How to Win at Internet Publishing

Yes, there is a way to profit from publishing on the Internet, and it's bound to create competition for traditional media companies. Why? Because most old-line publishers don't understand how to reach their readers precisely when they're in a buying mode.

OVERVIEW

Yahoo.com reports a sharp sales decline. Dow Jones Inc. and Excite drop their Work.com Web site. News Corp. announces a huge cutback in its Web operations; the New York Times Co. resorts to layoffs in its e-media department. Even Cnet and Penton, among the first successful publishers on the Internet, announce layoffs and reorganizations. Some traditional publishers, such as VNU, have poured millions into e-media departments with little tangible result, and many more have avoided any significant Web investment.

Meanwhile, little-known Sales Marketing Network at http://www.Info-now.com, founded January 2, 1996, with an initial investment equal to what many high-flying dot-coms spent in a day, continues to grow profitably. SMN at Info-now.com has over 100 advertisers, more than 70,000 registered users, and, despite the advertising slowdown, is renewing sponsors at an annual rate of nearly 80 percent. Why does SMN at Info-now.com thrive while others pour millions into fruitless ventures?

The answer has implications for traditional publishers, because the model for profitable publishing via the Internet is so simple that many companies are able to do it. For instance, the Walgreen's drug store chain has developed http://www.Walgreens.com, a Web information service that perfectly blends content and commerce.

This trend has implications for readers as well. They will have to be ever more wary of the independence and accuracy of Internet-provided information.

UNDERSTANDING THE ROLE OF THE INTERNET

Traditional media companies plunged into the Internet focusing on the opportunities of the technology without a viable model for putting a dollar value on content. With the exception of sex, matchmaking, and specialized information not generally available elsewhere, there's not much evidence of willingness to pay for Internet information. This is because in most cases publishers have failed to recognize that, unlike other media, the Internet can provide information on demand precisely when consumers want and need it.

For the time being, the current means of relaying information is still functioning despite the Internet. People continue to watch TV, listen to the radio, and even read newspapers, magazines, and books, despite widespread access to the Internet and e-books. That perhaps explains why "push technology" and digital books have not taken hold on the Internet. People already have enough information pushed at them, and they seek it on the Internet only when they're working or happen to be sitting at their home computer.

While traditional media do a great job of pushing information to end users, they rarely provide information precisely when people want it. That great radio segment on petunia planting often is heard while the garden-lover is driving home from work. The how-to article on putting up shelves is clipped from the newspaper but long lost when the consumer finally gets around to the job.

INFORMATION ON DEMAND

The power of the Internet, unique among all media, is its ability to provide information precisely when readers want it. Whether it's news, commentary, or how-to and reference information, Internet content works best when geared to people who are seeking information to fill a specific need or desire.

Among the content categories most easily assigned a dollar value is how-to and reference information related to actions of daily life or business. Desire for this type of information often precedes some sort of action that involves a purchase. That reader seeking information on petunia planting will most likely want to buy plants; the reader seeking information on putting up shelves most likely will head for a hardware store to buy some. Similarly, a business person seeking information on how to plan a direct marketing program almost certainly is embarking on a project that will involve direct marketing.

Of profound import to publishers, people in a planning or information-gathering mode are far more receptive to sales solicitation than those identified through ordinary demographics, and they're much more likely to click to make an online purchase. While someone of a certain income level possibly would be interested in buying a particular product, a marketer prefers to target only those people who are in the process of planning to buy that type of product—at the point of pre-purchase!

Traditional media companies have failed on the Internet in part because their Web sites don't provide a service that's clearly an improvement over what the company has been doing for years. If a core benefit of the Internet is to save time and money, the Internet publishing strategy should do the same.

CONTENT MARKETING

TV, radio, and print media enable marketers to target people with specific interests, but, with few exceptions, not precisely when they're seeking such information. The Internet offers advertisers the most powerful target marketing tool, not only because they can reach people interested in a specific topic or buying category, but before the readers make a buying decision.

Successful publishing on the Internet gives advertisers the ability to sponsor articles related to what they sell, get precise demographic or database information about readers, build permission-based databases of people interested in what they sell, and promote e-commerce efficiently to people most interested in buying.

