Online portfolio: Need or not necessary?

Searching for a job is almost full-time work in and of itself. Spending several hours throughout the week searching various web sites for employment opportunities and once you find one to apply for, the time that it takes to craft a cover letter and resume (not to mention the online applications) to fit what is in the job description.

I am one of the lucky ones. I have a full-time job that pays benefits and that I don't hate. Most days I even like being there. However, more than half of what I am doing is not in my field. Having completed my Master's degree about a year ago, I am searching for that right fit for the next step in my career. I want to put my knowledge and skills to work for an organization/agency that truly embraces building relationships internally and externally. Somewhere that wants to promote what it is doing for its customers.

As the title of my post states, I am in the middle of deciding whether to create an online portfolio. More and more jobs are asking for either links to an online portfolio or a submission of a hard copy. Since I do not have an online one yet, I continue to purchase folders and page sleeves so I can print out and include pages upon pages of samples in categories such as newsletter articles, letters, testimony and so on. Does this put me at a disadvantage when being considered? I don't know, but I can't help but think that companies are probably wanting someone that is a bit more tech savvy than myself. 

I would love to hear from readers whether they think that an online portfolio is essential to a job search in this day and age. I have a few sites that I have been considering, but would like recommendations as well if you have any. And to those who are currently job seeking too, I have a few things to say:

1. I wish you lots of luck
2. Don't give up
3. Don't take rejection personally
4. Take time for yourself during your search

As always, feedback on posts is appreciated.