Are the Days of Billion Dollar Start-Ups Over?

When looking at online companies, especially e-commerce companies who are tying to make a direct sale through their online platform, it is very important to consider consumer brand awareness.  Many might think its all about the traffic but that is only one piece of the puzzle.  Regardless of whether your site is designed to sell, advertise, promote, etc. the end goal is usually some kind of conversion.  That could mean a phone call, email, registration, or sale.

To support this effort Internet marketing plays a very important role.  However, companies should never forget to focus on brand identity.  The average conversion rate as we all know is about 1%.  Major brands usually average up to 20% conversions on their sites.  Of course we are all not major corporations or public entities.  Building your brand on a limited budget is a difficult task, so get creative!  The days of the home-run “garage-based” start-ups that sell for billions are probably over with a few exceptions.  If not these occurrences are few and far between.  The rest of us will have to work for a living!  In the end, the major players are the ones that will most likely dominate the online space.  So start-ups and smaller businesses (which actually make up most of the economy) need to strive hard to build their brand quickly and gain market share.

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