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  1. #1
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    Sep 2011
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    What's the best method to expand rapidly?

    I have been seeing different host for quite some time now.Still I am not sure how the big hosts did it,like many of them has 100 thousand,200 thousand or even more users.Is providing very low price the way to go or is it good service for high price?But again,I have seen people trying to move from big hosts to save money.What's the right path here?

    www.1dollar-webhosting.com. Many of you might have heard about this host.They provide lower price than their name.They claim to have over 90 thousand customers.If this is true their minimum revenue is $0.5X90000=$45000/month.
    Again,a company which charges $10 can make $45000/month from only 4500 users.

    So what's the right way here,less price and more customer(as you will attract users like everyone thinks) or less customer and higher price?

  2. #2
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    Jul 2005
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    I can assure you, 1dollar-webhosting.com doesn't have 90k customers.

    How to expand rapidly? Get investors or take out a loan for atleast $10 million, hire a few marketing people and market it everywhere you can think of.

  3. #3
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    Oct 2007
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    There really is no right way to get customers. Most hosting businesses target a niche in the market to get started and grow from there. There is nothing stopping you from trying the $1 hosting services to see how many you get. 90 thousand customers is alot. I doubt they are all paying/active customers since those types of customers tend to only stay for a bit and then they cancel, leave or stop paying.

    As we acquire smaller hosting companies I commonly see hosting advertising the total number of accounts in their billing system. Those don't always have active services though.

    I still believe if you offer a decently priced range of packages so you can make living and focus on customer service the customers will come. You will not get rich over night and it will take time to grow but there is still money to made in hosting.
    Adam Hobach - CyberLynk Network, Inc. ahobach @ cyberlynk.net
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  4. #4
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    Feb 2005
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    Give away free service!!

  5. #5
    Big companies use affiliates, they pay them per signup or some sort of revenue sharing...

  6. #6
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    Sep 2011
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    Quote Originally Posted by ahobach View Post
    There really is no right way to get customers. Most hosting businesses target a niche in the market to get started and grow from there. There is nothing stopping you from trying the $1 hosting services to see how many you get. 90 thousand customers is alot. I doubt they are all paying/active customers since those types of customers tend to only stay for a bit and then they cancel, leave or stop paying.

    As we acquire smaller hosting companies I commonly see hosting advertising the total number of accounts in their billing system. Those don't always have active services though.

    I still believe if you offer a decently priced range of packages so you can make living and focus on customer service the customers will come. You will not get rich over night and it will take time to grow but there is still money to made in hosting.
    Oh,didn't know that hosts advertise their total customers and not active ones only.

  7. #7
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    Sep 2011
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    Quote Originally Posted by NetDepot - Terrence View Post
    Give away free service!!
    Monetizing free host is much much big headache.

  8. #8
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    Quote Originally Posted by RonISQ View Post
    Big companies use affiliates, they pay them per signup or some sort of revenue sharing...
    Paying like Hostgator or Dreamhost won't be possible for start hosts.And the other way,giving a percentage of the price doesn't attract much affiliates as so I heard.

  9. #9
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    Quote Originally Posted by sameev29 View Post
    I have been seeing different host for quite some time now.Still I am not sure how the big hosts did it,like many of them has 100 thousand,200 thousand or even more users.Is providing very low price the way to go or is it good service for high price?But again,I have seen people trying to move from big hosts to save money.What's the right path here?

    www.1dollar-webhosting.com. Many of you might have heard about this host.They provide lower price than their name.They claim to have over 90 thousand customers.If this is true their minimum revenue is $0.5X90000=$45000/month.
    Again,a company which charges $10 can make $45000/month from only 4500 users.

    So what's the right way here,less price and more customer(as you will attract users like everyone thinks) or less customer and higher price?
    Expand in hosting with 50 cents / mo ? May be you are looking to expand your problems and abuse queue
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  10. #10
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    Quote Originally Posted by WebHostDog View Post
    Expand in hosting with 50 cents / mo ? May be you are looking to expand your problems and abuse queue
    How about I don't provide guaranteed support to them?

  11. #11
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    Sep 2008
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    Quote Originally Posted by sameev29 View Post
    How about I don't provide guaranteed support to them?
    That would only reduce potential good clients.
    Also note that if you do sell it to 90,000 customers, you would need a lot more servers as compared to if you were to sell it to 4500 customers.

    The key is to find the perfect balance in the price. Quality > Quantity.
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  12. #12
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    Sep 2011
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    Quote Originally Posted by Xerixe View Post
    That would only reduce potential good clients.
    Also note that if you do sell it to 90,000 customers, you would need a lot more servers as compared to if you were to sell it to 4500 customers.

