Some companies charge higher prices and offer a completely different level of quality and service. What I'm wondering is how a startup web hosting company offers this with high prices and gets people to sign up.

How do companies like this get started in terms of getting customers? It seems like it would cost them more to get started than cheaper hosts because there are more people looking for cheaper hosts.

I guess this is a vague question but what I'm trying to get is how more expensive hosts advertise in comparison to cheaper hosts

1 customer provides more revenue. 1 customer will = 5 of the cheaper hosts. Simple they do not need as many customers.

Derrick

I think what he's asking is how the more expensive hosts set themselves apart from the cheapies. How do they market themselves so ppl will perceive them as "better" from the get-go.

With a solid business plan and large amounts of investments - you can start up a company with high quality of service and the money will provide the company with a lot more options for advertising.

Of course, this is how you can get started... but it's a totally different story to keep the company growing and profitable.

I think there's no shame in starting a hosting company on your own, with your own small investments... just as long as you make a business plan and stick to it. These kinds of start ups will be tough at first but with dedication, you will get customers that love you because a lot of people like the personal touch a small hosting company can provide. It's just the matter of how you're going to handle issues when things get out of hand. A lot of people don't know how tough running a web hosting business is... so they just give up and sell out.

Us "higher priced hosts" do not advertise in hosting dirs, banner ads on techie sites, etc... as the low priced companies steal the show in this arena. We work to find niche places where our expertise and efforts are well spent. Find a piece of software that caters to professionals, learn it inside and out, join the support group, be helpful, advertise there, offer the software for a deal, offer a one click install of complex software, etc... are all ways to do this.

Use Google and Overture to your advantage. Again find a niche where service counts, and advertise those keywords heavily. Do not choose "web hosting" or "dedicated servers" as keywords.

On your site, de-emphasize the price and focus on service, quality, etc... Don't be a groupie with a techie site from pixelbrick or a nice templatemonster template site. Give a more professional, steady feel to your site, and your higher priced customers will want to explore your site.

When you get those first few clients, wow them with your service and professionalism, offer them a referral bonus / plan, and network, network, network.

Just a few tips to help you establish yourself as one of us "high priced" hosts. ;)

- John C.

Originally posted by AgaBoogaBoo
Some companies charge higher prices and offer a completely different level of quality and service. What I'm wondering is how a startup web hosting company offers this with high prices and gets people to sign up.


I think you answer your own question "a completely different level of quality and service" they offer a higher level of service and support and as such attract people who are clueful and need a better level of uptime and support that cheaper hosts can provide.

One thing to add, u have to start with higher prices and the necessary support. U cant start with low prices and increase as u get better. Clients wouldnt like it.

The question is what services do you offer that are better or more stable than the cheap guys.

In order to charge more, you need to do something more. Sure you can get a few folks, but its hard to keep them.

People who want quality will pay for it. But just saying you have quality does not make it so.

honestly most of the cheapie hosts look cheap and have poor customer service which is very obvious from the start.

we used to try to compete on the cheaper level but not only was the money not there, but the clientelle was a PITA!

we raised our prices dramatically, sold off the cheaper clients and now charge a lot more. my partner who has a separate site starts out at 50.00 per month USD and as a matter of fact i just renewed one of his clients who paid us 800.00 for an annual account. the funny thing is, he didnt bat an eye. the site isnt that big and he doesnt have anything special on his site.

you are worth what you think you are worth. i learned that in design as well. i used to offer web design cheap and i couldnt give it away, now i charge a minimum 1,000.00 and turn down more business than i can take.

sure, we offer special occassionally, but thats usually to fill up our server allotment, which maxes out at 185 clients per server.

One sentence from LaurenStephens hits the nail, u are worth what u think u are worth. Going lower and lower in prices attract those who are price sensitive and these ppl wants more of everything and wants to pay less for everything. In fact , we find out that it is easier to service a high paying client than a low paying client. And the differences in fees helps you get much better systems and bandwidth to keep them satisfied.

Originally posted by boonchuan
One sentence from LaurenStephens hits the nail, u are worth what u think u are worth. Going lower and lower in prices attract those who are price sensitive and these ppl wants more of everything and wants to pay less for everything. In fact , we find out that it is easier to service a high paying client than a low paying client. And the differences in fees helps you get much better systems and bandwidth to keep them satisfied.

True words. Very true words.

I have customers paying $23.00 for 500 megs disk space and 5GB bandwidth allowance. They stay because they get very personalized service and a phone number to call when there is a problem. They also stay because problems get resolved properly and the issue gets communicated well. They stay because they like 'outsourcing' the knowledge for web hosting and knowing that they have a strong partner on their side who takes care of the Internet 'stuff'.