The internet used to be billed as the perfect way to make money but few businesses break even on their web site development costs, let alone derive any revenue.

Why is this and can anything be done to improve the situation?

Web site designer Steve Penfold, of PH-media (www.ph-media.com), based in Western Road, Brighton, believes commercial web sites should be built to make or save money from the outset.

All it takes is some hard thinking and a little guidance.

Mr Penfold said: "You need to look closely at your organisation and identify all the areas where a web site could benefit you before spending any money.

"Your site doesn't have to be a simple brochure; it could be a proper extension to your business."

There are plenty of ways that a web site can be used to save money.

Think about the cost of mailing out new product information. Simply create a new web page every time you add a new product and email your potential clients with the link to that page.

Think about the ways a web site could help you bring in more business.

Add functionality that makes it easier for people to get in touch with you or buy your products.

Always include your latest product and business information and keep your basic information up to date.

Any web presence will act as a signpost to your business but you need to remember that people have to find your web site to take advantage of the good things you have put there.

Most people discover new web sites via search engines such as www.google.com or www.yahoo.com so you need to investigate the benefits of web PR and make sure your site can be picked up by the search engine's spiders, which are simply software packages that search the web for new sites.

The idea is to raise your search engine ratings.

When a potential client runs a search, you need to be the first name they come up with. Talk to a web PR company and see how they can help you increase the power of your web presence.

A web site is an extremely powerful communications tool. It can keep your customers informed of new products and services and, with the addition of an intranet, can even be used to keep your staff informed of the latest business developments and improve internal communications.

It is even possible to install a bespoke software package that can handle all kinds of internal and external communications automatically. Think how much more cost effective it would be if your invoicing system automatically reordered replacement products.

What about gathering additional marketing information? If you added a short questionnaire to your web site you could soon be gathering invaluable client data that would quickly increase the efficiency and profitability of your business.

What about installing a call back function that allows your clients to contact you via the internet?

You gather vital information from the potential client (a name and contact telephone number) and know from the outset you are telephoning a hot lead.

An HTML client newsletter can direct people to specific pages on your web site. This can have a huge impact on sales and is a great way to raise the profile of new business ventures.

Mr Penfold said: "Making a web site cost effective is not just about selling on the internet, although an online shop can sometimes be a very nice little earner.

"E-commerce is just like any other business and, if you get it right, it has the potential to deliver enormous rewards."