In the early years, Internet surfers scorned sites with long articles, so everyone concluded that shorter was better. Tell that to readers of SMN at Info-now.com, who often print out articles 12 pages or more in length. The truth is, people seeking information want the most comprehensive array of information and resources possible. Often, they print it all out and read it when convenient.

The targeted Internet model makes it possible for the first time to turn the traditional marketing model upside down by enabling advertisers to reach only those people specifically seeking information on what they sell. Even the most efficient print, TV, or radio model forces advertisers to pay to reach vast audiences who will never buy or who aren't in a buying mode during a particular advertising campaign. The Internet enables advertisers to target buyers more precisely than ever before—something that can't help but strike fear in the hearts of business executives who depend on the current inefficient model.

The print model enables publishers to make promises only about circulation and demographics. What if advertisers expected promises about who will read the article where their ad appears? Imagine what would happen if advertisers in Time magazine refused to pay to reach the magazine's full subscription run and instead insisted on paying only for those people reading the articles they sponsored.

THE DEMISE OF BANNER ADS

Whoever dreamed up the banner ad/click-through model must have never watched TV with a remote control. In front of the TV, people click to get away from advertising. So they're barely inclined, as demanded by banner ads, to click to learn more. Someone has to be extremely interested (or bored) to click to an ad. In fact, click-through rates have fallen below 1 percent, because there's little room in a banner ad to compel most people to click through.

DISPLAY ADVERTISING THAT HITS THE TARGET

On January 2, 1996, SMN at Info-now.com was the first Internet publisher to use a display advertising format. It clearly distinguished the ad from the editorial content, and it was large enough to allow a compelling message within the advertisement, along with a phone number, Web site address, and e-mail links for more information. These ads not only give online readers more information, but they have particular benefit when printed out because they are imbedded in the article, much like a traditional ad.

Not until February 2001 did the rest of the Internet publishing business recognize the benefit of such display-type advertising. That's when Internet publishing leader Cnet announced its use of a larger format. The Internet Advertising Bureau has approved display advertising specifications not unlike those for the large-size ads that originally appeared on SMN at Info-now.com.

THE SPONSORSHIP MODEL

The Internet has the ability to provide sponsors with critical information that is unavailable from other media. That's because people who need information are far more willing to reveal information about themselves than when they're not in a buying mode. Thus marketers can gather demographic data, build databases, and target their sales opportunities. Following are examples of "permission marketing" models that provide advertisers with information they need to evaluate advertising effectiveness.

Consumer demographics
Consumers may not want to reveal their names and addresses to get information on the Internet, but people seeking facts will willingly provide basic demographic information, especially if their name is not required and no permanent "cookies" are implanted in their browsers. Before gaining access to content, they can be asked to provide basic demographic information about themselves. This can be compiled and summarized for sponsors along with the number of accesses.

Consumer publications can offer readers a personal identifier that will them access to online how-to information, services, and reference content, providing a clear added-value benefit not available to nonsubscribers. What other medium can tell advertisers precise reader demographics based on actual usage?

Consumer databases
Consumers in a buying mode often will give permission to have their names and addresses passed off to a specific sponsor selling something they're interested in. In this case, sponsors can build databases of people interested in what they sell in addition to getting precise demographic profiles of readership. These databases can be used for targeted e-mail newsletters (distributed at almost no cost) to reinforce the advertiser's expertise and build credibility with prospects over time.

Controlled circulation
In the business-to-business arena, the controlled circulation model has compelling benefits, as proven by Sales Marketing Network at Info-now.com. Traditional trade publications provide free subscriptions to qualified readers and resell the list hundreds of times to businesses, regardless of whether the reader has shown any interest in a particular product or service.

The Internet model for controlled circulation requires people to register and provide their business address and demographic information via the Internet. However, those names are made available just once to the sponsors of the articles accessed. The general subscriber list is not sold, so readers get solicitations only from companies selling something related to a current interest. This makes people more receptive to such solicitations.

This model works best in the business arena, where buyers expect to get solicitations and, in fact, rely on them to help keep up with vendors selling services or products related to their company's needs. For advertisers, this model turns the old media model upside down by letting them buy advertising by the article instead of by the magazine. And the ad will reach the target audience at a time when people interested in the product are engaged in the buying process.

