Sell Web Hosting for Fun and Profit
The market is good for new Web hosting companies. According
to Forrester Research, there is now "positive - if
modest - growth for Web hosting and managed IT services,
at both the enterprise and SMB levels."
This is an especially good business to be in if you are
a web designer or IT consultant. It fits naturally with
the business model of such small consulting firms. Why refer
out or miss out on selling a service that most small businesses
need? Hosting is an excellent source of monthly recurring
revenue.
The hosting industry is one of the few profitable sectors
of the Internet. As such, large corporations such Yahoo
are offering Web hosting services. You, too, can join this
highly profitable business and reap the financial awards
-- but only if you do it right.
To build a successful Web hosting company, I offer the
following two time-tested and proven rules: Focus on offering
high-quality services in a two-tiered pricing schedule.
In addition, it is essential an automated infrastructure
to create self-sufficient customers. For marketing, it is
crucial to maximize intelligent marketing opportunities.
Automation will create a self-sufficient client-base and
reduce your expenses down the road. In order to provide
the best-possible service, you'll want a minimum of the
following processes automated: order forms (for new customer
account set up or existing customer updates), billing system,
administration system, end-user control panel, and technical
support interface.
Order Forms
The front end of your order form should serve an minimum
of these four key functions: 1) verify domain information
for registration purposes, 2) validate entered results,
3) process the customer's credit card or create an invoice,
4) enter the customer's information into billing database
for future use.
The backend of the order form must process the domain registration
(if customer needs to register one) and generate the Web
hosting account.
Administration System
The administration system is necessary to manage ordered
accounts. You may wish to manually add or remove new domains,
change passwords, etc.
End-User Control Panel
The end-user control panel is necessary for allowing your
customers to manage their accounts. At the very least, customers
should be able to set up their own e-mail accounts, view
Website statistics, and manage their files.
Billing System
An automated billing system is an absolute must! The billing
system should e-mail invoices, charge credit cards, and
suspend overdue accounts. The system should also allow the
you to issue credit or discounts as needed.
Technical Support Interface
By technical support interface, I'm not referring to a
system that merely generates trouble tickets. An effective
tech-support interface automatically generates an FAQ-interface
that customers can search before submitting trouble tickets.
These interfaces can reduce technical support requests by
a factor of 10!
Also, be sure that the company you go with offers the option
of taking care of technical support on your behalf but branded
with your brand. You can then focus your energy on your
core competencies and growing your business.
Maximize intelligent marketing opportunities
You know what platform you want to use, you've figured
out what packages to offer, and set up a tiered pricing
schedule and automated systems. So how do you get the word
out about your new hosting service?
Pay per Click
Pay per Click can potentially allow you to reach large
numbers of customers. Although you don't pay to list your
site, you do pay when a user clicks on your listing and
connects to your site. How, then, do you get your site high
on the results lists? You must engage in a bidding war over
how much you're willing to pay for each person who clicks
through to your site. The stakes have recently grown pretty
high, so be careful about bidding too high. Just because
someone clicks through to your Web hosting site, doesn't
mean they'll convert into a new account. Also be sure to
select targeted keywords not competing with everyone else
for the same keywords. That is a very difficult game to
win. Find your niche.
Hosting Directory Sites
There are numerous Web sites known as hosting directories
-- that attract Web hosting customers. These hosting directories
are an excellent place to advertise, but be selective in
your placement. Many offer banner placement, spotlights,
search enhancements, and other forms of advertisement. As
a general rule keep in mind that banner ads are better for
creating brand recognition than generating new accounts,
so advertise based on your budget, not on your expectation
of new clientele.
Leverage Your Current Client Base
If you run an established Web design firm, information
portal, or domain registration service, you can immediately
begin marketing to your current clients. A simple e-mail
to your customer base can quickly generate a large number
of accounts. There are permission-based email marketing
services that work very well for earning more revenue from
your current customers and gaining additional customers.
Try a free trial of one or more of these services to find
one that works well for your needs.
Offer New Products and Services
Keep in mind, once you acquire a solid customer base, you
can consider developing new products and services to keep
your customers happy and to generate additional revenue.
But always remember: Quality is key!
Back
to Tips Page |
