Businesses large and small have embraced the internet as a place to have a presence. Fewer, however, have really figured out how to cost effectively market online. While there are plenty of ways to spend your marketing budget, if you really know what you're doing, you can do a lot of online marketing on fairly limited funds.

Here's a basic list of "economic" marketing initiatives that you might like to consider.

Search Engine and Directory Submittals

Search engines are the third most popular method that people use find websites and are the source of up to 85% of all site traffic. Apart from Yahoo, LookSmart and some of the other top search engines, there are still some search engines that allow you to submit your website at no charge.

Paid-For Search Engine Listings

Several search engines, the most important of which is Overture, now allow you to pay for top placements through advertising and bidding programs. Costs vary by search term. Seek out search terms that are in less demand to generate inexpensive traffic.

Site Linking

Getting other websites to link to yours is not only free, but can also help with your search Engine rankings, as many search engines now factor "link popularity" in the relevancy of their search results. Make sure you only link to sites with a similar theme to your own and use keyword rich text links for best effect.

Email Signature File

"Sig files," which automatically appear at the bottom of every email you send out, are like little text billboards, helping you promote your company. Include your web site address and a slogan or “strapline” advertising a product or service.

Participating in Discussion Lists, Forums, Message Boards, and Newsgroups

This is an excellent way to build your credibility and awareness of your company. Sit on the sidelines first, observe and get a “feel” for how things work before you submit comments. Don't forget, where the rules permit, to use your Sig file!

Co-Registration

When users can subscribe to more than one email publication at a time, this is called co-registration. Use a co-registration service, or recruit your own partners. These automated emails can be a very helpful (and inexpensive!) way to send out follow-up information and customer Ad Swaps. If you publish your own email newsletter, you can swap ad space, content or other types of prominent placements with other newsletter publishers.

Low-Cost Classified Advertising

Even if you don't publish a newsletter, you can still buy relatively low-cost advertising space that can work well when placed in email newsletters targeted to your audience. You need a good headline to grab the readers attention and the body of the advert should stress the benefits of your product or service. These adverts work best if they drive traffic to your website rather than trying to make a sale in a limited space.

Remnant Ad Buys

Websites and newsletters that don't sell out their entire ad inventory might be willing to sell you one-off space, sometimes called "remnant space," on the cheap. Ask!

Pay-Per-Performance Ad Buys

Pay only when you get a click (CPC) or a sale (CPA). Ad networks like Advertising.com and ValueClick are examples, but they still have minimums, so be prepared.

Content Placement

Re-use or write articles and content that you offer to others to publish. You and your company get exposure through your by-line.

Contest & Surveys

If you're trying to appeal to the masses, contests & surveys are a great way to attract people. You can even give away something you already own, manufacture or produce, that others will find valuable.

Co-Branding/Partnering

Work with other related websites to cross-promote one another or share the cost of advertising and promotions. Try to ensure that you are promoting products or services that are complimentary your own rather than competing!

Affiliate Programs

A kind of partnering where one website compensates another for traffic, leads or sales. There are inexpensive do-it-yourself software programs as well as outsourced services that can help. Again, it is important that you choose affiliate programmes that are relevant.

Press Releases

Do you have REAL news? (by this I mean the kind that journalists and their readers, not just you, find interesting and relevant) Spread the word by writing and sending out a press release. You can even use services like Bacon's, Business Wire or PR Newswire to help select target areas to send to. The website PRWeb even allows you to post your press release for FREE!