A survey has found that half of New Zealand's small and medium sized enterprises (SMEs) do not have a website.
The survey found 20 percent of SMEs have no online presence at all.
The survey was carried out by the Yellow Pages provider.
It said companies that are not online earn on average $150,000 less each year than those that are.
Yellow's director of digital marketing, Steve Traplin, said more and more consumers are using the internet to research products and services before they buy.
He said if they cannot find a company online, they simply buy from someone else.
The Yellow SME Digital Readiness Survey also found that New Zealand's SMEs website lag behind their Australia counterparts.
Fewer than 40 percent of Australian SMEs have no website, and Mr Traplin said while increasing numbers of Australian companies are going online, the number of Kiwi companies with a website has not grown in almost two years.