ENHANCED EFFICIENCY

A skeptical observer might wonder if the traditional media were plotting to destroy the Internet by making so many blunders. Some media moguls probably don't look forward to the day when advertisers can precisely target people in a buying or planning mode. While Internet publishing offers compelling economics (see the next two sections), it also threatens to take a good bite out of mass-marketing campaigns that favor traditional medium. There's no doubt that marketers are not satisfied with the efficiency of the current model and are continually in search of strategies to identify and build relationships with the people most likely to buy. This advertising model is the answer to John Wanamaker's age-old problem: "I know that half of my advertising works, but I don't know which half."

LOWERING THE COST OF CUSTOMER ACQUISITION

Whether or not publishers can apply all aspects of this revenue model to their businesses, the Internet has the potential to reduce significantly the cost of finding and keeping subscribers. Giving customers a reason to go to a publication's Web site also gives the publisher an opportunity to update subscriptions or addresses or promote gift subscriptions and other offers. Today's Web databases can be set up to communicate with a print subscription system on almost a real-time basis. Sales Marketing Network at Info-now.com spends about $9 on marketing to get a subscriber, versus $35 in the print world. Updating subscribers via e-mail costs pennies per subscriber.

COMPELLING ECONOMICS

The information-on-demand, target advertising, and database-building Internet publishing model pioneered by SMN at Info-now.com offers compelling economics:

• How-to, service, and reference articles are far less expensive to maintain than news and commentary.
  
  
• An article that costs as little as $2,500 to maintain each year can generate $30,000 or more a year in advertising revenue, even if sold on a limited-sponsorship basis; the yield, of course, depends on the site's traffic.
  
  
• Advertisers get better results, because a reader seeking information on what they sell is far more likely to click to a sponsor's site or call to make a purchase.
  
  
• Internet subscribers register themselves and can be communicated with electronically via e-mail; that is much less expensive than direct mail.
  
  
• Traditional publishers can use their Web sites to reduce subscription and acquisition costs dramatically.
  
  
• The only paper and ink used is by the reader's printer.
  
  
• The advertising model provides real accountability that marketers cherish.

CRITICAL ISSUES

As with traditional media, editorial integrity is critical in the new world of Internet publishing, for people seeking information also are wary of its quality. And since seekers of how-to and reference information tend to be more thorough than casual surfers, their demand for comprehensive information is greater than other readers.'

While many publishers claim to have editorial integrity on most subjects, that integrity erodes when it comes to promoting a competitive product. Most traditional media will not tout information provided by competitors in the same light as their own. (SMN at Info-now.com is committed to directing people to information resources, whether or not they compete with SMN for readers or advertising.)

Traditional print publishers hide behind the fact that advertisers can never know precisely who is reading what articles or seeing which ads. This Internet publishing model lets nobody off the hook. Internet publications that fail to provide objective, useful information (or let themselves get tugged by advertisers into providing self-serving information) will lose out to those dedicated to providing people the information they need when they want it.

WHY TRADITIONAL MEDIA HAVE THE EDGE

Manufacturers of horse-drawn carriages didn't lead the world into automobile production, nor did calculator companies bring the personal computer to market. Similarly, traditional media show no signs of leading the way to successful Internet publishing. Yet publishers have a compelling advantage over dot-com start-ups when it comes to Internet publishing. That's because they have:

• Current and archived content that's not bringing in any money;
• A base of readers and the free advertising vehicles to reach them;
• Built-in marketing opportunities;
• A base of advertisers.

WHAT THE MEDIA LACK

• A proven model for making money on the Internet that doesn't diminish current advertising or print readership.
  
  
• Publishers who are convinced that they can benefit by moving ahead on the Internet. Following the Internet meltdown, companies will be gun-shy about making investments unless they can see a clearer return-on-investment.
  
  
• Salespeople who understand how to position the Internet versus print advertising.
  
  
• A Web-based software publishing management system that makes it easy to manage both print and Internet businesses in an integrated fashion.

