Revenge of the small business website
VC investments in Wordpress' parent and Duda, plus a new Yahoo website offering, show that SMB sites are still big business.
For several years, many SEOs have been proclaiming the end of small business (SMB) websites. The theory is
Recent investments and M&A. That description of consumer behavior is partly correct but not entirely. Websites continue to be a critical SMB asset and content anchor. That fact is underscored by WordPress parent Automattic’s most recent funding round of $300 million (at a $3+ billion valuation) and Square’s April 2018 roughly $365 million acquisition of site builder Weebly.
On a smaller scale, ten-year old web design platform Duda recently raised $25 million (for just under $50 million in total funding). Duda has a network of more than 6,000 third party resellers and agencies that work with SMBs. It will continue to focus on websites and presence management rather than expand horizontally into other marketing channels.
New Yahoo web design service. In addition, late last week Verizon-owned Yahoo launched a new web design product for SMBs. There are two service tiers ($99 and $299 per month). The offering includes design consultation, ongoing maintenance and content updates (it’s a SaaS product).
Yahoo Small Business was at one time the premier hosting company for SMBs. During a long period of
Now, Yahoo is developing a new generation of marketing products and services for SMBs. The web design service is just the first announcement.
SMB sites more
Why we should care. The Small Business Administration says (.pdf) there are now roughly 30 million SMBs in the U.S. The SBA defines “small business” as having a headcount of up to 499 employees. There’s a massive difference between a firm with three or even 20 employees and one that has 300. Regardless, well over 90% of U.S. SMBs have fewer than 10 employees.
While a majority of SMBs in theory, now have websites — 64% according to a 2018 Clutch survey — there’s still a significant opportunity for providers of websites. New businesses form and fail every quarter. And even with shrinking reach in organic search and social, websites are likely remain