In a recent post I wrote about the difference between the marketing function and the advertising function. As a small business owner, you must keep both things in mind if you want to be and stay effective.
The $3000 website you paid for that has little traffic is, to a large degree, worthless. It's similar to a fancy store at the back of a strip center that no one ever walks into.
On the other hand, a cheap looking website that gets a lot of traffic can damage your reputation and be of little value as well. The solution is to have a presentable site that takes advantage of social media inlinking and search engine optimization techniques.
You can solve this dilemna by always asking yourself what you're trying to accomplish and whether your strategy accomplishes it.