How do websites work? Very elementary questions within......

[DJFish]

Right chaps, you lot know your onions so would you mind casting your eyes over this? I've had an idea for a web based service, aimed at a very profitable market (which deals a lot through word of mouth/a few specialist web forums) which I think could actually have legs.

It'd require a relatively simple website with links to high street retailers, a database of registered users, the ability to host pictures, and the ability to send emails to registered users via the site.

So questions:

How much would it cost to design and start up, then to administer and host?

I want to link to High St retailers product lists, would they expect me to pay them for using their logos/photos etc, or would they be paying me for advertising their products, what sort of permissions are required, how difficult are they to aquire?

I wouldn't actually be selling through the site but would need to take money for registration.

Finally advertising, how does that all work?

By now you may have guessed I'm no dot.com millionare but I'd kick myself if someone else did this six months down the line and I'd just not bothered.
That's all I can think of at present, any opinions gratefully received.
Cheers
Dave

[jamesuk28]

You may require permission to use corporate logos etc, ot all depends on the company.

Your quotes will vary from a few hundred up to around £10k

What you basically require are product feeds from the retailers, but crucially there co-operation.

What you really need is to demonstrate to the end user this is a great idea, or build up huge site traffic.

At the end of the day its YOU who should be being paid for advertising the products, or making money from direct advertising.

Edited by jamesuk28 on Tuesday 8th January 10:48

[Plotloss]

The web is a numbers game.

If its a specialised market to begin with, wheres your margin coming from?

[DJFish]

Plotloss said:

The web is a numbers game.

If its a specialised market to begin with, wheres your margin coming from?

The core market consists of 300,000 potential customers per year, if I manage to extract £5 from a customer, even if the startup costs come to about £5000 that's .3% of the market to break even(if I have my numbers right), if its a good idea and I can apply it to other market sectors, so much the better.

Currently involved in surveying the target market to make sure it's not just me who thinks it might work.

[DJFish]

Or perhaps a free service = more visits = more attractive to advertisers?

[timskipper]

DJFish said:

It'd require a relatively simple website with links to high street retailers

This is not 'relatively simple' - far from it. I know this because I'm doing exactly this right now.

[DJFish]

Hi Tim,

Is that due to technical reasons or just getting permission/contracts with so many retailers?

Edited by DJFish on Tuesday 8th January 12:25

[PetrolTed]

DJFish said:

Plotloss said:

The web is a numbers game.

If its a specialised market to begin with, wheres your margin coming from?

The core market consists of 300,000 potential customers per year, if I manage to extract £5 from a customer, even if the startup costs come to about £5000 that's .3% of the market to break even(if I have my numbers right)

The question remains how you're going to find 1000 people to part with £5. It's very, very difficult to both acquire visitors to a new site and as for getting people to part with money, that's incredibly difficult, particularly with a new brand.

DJFish said:

Or perhaps a free service = more visits = more attractive to advertisers?

Having done it myself, I'd caution against relying on advertising revenue to fund a site.

Not trying to put you off, just be aware that it'll require and incredible amount of perseverence and time.

[timskipper]

DJFish said:

Hi Tim,

Is that due to technical reasons or just getting permission/contracts with so many retailers?

Edited by DJFish on Tuesday 8th January 12:25

All of the above. Everyone has a different way of doing things, plus the logistical and contractual nature of this is an absolute minefield, assuming they'll even talk to you in the first place.

Plus the margins are tiny.

But good luck!

[DJFish]

Thanks Ted,

I agree that expecting people to part with cash on a new site would be a non starter, so how do I do it.

I have a few bob squirrelled away that I'd be prepared to invest initially, then presuming I have a site that loads of people start using, retailers products are all linked through the site, but what then?

Who gives me cash, what for and how much?

Do I go to the retailers and say "Look how many people viewed your products last year, now buy me a 996 C4S!"

How much does a site cost to run for a year anyway? Thousands? Tens of thousands?

[DJFish]

timskipper said:

All of the above. Everyone has a different way of doing things, plus the logistical and contractual nature of this is an absolute minefield, assuming they'll even talk to you in the first place.

Plus the margins are tiny.

But good luck!

Thanks,
I have a mate who works in wholesale who deals with large retail outfits so will bend his ear.
In an attempt to keep things simple I wouldn't be selling their stuff, just allowing people to view and compare their product ranges.

I suppose the trick is proving to them that there's value to sharing that access.

[slapmatt]

DJFish said:

Thanks Ted,

I agree that expecting people to part with cash on a new site would be a non starter, so how do I do it.

I have a few bob squirrelled away that I'd be prepared to invest initially, then presuming I have a site that loads of people start using, retailers products are all linked through the site, but what then?

Who gives me cash, what for and how much?

Do I go to the retailers and say "Look how many people viewed your products last year, now buy me a 996 C4S!"

How much does a site cost to run for a year anyway? Thousands? Tens of thousands?

That's the million dollar question for every Web site. There are tonnes of good ideas and great Web sites out there, but turning them into a business and indeed a profit is the difficult bit.

[JustinP1]

DJFish said:

timskipper said:

All of the above. Everyone has a different way of doing things, plus the logistical and contractual nature of this is an absolute minefield, assuming they'll even talk to you in the first place.

Plus the margins are tiny.

But good luck!

Thanks,
I have a mate who works in wholesale who deals with large retail outfits so will bend his ear.
In an attempt to keep things simple I wouldn't be selling their stuff, just allowing people to view and compare their product ranges.

I suppose the trick is proving to them that there's value to sharing that access.

In which case your money should be coming from the retailers not the consumers?

[Altrezia]

hosting can cost from as little as £2/month for a small site, to a thousands. I'd expect to pay £100-300 a month for a decent setup initially.

[PetrolTed]

slapmatt said:

That's the million dollar question for every Web site. There are tonnes of good ideas and great Web sites out there, but turning them into a business and indeed a profit is the difficult bit.

Spot on. Traffic <> Money

[sa_20v]

PetrolTed said:

slapmatt said:

That's the million dollar question for every Web site. There are tonnes of good ideas and great Web sites out there, but turning them into a business and indeed a profit is the difficult bit.

Spot on. Traffic <> Money

Damn straight.

Anyway, back to what the OP is doing - if you are considering doing a price comparison site like Kelkoo for example, I would strongly advise you don't - it isn't a market that is easy to become established in, and certainly not one which is going to grow in the future - in fact it is already shrinking.

In addition, charging customers to use a website seldom works - charge companies for your traffic through advertising, and more commonly affiliates, to cover the bills.