Hi,

I wonder if you spend $1000 on advertising ...how many customers do you get from that. When I am saying "you" I refer to YOU actually. I do not mean: If I spend $1000 how many will I get (because I know that question would be dumb because the answer would be: it depends) but the question is really if your company spends a thousand bucks how many clients does it get ?
I know that everyone has different prices and a $1 host will get more customers from a $1000 campaign than a $10 host etc...

That would be interesting to know because it would help to find out if a low price business model is more successful than a high price business model.

For example Host A sells 100 MB for $3 while host B sells 100 MB for $10. Now if Host A gets 3 times more customers than Host B would be more successful and the high price model would work better... But if Host A got 10 times as many customers as Host B then Host A might be more successful... Of course Host A is not neccessarily more successful then because we don`t know how much more work they have etc.

But if this thread reveales that Host A gets only three times more customers than Host B we all know that the low price model doesn`t work.

it depends where you advertise your service. If you advertised your website on an anime site then $1000 would be a waste. On the other hand, if you advertised your website on WHT or related websites then I would probably say ...around 10 or so !?:confused: (this is a complete guess)

Originally posted by thomas.smith
That would be interesting to know because it would help to find out if a low price business model is more successful than a high price business model.

For example Host A sells 100 MB for $3 while host B sells 100 MB for $10. Now if Host A gets 3 times more customers than Host B would be more successful and the high price model would work better... Your assumption is flawed.

You must also consider the other factors..

ie:

Low-cost customers tend to require more support.
Low-cost customers expect more for less and are much more likely to leave for some stupid reason.

It also 100% depends on your target market and where you are advertising.

If you are advertising with "internet banners" and expect to get people signing up for you $20/month plan that they can find elsewhere for $1/month... then good luck.

But if you advertise in your local neighborhood and business community, then you will find lots of people willing to pay $20 or higher....

Personally, I would rather get 5 customers paying $20 each then 10 customers paying $10 each. You just have to know where to find them and how to attact them.

ok, I mean if you advertise on a site that is related to hosting or a search engine using the keywords that are used in the hosting business... Lets say if you make a $1000 advertising campaign on that site where you had your best experiences so far... then how many clients do you get from that ?

>Personally, I would rather get 5 customers paying $20 each
>then 10 customers paying $10 each. You just have to know
>where to find them and how to attact them.

Yes, me too !! But the question is it really like:
$1000 in high price business = 50 clients
$1000 in low price business = 100 clients...

Or is it like:
$1000 in high price business = 5 customers
$1000 in low price business = 100 clients...

Because in the first case you are right: The low price thing would be stupid and the high price thingy would be better...

But in the second case we would have to think about it...

And now that is what I am trying to find out here... If a low price host spends $1000 how many customers do they get and if a high price company spends $1000 how many do they get ?

Originally posted by thomas.smith

And now that is what I am trying to find out here... If a low price host spends $1000 how many customers do they get and if a high price company spends $1000 how many do they get ?
Thomas, ther eare so many, many, many variables that there's no possibility that any response could be remotely useful to you. It is highly probable that even if the two hosts were equally well known to start with, had the same reputation, offered the exact same plans, level of service, support, etc., that the numbers would be different. An ineffective ad guarantees mediocre results regardless of where it is placed.

Yes I know... All I want is an impression. If anybody doesn`t mind telling me their values that would definitely be interesting...

I'd recommend google if you want to spend around 1K. Fine tune and track your campaign. I'd say you could get 20 to 50 clients but that depends on tooo many factors.

Spending 1K in a CPM campaign is not worth it. You'd need a much bigger budget and would need to spend consistently. And results for a CPM campaign are not immediate. But if you do this, over time it can be much much more effective than a CPC campaign.

One could spend $1000 in advertising either CPM, CPC, or other mass advertising venues and 'hope' that they get customers. Or you could take your $1000, and build a list of all local businesses that can benefit from your services, and then put that $1000 towards social networking. For example, put out an invite to a meeting/dinner at a local restaraunt (on your dime?). And then meet with the customers one-on-one and do your best to close the sale with each one in person.

