Issue 27, January 6, 1997
Welcome to Issue 27 of Web Marketing Today, sent out this week to 15,600 subscribers around the world.
In this Issue
- How to Choose a Web Hosting Service (ISP) for your Business Web Pages
- Kind Words from our Clients
- E-Mail to the Editor
- Odds 'n' Ends
- Accounting and Electronic Commerce, by James D. Snell
How to Choose a Web Hosting Service (ISP) for your Business Web Pages
by Dr. Ralph F. Wilson
One of the most important decisions you'll make for your business Web site is selecting which Web hosting service will display your Web pages to the Internet. With a good Internet Service Provider (ISP) you don't have many problems; with a poor ISP you have much pain. So how do you go about shopping?
Types of Web Hosting Services
First, let's examine the types of services available.
Dial-Up Access. There are thousands of local dial-up access providers in the country, each of which also provides Web page hosting for businesses. I've learned that ISPs either specialize in dial-up access or Web page hosting, and it's a rare ISP that ends up doing both well. Many dial-up access ISPs don't really understand the needs of small businesses, and aren't quick to improve service. After all, their bread-and-butter is dial-up access, and that's where their focus and investment goes. A few large companies have separate divisions for Web site hosting which help them avoid some of these problems.
Developer's Hosting. A second kind of service is becoming common. Web site developers commonly host the Web pages for the businesses which are their clients, often on a computer in the corner of their office. They often provide good service, since they are customer focused. The downsides may be: (1) price, (2) smaller connection to the Internet backbone, and (3) dependence, which we'll discuss below.
Web-Hosting Only. Increasingly you find companies which specialize in business Web site hosting. They allow no dial-up access (site owners gain access to their Web pages via FTP), which doesn't allow bandwidth (speed of connection to the Internet) to be compromised by access customers frequenting chat rooms. They provide a wide variety of services to their customers. This is where the bargains are to be found. How do you find them? Look at ads in the Web developer magazines at your local newsstand.
Industrial Strength Hosting. If you have a very high traffic site, you'll need to look to the largest national companies which provide mirror sites on both coasts, 24-hour staffing, redundant connections to the Internet backbone, and substantial prices. No bargains here, but you have the expectation of maximum reliability.
Think National
But how do I upload files to an ISP who doesn't have a local access number? you ask. You need local PPP access to the Internet, commonly offered in most parts of the US at $20 per month for unmetered service. This gives you a local e-mail address. It also gives you a connection which allows you to use an FTP program on your desktop computer, enabling you to upload files to an ISP anywhere in the world, so long as you have the correct username and password.
Let's say you sign up with a Web hosting service in Pennsylvania and you live in Texas. No problem. You get on the Web through your local ISP in Texas, and FTP your files to the ISP in Pennsylvania which hosts your Web pages. E-mail sent to your domain hosted in Pennsylvania is automatically forwarded to your local e-mail address in Texas. You set the return address on your desktop e-mail program to your business domain name, and no one will know (unless they bother to read all the e-mail header material) that you have hosting in Pennsylvania with forwarding to Texas.
Now, if your local ISP doesn't offer you the services and prices you need, you can shop anywhere in the country. (Anywhere in the world, actually, though transcontinental Internet connections can sometimes be very slow.) Non-US companies commonly set up Web sites hosted in the US, and have their e-mail forwarded half-way around the world.
What to Look For
Shopping for a Web hosting ISP is difficult at best, but these are some of the things to look for.
Size of Pipeline. The host computer is connected to the Internet backbone typically by T1 and T3 lines. A T1 can carry up to 1.5 mbs (megabits per second), while a T3 can carry 3 mbs. Small ISP hosts sometimes have ISDN connections to the Internet, or "fractional T1" connections (part of a T1). Look for T3 if you can, though a T1 isn't close to its maximum capacity. The expense of installing an adequate pipeline to the Internet is the chief barrier to setting up your own Web server computer in your office; telephone and other charges are pretty stiff, unless they can be shared with other businesses. Another alternative to explore is "co-hosting" your computer at an ISP's location to take advantage of his connection to the Internet.
Number of clients per machine. Ask how many business clients are assigned to each of the ISP's computers. (Don't be surprised to find out that many good ISPs use fast Pentium computers rather than something more exotic.) You may not learn too much by asking this, but you do learn if the ISP has any policy limits at all.
