Gauging Extranet’s Evolutionary Costs

The costs of setting up an extranet system greatly depends on a company's goal, according to Victor Junalaitis, CEO of Santa Monica, Calif.-based Positive Support Review Inc., a consulting firm specializing in extranets. Junalaitis has identified three corporate extranet categories and relevant "evolutionary" scales of cost.

Promotional: A site focused on a particular product, service or company. Cost: $300,000-$400,000 per year (17-20 percent on hardware and software, 5-10 percent on marketing, and the balance on content and servicing).

Knowledge-based: A site that publishes constantly-updated information. Cost: $1 million to $1.5 million per year (20-22 percent on hardware and software, 20-25 percent on marketing, and 55-60 percent on content and servicing).

Transaction-based: A site that allows users to shop, receive customer services or process orders. Cost: $3 million per year (20-24 percent on hardware and software, 30-35 percent on marketing, and 45-50 percent on content and servicing). (Positive Support Review Inc., 310/453-6100)