Do any hosting companies here have a model in which they target a specific industry? For example real estate, insurance, etc. I see a lot of companies use this strategy and I'm curious to how it has worked vs. other forms of targeting.
Definitely it will be easier for you to focus on a specific market. E.g. real estate.
You will also be able to upgrade your system/programmes to suit their needs. As many of the clients do recommedation via WOM. This will allow you to have a stand above those who have diversified their business to all industries.
Besides going to different industries, you can also target a different group of individuals. E.g. sportsmen, pregnant women/family and etc.
It is done sometimes, as someone said there are hosting firms that focus on religious web sites or non-profits, etc. The marketing and bundling/customizing features is a plus with this model. I would say, however, that one of the benefits to diversifying is that when the economy takes a turn and negatively effects certain industries and company sizes, you still have other clients who are doing well (who were less effected by the economic change).
For "easier", I do not mean business will flow in by your words. I mean you have a better focus and thus you can present your case better than anyone else which provide service say to anyone who pays.
I would think that by being focused on a particular industry, it doesn't mean you don't accept deals from other customers. I would think that the MAJORITY is from what you focus on. Of course, you still can do part of the selection.
With 2 hosts side by side and one deals mostly with the industry I am in, I would definitely go with that host. Even if there is not a huge difference, I would feel like they have a better understanding of my needs/concerns. Just an assumption. Don't you think?