WHAT THIS MODEL MEANS FOR MARKETERS

Because of the ease and low cost of providing high-quality how-to, reference, and service information, the Internet makes it possible for any organization with an average marketing communications budget to become an information publisher, just as Selling Communications Inc. has done with Sales Marketing Network at Info-now.com. Since most marketers spend considerable sums for direct marketing, advertising, trade shows, and other marketing strategies, it costs little extra to promote a Web information service designed to attract people in a buying or planning mode.

Here are a few examples of how different types of organizations can use how-to, service, and reference information:

• Convention and visitors bureaus can use their Web sites to provide consumers or business travelers with tourism information about their destinations, mitigating the need for people to buy expensive guidebooks.
  
  
• A marketing agency can develop a how-to and service portal on sales and marketing topics. That's what Selling Communications Inc. did with Sales Marketing Network at Info-now.com, which is designed to attract people seeking information about marketing services.
  
  
• A pet-store chain can create a how-to, reference, and service information portal to attract people seeking information about pets.
  
  
• A trade association can create a how-to and reference service for the business group that it represents.

In all of these cases, the company with the right content expertise can create a comprehensive information site for less than it costs to run two ads in a consumer magazine. And it can attract readers using its traditional marketing strategies with no incremental costs. However, as noted under Critical Issues above, the investment will backfire if the sponsor provides biased or incomplete information for commercial benefit.

INTERNET REVENUE SOURCES

Although publishers outside the fields of sex, love, and finance have had difficulty getting people to pay for information, the prospects improve when Internet publishing services are designed to help people actively seeking something. For instance, homeowners generally won't pay to get information about washing machines, but they become more willing if they're confronted with buying a $500 machine in the next week or two. While engaged in shopping for expensive items especially, consumers are in a heightened state of curiosity and interest. Here are some of the main revenue streams that can flow from Internet publishing, ranked by level of potential:

Advertising. The display advertising, information-on-demand, and demographically precise revenue model gives the Internet a singular advantage over any other form of advertising, since it is the only medium that enables advertisers to target people in a buying mode. If media companies can't figure out how to make advertising work on the Internet, they are missing out on one of the most obvious revenue opportunities.

Content. Why should people pay to get what they already get as part of their other media choices? They shouldn't, and they won't. People will pay to get information on the Internet if it's more convenient than other options (as is the case with pornography or matchmaking services), or if they can't get it any other way. Someone considering an emergency purchase of an expensive appliance on a Sunday night will likely pay for online access to Consumer Reports reviews rather than wait a day a more to get the print version. Likewise, business people in need of comprehensive reference information regarding an important strategy won't pay extra for it under ordinary circumstances, but they might pay a premium when in the process of planning that strategy.

Buyers' guides. The Internet improves the process of finding vendors, especially for businesses, but there are several drawbacks that diminish the appeal or revenue-generating opportunities. From the user's point of view, many buyers' guides have incomplete vendor offerings, because their revenue model is based on selling listings. And, while technology makes doing business nationwide easier, many buyers still want local vendors and prefer to use telephone directories to find them. From the publisher's point of view, online buyers' guides have been disappointing, because it's difficult to sell listings and advertising or collect commissions in all but direct online commerce links. Many people, especially in business, use online buyers' guides to find resources and then pick up the phone to order. How can publishers get commissions in such a chaotic environment? By using the display advertising model, linked with e-commerce opportunities, enhanced listings, and how-to information for each product or service category, buyers' guides can work synergistically with traditional content in the same way that many publishers have profited by sponsoring trade shows.

Electronic exchanges. These exchanges suffer from some of the same problems as buyers' guides, but they eventually will have a critical place in worldwide purchasing. For, unlike buyers' guides, electronic exchanges involve auction and reverse-auction technology that provides savings to buyers and safeguards hosts against people bypassing the commission payment. Electronic exchanges also work well with content, because buyers often want to educate themselves on the latest trends before making a purchase. This technology may take longer to take hold than the early venture capitalists had hoped, but those with the patience and resources likely will someday benefit from business-to-business auctions the way Ebay has in the consumer field.

