I really wonder sometime cos there are more than 100 thousands hosting companies in the world. And no company has similar hosting rates and packages. Some have hidden cost and some are very expensive.
How the hosting companies survive cos if they have cheap hosting plans its means they are on cheap servers or they are not making much profit. But if they are on good servers like exodus then there prices are really high. In any case there is some kind of problems.
Hosting companies are dependend on resellers or directly end users (clients).
How much avg. profit any hosting company keeps.
How do these companies get business.
How do they advertise.
Please tell me something about hosting companies and there strategies.

:D

A good hosting company will make money by offering real pricing structures so that they can pay the bills that KEEP their clients.

Having worked for three major hosting company's over the past six years, some of who offered the whole private label reseller service - I've had a pretty good birdseye view of what worked and what didn't.

The number one seems to be client retention with reasonable pricing structures. The way to do that is to make sure you have a strong tech team that know what they are doing... otherwise, you and your clients are spinning their wheels. The majority of hosting companies that I have seen fail were due to them or their techs not understanding their resources or how to offer the client pretty much every thing he needs. Also, getting back to them.

If you treat the customer well, he will stay with you.
If you treat the customer well, he will grow with you.
If you treat the customer well, he will BRAG about you.

It's a numbers thing. Over and Over again.

Also, if you have experienced and resourcefull staff you will save a lot of money on hairbrained schemes which have run amok.

Use unix and GNU wherever appropriate.

Think ahead. It's much more expensive to change your technology in terms of technicians' time and customer loss, than to plan ahead.

Know when to spend the cash, which doesn't have to be as often as most thing. Spending the right cash in the right place will save you going through the above. Not everyone who comes to your door with a 20 thousand dollar piece of software is selling you 20 thousand dollars worth of software. We are back to the early days of computers, where businesses are being extremely overchanged for their lack of knowhow. Remember the commercial.... "it only takes one!".

Take care of your customers and they'll take care of you! When you need to raise rates, they are so greatful that you've taken care of them, they'll only bark a little (grumbling is ALWAYS expected... it's when they leave without saying anything that gets you).

Pay attention!

Enjoy the technology!



:D

http://www.cwihosting.com/whycwi2.htm


:)