Thursday, March 11, 2010

Great site, or less Website for your business?

You are owner of a new online business, and the last thing you need is a different decision. We are sorry, but we have a thing for you to consider: How big should be your first website? 

There are two schools of thought on this subject, and both have data to support them. Of course, as if we automatically knew that was the preferred way to go, there would be a decision would be made at all. 

We  must stress that this issue is not related to the size you want the company to eventually become. Companies pursuing either approach can ultimately be quite big and successful. Neither should your decision be based on some preconceived perceptions of your audience or your niche. Both small sites and large sites can succeed in a niche. 

In other words, the answer to that question is not automatic, and we will warn you right now that we are going to recommend the "magic size fits all" approach. 

Small sites should be concentrated on a narrow sub-niche, built around a consistent, limited set of relatively long tail keywords. Sites that are designed to be quite large over time will develop most of their contents in the same concentrated way, but they will also begin to search engine optimization in  a  shorter, very strong competitive keywords at the same time. 

The two approaches require different models for long-term growth, although both can begin to greatly concentrate on a relatively narrow slice of the market. Those who have taken the mini-site approach will begin to repeat their success by building a new, small place in another sub-niche with a new set of long-tailed keywords. Large enterprises site will instead build a second section on their original growing site. This new section, over time, will be joined by others (think of the new departments will be added to a sports shop, for example). Each new section will have a new sub-niche. Then, as the major sites grow even bigger with more and more categories, departments, or silos, the company can with mini sites set up twenty or fifty or a hundred individual "storefronts." 

Positive cash flow can be established before the small site approach. This is partly because such activities do not invest resources in the most competitive, high keyword. Conversely, the silo sites take longer to mature, but they may eventually be competitive for the top level keyword, when they simultaneously into the fray for the more tightly targeted words and phrases. Finally able silo site will be recognized as an authority in the broader niche. 

We  will highlight three specific ramifications of how you decide to approach this business decision. 

One of these relates to the amount to be invested in the site itself in the beginning. When you are planning to build a large site, the architecture of the entire site (which it eventually will be) must be in place. Therefore, although the mini-site and possible mega-site may be of the same size at launch, the model of the entire system costs more to boot. Lay the foundation for the silo locations are inherently more expensive than the smaller, cheaper mini-site. 

The ways you think of your keywords is another important difference. A keyword research into a mini-site will be much more focused on the long tail terms, especially those that show commercial intent (and thus more likely to convert sooner rather than later). If you choose the silo site, you will be splitting the focus on your keyword research. In a way, you will simulate search on your little website competitors by looking for those longer tail, which is higher conversion, but you must also deliver to all major traffic keywords so you can start to attract visitors who are to gather information rather than ready to take a decision to purchase or sign a contract. 

The final practical ramification has to do with Page Rank. Page Rank is influenced by a number of variables in search engine algorithms (formulas), but one of them is the number of pages that a site has (assuming that the site has a search engine friendly linking structure). Thus, it is difficult to achieve a high Page Rank, than it is for a great site because of its intrinsic value on this variable. 

We hope we have given you some things to think about and apply to your unique business situation, although I have not given you a clear cut decision as to which alternative is the best solution for you.

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