Hey everyone,
I am starting my new host, and I was wondering some thinks about getting new customers. About how much money does it cost for each new customer you get? (Cost per customer/$$ spent advertising) Also, how many new customers do you get a day? What should I do if I have a small advertising budget and am still starting out?

Thanks!

Just a tip for you - reduce the number of categories and places to post you have in your forum. 50 posts spread out over 10 forums might not look like much at all, however if you spread those 50 out across maybe 4-5 forums it looks twice as active in a sense.

Sorry for going off topic, good luck to your venture! :)

I would stop what you are doing.

Dont use a forum as your site.

Design a site.

I would stop what you are doing.

Dont use a forum as your site.

Design a site.

Why not?

There is a bunch of companies now using forums as the main website for there company and they are doing quite well..I think if it is done right then I see no problem with it.

I don't think too many hosts are going to answer the question you're asking. In a sense, you're asking your competition to help make you a better competitor.

I would agree with the others, get a actual website.

Thanks for your suggestions, but I think I am going to stick with the forum. Does anyone have any information about the questions I posted?

Thanks

Getting customers when starting out is hard, period. Depending on what your strategies are, I'm pretty sure you can work out how to handel your money.

Because you have a small budget, you should put yourself in all hosting directorys possible and advertise locally. Most people don't like to advertise locally because your face-to-face with customers. This is when it gets harder for yourself. Without a budget you need to stand out from the other web hosting businesses that post their advertisements too.

I would stop what you are doing.

Dont use a forum as your site.

Design a site.


Tell that to http://www.httpme.com

Ok, here is the problem as I see it, your site. Sure, It can be a forum, but that will only work if its a good forum. For example, a forum like this one would be perfect. However, the post count you have is very low which makes you look like a novice, especially when the Customer Testimonials has absolutely 0 activity. To a prosect, that is not a good thing.
Also, the layout of the site is wrong. Sites (that provide a service like yours) arent just thrown together to look super cool. They have to serve a purpose. They have to be simple and easy, and must bring the attention of the customers eyes, to where its most important. SO:
1) When you go the site, your eyes just go all over becuase there isnt one point to focus on becuase nothing stands out.
2) You have to search around to see all your options. The customers eyes should go right to either the plans, or the Why Us? Sites We Host should be more important than the programming forum with 3 topics.
3) Speed, Support, Value and Ease is just about what everyone says. That doesnt answer the question of why you. Be more original and do it right there in that little box. I guarantee that very few people will actually click the read more button unless they are already planning to buy and doing the final research. People need it laid out fast and right in front of them.

All the advertising in the world will be pointless if when the customers go to your site, they click the back button.

Hey everyone,
I am starting my new host, and I was wondering some thinks about getting new customers. About how much money does it cost for each new customer you get? (Cost per customer/$$ spent advertising) Also, how many new customers do you get a day? What should I do if I have a small advertising budget and am still starting out?

Thanks!

Are we talking about something like Google adwords (advertising)? All I can say is I spent about $75 with very little response and no customers. Most of those that have hosted with me are by word of mouth. Part of the problem is that I really haven't done much more than what my reseller account provides. If your site is not that unique, it's just not going to stand out in people's minds. So maybe this forum idea of yours will work out.

For now I've halted my adwords sales until I get around to designing a site for myself. I'm really too busy designing sites for others to really get too serious about the hosting side.

-Bryan

First, let me ditto the above about not using a forum format for advertising your hosting business unless you really have a super busy forum.

I respectfully disagree with the poster that says you won't get any help here due to competition. WHT is a wonderful source for assistance if you ask the right questions and there are many wonderful vets in the business that don't mind sharing. Our company, 1PlanHost.com will be celebrating 10 years in the Windows hosting industry in February and I can attest that I have learned much from others over the years that led to our success.

To answer your question, it depends on how aggressive and ambitious you are to gain new customers. If you have deep pockets (lots of initial capital) then you could afford an expensive affiliate program that pays for referrals $50 - $100 on each account. But not many young start up hosts have such luxury and must earn their customers the old fashioned way - WORK, WORK, WORK.

Many host figure on spending 25 - 35% of monthly revenue for advertising. If your overhead is not high (office, employees, server lease, bandwidth cost, etc) then perhaps you can afford even more in order to get started. Many start off being resellers of larger host and have done very well with not having the overhead and commitment of running their own servers. We have one reseller who consistantly spends 55 - 65% of his profits on gaining new customers and is racking up new accounts at an unbelievable rate because he focuses on a specific niche market.

