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I work with small nonprofits and I can tell you that while they are embracing open source tools like drupal and wordpress, many are still not quite savvy enough to run the show themselves. And even the small orgs have annual budgets of around $100k - more than enough to dump $5k or so into a custom design and some integration with their fundraising software.
integrating with fundraising software is key.
I don't understand why this is an 'OR' conversation - have your static website, then add a blog later if you want.

Businesses need to ask why they want a website before they begin [1]. For many businesses, a static page is more than sufficient - it's a non-confrontational way for them to communicate with a potential client, give that client a feel for the business before the client has to make a phone call. My experience doesn't accord with issues like "the ISP paid in advance, and the site continues as a zombie".

I'd like to see more businesses with blogs, and they would benefit. But in terms of priorities, I work with several businesses right now where a blog would be detrimental because it would overtake things like 'sales' on their to-do list. More advanced websites exist for other business reasons, but this advice isn't designed for businesses wanting to sell product through their site anyway.

[1] http://www.shirlawsonline.com/blogs/171-there-are-only-four-...

He's not really contrasting "static websites" vs. "a blog", he's contrasting hiring someone with "HTML skills" to build a website vs. running a basic CMS, which is what a blogging platform like Wordpress is.
The author conveniently forgets to note that putting the company's visual design in a blog does cost something and requres someone that knows things like HTML and CSS.

Using a blog is probably the best choice for many companies, but it's not totally free (unless you want to use on of the standard themes, in which case people who have seen the same design on ten other sites will wonder what's going on - "is this a serious company?").

The general basis of the article should be that Wordpress (or other blog platform) can be used as a CMS for a website, and that it is an alternative to a static site. However, implying that it can replace a designer/developer to represent the business in a professional manner, and it can be done for little to no cost, is way off the mark.

The article fails early when he compares a website to a word document or e-mail (more appropriate comparisons would be trade show booths, marketing brochures, and store layout/design), and all arguments he makes against a static site can also be made against the use of the weblog he promotes.

I'm a web developer by trade, and even my startups generally at least begin with a wordpress install. I don't agree with their reasoning, but I find it lets me concentrate on other aspects of the startup rather than getting hung up on the design.