Main Street is no longer the place to set up a retail store. The Web is.

Whichever way you look at it, the Web has become the place for commerce.

Online spending grew 18% in March compared to last year -- the eighth consecutive month of double-digit growth, according to MasterCard Advisors' SpendingPulse. The growth rate has outpaced that of traditional brick-and-mortar stores. While many chain retailers' online sales are growing, their store sales are shrinking. At 41 of the 50 biggest retail chains in 2008, e-commerce revenue grew as store sales declined, says InternetRetailer.com.

For the longest time entrepreneurs wanting to venture off on their own would open a store downtown where foot traffic abounds. But that trend, it seems, is changing. Today's equivalent of foot traffic is eyeballs. Much of that traffic flows from search engines and mega-marketplaces such as Amazon.com ( AMZN - news - people ) and eBay ( EBAY - news - people ). Today an entrepreneur contemplating a retail business no longer leases space on Main Street. She opens a Web site. Her market is no longer local.

There is much discussion today about how we will reverse this recession and why entrepreneurs are a key piece of the puzzle. The U.S. Census reports that there are 19.5 million nonemployer firms -- mom-and-pops -- and a large portion of this segment operates retail stores. Another 4.5 million firms operate with less than 10 employees, a segment that is also heavy in retail. In this recession many of them have gone out of business.

For an economic recovery, the small, specialty retail segment will need to get back to a healthy state. E-commerce may be the answer. Evidence suggests many small online retailers are doing quite well.
Take FineArtAmerica.com, an online marketplace and social networking site for painters, photographers and other visual artists. Artists can use to the site to connect with collectors and other buyers and, says founder Sean Broihier, put the business side of their career on "autopilot," leaving them more time to create art. FineArtAmerica.com (FAA) has more than 28,000 artists who upload new images to the site each day; 6,000 of them offer prints for sale.

FAA has been profitable since launch in 2007, thanks in part to its low overhead. Founder Broihier is its solo owner, and the company has no employees. Revenues were $175,000 in 2008 and $1 million in 2009, and the company projects revenues of $2.5 million for 2010. Broihier says that FineArtAmerica.com currently attracts 175,000 unique visitors a day, and traffic is growing by 10%-15% a month.

Broihier is a very good example of someone who has taken destiny in his own hands by embracing the Web rather than joining the 10% unemployment pool in America. (See my post Deal Radar 2010: FineArtAmerica.)

Another entrepreneur, Jeff Taxdahl, founded Thread Logic in 2002 to create custom-logo-embroidered apparel for businesses and organizations. Products range from polo shirts to aprons to fleece blankets. In a business that has been slow to go online, Thread Logic has focused almost exclusively on Internet sales while keeping in close touch with customers. In 2009 sales were $1.1 million, up 27% over 2008. (See my post Deal Radar 2010: ThreadLogic.)

O'Reilly talks about the lessons learned by its foray into e-book publishing.

Many people, both inside and outside of the publishing and media industry, are skeptical about the potential of paid content on mobile phones, especially given the troubled history of e-books. I beg to differ. In December 2008, O'Reilly's "iPhone: The Missing Manual" was published as an iPhone app. Since its release, the app has outsold the printed book, which is a best seller in its own right. We're learning a lot from the experience. Here our some of the questions that we're starting to answer.

Was the iPhone app for the "Missing Manual" an anomaly? After all, iPhone owners are the most likely audience for the "Manual."

O'Reilly: Conventional wisdom suggests that when choosing pilot projects, you pick ones with a high likelihood of success. This was a best-selling author on a red-hot topic. We're gearing up to release about 20 more books as iPhone apps, but realistically we don't expect any of those to sell as well as this first one.

Is the iPhone the most convenient place to get content about problems you're trying to solve on a computer?

For many of our readers, a first or second pass through one of our programming books is mainly about orienting to the landscape and getting a sense of the platform and what's possible, not about solving a particular problem at hand. The iPhone is a perfectly suitable environment for that kind of reading.