Once you reach 500 customers, the advertising machine starts rolling along seemingly by itself with customers referring their friends as long as you provide excellent service and reliability. You still have to advertise in hosting forums, online directories, etc but if you take great care of your customers and exceed their expectations, they will in turn create a buzz online with their associates and friends and point others to you. Of course it is best to show your appreciation to those that are referring others with free services or upgrades.

If you really want to succeed in the hosting industry, forget trying to stand out and compete against the 50,000+ other hosts out there with regular hosting plans and sites. Go for the niche market! Do some research and find out who is specifically targeting farmers, dentists, craft makers, nascar sites, cooking sites, etc. Start off with something you are interested in and then narrow it down even more. For example, we have a wonderful long term reseller who specifically host ONLY pediatric dentistry sites. How many children's dentist are there in the world? I would venture to say there are more than the size of most hosting companies on this forum! You get the idea, find your niche focus your work there and you will prosper. I could go on and on about that but will save that for the book I am writing on this very subject.

Then there is local advertising;

Billboards in my experience provide an excellent return on investment and no doubt the greatest amount of exposure. You may be surprised at how inexpensive they are when you consider the amount of real eyeballs that view your billboards. You can usually get better rates if you run 3 - 10 boards at a time and cover your area well. We spend about $300 per board plus paper cost and run them 2 months at a time before changing the ad. Of course big city boards and interstate boards are expensive.

Newspaper advertising in my opinion is dead and research has shown over and over again that readership continues to fall at alarming rates. Don't bother with regular ads in neswpapers unless you have plenty of money to burn. It would be wiser to spend your ad dollars in the classified section with a consistant running ad (like 6 months).

Local trade shows, chamber of commerce meetings and events and community wide events will bring you a lot of exposure for little expense. Beware however of huge events that require a large cost for sponsorship as your message is usually lost in the mix of the event itself and also in competition with the other sponsors. (I learned that the hard way)

Best Wishes for a .Net Success!

First, let me ditto the above about not using a forum format for advertising your hosting business unless you really have a super busy forum.

I respectfully disagree with the poster that says you won't get any help here due to competition. WHT is a wonderful source for assistance if you ask the right questions and there are many wonderful vets in the business that don't mind sharing. Our company, 1PlanHost.com will be celebrating 10 years in the Windows hosting industry in February and I can attest that I have learned much from others over the years that led to our success.

To answer your question, it depends on how aggressive and ambitious you are to gain new customers. If you have deep pockets (lots of initial capital) then you could afford an expensive affiliate program that pays for referrals $50 - $100 on each account. But not many young start up hosts have such luxury and must earn their customers the old fashioned way - WORK, WORK, WORK.

Many host figure on spending 25 - 35% of monthly revenue for advertising. If your overhead is not high (office, employees, server lease, bandwidth cost, etc) then perhaps you can afford even more in order to get started. Many start off being resellers of larger host and have done very well with not having the overhead and commitment of running their own servers. We have one reseller who consistantly spends 55 - 65% of his profits on gaining new customers and is racking up new accounts at an unbelievable rate because he focuses on a specific niche market.

Once you reach 500 customers, the advertising machine starts rolling along seemingly by itself with customers referring their friends as long as you provide excellent service and reliability. You still have to advertise in hosting forums, online directories, etc but if you take great care of your customers and exceed their expectations, they will in turn create a buzz online with their associates and friends and point others to you. Of course it is best to show your appreciation to those that are referring others with free services or upgrades.

If you really want to succeed in the hosting industry, forget trying to stand out and compete against the 50,000+ other hosts out there with regular hosting plans and sites. Go for the niche market! Do some research and find out who is specifically targeting farmers, dentists, craft makers, nascar sites, cooking sites, etc. Start off with something you are interested in and then narrow it down even more. For example, we have a wonderful long term reseller who specifically host ONLY pediatric dentistry sites. How many children's dentist are there in the world? I would venture to say there are more than the size of most hosting companies on this forum! You get the idea, find your niche focus your work there and you will prosper. I could go on and on about that but will save that for the book I am writing on this very subject.

Then there is local advertising;

Billboards in my experience provide an excellent return on investment and no doubt the greatest amount of exposure. You may be surprised at how inexpensive they are when you consider the amount of real eyeballs that view your billboards. You can usually get better rates if you run 3 - 10 boards at a time and cover your area well. We spend about $300 per board plus paper cost and run them 2 months at a time before changing the ad. Of course big city boards and interstate boards are expensive.

Newspaper advertising in my opinion is dead and research has shown over and over again that readership continues to fall at alarming rates. Don't bother with regular ads in neswpapers unless you have plenty of money to burn. It would be wiser to spend your ad dollars in the classified section with a consistant running ad (like 6 months).

