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07-31-2005, 01:39 PM #1WHT Addict
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Secrets to Running a Successful Hosting Company
The market is good for new Web hosting companies. According to Forrester Research, there is now “positive — if modest — growth for Web hosting and managed IT services, at both the enterprise and SMB levels.”
The hosting industry is one of the few profitable sectors of the Internet. As such, large corporations such Yahoo are offering Web hosting services. You, too, can join this highly profitable business and reap the financial awards -- but only if you do it right.
To build a successful Web hosting company, I offer the following two time-tested and proven rules: Focus on offering high-quality services in a tiered pricing schedule.
In addition, it is essential an automated infrastructure to create self-sufficient customers. For marketing, it is crucial to maximize intelligent marketing opportunities.
Automation will create a self-sufficient client-base and reduce your expenses down the road. In order to provide the best-possible service, you'll want a minimum of the following processes automated: order forms (for new customer account set up or existing customer updates), billing system, administration system, end-user control panel, and technical support interface.
Order Forms
The front end of your order form should serve an minimum of these four key functions: 1) verify domain information for registration purposes, 2) validate entered results, 3) process the customer's credit card or create an invoice, 4) enter the customer's information into billing database for future use.
The backend of the order form must process the domain registration (if customer needs to register one) and generate the Web hosting account.
Administration System
The administration system is necessary to manage ordered accounts. You may wish to manually add or remove new domains, change passwords, etc.
End-User Control Panel
The end-user control panel is necessary for allowing your customers to manage their accounts. At the very least, customers should be able to set up their own e-mail accounts, view Website statistics, and manage their files.
Billing System
An automated billing system is an absolute must! The billing system should e-mail invoices, charge credit cards, and suspend overdue accounts. The system should also allow the you to issue credit or discounts as needed.
Technical Support Interface
By technical support interface, I'm not referring to a system that merely generates trouble tickets. An effective tech-support interface automatically generates an FAQ-interface that customers can search before submitting trouble tickets. These interfaces can reduce technical support requests by a factor of 10!
In addition, be sure that the company you go with offers the option of taking care of technical support on your behalf but branded with your brand. You can then focus your energy on your core competencies and growing your business.
Maximize intelligent marketing opportunities
You know what platform you want to use, you've figured out what packages to offer, and set up a tiered pricing schedule and automated systems. So how do you get the word out about your new hosting service?
Pay per Click
Pay per Click can potentially allow you to reach large numbers of customers. Although you don't pay to list your site, you do pay when a user clicks on your listing and connects to your site. How, then, do you get your site high on the results lists? You must engage in a bidding war over how much you're willing to pay for each person who clicks through to your site. The stakes have recently grown pretty high, so be careful about bidding too high. Just because someone clicks through to your Web hosting site, doesn't mean they'll convert into a new account. Also be sure to select targeted keywords not competing with everyone else for the same keywords. That is a very difficult game to win. Find your niche.
Hosting Directory Sites
There are numerous Web sites known as hosting directories -- that attract Web hosting customers. These hosting directories are an excellent place to advertise, but be selective in your placement. Many offer banner placement, spotlights, search enhancements, and other forms of advertisement. As a general rule keep in mind that banner ads are better for creating brand recognition than generating new accounts, so advertise based on your budget, not on your expectation of new clientele.
Leverage Your Current Client Base
If you run an established Web design firm, information portal, or domain registration service, you can immediately begin marketing to your current clients. A simple e-mail to your customer base can instantly generate a large number of accounts.
Offer New Products and Services
Keep in mind, once you acquire a solid customer base, you can consider developing new products and services to keep your customers happy and to generate additional revenue. But always remember: Quality is key!Try the StreamSend Email Marketing Service. StreamSend is a permission-based email marketing service that offers both a private label reseller program and an affiliate program.
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08-02-2005, 01:37 AM #2Newbie
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- Orange County, CA
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good tutorial manatee.
i like the pay per click idea
what would you say is the "in" pay right now for clicks
and i know about fantastico. are there any other services that we can use?
thanks
Keep Up The Good work
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08-02-2005, 07:06 PM #3WHT Addict
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Thank you for the feedback!
Try the StreamSend Email Marketing Service. StreamSend is a permission-based email marketing service that offers both a private label reseller program and an affiliate program.
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08-14-2005, 01:21 AM #4Newbie
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This is just what I need to tackle the automation tasks. Clear and smart goals to achieve. And the marketing advice also helps put things in perspective.
Thanks!
