Web Hosting Talk







View Full Version : Advertising idea, bad or good?


GarrettReardon
08-02-2009, 12:57 AM
So, I know someone in my area that started a website geared towards High School Sports, mainly football. The website during a typical football season gets around 1-3,000 hits each Friday.

For example, from August 1st to September 30th it received 50,662 visits, 270,267 page views and has a new visit percent of 45.47%.

We kind of came to a deal where I provide him a dedicated server for his site, and he allows me to advertise the site as being "Powered by My Company Name".

In your professional opinion, does this trade of services sound like a good deal?

VIPoint
08-02-2009, 03:10 AM
He's basically selling advertising for $100/month (assuming that's the cost of your server) in exchange for 25,000 visitors/month. That's 250 visitors for $1. Is that worth it to you?

IGXHost
08-02-2009, 03:16 AM
Well, how much does the server cost/is worth that you're leasing him? Does he need a full dedicated server for this website?

GarrettReardon
08-02-2009, 03:18 AM
He's basically selling advertising for $100/month (assuming that's the cost of your server) in exchange for 25,000 visitors/month. That's 250 visitors for $1. Is that worth it to you?

Cost of the server is $154.99, but yea, that sounds worth it to me.

Plus I do most of my selling of services to local customers, so being a local site geared towards local users I think it's well worth it.

Well, how much does the server cost/is worth that you're leasing him? Does he need a full dedicated server for this website?

It's all PHP based with a pretty large phpBB forum. His forum has 4,661 with 16,318 posts in 1,233 topics. Plus he plans on doing some Video hosting soon and running FaceBook applications and a iPhone app. He also plans on launching a Fantasy Football game this season, which is more overhead.

IGXHost
08-02-2009, 03:39 AM
Well if you think it's worth it then it probably is. The deal sounds alright to me. I guess at this age, high school students are more prone to the web and would probably know more or have more interest in making a website as oppose to 10 ~ 20 years ago.

Mekhu
08-02-2009, 04:17 AM
I think it sounds wonderful. You make note that most of your business is local and you've found a way to connect with High School kids who will want hosting in College and I'm sure many of their parents will see your ad.

Good work!

bikster
08-02-2009, 04:20 AM
I have a mixed opinion on this. I think that is a somewhat good idea, but it has cons that might put you off too.

The advantage of this deal is that the website is a high-traffic website, so that means that you might get a lot of visitors. Note the might, nothing is guaranteed, and your advertising is local. However, the disadvantage is that your company's link does not really suit the site content well. Why? Well, soccer and hosting aren't related to each other, so most visitors would not be interested in ordering servers or web hosting from you. It just doesn't go together. People are more inclined to click on "powered by Rackspace" on WHT than "powered on rackspace" on a soccer fan site. The turnover rate is likely to be higher.

If the niche of the site were changed (like, for example, a web development blog), I would be more likely to go for the deal, as web developers generally need the hosting more than web developers do.

People might take a quick glance at your site, but I think that the customer turnover rate isn't going to be very high, but it wouldn't hurt to try.

GarrettReardon
08-02-2009, 06:13 AM
Well, it's not just High School Kids. Local advertisers, local business owners, parents and so forth visit and use the website as well.

I looked at hosting the site on one of our shared servers, but from what I have seen via Google Analyitics, this site needs its own box.

bikster
08-02-2009, 07:29 AM
Well, it's not just High School Kids. Local advertisers, local business owners, parents and so forth visit and use the website as well.

I looked at hosting the site on one of our shared servers, but from what I have seen via Google Analytics, this site needs its own box.

True, but you have to think about the general audience. In this case, it is likely to be soccer fans from high school, who probably doesn't need a website. If they do need a website, they'll most probably go for one of those free web hosting services. Its a fact.

But then again, if you can afford the dediserver, it wouldn't hurt to try, although the turnover rate is not likely to be high like if you advertise on a web hosting review site.