Local trade shows, chamber of commerce meetings and events and community wide events will bring you a lot of exposure for little expense. Beware however of huge events that require a large cost for sponsorship as your message is usually lost in the mix of the event itself and also in competition with the other sponsors. (I learned that the hard way)

Best Wishes for a .Net Success!


WOW! Thanks everyone with the suggestions. I have debated myself many times over whether or not to keep the forum, but I think I am going to. As far as advertising, I have spend about $50 for online link building and advertising. I have already recieved 2 clients, both of which I got from chatting on web development forums. Like you suggested, I am going to put almost all of my revenue from my hosting site back into advertising it and to grow my customer base. Once I get enough customers, I am going to upgrade to a dedicated server.

Thanks again!

I have debated myself many times over whether or not to keep the forum, but I think I am going to.
I was the pioneer and first webhost to use a forum as the actual main site (HTTPme). Most said the concept wouldn't work, but it worked, and worked very well. :)

However, looking at your site, I don't think that platform is going to work for you. HTTPme's site is neat looking, and it invites you in. Yours is a bit dreary and uninviting. It also has the login box to the left, and that's an eyesore imo.

Also a word of warning with using that model, it's a nowhere_to_hide model. I think that's the main appeal from a client's perspective. They feel they have a better connection to their host, and to other clients. That can be a dangerous combination, if you're not truly on the ball. :eek3:

Good luck with your business! :)

Aussie Bob - Thanks for the great suggestions about my site. I am definetly going to work on a new design, more like the httpme.com design. Does anyone have any information about how much I should spend for each customer?

Thanks,
Chris

Aussie Bob - Thanks for the great suggestions about my site. I am definetly going to work on a new design, more like the httpme.com design.
I'm not suggesting you copy HTTPme's site. Just make your site more friendly. HTTPme's site is a good guide though, imo.
Does anyone have any information about how much I should spend for each customer?
Industry average (if such a beast exists) I think is around the $60 to $100 mark.

Sometimes I will just lay in bed thinking REALLY HARD until *SMACK* an innovative idea comes to me and keeps me up all night... that's when you know it is a good one.

Less is more :)

I think the biggest thing that strikes me about the HTTPme site vs your site is that it's obviously geared towards an actually COMMUNITY--that is why the site-as-a-forum concept works for them.

That, and it's not so busy.

I think the biggest thing that strikes me about the HTTPme site vs your site is that it's obviously geared towards an actually COMMUNITY--that is why the site-as-a-forum concept works for them.
Also because the hosting service is aimed at the web developers/designers and resellers. Those folks are online a LOT, and they do like to chat. :D

<.Delete.>

1) When you change around you site, try to think like your prospect, open and close your eyes and see where they look first, is that where you want them to look first? Httpme is very simple yet effective, white backround with red text, eyes go right up top to the name, then slide down to the packages, and then to forums. Common thought is you need a super high tech site with flash and images and etc., No. Looks is not as important as functionality. Too much going on your site I would say.

2) The idea of having forums on your site is a great idea and very similar on the concept on which Starbucks was founded. They offered a sense of community, ability to sit outside like the old days and relax, and chat with your friends, and have some nice drinks. Provided the feeling of community in todays fast-pace world.

I think if your going to sell yourself on a forum, you need to learn to convey your message in a clearer and more understandable way.

From your forum:

Also, we do not oversell. Larger hosts oversell, saying you can get a lot of space and bandwidth, even though they do not have the resources. They offer this because they know everyone is not going to use their features. However, this makes your sites load slower and less stable.

That just doesnt sound right.

Trying to place negative thoughts about the competition into a potential customer comes across as negative for your service. You need to highlight why YOUR service is the right one for the customer, and not just why someone elses is NOT.

... Exactly what are you offering that should make me choose you insteaf of someone else?

Agreed with the above post, don't try and call out other companies but rather focus on why your's is a good one. Anyone and everyone can criticize what others do, but only a small portion can confidently stand behind their service and not have any doubts as to why it is superior or should be chosen.

cmpolis, I also agree with the above -- your main goal is to turn prospects into customers, so don't worry about discrediting the competition, just focus on what you do best.

I apologize if I missed it in all the previous posts, but what niche (if any) are you going after? What type of customer are you trying to attract? That may determine whether a forum site is the best fit for your potential customers.

Hosting is a tough company now, and with google around not many people collect hosting from other sites adverts, they just google it and then pick the cheapest, and there away,
Google adsense is your best bwet, but id manage you campaigns activly, PM me, i can help you out,