Tech.knowledge.me - September 2010

The Benefits of Website Leasing for a Business

by Mark Cenicola

The Benefits of Website Leasing for a Business

    The terms “website” and “leasing” don’t normally go together, yet website leasing is a concept that gives small to medium sized businesses the access to essential online resources vital for competing with much larger businesses in the marketplace.

    When first considering the cost for a website that is seemingly out of reach for small and medium sized businesses, executives do one of three things:

•     Skimp on the important things that are critical to driving traffic to a website, such as e-mail marketing and website optimization
•     Turn to companies offering cheap, generic looking websites without much thought given to brand management, lead generation or secure online transactions
•     Do nothing

    It’s no longer a question of “Do I need a website?” Consider these recent statistics regarding consumer buying habits: 42% first researched online and then bought the product online, while 34% researched online and then bought the product at the store. Yes, a business needs a website and with the economy currently recovering from a recession, the opportunity to streamline company operations, cut costs and reach more customers starts online.

    Getting online has never been easier, but the glut of choices doesn’t mean all offerings are equal. Although resources exist for getting an online presence that cost very little or are free, those options usually don’t offer all the functionality needed, forcing visitors to leave your website and to go to another. Not only is that confusing to a potential customer, it also causes a feeling of insecurity when buying online because of the uncertainty and dilution of the brand.

Outside the Box

    Leasing, when it comes to websites, isn’t an option that’s often considered because it simply doesn’t come to mind.  Traditionally, when people think about leasing they think about leasing tangible products like cars, computer hardware and office equipment.

    Another reason it isn’t often considered is because many banks won’t finance intangible assets.  Websites, much like software, are seen as intangible assets for which most banks will refuse to provide lease financing because it’s not something that they can easily sell should you not be able to pay.

    Even if financing was available on an intangible asset like a website, getting approved in this economy requires great credit on behalf of the borrower.

    A final reason a company may not consider leasing a website is because many leases are written to favor the lender, not the borrower which means that there could be outrageous fees to purchase the asset outright, a business could get stuck with high interest rates or fall under terms that automatically renew themselves for many more years.

Reap the Benefits

    In actuality, website leasing from a reputable company offers an upfront low cost approach to getting a fully functional website. Rather than eliminate functions like e-commerce, e-mail marketing and blogging because of costs, website leasing spreads those costs out over time, making it a much more affordable option. In addition, the lessee can choose to either walk away from the lease, renew the lease or buy it out at the end of the term.

    One of the biggest benefits from website leasing may not be apparent at first; being interconnected with a technology company at all times during your lease term. Technology is being developed at a rate much faster than ever before and businesses that don’t adapt quickly tend to collapse. Technology companies know this and routinely upgrade and expand their infrastructure. Having access to that company for any technology related issues, updates and expansions brings peace of mind to an owner that can then solely focus on growing the business.

    Website leasing offers flexible options to companies wanting to bring their business online without sacrificing the essentials needed for being successful. As the Internet expands beyond the computer and mobile phone to be accessible virtually everywhere, the “need” for a website soon becomes a priority for all businesses.

Mark Cenicola
Mark Cenicola is president of BannerView.com