We at http://www.ladyoflettersinc.com/ kept asking this very question! How do you know that your website is working? We had no idea until we launched Google Analytics.
This free hosted software helped us learn the following:
• Who is looking for our site and where are they looking from (Internet browser, referring site or other)
• How long do visitors spend on our site?
• New vs. Returning visitors?
• And so much more all presented in very cool looking graphs and tables
For example, we went from not know how many people had visited http://www.ladyofletttersinc.com/ to knowing that we had 80 visitors in 30 days during November.
Now that might not be the numbers of Amazon, but it made us feel good about our site and that helps us sleep just a little bit better. We love knowing that our site is working! For more information visit http://www.google.com/analytics/ . Good luck with your website!

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