The Internet Business Ecosystem

While the need to preserve the independent web is obvious and culturally significant, many people don't realize the gigantic ecosystem of small business served by small to mid-sized web sites. If the proposed legislation from Representative Boucher continues unchecked, one of the few growing segments of commerce would be in dire jeopardy. In this fragile economy, we need to think long and hard of any legislative action that might harm economic recovery.

Web sites that have evolved to the point where they must rely on third-party advertising for their existence are but the tip of a massive "iceberg" of a vital commerce ecosystem. Each of these online business lease computer equipment from a host of service providers that furnish web servers and Internet connectivity. Depending on the size of the site, the business relationship with the service providers may range from a single machine at $300 per month, to dozens of computers in a complex "server farm" costing upwards of $20,000, or more, each month. There are hundreds of such service providers in the united states that employ thousands of skilled workers.

As an online business grows to a large scale, they will likely also employ technology subcontractors to engage in a wide range of services from computer security to extremely high-end systems design. Additional support is often needed in the area of graphic design and specialized programming, usually through the contracted aid of entrepreneurial specialists and small firms.

The Internet Advertising Ecosystem

The ecosystem supported by online advertising also extends to the actual companies doing the advertising. Utilizing targeted advertising through third-party ad networks, small business are able to reach a level of prospective customers available no where else. Thousands of small to large ad agencies and creative specialists service this growing segment of advertising that is vital for nearly all small businesses.

"Too Big To Fail?"

Many of the large-scale web sites we frequent today grew out of this robust and multifaceted ecosystem of talented professionals in thousands of small businesses across the country. Currently popular sites such as YouTube.com, Twitter.com, Break.com, TheOnion.com, FaceBook.com, MySpace.com, and countless others grew out of the unique combination of entrepreneurial efforts, enabled by the "to big to fail" ecosystem of Internet-related businesses.

Eliminating third-party advertising as a revenue option for small to mid-sized online businesses would eviscerate the massive business ecosystem of the Internet. Web sites will close, hosting service providers will loose significant business, and scores of talented professionals will see their clients disappear.