Space. ISPs usually assign you a certain amount of space on their computer. 5 MB is plenty of space for the Web pages and graphics for most business Web sites. I once jammed nearly 800 files and graphics into 5 MB. But ask if mail, log files, and system programs are counted in the 5 MB; these can sometimes take up considerable space. Web hosts which include mail and log files in the count commonly offer 15 MB minimum.
CGI-bin Access. Business accounts need to be able to reference programs in a cgi-bin directory, which includes a cgi program which generates the e-mail message sent out by Web page forms. So long as a good forms-to-email program is available in the host's main cgi-bin, that may be all you need. If you or your Web site developer need to write custom programs, though, you'll need your own cgi-bin directory. But here's the problem. Most Web hosting ISPs allow FTP access to a cgi-bin directory but not Telnet access. This can significantly slow down programming development time. If you don't have Telnet access, for example, you won't be able to compile any programs written in C or C++. You have to rely on the ISP's technical support to do that for you -- when he gets around to it. ISPs say that limiting Telnet access helps them keep out hackers, which is true. But if it is at the cost of getting your Web site working, the cost may be too high. Ask: "Do you allow us Telnet access to a cgi-bin directory?"
Virtual Hosting. These days nearly every ISP offers what is called "virtual hosting" or a "virtual domain." This allows you to have your own domain name such as http://www.yourcompany.com rather than use your ISP's domain name with a subdirectory designating your site, such as http://www.isp.com/yourcompany/. You definitely want virtual hosting. Sometimes an ISP will offer something called a "vanity domain" such as http://yourcompany.isp.com. Don't bother. Pay $100 to register a real domain name, and consider that an investment in marketing your company on the Web.
E-Mail Aliases. Once you have a virtual domain, ask your ISP how many e-mail addresses you are allowed. Many ISPs allow you to set up multiple "aliases" such as sales@yourcompany.com or info@yourcompany.com. Also ask if different aliases can be forwarded to more than one e-mail address. For example, I have a client with partners in Germany as well as offices in California, with e-mail aliases for each of them. For the smaller business, you probably don't need POP (Post Office Protocol) e-mail boxes on your Web hosting site. The POP e-mail box you have with your local access ISP is probably enough. But larger businesses may want to have multiple POP e-mail boxes at the Web hosting ISP. (Ask your MIS staff member. If you don't have an MIS staff member, you probably don't need this.)
Dependence. How free are you to choose another Web hosting ISP if this one doesn't work out? If your Web site developer provides hosting, what kinds of contracts lock you into using those services and for how long? So long as your name is listed as the "Administrative Contact" with InterNIC, you can transfer your domain to another ISP, though your previous ISP can slow down the process unless he cooperates. Make sure your Web site developer isn't listed as the Administrative Contact or it may be more difficult to switch to a new developer if the need arises. You can see who is currently listed by checking your domain at http://rs.internic.net/cgi-bin/whois
Support. How many hours a day are technical support staff available? How quickly do they respond? How much help do they provide? If you need 24-hour technical support -- and larger companies and high-traffic Web sites do -- then expect to pay substantially more. People are much more expensive than machines.
Extra Features for Business
Make sure you inquire about the availability of mailing list management programs such as Majordomo for newsletters, and autoresponders for automatic responses to e-mail messages sent to certain addresses. If you have software demos available for download, you'll want "anonymous FTP" capability. (This differs from FTP access to your Web pages which requires your username and password. Nearly all ISPs make that available.) Also make sure that your Web host ISP provides some sort of statistical data on visitors to your Web pages. Counters are not considered professional, and don't give nearly as much information. If you plan to take credit card information over the Web, you'll need to have SSL Security. If you plan to display databases on your Web site, be very careful to get an ISP whose operating system is compatible with the system you use to maintain the database.
What Should You Expect to Pay?
The best advice is to know the services you really need, and only pay for those. The typical six-page small business Web site with a single response form, for example, can find good virtual hosting with multiple e-mail aliases, cgi-bin access, and a T3 connection to the Internet for $18 to $25 per month. If you need SSL Security, expect to pay $35 to $75 per month. Setup fees are typically $50, though sometimes higher for special features. Prices will be higher in many localities. Large companies and high volume Web sites will pay much higher rates to get the services they need.
But I am paying too much! you cry. Find out what you need and then shop around. When you discover a better deal, see if your current ISP will match it. (Life is more competitive these days when business customers can get Web hosting any place in the country.) And when comparing Web hosting prices with your local ISP's hosting rates, remember that you'll have to pay $20 per month for access anyway, so figure that into the equation.