E-commerce. Commerce opportunities linked to content directed to people in a buying and planning mode stand a better chance for success than any other content environment. Just because a "cookie" tracked a particular computer terminal to a golf site three months ago, doesn't mean that the user currently online is in a buying mode for golf. There simply is no better way to target someone interested in golf resorts than when they are online seeking information on going to a golf resort. Some Web sites deliver e-commerce opportunities from content directly related to the subject. While the commissions that publishers can generate by offering such links to advertisers may not add up to much compared to other revenue sources, they contribute a slice of the high-margin pie that the Internet can provide to a modern publishing operation.

TECHNOLOGY CHOICES

As the troubles of Yahoo.com demonstrate, technology does little good unless there's a way to anticipate the amount of investment required. The trials and tribulations of publishers show that it's unwise to dive into technology investments without devising a revenue model first. Yahoo.com is suffering because the banner ad/click-through model doesn't work and because the lavish dot-com start-ups have gone away. All that remain are brick-and-mortar advertisers skeptical of Yahoo's model.

So, before investing in any technology solutions, publishers should start with a viable revenue model. If the company currently produces traditional media, it has to consider the potential benefits and pitfalls of its Internet venture vis-à-vis those media. What good does it do to rob Peter to pay Paul?

Once the revenue model is established, the company has to consider its technology options. Should it outsource its Web venture or do it in-house? This section and the next one present an overview of all the technology options.

Build it yourself
For big companies, this is the logical choice, as demonstrated by the hundreds of millions of dollars poured down the drain in the form of worthless technology. On paper, it seems to make sense for media companies to do it themselves, just as it once made sense to run printing operations.

But many have discovered that technology is a specialty in itself. At the beginning of the computer era, publishers developed their own publishing technology; now, they use software developed by large third-party providers. This is because technology is a business that requires focus and contact with multiple users to make sure all of the possibilities are addressed. Evidence suggests that most big companies will continue to have in-house e-technology resources, just as they have production managers. Most of the technology, however, will be provided by outside specialists.

For small companies, there will be no choice, because the cost of developing technology is considerable. In any case, why should a publisher invest in creating an unproven technology that might incur delays, problems, and overruns, when it can work with vendors that have already tested an application with several customers?

Outsource it
As can be seen in the list of technology solutions below, a variety of companies provide technology options for Internet publishers. Before working with any vendor, talk to customers, get a demonstration of the technology at a customer site, and make sure it is connected to a revenue model that doesn't conflict with your current revenue models.

Generally, software is either licensed or provided on an Application Service Provider (ASP) basis. With the licensed model, the software is on the publisher's server. With the ASP model, it resides on the vendor's. Whatever the option, companies of all sizes should beware of entering into agreements in which they lose control of their own data or have to pay to access it or to get reports. A publisher's greatest assets are content, advertisers, and subscribers; it should never be in a position where those resources can be held hostage.

Also, beware of technology that requires some form of exclusivity that would make you forgo other technology options or that would cost large amounts to convert should you want another solution later on. Make sure the technology works on prevalent Web server systems, such as Unix or Windows NT, and that it is compatible with commonly used Web development tools, such as Dreamweaver or Cold Fusion.

Unfortunately, linking several software solutions on a single Web publishing site poses tracking and administrative issues. Few of these solutions talk to each other in a way that lets you get relevant information anytime through a single interface.

Finally, consider the benefits of the ASP model, which include:

• Much lower start-up costs;
• Upgrades at much lower cost;
• Research and development costs leveraged over many customers;
• Innovations developed by other companies;
• Lower training costs;
• Less risk.

SELECTING A SUPPLIER

Integrated publishing solutions
Selling Communications Inc., publishers of Sales Marketing Network at Info-now.com, is the only company we know of that provides a complete online publishing system. Its patent-pending Press2Web software and consulting service incorporates a comprehensive profit-making model for Web publishing, demonstrated by the success of Sales Marketing Network at Info-now.com, which uses the technology.

Press2Web is a Web-based software product capable of managing almost all the Web functions outlined below (and even print publishing) on a single integrated platform. The software incorporates a solution for generating revenue and profit even before Web development begins, so no dollars are spent on development unless there's a clear vision of how to make money.

