a P&L and you’re lucky to eck out a profit at all. Those companies that CAN make e-commerce sites profitable typically sell a niche produce and can produce the website for VERY little money. However, as they become successful the first major investment is in traditional media! That would include advertisements, catalogs, and other printed materials.

Key questions to ask before you go e-com: What is my payback? Can I see a profit during my lifetime? Will I be forced to divert necessary resources from my traditional marketing efforts in order to run an e-commerce website? Am I the first in my field to offer an e-commerce website? Me-too websites are usually far less successful the pioneers in the field.

Is my business really suited to an e-commerce website? If the business is very personal, such as insurance consultations, you might not want to reduce it to an e-commerce checklist.

If the answers point to a big “Yes,” then it’s time to begin shopping for an e-commerce development company. Be aware that costs and quality may vary widely, since this is an industry without professional standards. Also, be sure to include marketing expenses and marketing time in any program; these are often forgotten until the last minute, and can far outstrip a lean budget. Above all, keep in mind that YOU are ultimately responsible for the results — not the website designer or marketing manager. If in your gut you think it doesn’t serve your customers, STOP! Your gut instincts for business brought you to the point where you have profits for additional marketing opportunities, such as e-commerce. Don’t betray your good sense in the light of e-commerce frenzy.