Won't you make less money selling iPhone apps than books? The computer book market is the computer book market, period. It has a certain size, and that's it. If you convert that market into iPhone app buyers instead of book buyers, say good-bye to your publishing business.

It would be economically bad news to sell a $5 product to someone who would otherwise pay $50. But it's good to sell a $5 product to someone who would not otherwise be a customer (provided, of course, that the marginal revenue exceeds marginal cost). For Safari Books Online, for direct sales of our e-books and now for this (single) iPhone app, the data suggests that they have created growth without sacrificing print market share. For example, our market share for printed computer books sold at retail was 14% in 2004, and is now 16%. According to Nielsen Bookscan data, the print version of iPhone: The Missing Manual has sold nearly as many copies as the next two competing titles combined in the time period since the app version went on sale in December.

This data only goes back to mid-January, but the 90-, 30- and seven-day averages on Amazon sales rank for the printed book have been steadily improving, suggesting that sales of the iPhone app version are not cannibalizing print sales--and may even be helping them.

Slowing tax revenues and a historic bailout of the U.S. financial system will drive the annual budget deficit to nearly $1.2 trillion this year, even without the massive economic stimulus package now under review by Congress, the Congressional Budget Office reported this morning.

These ten places are each special in their own way. The only downside may be that it's hard to keep a secret, so most of them have seen considerable increases in home prices over the last couple of years.

• Charlottesville, VA

Nestled in the foothills of the Blue Ridge Mountains, most areas of this idyllic city are accessible by foot or bicycle. Charlottesville enjoys clean air and water, and pleasant weather year-round, highlighted by especially beautiful fall foliage. Nearby Shenandoah National Park offers a wealth of recreation opportunities. Charlottesville is home to the University of Virginia, which strengthens the area's healthy economy by providing steady jobs and a wealth of amenities and entertainment. Homes are not cheap (median home price $225,000), but the cost of living is manageable. The city's low unemployment rate and significant recent job growth promise continued prosperity. As more and more people learn about this year's best city, Charlottesville may find staying affordable and sprawl-free is its greatest challenge!

• Santa Fe, NM

Home to over 250 art galleries and the new Georgia O'Keeffe Museum, Santa Fe has long been a haven for artists. Perched high in the desert mountains, Santa Fe's air is crisp and clean. Daytime temperatures are mild, though the nights are often cold. The city is surrounded by over 1.5 million acres of national forest, offering excellent hiking, camping, and downhill skiing. Recently, Santa Fe has seen its population skyrocket as the city has become a relocation hotspot for affluent Americans. Despite its recent growth, Santa Fe remains relatively affordable, with a median home price of $365,000.

• San Luis Obispo- Atascadero- Paso Robles, CA

This quiet group of towns on the central California coast could easily qualify as paradise. The climate is among the country's most pleasant, with 285 mostly sunny days per year and temperatures rarely above 90 degrees, or below freezing. The presence of academic heavyweight Cal Poly helps anchor the local economy- the unemployment rate is well below the national average. It's fortunate that local jobs are plentiful, since it's too far to commute to Los Angeles or the Bay Area. Considering further its low crime and unemployment rates, the San Luis Obispo area seems to have it all. But home prices here have risen steadily in the last few years, so that the median is now $536,300. While this isn't unreasonable by California standards, it can be out of reach for many of us thinking of moving from other parts of the country.

• Santa Barbara-Santa Maria-Lompoc, CA

A few miles north of Los Angeles, Santa Barbara has long been a #1 relocation choice for those who can afford it. This area is famous for lavish estates that carry a price tag in the millions of dollars. Indeed, the median home price for the county is $590,000, and your average house in the city itself is over $1.2 million. No matter how appealing, the Santa Barbara area's cost of living and home prices will prove prohibitive for many Americans. In addition, recent job growth has dipped lately, so it might not be the best place to look for a new job. Nevertheless, for those that are retired or financially secure, the Santa Barbara area remains one of unmatched beauty and comfort.