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08-14-2005, 02:58 AM #5Junior Guru
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Great advice for the newbies of WHT. Though I think there is more to a success of a web hosting than this.
Revo.in :: MyRevo.com
Revolutionary Web Host, Programmer & Web Consultant
Our Priorities - Client Satisfaction :: Quality Service :: Creative Growth ::
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08-14-2005, 09:37 AM #6WHT Addict
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Yes, I agree, and I would be happy to write a follow-up article. What are some questions you would like to see addressed in a future article. Thank you.
Try the StreamSend Email Marketing Service. StreamSend is a permission-based email marketing service that offers both a private label reseller program and an affiliate program.
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08-14-2005, 04:04 PM #7Newbie
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Since you ask / offer, manatee123:
Do you have tips on designing the look and feel aspects of a hosting site that will turn into more sales? Do's and Don'ts and whatnot?
Thanks!
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08-16-2005, 11:03 AM #8WHT Addict
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You mean design issues or more the content itself or both?
Try the StreamSend Email Marketing Service. StreamSend is a permission-based email marketing service that offers both a private label reseller program and an affiliate program.
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08-16-2005, 12:22 PM #9Newbie
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Both, if you have some ideas.
If it's giving away TOO much, well, nevermind, then.
I really appreciate what you have done already!
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08-16-2005, 01:35 PM #10WHT Addict
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No, it is not giving away too much. I will think this through and try to come up with a follow-up article or at least a follow-up post right here.
Try the StreamSend Email Marketing Service. StreamSend is a permission-based email marketing service that offers both a private label reseller program and an affiliate program.
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08-17-2005, 06:01 PM #11Temporarily Suspended
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everyone wanna start hosting company
Thats quite good advise HINT!!
i aggree with that
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08-17-2005, 06:09 PM #12WHT Addict
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I doubt everyone will start a hosting company but web designers and IT consultants can earn more and provide more to their customers.
Try the StreamSend Email Marketing Service. StreamSend is a permission-based email marketing service that offers both a private label reseller program and an affiliate program.
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08-17-2005, 11:51 PM #13WHT Addict
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Upon request, I was going to write a followup article on effective e-commerce. A quick Google search showed that Paul Graham has already written very good essays on this topic: http://www.paulgraham.com/ecommerce.html
BTW, I recommend all his essays as he is quite insightful on a variety of topics...Try the StreamSend Email Marketing Service. StreamSend is a permission-based email marketing service that offers both a private label reseller program and an affiliate program.
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08-18-2005, 10:03 AM #14Newbie
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Thank you.
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08-18-2005, 10:09 AM #15WHT Addict
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Let me know what you think of his essays. I think they will answer most of your questions re e-commerce.
Try the StreamSend Email Marketing Service. StreamSend is a permission-based email marketing service that offers both a private label reseller program and an affiliate program.
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08-18-2005, 02:51 PM #16Web Hosting Guru
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manatee, those essays are wonderful! I have bookmarked them to refer to later on. Thank you so much for sharing and your article as well
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08-18-2005, 04:12 PM #17WHT Addict
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I agree.
BTW, I recommend his other essays at http://www.paulgraham.com/paulgraham/articles.html. While I definately don't agree with everything he says, he can be very insightful.Try the StreamSend Email Marketing Service. StreamSend is a permission-based email marketing service that offers both a private label reseller program and an affiliate program.
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12-10-2005, 01:10 AM #18Junior Guru Wannabe
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Thanks manatee for sharing the site, and well you did a great job.
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12-13-2005, 05:55 PM #19Newbie
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thanks for much for this tutorial, im gonna pass this onto my friend!
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12-17-2005, 09:58 AM #20Junior Guru Wannabe
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Originally Posted by manatee123
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12-24-2005, 11:30 AM #21Newbie
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anyone found clickbank.com useful for promoting hosting business??
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01-03-2006, 11:19 AM #22Newbie
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- Nov 2005
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Is there any other good advertisement programm other than google adsense that also offer Sales commission(commision after the sale).
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01-26-2006, 04:50 AM #23New Member
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great essay there!! thanks for sharing
..:: Peace ::..
Jeba
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02-13-2006, 02:29 PM #24Web Hosting Master
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great essay, a superb job, thank you!
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02-23-2006, 11:33 PM #25Newbie
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I visited the StreamSend and was very interested in a partnership, the service is very interesting and I am certain of existing market here in Brazil for him, perhaps the biggest difficulty is the language, there is possibility of translation of language for the brazilian portuguese? you have interest in a partnership for translation and distribution here in Brazil?