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  1. #1
    Join Date
    Jan 2003
    Location
    Mi
    Posts
    208

    Offering first month free with dedicated servers.

    Hi, I would like to know if anyone has tried offering first month free on dedicated servers.

    The reasoning behind this thought is it probably takes 50+ dollars to aquire a client in the first place with advertising and other cost. So wouldnt it make sense to just offer the client the server for free the first month?

    I do understand that the client could just use the server and leave after the free month. but i think that a customer getting good service and support would most likely stay on.

    I was thinking of taking 1200 and offering this to 20 people to test. I figure worse case cenerio i would just resell the servers if people left to regular customers signing up.

    What are your thoughts?
    www.saveserver.com<-- Ask me about low cost dedicated servers
    AIM=cooltjn1

  2. #2
    Join Date
    Mar 2004
    Location
    England
    Posts
    819
    You're still going to have to spend that money in advertising so that people know about you and come visit in the first place, but I think it's a good idea, once everything is up and running on a dedicated box it really is a pain in the arse to move again so it may well work, if your pockets are deep enough and you don't mind a few scammers signing up (they'll be drawn to this kind of offer)

    Andrew
    NetHosted - UK based hosting solutions.

  3. #3
    I think it is a good idea the clients that we have on our dedicated plans are some of our most loyal customers. If you can get a feww more of those type customers by giving one month free I say go for it.

  4. #4
    Join Date
    Mar 2001
    Location
    Houston, TX
    Posts
    972
    This *might* work if you don't get a slam of customers that request service and then cancel after the first month - in which you have a hefty bill and no customers. The chances of all of them cancelling is quite slim if you do a good job anyway. ;-)

    It might take advertising anyway to get the customer but I think with a lucrative offer like one month free for a dedicated server, it won't take as much.

    Good luck with this promotion!

    Roj
    Web Hosting? Been there. Done that.
    I am niyogi.

  5. #5
    Greetings:

    We just discussed this briefly in our office.

    This is an awesome idea.

    You probably will get zero spammers; and, it should work wonderfully <tongue in cheek>.

    Thank you.
    ---
    Peter M. Abraham
    LinkedIn Profile

  6. #6
    The way around this is to either a. bill a month ahead or b. spread the free month out as a discount.

    Either way, it's still a free month and people will still sign up.


    Sincerely,
    Brent Clements
    Im-Online.Net

  7. #7
    I would do a pay for a month get the second month free
    Linux/cPanel How-To's - cPanelPlanet.com

  8. #8
    Join Date
    Jan 2003
    Location
    Mi
    Posts
    208
    Originally posted by dynamicnet
    Greetings:

    We just discussed this briefly in our office.

    This is an awesome idea.

    You probably will get zero spammers; and, it should work wonderfully <tongue in cheek>.

    Thank you.
    LOL. While I am considering a test run, I would think that there would have to be some stipulations to the offer. (hence why I posted for views to get some ideas) while I think that buy one month get one free is a good idea and would prevent some of the "Fraudsters" I think it would still be a great way to invest in new clients. Maybe some type of verification other than the usual.

    About the advertising cost. with this offer it wouldn't take long for the word to get around about the first month free ad would be a good way to get some attention in this over saturated industry which in the end is what I am striving for.

    Anymore thoughts on a good plan of attack would be great!

    Thanks for your responses.
    www.saveserver.com<-- Ask me about low cost dedicated servers
    AIM=cooltjn1

  9. #9
    Join Date
    Feb 2003
    Location
    Connecticut
    Posts
    5,441
    I'd say in your TOS to add a clause saying that the free month is void if you cancel before your three-month term is over.

  10. #10
    Join Date
    Jun 2004
    Location
    Kansas City, Missouri
    Posts
    1
    You could also add a cancelling fee in your TOS that costs double the regular monthly amount.

  11. #11
    Join Date
    Jan 2003
    Location
    Mi
    Posts
    208
    Originally posted by DanX
    I'd say in your TOS to add a clause saying that the free month is void if you cancel before your three-month term is over.
    Yeah but that wouldnt work becuase they are getting thier free month before having to pay anything. The more i think about it i think it is a bad idea. Too risky and i think it would be too much work to do all the verifications just to have the customer cancel the server. not to mention the people that would take it and never use it, then i just lost money becuase i had to keep it up for them for 1 month just incase they decided to use it.

    Thanks all for your comments.

    on to the next idea.
    www.saveserver.com<-- Ask me about low cost dedicated servers
    AIM=cooltjn1

  12. #12
    A "free month" could mean a lot of things -

    Buy one month, get another free - This is good because it verifies that the customer is serious and has a credit card. Angel Networkz is doing this right now. However, it might not attract many people. The big question is why should I go with you instead of a well established provider with the same prices?

    Free month, no money down - Not sure if you were thinking this, but I would have to disagree with it. This would attract and hackers spammers. Plus the customers might see it as a temporary 1 month stepping stone and move once the period is up.

  13. #13
    Join Date
    Jan 2003
    Location
    Mi
    Posts
    208
    Originally posted by Intersabre
    A "free month" could mean a lot of things -

    Buy one month, get another free - This is good because it verifies that the customer is serious and has a credit card. Angel Networkz is doing this right now. However, it might not attract many people. The big question is why should I go with you instead of a well established provider with the same prices?

    Free month, no money down - Not sure if you were thinking this, but I would have to disagree with it. This would attract and hackers spammers. Plus the customers might see it as a temporary 1 month stepping stone and move once the period is up.
    Yes i agree that is why we will not be doing this.

    Also, AN is not offering buy one get one free at the moment. That ended on 06/01/2004 I have been with them for about 1 1/2 years and I actually have alot of clients with them at the moment.

    But i see your point.
    www.saveserver.com<-- Ask me about low cost dedicated servers
    AIM=cooltjn1

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