That $1000 will have bought you much more effective advertising, and much more loyal clients, than trying to get random people from an ad campaign.

Thomas, this may help give you an idea. Go to the end of this page and review the ad conversion figures that brav0 posted...

http://www.webhostingtalk.com/showthread.php?s=&threadid=317911&perpage=15&pagenumber=2

-A

Originally posted by thomas.smith
Yes, me too !! But the question is it really like:
$1000 in high price business = 50 clients
$1000 in low price business = 100 clients...

Or is it like:
$1000 in high price business = 5 customers
$1000 in low price business = 100 clients...

Don't forget that 100 customers need more resources and more support, so put that into your equation.

Originally posted by Walter
Don't forget that 100 customers need more resources and more support, so put that into your equation.

Yes, of course... I mentioned that in my first post already...

Join cj.com, go to the web hosting category, look at the 3 month EPCs of the web hosts. You'll now know how many clients they get from each 100 clicks sent to their site on average among the thousands of CJ.com publishers promoting those sites. Now factor in your costs at your favorite PPC search engine, figure out how many clicks you can get for $1000, and you'll have a rough figure of how many clients each of those hosts can get per $1000 spent.

Here's some quick data I can get. It's just a rough estimate since you don't actually know where the clicks publishers sending to these sites are coming from -- websites, PPC, banners. But it's some type of answer to your question:


Assuming $0.25 per click paid at a PPC search engine:

Lunarpages - 213 clicks per sale - 19 sales per $1000
Yahoo! SB Hosting - 205 clicks per sale - 20 sales per $1000
****** - 325 clicks per sale - 12 sales per $1000
midPhase - 342 clicks per sale - 12 sales per $1000
Interland - 483 clicks per sale - 8 sales per $1000


Some publishers obviously do better than others. The 7 day earnings per 100 clicks for some of those hosts is much better than the 3 month figure, meaning, for example, over the past 7 days people pushing midPhase could've made 35 sales per $1000 given the above model (for $2975 in commissions btw).

I should mention that midPhase recently redesigned their site and started offering "unmetered" bandwidth (with restrictions) -- this is probably another reason their 7 day sales figures on cj.com are more than twice as high as their 3 month average.

While we are on the topic, if you advirtise on WHT (Banner Ad's) can you please tell me your experience with it? Like how many customers you have received from it maybe....

Advertised on WHT, Hotscripts, Yaxay, DevPapers. Hosting site as well as my other sites. Poor results all around :)

Have you actually DONE it? If so, how long?

I am not a host, but the family business I am in (been going for over 30 years now) we advertise every couple of months. We really do not advertise on the web yet, but will be soon. Though when we advertise we advertise on the radio, tv, flyers, business cards, and white pages, and the black book. Which in all equals to about $1300.00 every two months.

When we advertise we get about 52 small jobs and 16 major jobs in one month. (major jobs as in big huge signs that cost around $1000.00 and up) the smaller jobs are about $400.00 and down (though some are more then $400.00). Anyways though we are not a hosting business maybe consider advertising locally. (though we have been in business for over 30 years almost 40 I think.. :eek: ) once you advertise get your name out... it will be easy to get more jobs and customers.

I was thinking of advirtising on a local radio station here, however they turned to a country radio station, and that's just not attractive to me :|

Originally posted by TheNetway
I was thinking of advirtising on a local radio station here, however they turned to a country radio station, and that's just not attractive to me :|

:confused: alot of people listen to country you would target a good amount of people.

Country music.... mmmm. I wish it was still a Jazz station. Everyone enjoys sitting down at there office, listening to jazz. Awww man!!

As the others have said before, there a lot of variables.  However, I can tell you that when we spend $1000 with google we dont sign up $1000 worth of business that day.  You will make your money back over time but if you are doing pay-per-click, count on spending more than you make initially.   You can spend $1000 in one day on pay-per-click advertising.