Interview with Gene McCubbin, CEO of WebXites

WebXites is a national company that provides packaged technology services to small business owners. We provide web site hosting, web site design, unlimited email, technical support, and high-speed dial-up access. Typically we target businesses with less than 20 employees. We were founded in 2001.

The original founders have a background in telecommunications; primarily marketing to small business owners and it became very apparent to us that the typical small business owner didn’t have the time, resources, or tech savvy to set up an effective web site. They are very limited in their ability to market and promote their business.

While a lot of larger companies will outsource their IT component the smaller companies don’t have the cash flow or time to outsource. We analyzed the small business marketplace and developed some standards that small businesses need for their web presence. We then created software that allows us to automate those features and applications. Our service allows a small business to launch a site that looks like they spent $5,000 to $10,000, when it is really only $50 a month.

We focus solely on these small business owners, so our niche market is a marketplace that we understand better than most. We also use offline marketing techniques to reach this market, while other services use Internet ads through Google, Yahoo, etc. Our primary tools for reaching prospective customers are telesales and direct mail.

If we are targeting a customer that is not technically savvy using technology to reach them most likely won’t work. We also back up our service with a level of support that other companies are unable or unwilling to provide. Our unique approach is serving this niche market and providing a level of service to the market is expected based upon our customers.

They tend to fall into four different categories; small retail stores, independent contractors, independent professionals, and organizations such as churches, charities, etc.

It is, in fact the vast majority recognize the value of the Internet they don’t necessarily know the value that they will receive from having a web site. Probably the most understated value of what we provide is that we have someone that holds his or her hand through the process. We explain the process to them up front, help them do the work, and they can call us at any time.

If they knew how to set up a website, there are enough free services that they can take advantage of. The issue is that they don’t understand the process, what they need to do, or how to move forward. Over 50% of small businesses don’t have a web site, and it is this group that we are targeting.

That’s right. Over the last 10 or so years a lot of small business owners had a web site, but were subsequently disappointed with the overall results. They had thought that they simply needed to launch a web site and didn’t see any results from that initial effort. The reality is that you that they have to do something behind the web site to get some value from it. You have to promote it through your offline advertising, put it on your business cards, put it in your yellow pages ad, and do some online advertising as well.

It is the largest market in the United States. Over 95% of businesses have less than 20 employees. There are currently about 15 million businesses in this group, although the numbers vary depending on whether you include a home office business selling Tupperware. The bulk of these companies have less than three employees.

We have partnerships with some of the larger database management companies. These companies aggregate information from Utilities, Phone Companies, etc. We have relationships with these companies that allow us to purchase a list of the exact types of companies that we are looking to target.

Small businesses by definition are local. While there is the single guy selling coffee out of his garage to customers all over the world, the vast majority are locally focused businesses. Anyone who has had a successful web business understands the necessity for regionalization. There has been a lot of press lately surrounding Google and Yahoo’s targeting of the local markets. The reality is that people have been hitting the regional market places for quite some time.

There have been a number of initiatives to target this market, one of which was CitySearch.com. The problem they faced was that they were unable to generate enough traffic to sustain their individual areas. The new services from Google and Yahoo are a lot more applicable now than they would have been, simply because the Internet population has grown significantly. Today, if you don’t search locally you inundated with worthless information.

At the end of the day, even though we are a technology business most of what we do is Sales oriented. The real value that we provide is the amount of service that we offer each of our customers. We look for the ability to communicate well with the small business owners. They also need a hunger, ambition, and a willingness to learn.

Far and away the best lesson I have learned is in relation to building teams. I have learned to look for people who truly understand personal responsibility and that leadership is the willingness and ability to leverage your knowledge through teaching others. If we done well up to this point and do well into the future the likelihood is that it is not due to just myself but the team of people I have built around me.