General Discussions

**Myname1001** · 05-20-2006, 04:32 PM

If I want a loan to open a "web site" that makes no money and sells nothing, it would be a personal loan right?

And if I open a web site that falls into the entertainment and informative category that makes money and sells a product, is that considered a business loan?

If so, how possible would it be to get a "personal loan" from the bank to open a web site, even though the web site makes money from selling a product on the site (but not the main concept or idea of the site, just a small addition to make some money for the site you know) and sells advertising space on the site. I don't consider it a business but technically it is and will be making a few thousand dollars pure profit within the first 60 days, probably more. Thousands in paid advertising from the loan, over $7000 spent total on the whole thing with about $1500 for back up n emergency money.

Anyone else take a loan out for a web site if so was it a business web site and what type of loan was it labeled as. I need to know so I can prepare but not sure which type of loan to prepare for. My site is entertainment, visitors don't pay to use my site or sign up or nothing. It is a website, a fun, entertaining, nice web site. It makes money to keep the site alive and pay the loan off though, by selling advertising space and a few digitally downloaded products and things like that. Merchant account, takes paypal and most credit cards, affiliate program for people to sell my digitally downloadable products for me and get paid 50percent comission, and a few other things. Will they let me label it as a personal loan?

I should ask a bank, I know. I'm assuming it depends on some things though, so I'm asking other webmasters first

**defiantrican** · 05-25-2006, 06:17 PM

Assuming you have a business model for the website and a presentation for it, then yes it would go under a business loan. However, it is very hard to get a business loan for an internet based business. A personal loan is the way to go. Just my two cents.

**andersonweb** · 05-28-2006, 11:20 AM

I don't know about getting loans to have a website developed, but I had a client who went a different route. He got a credit card with a $10,000 limit and used it to have the site developed and for his marketing and operational costs. He didn't really put much effort into promotion, so the site tanked, but had he done it right, he would have had a great business on his hands. So, I guess I have 2 points of advice here...the credit card as an option for gaining funds and be sure that you allow yourself enough budget and time for promotion. Websites are not a "field of dreams" where if you build it, people will just know to come to it.

Promotion is key to a site's success.

**defiantrican** · 05-28-2006, 01:16 PM

I must agree anderson. It is a common misconception that if you build a site it will be a money maker. That is not always the case. Marketing that site and domain are just as big a part of it as the actual design and getting funds.

**andersonweb** · 05-28-2006, 03:43 PM

Quote:

Originally Posted by defiantrican

Marketing that site and domain are just as big a part of it as the actual design and getting funds.

Definitely, defiantrican! One of the things I always tell me clients about cutting corners in their website budget is that you can spend all the time and money in the world to get people to your site, but you have to make a positive impression when they get there. Like the old saying goes, you can lead a horse to water, but you can't make him drink. Well, my philosophy is that you can sure make him thirsty! And you do that with a very appealing and user-friendly website. So, promotion and design are equally important. Therefore, it's a waste of time and money to have one without the other. That's why I was providing the friendly word of advice to make sure that Myname1001 plans on budgeting enough for both.