There are, of course, a wide range of options that compete with Microsoft’s Office Live. When looking to launch a new site a small business owner should look at their current and future functional needs, the start-up costs and the long term operating costs. For example, while Microsoft’s offering provides free domain registration in the first year, the renewal charge for subsequent years is double that charged by many other providers.
Of course, no business will rise or fall on the cost of their domain renewals. More significant is the transaction fee Microsoft charges on eCommerce sales. This is currently set at 1% of the sale price (excluding tax and shipping charges). By way of comparison, ProStores charges 1/2% on their Business, Advanced and Enterpise tiers — but also charge a monthly fee. For a site with sales in excess of $3,000 per month Prostores would be a better choice.
Many other sites, 1&1 as only one example, charge no per transaction fees. For sites generating significant online sales this type of provider would be a better choice.
Which of these is the right choice? Clearly the answer does not depend on price alone, but a careful review of the long term costs is warranted. While I can not vouch for their independence I often check http://www.webhostmagazine.com and http://whreviews.com, among other sources, when helping startup businesses make these selection decisions.
There are, of course, a wide range of options that compete with Microsoft’s Office Live. When looking to launch a new site a small business owner should look at their current and future functional needs, the start-up costs and the long term operating costs. For example, while Microsoft’s offering provides free domain registration in the first year, the renewal charge for subsequent years is double that charged by many other providers.
Of course, no business will rise or fall on the cost of their domain renewals. More significant is the transaction fee Microsoft charges on eCommerce sales. This is currently set at 1% of the sale price (excluding tax and shipping charges). By way of comparison, ProStores charges 1/2% on their Business, Advanced and Enterpise tiers — but also charge a monthly fee. For a site with sales in excess of $3,000 per month Prostores would be a better choice.
Many other sites, 1&1 as only one example, charge no per transaction fees. For sites generating significant online sales this type of provider would be a better choice.
Which of these is the right choice? Clearly the answer does not depend on price alone, but a careful review of the long term costs is warranted. While I can not vouch for their independence I often check http://www.webhostmagazine.com and http://whreviews.com, among other sources, when helping startup businesses make these selection decisions.
Iain Lopata (SCORE Counselor)
July 19, 2008