    The key is to find the perfect balance in the price. Quality > Quantity.
    Your words are true,can't argue with that.But if I go towards quality I will need to hire people to do the support and server related works,another extra cost for a start up.

    How did nosupportlinuxhosting became so famous by not providing support and selling for $1?

  13. #13
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    Sep 2008
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    Quote Originally Posted by sameev29 View Post
    Your words are true,can't argue with that.But if I go towards quality I will need to hire people to do the support and server related works,another extra cost for a start up.

    How did nosupportlinuxhosting became so famous by not providing support and selling for $1?
    Either way, you definitely need staff / support. What if the site is down / there's a problem with billing / etc. You still NEED staff for at least a level of support.

    It actually also depends on whether you want it to be fast. You can have minimal staff and provide slow replies as opposed to having a lot of staff for fast replies. At the very least, you're considered as providing support.
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  14. #14
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    Quote Originally Posted by Xerixe View Post
    Either way, you definitely need staff / support. What if the site is down / there's a problem with billing / etc. You still NEED staff for at least a level of support.

    It actually also depends on whether you want it to be fast. You can have minimal staff and provide slow replies as opposed to having a lot of staff for fast replies. At the very least, you're considered as providing support.
    Have a question,do we need to support every issue of a clients website.Like if he is using a cms and got into trouble do we need to resolve those too or just give support cpanel and server related issues?

  15. #15
    Have a question,do we need to support every issue of a clients website.Like if he is using a cms and got into trouble do we need to resolve those too or just give support cpanel and server related issues?
    Well, it depends, on the type and scope of the support you wish to provide; however, in general, in cases like these, you would direct the client to the appropriate support site of the CMS/blogging platform. We think typical issues--i.e., cPanel questions, billing queries, slowness issues, etc.--are the most appropriate form of support necessary.

  16. #16
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    Sep 2011
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    Quote Originally Posted by babypurin View Post
    Well, it depends, on the type and scope of the support you wish to provide; however, in general, in cases like these, you would direct the client to the appropriate support site of the CMS/blogging platform. We think typical issues--i.e., cPanel questions, billing queries, slowness issues, etc.--are the most appropriate form of support necessary.
    Well this makes things easier.Not much can go wrong in cpanel and slowness of the server always has to be looked into by provider no other way for it.I think this level of support can be provided properly.

  17. #17
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    Apr 2009
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    There are maybe a couple ways to grow rapidly. You can always grow fast and big by doing local advertising. Build yourself a PowerPoint presentation explaining your services and how they can help other business owners. Be we'll organized and be sure to include how you use your services. There maybe a lot of business owners in your area that need your services. Go and set appointments with managers and owners of stores. Ask then what their site is missing if they have one. If you offer web design or development services then that is even better because you can offer business owners that don't have a site a package where they pay fir all services and they are good on hosting for a year. Then you lock them into a yearly hosting plan it all pays off.

  18. #18
    Well, it depends on you how you want to give support to your client basically some big companies only give support for cpanel and billing queries but some companies give support for cpanel billing or some website related issue to make good relationship with client so that they like support of company and purchase more servers.

  19. #19

    expanding hosting rapidly

    I don't know if there is actually a "best" method of expanding rapidly. If there was, or if it was simple enough to provide an answer here, everyone would be doing it.
    The idea that selling cheap hosting, eg, $1 hosting as a way to sign up thousands upon thousands of customers is not a sound business practice in my opinion. We've tried the cheap hosting route, the free hosting route, the $1 hosting route. Invariably, you will only get spammers and scammers for the most part. So there is a lot of churn too.
    Probably the most sound business model for expanding rapidly is to attack the big boys. Find their weaknesses then exploit them and invest a lot of money in national advertising. Offering free support for transfers for a limited time and limited monthly hosting price point as well to sweeten the deal and create a sense of urgency to make the switch.
    Personally, we gave up on the "expanding rapidly" model some time ago and simply concentrate on providing excellent service to our clients in such a way that it tends to separate us from our competitors and then charging more for monthly hosting in exchange. We make more money with less customers and it is much easier to maintain and manage. Plus we offer more value in other ways such as a first class content management system (even for an existing website we didn't build), quality marketing services, text message marketing, server management and more.

  20. #20
    Join Date
    Jun 2003
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    Fastest way to expand or grow is typically to buy an existing company.
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  21. #21
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    Oct 2012
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    The best method to expand rapidly is work hard and spend lots of money on advertising and google
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  22. #22
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    Jul 2012
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    I believe targeting niche is go to go overall it depend what are resources you have to deliver best in market. If 90k is true then it may require a lot of promotion and advertising to reach.. people may look for a cheaper but they may not get the quality . So end of story would be they will move to a better hosting company.

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