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International Survey From 1&1 Internet Shows Direct Correlation Between SMB’s Web Sites and Business Growth

10:23:59 - 17 October 2005

Users in U.S., U.K. and Germany Uniformly Report Positive Effect on Sales, Communication, Marketing and More

PHILADELPHIA, October 17, 2005 – Small and medium-sized businesses (SMBs) are increasingly harnessing the power of the Internet and believe their Web sites positively impact sales, communication, marketing and cost efficiency—among other things—according to the results of a comprehensive survey released today by 1&1 Internet, Inc., the world’s largest Web Hosting and domain registration company.

The survey, which canvassed some 50,000 1&1 SMB customers in the United Stated, Germany and the United Kingdom (the company’s main areas of operation), sought to learn firsthand from SMBs the impact that having a Web site has had on their business, particularly in the first 12 months after going online. The results were analyzed by Prof. Dr. Edgar Einemann of Bremerhaven University of Applied Sciences in Bremerhaven, Germany, in a detailed report called International Comparison of the Economic Effects Resulting from the Implementation of Professional Webhosting Products.

Among the most intriguing of Dr. Einemann’s findings:

  • Almost all respondents (94.7 percent) said their Web presence provides a positive contribution to their company’s development
  • Half said less than 20 percent of their sales are generated through their Web site; roughly a third said their site accounts for more than 20 percent of sales
  • More than 80 percent who experienced sales changes in the past year attribute it to having a Web presence
  • More than three quarters of the respondents said their Web site offers major benefits in effective marketing, overall customer communication and reaching and attracting new customers
  • Almost all respondents (85.9 percent) are convinced that they are implementing an overall cost-effective new communication tool
  • More than two thirds said their web site cost less than $650 in the past year

“The survey’s overall conclusion is that maintaining a Web presence has significant positive economic benefits for SMBs,” said Dr. Einemann. “It is clearly an example of the extent to which the Internet has penetrated the global economy, and is particularly significant because it is based on a relatively large number of respondents and an international comparison.”

“The surprising aspect of the findings,” Einemann continued, “is the uniformity of the results. There is no significant difference in the responses between Germany, the UK and the US, and within these countries, hardly any differentiation between the individual industry sectors or regions.”

1&1 conducted the survey by emailing its SMB customers and asking them to voluntarily complete an anonymous online feedback form consisting of nine questions. In the U.S., 1,217 respondents were delineated by business type (accounting/financial, advertising/marketing, architecture, art/photography/graphic design, automotive, computer/Internet/IT, consulting, contractor/home improvement, healthcare, non-profit, real estate, restaurant/bar/club, retail and travel services/tourism) and geographic region (Northeast, Mid-Atlantic, Southeast, Midwest, Southwest and Northwest). 

Just as with the combined survey results from the three countries, the survey responses across business sectors and regions within the U.S. were very consistent.

Andreas Gauger, 1&1 Chairman of the Board, said the survey results were a clear sign of the Web’s increasing accessibility and hoped more SMBs would be encouraged to get online.

“The survey findings indicate that, more than ever, the vast potential of the Internet is definitely within reach for SMBs,” Gauger said. “These are businesses with anywhere from two or three to 100 employees, and they’re reaping the rewards of the Internet just as much as their larger corporate competitors. Clearly, you don’t need a massive IT budget or advanced technical resources to have a sophisticated and productive web presence. Those SMBs that still aren’t online are truly missing out on taking their business to another level.”

Gauger said a major reason SMBs are seeing more benefits from their Web sites is because costs have gone down while value has increased and technology has become more user friendly.

“At 1&1 our entire business model is predicated on delivering the maximum value for the money,” Gauger said. “We started as an SMB. We realize that these people don’t have unlimited time, finances and technical resources, so, for what we believe are some of the lowest prices available, we give them everything they might possibly need to create and maintain an optimal Web presence, and we try to make it as simple as possible. Based on the feedback our customers gave through the survey, this approach is exactly what most SMBs are looking for. And it works.”

For more information, contact 1&1 at www.1and1.com or 1-877-GO1AND1.

About 1&1 Internet

1&1 Internet Inc. is a subsidiary of United Internet, a profitable public company with 4,700 employees and a market cap of $1 billion. 1&1 was established in 1992 and has registered over 5.1 million domain names and operates more than 30,000 servers run in its four state-of-the-art data centers. 1&1's global community is over 3.9 million customer contracts strong. The company’s U.S. headquarters is located in Chesterbrook, PA. For more information, please contact the company at www.1and1.com or 1-877-461-2631.

1&1 Internet Inc. is a subsidiary of United Internet.  All other logos, company and product names may be trademarks or registered trademarks of their respective owners.

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1&1 Internet Inc. is a subsidiary of United Internet, a profitable public company with a market cap of $2 billion. 1&1 was founded in 1988 and hosts more than 10 million domain names, while more than 65,000 servers run on the company’s five state-of-the-art data centers. 1&1’s global community is over 8 million customer contracts strong. 1&1 offers complete hosting solution for businesses and websites owners. 1&1 is one of the world's biggest web hosting providers. The company provides marketing innovat... read more

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