if you had $130 to build a client base -- how ?

Invest it, wait 40 years to build interest until you have a workable amount.

:) You definetely need to spend more to build a customer database. I suggest you to search for shareware or cheap software.

It'd be happy if I could get one or two clients for that much, let alone a client base :D

LOL were really not helping you are we mate? Hmm all i can suggest with that kind of a budget is use it wisely. Get some banners made up or if you can make decent ones make them. They try exchanging links with other sites and stuff which is a start. In the mean time try get some more cash together so you can start a decent marketing attack.

You could try going local with some targetted letters and stuff though.

Anjam :pimp:

Built your own site, get a small reseller account for $10 to $15/mo, invest the rest in Google adwords and hope you get lucky and your site has a good closing ratio. And don't sell monthly accounts, only sell quarterly and annual.

Originally posted by brav0
And don't sell monthly accounts, only sell quarterly and annual.

Just curious, what's the logic in that statement?

As you can get more money in at a time and hopefully keep afloat...

Originally posted by Amdac
Just curious, what's the logic in that statement? To accumulate working capital and be able to increase his advertising budget.

Originally posted by INEEDCPANELTHEMES
As you can get more money in at a time and hopefully keep afloat...

You shouldn't need to rely off getting a bunch of quick annual accounts to stay in business. This is why so many new webhost companies disappear several months after starting. Gather enough funds to survive MINIMUM 1 year at loss, otherwise you'll get nowhere fast.

Restricting monthly accounts will only decrease the number of potential clients, as most tend to prefer a month to month basis. That's the same as saying "Don't offer small accounts, large ones bring more money". That type of business approach will not succeed.

I totally agree with Amdac. You should make your pricing and subscription options such that you appeal to a large group of potential customers.

Originally posted by Amdac
Restricting monthly accounts will only decrease the number of potential clients, as most tend to prefer a month to month basis. That's the same as saying "Don't offer small accounts, large ones bring more money". That type of business approach will not succeed. My experience has been different. I have never offered monthly accounts and never had a problem getting customers nor have I had any complaints about not offering monthly payments. I currently have a bit over 1,500 customers and I'm glad the majority of them have annual accounts. It reduces billing work by a factor of 10, and I get the money for a whole year up front. I don't see any benefit in monthly billing, it's just more work.

Originally posted by brav0
My experience has been different. I have never offered monthly accounts and never had a problem getting customers nor have I had any complaints about not offering monthly payments. I currently have a bit over 1,500 customers and I'm glad the majority of them have annual accounts. It reduces billing work by a factor of 10, and I get the money for a whole year up front. I don't see any benefit in monthly billing, it's just more work.

80% of my clients pay monthly and I prefer it that way. I offer discounts on annual signups, therefore monthly accounts bring more profit and provide a stable income as the payments come more often. If I didn't offer month to month billing, I'm sure I wouldn't have 80% of the clients I do now.

To gain a greater number of clients, especially as a new company as it seems the original poster is, you need to keep all options open.

You're giving advice to a new webhost company to restrict the number of potential clients they receive.

Originally posted by Amdac
You're giving advice to a new webhost company to restrict the number of potential clients they receive. I give advice based on personal experience that worked well for me.

If he offers monthly accounts, he'll subsist. With such a low budget, he needs cash for advertising, annual accounts will give him that, monthly accounts will hold him back. Monthlies will use the same resources as annual accounts but will provide little cash when needed most.

The thing about monthly accounts is that you are charged by your credit card processor 12 times for that customer. With annual payments, you are only charged once.

--Tina

Originally posted by meshfuse
if you had $130 to build a client base -- how ?

The question here I think is what do you mean by client base?
How many clients do you expect to get from your $130?

Originally posted by AH-Tina
The thing about monthly accounts is that you are charged by your credit card processor 12 times for that customer. With annual payments, you are only charged once.

--Tina

It's usually based on a percentage. The discounts most companies give on annual accounts cause more of a loss than anything else as well.

Also, what happens when the client wants to upgrade after 2 months? It becomes a pain when every client you have is on annual contracts.

Originally posted by Amdac
It's usually based on a percentage. The discounts most companies give on annual accounts cause more of a loss than anything else as well.

Also, what happens when the client wants to upgrade after 2 months? It becomes a pain when every client you have is on annual contracts.

Most credit card processors charge a discount rate AND a flat fee of around thirty cents.

When a customer wants to upgrade after 2 months, you just calculate the difference in package prices multiplied by the months remainin on the contract and generate an invoice. Not a big deal. Takes MAYBE 3 minutes to fully upgrade a client.

--Tina

Originally posted by HVoice-Eugene
The question here I think is what do you mean by client base?
How many clients do you expect to get from your $130? I think the idea is to get a hosting business started with $130. The key is how well he can convert. $110 in Adwords will drive 100+ targeted visitors to his site. If he can manage to convert 5 at $75/client (annual accounts), that'll be a $375 income which he can reinvest in Adwords. It's very feasible to get going if his site converts well.

Originally posted by brav0
I think the idea is to get a hosting business started with $130. The key is how well he can convert. $110 in Adwords will drive 100+ targeted visitors to his site. If he can manage to convert 5 at $75/client (annual accounts), that'll be a $375 income which he can reinvest in Adwords. It's very feasible to get going if his site converts well.

Kind of like the story where the guy bought 2 dirty apples for 2 cents, washed them and sold them for 4c. Then he bought another 4 dirty apples and then his uncle died leaving him a million :).

Come on - a hosting business on $130? There was a thread last week saying that $5K is barely enough. 90% chance that you'll simply waste the money without getting a return.

Boris

Yearly accounts do certainly have their benefits.

As was said, a lot of 3rd party processors also charge a flat rate, per transaction fee. with Paysystems it's up to $1 a transaction.

Also, the upfront capital is welcomed (if invested wisely) for a startup. Offer them a discount to encourage them to sign up for a yearly account. It could (assuming they have the trust in you to stay around for a year and you are responsible enough to stay around in a year) work out greatly for both parties.

That being said, under absolutely no circumstance would I not offer monthly accounts. That simply restricts the # of potential clients down by a lot. With a limited advertising budget, you don't want to abandon what potential clients you might have.

Do you have another job? Where is the $130 coming from?

What I did is got the hosting account first and paid for it at a loss - like others have pointed out. Then slowly build your client base. Find some people you know that have websites and convince them to go with you. Eventually you will cover your hosting charged. Then keep building and reinvesting. Eventually you will get management software, billing software, merchant account, SSL, unique IP, etc.

I didn't do it either way - the $130 or the $5000. I did it little by little and am steadily growing now. I don't have 1500 yet but I'll be there.

Im 19, started with 2 friends and $100 and have built a client base in 1 month faster than most companies. We mainly focus on game servers and have aquired a number of clients and now are planning on expanding even more.

Dont look down on your starting money. Research what you plan to do, how other people do it, and make sure its all on paper. Wait a few days and read it again and see if it makes sense. if it does then you have something. We planned FrozenWire Networks for 3 months and finally built a solid plan with realistic goals.

In our first month we were looking to break even and ended doubling our income which isnt bad since we started out with $100. Our clients love us and are happy with our service.

Research and plan is the key to what you will do with any ammount of money. You can have $50 or $5000. If you dont research sucessful companies in your field, you will end up broke.