SCI consultants work with publishers to develop a revenue and profit model, then provide an integrated publishing software solution that manages a number of functions including: distribution, sale, and syndication of content; advertising, ad tracking, and contracts; Internet and print subscribers; registered and nonregistered usage; buyers' guides and e-commerce; and online surveys. Press2Web enables a publisher of any size to easily manage a complete business on a single platform. Management can gain real-time information about every part of the business via a PIN-controlled access, and employees in advertising, circulation, editorial, and production can manage their departments' information and functions.

With Press2Web, publishers maintain and manage all of their data, and, should they want to stop using the product for some reason, they can transfer any or all of the processes to other platforms anytime. Press2Web is available on an ASP or licensed basis and can be used with any of the other Internet software solutions outlined below. Press2Web manages all aspects of the banner ad/click-through model, including (on a permission basis) the ability to identify by name and address the people who click through to a sponsor's Web site. Go to http://www.Sellingcommunications.com/p2w.html.

365 Media Inc. provides solutions enabling business publishers to publish profitably on the Internet. The company offers a range of solutions enabling advertisers to target their corporate message to a magazine's online readers in the context of related editorial. It also offers a directory and a catalog database system designed to help publishers profit from their buyers' guides. Go to http:///www.365media.com.

Content management and syndication
Numerous companies offer various options for managing and tracking content. These options include software for converting traditional print-created content for the Internet as html or PDF files; selling that content; and syndicating that content to multiple sites. Here are some leading companies and products in this category:

Active Data Exchange Inc. offers technology that enables companies to easily publish and manage syndication of content. Go to http://www.activedatax.com.

Banta Integrated Media has a digital content-management system for publishing synchronized information across multiple Web sites. Go to http://wwwbanta-im.com.

Qrex sells a technology that enables companies to build and update online publications quickly. Go to http://www.qrex.com.

Saxotech Inc. provides complete software solutions for publishers, including a cross-content management system for magazine publishers, its Publicus Online Publishing System, and a database-driven Web production and portal-building solution. Go to http://www.Saxotech.com.

SealedMedia sells a complete system for selling and protecting any type of content on the Internet, including text, images, audio, and video. Its products are particularly suited for sale of books, newsletters, research, and music. Go to http://www.Sealedmedia.com.

Clickability sells brand-transparent tools for content management designed to maximize "stickiness," reinforce the brand, and generate advertising revenue. Go to http://www.clickability.com.

Press2Web provides complete content-management solutions, including content tracking, registered usage, syndication, and sale, and it integrates these solutions with other common publishing functions. Go to http://www.sellingcommunications.com/p2w.html.

Ad management
A host of companies provide software for tracking banner advertising and click-throughs. Here's a brief list:

Digital Convergence provides a special mouse and advertising bar-code systems that enable readers to scan an ad and go directly to a Web site for more information. Go to http://www.digitalconvergence.com.

Doubleclick.com provides robust ad tracking and distribution options, including the ability to display ads based on the types of sites people have visited in the past. Go to http://www.doubleclick.com.

Engage.com, Doubleclick's main competitor, provides a similarly comprehensive solution for banner ads and click-throughs using the old Internet model. Go to http:///www.engage.com.

Press2Web not only manages banner ads and click-throughs but also manages the registered and nonregistered viewership of banner and display ads. This includes the addresses and demographic information (if permission is given) of people who have clicked through to the site. Go to http://www.sellingcommunications.com/p2w.html.

Database management
Many print circulation-fulfillment companies have begun to offer Web solutions that enable publishers to renew and manage print subscribers via the Internet, reducing the need for mailing and manual inputting of information.

Press2Web is the only software we know of that's available off-the-shelf for managing Internet and traditional subscribers on a single platform that can be integrated with print circulation. Go to http://www.sellingcommunications.com/p2w.html.

Buyers' guides and electronic exchanges
Various companies provide software for managing buyers' guides and electronic exchanges. This technology is usually reasonably priced, but beware of companies that control your listings or content and make you pay when you want to get access to it, generate reports, or move it. Electronic exchange technology provides auction features with tremendous power, but getting started can incur high customization costs.

Boheads Inc. produces the cmi24 cross-media integrator, designed to simplify publishing processes for companies with complex product catalogs or those published in several languages. It is also designed for e-commerce, printing companies, agencies, publishers and others that import content from various sources. Go to http://www.Boheads.com.

