In light of the recent financial troubles of companies such as Homes.com and Websuite.com, many agents are beginning to be nervous that the Web site they purchased from these providers or others might "go black." Both companies are in bankruptcy proceedings. Websuite is being taken over and run by a new company called Progressive Endeavors. And it is yet to be determined how Homes.com will continue operations.

According to Internet trainer Stephen Canale, the financial problems of some service providers leaves subscribers to their Web site services with a number of important questions, most important of which is should I renew my Web site and will my service provider survive?

Should I keep renewing my site and paying the monthly fee?

"There's no reason to cancel or to not renew at this very instant," says Canale, "However, you should begin looking for an alternative source for your web site presence immediately!"

If your Homes.com web site goes down in the near future, it's not the monthly fee that's the concern, it would be the scramble to recreate your web marketing under the gun that should worry you, points out Canale.

"One lost lead is much more damaging than a lost month of site hosting, so don't worry about that $59 a month or whatever you're paying. Frustrated customers and clients are rather more expensive as well," says Canale. "The productive business time and the stress you would be under are very expensive both professionally and personally."

Might Homes.com, et al, still survive?

"Anything's possible, but it's unlikely to do so in a fashion that will benefit their subscribers," says Canale.

Current subscribers need to understand that when a company:

1. Starts to lose top management
2. Can't get financing and thus cannot pay its current bills
3. Cuts 40% or more of its staff
4. Files for bankruptcy protection
5. Loses key strategic relationships, particularly revenue partners

"It's in "grasping at straws" mode of operation," says Canale.

"Growth, expansion and the ability to keep up with changing technology are just about out of the question," suggests Canale, "And then look at their past history performance as a vendor. If it isn't good, then you've got another layer of financial ramifications."

In the case of Homes.com, its sister company Home and Land Magazine has also announced that the company is severing ties with Homes.com, and according to insiders, is attempting to evict the company from its Florida warehouse space. "You should be able to see that the big picture for Homes.com isn't exactly painted in vibrant colors," says Canale. "It's too bad, as they had a lot to offer, but keeping a subscription to Homes.com has tremendous risks."

"While anything "could" happen (they find new financing, get their business model straightened out, or win the lotto) what's "likely" to happen is a somewhat drawn out decay that results in corporate death," surmises Canale. "If you don't start making alternate plans now, your site with will likely become stale and fall behind in terms of the technology and data that consumers expect in order to find value in your site. On the web (as in life) if you're not growing and moving forward, you're falling further behind."

Bottom line? Don't put yourself in the position of having to make a change in your Web strategy under last minute duress. If you are using a Homes.com site, then you really need to start scouting out solutions so that you're prepared to act prudently in the near future in case it plays out as it's most likely to, suggests Canale.

If you have a Web site with one of these companies or another that is making you nervous, you may want to keep your current Web site and search out other alternatives. Most subscription services will allow you to pay monthly, quarterly or annually, but because of the increased administration costs, expect to pay more for monthly or quarterly subscriptions.

Also, be equally suspicious of companies which offer overlong subscriptions. Whether you know a company is having financial problems or not, don't commit for a longer term than one year. A lot can change on the Internet in a day, much over the course of a year.

Part II - What If My Web Site Goes Black? will cover solutions on tomorrow's Agent News.

Published: March 28, 2001

Use of this article without permission is a violation of federal copyright laws.

Blanche Evans is the award-winning senior editor of Realty Times, the Internet's leading independent real estate news service. She is featured daily on the Realty Times Video Network in the "Realty Viewpoint" segment. Blanche has been named one of the "25 Most Influential People In Real Estate" by REALTOR Magazine, and has been twice recognized as a "notable." In 2005, she was named "Top Reporter Covering the NAR" by Delahaye-Bacon's. Blanche is a renowned author of five real estate books. Her newest, Bubbles, Booms and Busts: Make Money In Any Real Estate Market, McGraw-Hill, was rave-reviewed by The New York Times. She was also selected from hundreds of real estate experts to contribute to Donald Trump's book, Trump: The Best Real Estate Advice I Ever Received: 100 Top Experts Share Their Strategies, Rutledge Hill Press, and is featured on page 68. Order Now Review - Honors In 2006, Blanche was selected among scores of candidates to author two consumer real estate guidebooks for the National Association of Realtors: The NAR Guide to Home Buying, and The NAR Guide to Home Selling, Wiley & Sons. She is currently planning two new books for the NAR and its members.       Known for her keen insight into real estate industry issues and for her ability to make complex subjects easy to understand, Blanche is a sought-after keynote and continuing education speaker. Real estate organizations from MLSs, to brokerages, to franchisors, to associations hire her to provide up-to-the-minute analysis of real estate industry news and advice on how to improve revenues. Her passionate delivery, peppered with stinging wit, is a huge hit with audiences and fans. Don Klein, CEO Greater Nashville Association of Realtors, Blanche Evans, Richard Courtney, president 2007, GRAR "The GNAR membership meeting last week featured Blanche Evans as the keynote speaker. Her comments and insights resonated extremely well with those in attendance and we have had many requests for copies of her PowerPoint Presentation. She was a terrific part of the membership meeting and convention program!" - Don Klein, CEO Greater Nashville Association of Realtors Coverage from WSMV, Nashville - 8-14-2007 That Interview Guy - Get Inside The Head Of Today's Generation 2007 AE Institute Session - To purchase 2006 AE Institute Session - Parts 1 2 3 4 5 6 7 8 9 HouseValues Mastermind call - Parts 1 2 Blanche's fireside chat with Jeremy Conaway, HAR - Click here. To contact Blanche, email her at . For more articles by Blanche, click here.