The most difficult thing to learn is how responsive the Web host ISP is to fixing problems which arise. How slow is the site during peak hours? Does the ISP host a very high volume site which slows everybody else down? This kind of information is difficult to find out except by asking some of the ISP's current customers.
Like much shopping, referral is often the safest. And referrals
to the best ISPs is what you pay your Web site developer to give
you. Select your Web site developer before you select an
ISP. But if you plan to shop on your own, at least you have a
list of questions to ask, which can help steer you to the best service/price ratio possible.
Note: Please do not contact us asking for ISP recommendations. That is the information we make available to our clients. ;-)
Kind Words from Our Clients
We designed the Eagle Wing Indian Art Web site for Paul Larson. It features absolutely beautiful Kachina dolls, jewelry, and pottery from Native American artists. This is what Paul wrote when we were finished: "In setting up a new Internet-based business, I selected Wilson Internet Services as my designer for several reasons.- First, Ralph Wilson knows how to market on the Web. There are things which need to be considered when designing a site that only Web marketing experience can teach you. There are valuable shortcuts and items which, when incorporated into the design itself, improve accessibility and ease of use by your page visitor. Ralph knows how to do this and can save you numerous mistakes, lost time and lost customers/visitors.
- Second, Ralph is willing to lead those of us who are not the most "net-savvy" through the process and the details. I could probably have designed a site by myself using the tools now available; however, it would have taken me weeks (or months) and would not have been as professional as my new site. I was able to concentrate on the other aspects, such as site content, business practices and the infrastructure I needed to put in place. The time saving alone was worth it –- not to mention the stress and headaches I’m sure I would have had.
- Third, Wilson Internet Services provides marketing ideas and "after design" support.
- Last, Wilson Internet Services is reasonable. This was not my first criteria, but what else can you say?" -- Paul Larson, Eagle Wing Indian Art, San Juan Capistrano, California.
We constructed a 275-product retail store for Replicarz in time for their Christmas sales, using the state-of-the-art Mercantec SoftCart shopping cart program. Replicarz features high quality die-cast racing car replicas. One of the owners, Mark Fothergill wrote:
"Our customers are telling us that our site is far superior to that of any of our competitors, and that is music to my ears. Our experience with Wilson Internet Services was a good one from the very beginning. Our site was designed by Dr. Ralph Wilson, and I must say that Ralph was a pleasure to work with. He was very helpful, and he held our hand along the way, something other web designers didn't seem interested in doing."Every step of the process was clear and direct, and Ralph was in constant contact with us. I recommend Wilson Internet Services to friends and business associates. Being in the mail order business, we have just added another avenue to market our products. My hat's off to the staff at Wilson Internet Services." -- Mark Fothergill, Replicarz, Rutland, Vermont.
E-Mail from Our Readers
"I am proposing: Put 'SHOP THE WEB IN 97 ... pass it on' everywhere: on sites, in newsletters and in press releases, in print, audio and data. Translate it into every language. It's very simple and takes very little effort from any one individual but could have a tremendous affect if everyone participates." -- Mark Montgomery
Odds 'n' Ends
Sponsorships for Web Marketing Today are available for February and March issues. Get your message out to 15,000 or 16,000 Web marketers! For details see http://www.wilsonweb.com/ads/ Please contact us immediately to reserve your space!Through Joyful Heart Ministries, we are offering two e-mail discussion Bible studies this winter:
- Intro to Jesus for the Undecided. For individuals who are inquiring about the validity Christianity, but have not yet made a commitment. Begins in January, runs for six weeks, and examines the life and teachings of Jesus. No charge. See http://www.joyfulheart.com/jesus/
- Philippians. An intensive study of Paul's Letter to Philippians via e-mail discussion, beginning January 12 and concluding on Palm Sunday. Intended for those with a Christian commitment. No charge. See http://www.joyfulheart.com/phil/
If you'll be at Spring Internet World 97 at the Los Angeles Convention Center, make plans to get together with us at a Web Marketing Today no-host dinner, Thursday evening, March 13, 1996, 6:30 pm, place to be announced. I'll be bringing a keynote address on Web Marketing, and you'll make some important contacts with other Web marketers. You'll probably find me hanging around the Mercantec kiosk at the Hewlett Packard booth when I'm not looking at exhibits.
Accounting and Electronic Commerce
by James D. Snell, CPAThe ability to conduct electronic commerce efficiently over the Internet requires that an electronic order, generated by the customer at a Web site, be processed with little or no human intervention. For this to happen, e-mail messages must be routed to the company's accounting system, and the accounting software must recognize and import this order information. Without such integration of electronic commerce data and accounting software, all orders received via e-mail from the Internet would have to be manually keyed into the company accounting system, which is impractical and very costly for a company with any significant sales volume.
