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Help your business fail … or succeed

August 19th, 2010

A recent study of ASP membership may help ASP members and non-members alike.
As a benefit of ASP membership, member site URLs are listed in our site. Yet, something like 18% of our members do not take advantage of this benefit. Among that 18%, we think the rate of business failure is nearly 2:1 greater.

ASP members not giving a public URL

The chart shows year of joining ASP and records only those members not supplying the ASP with a URL we could publish. The expire/active determination was made as of Aug. 2010. So, for members joining in 2002, 17% of the expires did not supply a publishable URL whereas 9% of the still active members have not supplied a publishable URL.

This same pattern holds up year after year: the odds are greater that not supplying a URL to ASP when joining leads to lapse of ASP membership (the main contributor of which is business failure).

The message here is do not treat your site URL like a secret. Advertise it in all appropriate venues.

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  1. Nico Weaterdale
    August 19th, 2010 at 14:52 | #1

    Interesting graph Dennis. But does this mean that adding the URL to the listings will make a difference, or does that set of people not want to renew regardless. Perhapse this is a way to find out!

  2. Mike
    August 19th, 2010 at 14:54 | #2

    No URL: cause or effect?

  3. Dennis Reinhardt
    August 19th, 2010 at 15:04 | #3

    Nico, Mike,

    I think what is going on here is that no URL is a pattern of behavior. When asked for identifying information, don’t give out information unless asked.

    This makes sense for social security and bank account numbers. It rarely makes sense for business URLs.

    I doubt the dollar amount of direct business coming from an ASP listing is material. Rather, the reason for the disparity is mindset: promoting site rather than protecting it from discovery.

  4. August 19th, 2010 at 15:19 | #4

    Any idea what happened in 2000? And, 2001 doesn’t seem to follow the trend much either. Is that perhaps when we changed away from December billing to annual billing by join date? That could skew the data for the transition period. Anyhow, interesting graph.

  5. Dennis Reinhardt
    August 19th, 2010 at 16:11 | #5

    Tom Simondi :Any idea what happened in 2000? And, 2001 ….

    I was somewhat mystified by those data points. I read it the same way you did that both 2000 and 2001 were odd.

    On second look, perhaps only 2000 is anomolous. 1999 and 2001 data points seem to track each other.

    I note that 2000 and 2008 are “crash” years in which economic activity was not as robust as the year before. Both years see a lower percentage of no url expires compared to the prevailing ratio. Note that years are the year of joining. So, maybe there is something different about members who join in the year of a crash.

    On the whole, for data spanning a ten year period, I think this is rather well behaved data.

  6. Dan
    August 19th, 2010 at 16:51 | #6

    Rather than try to point out how backwards the cause-and-effect logic is in this article, I logged onto the ASP members’ site and removed my company’s URL listing.

    Google Analytics shows 3 visits to my site over the last 25 months from ASP sites.

    I’ve certainly gotten my money’s worth out of ASP, but I don’t agree there is any benefit to having a URL listed in this directory.

  7. August 20th, 2010 at 04:47 | #7

    @Dan
    Perhaps not as traffic but as inbound link it might help. So I do not understand why you removed it…

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