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Philadelphia, Pennsylvania - (Cheap Web Hosting Directory) - October 18, 2005 - 1and1 Internet has released the results of its survey of small and medium-sized businesses (SMBs).

The survey has found that SMBs are increasingly harnessing the power of the Internet and believe their web sites positively impact sales, communication, marketing and cost efficiency.

1and1 Internet, Inc., is considered by many web hosting analysts as the world’s largest web hosting and domain registration company. The survey, which canvassed some 50,000 1and1 SMB customers in the United States, Germany and the United Kingdom (the company’s main geographic 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 Professor Edgar Einemann of Bremerhaven University of Applied Sciences in Bremerhaven, Germany, in a detailed report entitled, International Comparison of the Economic Effects Resulting from the Implementation of Professional Webhosting Products. Among 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.

According to Dr. Einemann, ”The survey’s overall conclusion is that maintaining a web presence has significant positive economic benefits for SMBs. 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 U.S., and within these countries, hardly any differentiation between the individual industry sectors or regions.”

1and1 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, 1and1 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 1and1 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, please contact 1and1 at: www.1and1.com.

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