Mediabrains.com is the pioneer in providing buying-guide services in the publishing field. Its technology manages buyers' guides and tracks numbers of click-throughs. Go to http://www.mediabrains.com.

Press2Web provides buying-guide and e-commerce solutions that can be integrated easily with related content. This integration makes it possible to create databases of people who have accessed particular listings. Go to http://www.sellingcommunications.com/p2w.html.

365 Media Inc. provides complete buying-guide and online catalog services. Go to http://www.365media.com.

Collaborative software
These products, while not directly related to assessing the earning power of content, are Internet tools that can improve publishing and advertising efficiency:

RealTimeImage provides imaging products, collaborative online proofing services, and graphic-arts tools to assist with all types of print production. Go to http://www.rtimage.com.

Rorke Data offers a Mac-based product, known as PageComposer, that manages work flows between publishers, prepress facilities, ad agencies, and printers. Go to http://www.rorke.com.

LESSONS FROM THE DOT-COM MELTDOWN

• Don't leave business development to technology types. That's like leaving the nation's defense budget in the hands of the military-industrial complex. You'll run up lots of costs with little to show for it, as almost every major publisher can confirm.
  
  
• Put your Web strategies in the hands of your current business groups. You might want an e-media tech team to support them, but leave your executives in charge of how to integrate the Web with their current businesses.
  
  
• Don't embark on technology until there's a proven revenue model. Don't let anyone talk you into making an investment until you have a return-on-investment model that doesn't hurt your current revenue sources.
  
  
• Know your core business. Unless you are a technology company, don't create your own technology. Most publishers have been burned when they invested in their own film conversion and printing technology. Now, they almost always use vendors that specialize in these areas.
  
  
• Keep your e-business with your other business. The dot-com executives who thought they could instantly invade new markets discovered that relationships still count. Any traditional media company that outsources its Internet business to another company is failing to capitalize on one of its greatest assets: relationships in a marketplace.
  
  
• The Internet is a means to an end, not an end in itself. Early dot-com start-ups seemed to think the Internet would create businesses that had never existed before. That may have applied in a few cases, but in most cases the Internet is merely a means of improving the efficiency of an existing business. That inevitably gives the advantage to traditional brick-and-mortar companies—if they understand the true potential of the Internet.

ASSOCIATIONS

American Business Media is the industry association for business-to-business information providers. Its members publish more than 1,200 business publications and provide content for some 1,350 Web sites. Call 212-661-6360; go to http://www.americanbusinesspress.com.

Internet Advertising Bureau is a trade association devoted to maximizing the use and effectiveness of advertising on the Internet. Go to http://www.iab.net/.

TRADE SHOWS

For a list of Industry Events, go to #9510, Calendar of Industry Events.

RESEARCH

IAB Online Advertising Effectiveness Study, although conducted in 1997, still has useful information for Internet publishers. Twelve major Web sites and more than 16,000 users participated in the test. Sponsored by the Internet Advertising Bureau. Go to http://www.iab.net/.

PUBLICATIONS

Few publishers have found a proven model for profiting from the Internet, but the following publications provide information and services related to Internet publishing.

Editor & Publisher. This venerable trade magazine and its Web site are devoted mainly to newspapers, but they also cover Internet topics. Go to http://www.mediainfo.com.

Folio. This magazine and its Web site focus mostly on print publishing, but both cover digital publishing issues. Go to http://www.foliomag.com.

Internet Publishing Magazine, published by North American Publishing Co., provides some 40,000 readers with information and advice about publishing on the Internet. Call 215-238-5300; go to http://www.Internetpublishingmag.com.

Internet World. This magazine covers all aspects of the Internet, including technology and many elements of content and marketing. Its Web site carries complete information on the magazine. Go to http://www.internetworld.com/.

ONLINE RESOURCES

Internet.com. This Web site covers all aspects of the Internet with some information on content.

Mediamatrix.com provides information about Web traffic at leading sites.

RELATED SMN ARTICLES

For information related to this article, go to 7024, Increasing Sales Productivity via Internet and Intranet; 9105, The New Marketing; and 9557, Transforming Your Web Site into a Profit Center.