The-Pixel
08-02-2009, 08:29 AM
I worry about the target audience. I think most of the people that view the website will be younger / teen kids and would they really care who powered the website (no offense)?

I think I would have a contract with the client saying if you do not obtain so many hits or sales to no increase by so much the client will need to move site to another server. Really if your not obtaining the funds to pay for the server somewhere it wouldn't be in your best interest to pay for his dedicated server. You will be losing money and I'm sure you know as well as others thats no way to run a business. So, I think having some contract or something saying you need so much traffic or sales have to increase by so much would be a great method to start with.

In the end it will not hurt to try. Best of luck to you.

cycomholdings
08-02-2009, 11:42 AM
I would have offered to waive 50% of the cost of the dedicated server, not give it all for free.

xenex
08-02-2009, 02:12 PM
I wouldn't do this if I was you. Your audiance would be going on his site not to see hosting offers. Also not many teenagers like football and computers/web development.

If that makes sense.

PAH - Tim
08-02-2009, 08:25 PM
However, the disadvantage is that your company's link does not really suit the site content well. Why? Well, soccer and hosting aren't related to each other, so most visitors would not be interested in ordering servers or web hosting from you. It just doesn't go together. People are more inclined to click on "powered by Rackspace" on WHT than "powered on rackspace" on a soccer fan site. The turnover rate is likely to be higher.

I completely agree! Although this does not mean that people who are interested in web hosting won't find your company through this soccer website, but in my opinion you won't make a viable amount of money to cover all costs involved.

nerdie
08-02-2009, 08:39 PM
We've hosted various projects for free for people in return of 'Links', none of them have ever worked.

$alesMan
08-02-2009, 09:48 PM
I agree the audience is targeted and theres no guarantee that they even click yourl ink. If your doing it for a tax write of and your making enough money go for it but if you have $ more then charity at heart don't do it.

Mekhu
08-02-2009, 11:54 PM
I still think it's a good idea regardless...

- Decent traffic, LOCAL at that
- Hosting link on ALL pages
- Teenagers DO need hosting. Hell, how do you explain the 8,000,000 kiddie hosts? :D
- The key here for me is the PARENTS. I'm sure you could land some clients that way.

Anyways, only time will tell. You should report back down the road and let us know if you made any conversions.

GarrettReardon
08-03-2009, 04:33 AM
I still think it's a good idea regardless...

- Decent traffic, LOCAL at that
- Hosting link on ALL pages
- Teenagers DO need hosting. Hell, how do you explain the 8,000,000 kiddie hosts? :D
- The key here for me is the PARENTS. I'm sure you could land some clients that way.

Anyways, only time will tell. You should report back down the road and let us know if you made any conversions.

That I will, I placed the order for the server today. Towards the end of August (The 28th) is when football season kicks off. We will see how much traffic it brings and possibly if an sales.

To be honest, I am not only looking at it from a profit prospective. I am also looking at it as helping the community in a way, by keeping a site that thousands enjoy online, I really don't see a negative impact coming from this deal for my business' bottom line. Plus it's a non profit, which means tax write offs!

plumsauce
08-03-2009, 06:01 AM
That I will, I placed the order for the server today. Towards the end of August (The 28th) is when football season kicks off. We will see how much traffic it brings and possibly if an sales.

To be honest, I am not only looking at it from a profit prospective. I am also looking at it as helping the community in a way, by keeping a site that thousands enjoy online, I really don't see a negative impact coming from this deal for my business' bottom line. Plus it's a non profit, which means tax write offs!

You might find that banners that include the city name to be effective. Banners are usually uninteresting to visitors. But, if they are local, it might be quite effective.

Of course that "banner" might be a "powered by" image, but same idea.

JFSG
08-03-2009, 06:04 AM
There is an underlying problem here. If the teens finds or found "unlimited" providers like Bluehost, it will be very unlikely that they will sign up with your service.