Web Sites We Love

Recruiting leverage

Company: PayMaxx (#268)
Problem: Persuading key talent to work for you for less money
Web solution: Locate comparative cost-of-living information

Believe it or not, when Farsheed Ferdowsi, CEO of Nashville-based PayMaxx, offered a prospective chief financial officer in New York City $50,000 less than his then-current salary, the CFO didn't laugh and slam down the phone. Rather, he politely said he'd consider the offer and get back to Ferdowsi. Of particular assistance in this process was a Web site called the " salary calculator," a resource for comparing the dollar's spending power in major cities around the world. Ferdowsi used the site to show the prospective CFO that less is sometimes more: the $100,000 salary Ferdowsi was offering him to move to Nashville was worth $270,000 in New York City. Though he'd be making less in terms of real dollars, his salary's spending power would nearly triple.

Ferdowsi also keeps up with such huge competitors as ADP and Ceridian by creating a "portfolio" of their stocks on America Online (keyword "my portfolio"). That allows Ferdowsi "to drop in" on the competition at least twice a day. He says holding the faux portfolio is doubly sweet, considering it's harder for his competition to watch him--since his company is, of course, private. "If anything major happens--like their earnings decline or they're making an acquisition--they've got to file it with the SEC," he says. "I don't have to file anything."

Due diligence

Company: Geltech (#468)
Problem: Choosing customers with long-term potential
Web solution: Comb prospects' Web sites to gauge their market viability

Knowing how to read between the HTML lines has helped Michael McConnell choose his customers wisely.

The CEO of Geltech, which manufactures high-tech optical components, was recently approached by three competing hardware companies, each of which wanted to sign him on as an exclusive vendor. To help him make his decision, McConnell monitored their Web sites for several weeks. Companies A and B had sites that were flashy, fast loading, and easy to navigate. Company C's site, however, offered little information and even less flair. "It was plain vanilla," says McConnell. Company A updated its site weekly (B monthly, C hardly ever). Company A also advertised the largest number of job openings, listing a bevy of new management positions that to McConnell indicated a rapid expansion. And when it came to product development, Company A's site provided more new-product information than the other two sites combined. The obvious choice for McConnell was Company A. (Tellingly, Company C went out of business soon thereafter.)

Additional reporting for this story was provided by Nicholas Colletta.

WHAT WEB SITES OR ON-LINE NEWS SERVICES DO YOU GO TO FOR NEWS AND INFORMATION?*

*Out of 166 respondents
Source: 1998 Inc. 500 survey.