• Honolulu, HI

Everyone knows that Honolulu is a great place to vacation, but what about putting down roots in Hawaii's capital city? After a slow start, home appreciation is taking off like a rocket as well-to-do mainlanders are looking for a place to invest, and enjoy. The laid-back and easy-going attitude of the islands is infectious and helps explain the low violent crime rate. Restaurants, eager to please the international tourist clientele, are excellent and numerous. For the same reason, entertainment options are various and exciting. Even Honolulu's economy is remarkable\x97the unemployment rate is low and recent job growth is well above the national average. There are some downsides to consider. Nearly all consumer items must be shipped from the mainland, and this translates to a high cost of living. Other drawbacks are the high median home price ($550,100) and the possible claustrophobia of living on a small island. But if you don't mind the cost and isolation of living far off the mainland, then Honolulu is a safe and beautiful place to live.

• Ann Arbor, MI

The University of Michigan is the foundation of the city's economy, providing stable employment to many residents and keeping the unemployment rate well below the national average. Perhaps it is no coincidence that the residents of Ann Arbor are well educated-- more than 20% have college degrees. Not only are there enough jobs to go around, but they also pay well -- Ann Arbor's per capita income is nearly 25% greater than the national average. The city's value makes it even more attractive-- its median home price is $220,000. Just be prepared for long winters -- the temperature dips below freezing 139 days a year. In addition, political conservatives might want to think twice about Ann Arbor, however, as its residents and city government are vigorously liberal.

• Atlanta, GA

Atlanta is the largest city in our Top 10 Best Places to Live, having recently experienced a huge population boom. The crossroads of the South has become especially popular with young people looking for a sunny and exciting urban center that is easy on the checkbook, with its reasonable cost of living. Indeed, the city's affordable homes (median home price $164,100) and robust economy (high per-capita income) make Atlanta an excellent choice for young people concerned with value. The South has a reputation for oppressive heat and humidity, but statistically Atlanta has a warm and pleasant climate. Throw in four pro sports teams, great restaurants, and a diverse arts scene and Atlanta emerges a sizzling city on the move.

• Asheville, NC

Asheville is situated at the foot of the Great Smoky Mountains, the highest part of the Appalachian Range. A low cost of living and affordable housing (median home price $202,100) offset the area's low measure of diversity and unremarkable economy. This mountain getaway was settled in the 1850's as a slow-paced health retreat, and it continues to be appealing to both families and retirees. Since the median age of Asheville residents is above the national average, retirees moving here will find themselves happily surrounded by their peers.

• Reno, NV

Reno is another one of the Top 10 cities that has recently experienced significant population growth. New residents are attracted by the area's lack of crowding and absence of income tax. Reno boasts ample options for outdoor recreation, including skiing the Sierra Nevada's and exploring Lake Tahoe and its surrounding national forest. The days are sunny and the air is especially clean, but nights are cold and sub-freezing temperatures occur 189 days a year. The crime rate is a bit higher than the national average, but the Reno area is affordable (median home price $292,300), which makes it a smart choice for young people looking to move into a California-like climate on a budget.

• Corvallis, OR

Corvallis is home to Oregon State University and hence many young singles. Technology stalwart Hewlett-Packard has a major presence here, which helps explain the city's low unemployment rate and impressive recent job growth. The presence of OSU and HP has created something of an intellectual center-- over 20% of its residents have earned a graduate or professional degree. The fertile Willamette Valley was the destination of 19th-century settlers from the Midwest, and since then has retained a peaceful agrarian feel. Summers are sublime and the winters are mild, if a bit wet. For recreation, the rugged Oregon coast is a 90 minutes to the west, the nearby Cascade range offers great skiing, and Portland is about 100 miles to the North. Considering it's affordability ($194,800 median home price), Corvallis presents an attractive mix of youth, intellectualism, and natural beauty. For a complete profiles of all 331 metropolitan areas, get a copy of "Cities Ranked and Rated." online or at your local bookstore or library. The book also includes maps, climate charts, comparison tables, plus additional profiles of the 45 new fast-growing mini-metro areas and 27 Canadian metro areas.