Electronic commerce can be categorized as either consumer-to-business or business-to-business. In the consumer-to-business model the transaction originates from input received at a Web site, and usually requires a unique integration solution for each accounting software package. The business-to-business model is moving towards utilizing EDI (Electronic Data Interchange) technology. EDI has been available for many years but has been used primarily by large companies due to its high cost and complexity
The consumer-to-business model
With the consumer-to-business model, a transaction is initiated when a software program (CGI script) converts order data entered into a Web page form to an e-mail message and transmits the e-mail to mail software such as Microsoft Mail. The mail program sends the order to the accounting software which validates key fields such as customer number, purchase date, and parts number. New customer data is added to the customer data base. A confirming e-mail is sent to the customer when the order is accepted and/or shipped. The system tracks unprocessed e-mails, incomplete orders, and failed e-mail confirmations for exception reporting.
Accounting software vendors are beginning to announce solutions to integrating consumer-to-business electronic commerce with their accounting software.
- Peachtree accounting software has recently partnered with Harbinger
Corporation to provide storefront capabilities with built in integration to
the Peachtree accounting package. The Harbinger software must be used in
conjunction with the Harbinger Corporation Value Added Network.
- SBT Corporation WebTrader provides the tools needed to build an Internet
presence and capture critical business information -- such as sales orders,
leads, and product registration -- securely over the Internet. WebTrader can
run stand-alone or can seamlessly integrate with the SBT Pro Series 3.0i
accounting databases.
- Great Plains Dynamics.Merchant software is a consumer-to-business order processing system, linking Dynamics to a commerce server (such as Microsoft Merchant Server). Customers order products from World Wide Web "storefronts". These storefronts use Dynamics.Merchant to provide high volume order processing by utilizing the capabilities of the commerce server. The tight integration to Dynamics or Dynamics C/S+ accounting software provides benefits such as real time inventory verification, sales tax calculations, and automated data entry of the order.
The business-to-business model
The business-to-business model has many similarities to the consumer-to-business model. The major difference is that with the business-to-business model, electronic data must be integrated with the accounting systems of both businesses. In effect the purchasing company's accounting system must talk to the selling company's accounting system and vice versa. Historically, this business-to-business integration has been accomplished using EDI software with data being sent electronically over private Value Added Networks.
Various software products are being developed to make EDI more user friendly for smaller companies. Premenos, a leading provider of electronic commerce solutions recently announced their new product, Templar WebDox for small and medium size businesses. WebDox uses forms that are accessed from a Web browser for submitting orders to a trading partner via EDI over the Internet. The WebDox product is comprised of a Central and Remote component. The Central component resides on the server of the company receiving the EDI orders and the Remote is the browser companion used by the companies sending the orders. Premenos says that the information inputted into PowerDox Remote integrates with the company's accounting system. PowerDox has its limitations in that each trading partner must have WebDox software.
Large scale business-to-business electronic commerce will not take place until it can be accomplished securely over the Internet with software products that work together. CommerceNet is sponsoring a pilot project to test the interoperability of EDI and messaging software using standards proposed by the Internet Engineering Task Force for EDI over the Internet. Once these standards are established, possibly by mid-1997, EDI will very likely be sent directly between Web servers, and eliminate the need for costly private Value Added Networks. Web technology will replace the existing EDI translators that are extremely complex and difficult to maintain, opening the doorway to widespread small company use of electronic commerce. Many accounting packages currently have EDI capability and those that do not will have to provide an interface with EDI to remain competitive in the business-to-business electronic commerce area.
The per transaction cost savings associated with electronic commerce over the Internet, when compared to traditional order processing, is driving the industry to adopt new technologies. These new technologies will allow the secure and accurate transfer of order processing and other accounting data over the Internet from one accounting system to another, and facilitate rapid growth of electronic commerce among companies of all sizes.
[Editor's note: Mercantec SoftCart, used by Wilson Internet Services to build retail store applications, currently offers modules which format data for automatic credit card authorization, as well as EDI and accounting packages such as QuickBooks.]
James D. Snell, CPA is President of TAPNet (http://www.tapnet.com). Mr. Snell assists companies in the selection of accounting software and the use of new information technologies. He can be reached at (603) 585-9003 or e-mail to jim.snell@tapnet.com