Affordable Places To Escape The Cold

Airlines and hotels in warmer locales are cutting prices to keep the tourists coming.

In Pictures: Affordable Places To Escape The Cold

Spending winter in a major city is substantially less fun than those scenic television shots might lead one to believe. The sidewalks are icy, the skyscrapers work together to perform perfect wind tunnels and crazed hordes of holiday shoppers can make December almost intolerable.

When average daily temperatures dip far below freezing, it's time to get out of the city. But with the economy struggling, sunbathing on a private beach in Maldives may not be a financially feasible option.

In Pictures: Affordable Places To Escape The Cold

Fortunately, getting warm this winter doesn't have to break the bank. Travelers who stick close to home, select up-and-coming locations and score travel deals from financially ailing resorts and airlines can get out of the cold for an affordable price.

Central America and the Caribbean deliver a major cost-saving advantage, according to Tim Leffel, author of The World's Cheapest Destinations: 21 Countries Where Your Money Is Worth a Fortune.

"If you're coming from the U.S., you don't have to pay very much to get there, and there's less jet lag, so you can really hit the ground running," he says. Better yet, both regions contain a plethora of lesser-known destinations where the U.S. dollar is especially strong.

Up-and-Coming Spots
Honduras, home of the largest coral reef in the northern hemisphere, is behind the tourism curve, as just 383,000 non-Central American tourists visited the country in 2007. This is starting to change.

Leffel recommends the island of Roatan off the country's Atlantic coast, where travelers can expect warm weather and wallet-friendly hotel deals, like the $799 low-season dive special at Anthony's Key Resort. The price includes a room for seven nights, three meals a day, a tropical picnic, an island fiesta, a buoyancy control workshop and dive equipment and transportation for up to 23 dives. Roatan is especially attractive for new divers--certification there is cheaper than almost anywhere else in the world.

Well-priced homes, enviable job growth and proximity to vibrant cities make these top 10 spots good choices in recessionary times.

In Pictures: Affordable Places To Weather The Downturn

Last week, unemployment hit a 20-year high, rising to 6.5% over the month before.

Folks in Denver-area Adams County may fare better than others nationwide. Year-over-year job growth is 3.4%, thanks to a diversified local economy that includes aerospace, aviation and bioscience jobs. Homeowners pay a scant $1,536 in property taxes and enjoy some of the most affordable properties in the country.

Residents in Madison County, Ala., Pulaski County, Ark., Hamilton County, Ohio, and Greenville County, S.C. have a similar story. They're within commuting distance to Huntsville, Little Rock, Cincinnati and Greenville, respectively, boast enviable job growth figures and round out our list of the top five spots to live affordably during an economic downturn.

Behind The Numbers
In compiling our list, we looked at three factors: affordability, property taxes and job growth. Moody's Economy.com provided us with an affordability index for each county. A score of 100 indicates that a family earning the median income in the surrounding metropolitan area can afford to buy a median-priced home. The higher the score, the higher the affordability.

In Pictures: Affordable Places To Weather the Downturn

The U.S. Census Bureau provided information on 2007 property taxes, and year-over-year job growth data came from the Bureau of Labor Statistics.

We cut out counties that don't include distinct townships that are within an hour's drive from an urban area.

Lone Star Spots
Several counties in Texas appear on our list. This is because homes statewide are relatively affordable thanks to low fees for building permits and liberal zoning policies. Property taxes, however, zing homeowners; Texas has neither state nor city income taxes, so local governments rely on property taxes as their main source of funding.