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  1. #1

    beginning hosting business/ need your input

    Being that I am just starting out with being a hosting company I am not sure if I am doing the right thing or not and I need some input before I go live.

    I have seen different hosting packages and wanted to do something different so instead of offering different priced packages with different services I am offering 50 MB space, 2 GIG monthly transfer, 10 POP3 email with all of the these features Ad Manager (for Banners) Announcer (for distribution lists) ASP/CFM Enabler, Business card website builder (builds a one page site), Change your password (Websiteos and FTP) Database Administrator (MySQL) Disk Usage, Easy Mail Administrator (unlimited autoresponders, etc) e-commerce (ecBuilder) Front Page Extensions, log Manager, pug-in-scripts, Promote site, Site Checker, Web Stats, Web Security, Website Wizard.

    The price I am asking is $29.00 a month or $359.88 yearly.

    I have also begun a customer appreciation program where with every payment they will receive financial benefits through a special program.

    My questions are these:
    Is the price I'm asking to much for what I am offering.
    What are the pitfalls that I have to look out for.
    I really need some input as to what can I expect both good and bad.

    I am not giving out my URL as I need the help right now not visitors, anyway there is nothing to see but a blank screen.

    Thank you for you help

  2. #2
    Join Date
    Jun 2000
    Southern California

    Re: beginning hosting business/ need your input

    Originally posted by tellyb
    Is the price I'm asking to much for what I am offering?
    If you can't sell it to your target market then you have to do one of two things:

    1. Change pricing to appeal to market.
    2. Change target market. - Where professionals discuss web hosting.


  3. #3

    Who knows?

    I like the concept of going after higher paying customers by offering value-added services.

    However, .....................

    I don't think you are quite there. The problem I see is that this is in some ways an entry level plan and in other ways full featured. For instance, you offer ecbuilder as standard in the same plan you offer Business card website builder. Yet, the majority of your potential customers will not use ecbuilder and, therefore, are being charged for something they don't need.

    At the very least I would have a starter plan versus an ecommerce plan.

    While I don't encourage $2.00 per month plans, I also feel that $29.00 is reasonable for your low or only plan with only 50MB/2GB.

    I think it's great to offer so many extras, but they are just that extras which many don't need and are not willing to pay for. Also, you make no mention of control panel, etc. And, frankly, the equivalent of your extras comes in any basic CPanel plan.

    So, yes...your prices are too high for what you are offering...much too high. I suggest lowering them...making ecbuilder an option (certain plans only), and reevaluating your approach by talking with your provider and be visiting hundreds of sites to evaluate the market. For any of my companies, excluding ecbuilder from the plan, you have no more than a $9.95 plan.

  4. #4

    I'll lower the price but .....

    Thank you that is just the type of feedback that I need.

    I'm going to do a complete redo of the hosting features, in fact I was thinking about adding some ebooks with resell rights & sales pages to the package, but not the ones that are flooding the net.

    This would be in addition to the customer appreciation program.

    One question If I raise the amount of space to 100 or even to 150 MB would that be enough to raise the price to $19.99 or should I keep it down to $9.99

    BTW - It does come with its own CPanel in fact they would end up having access to everything that I have access to.

    Take care

  5. #5
    My only advice is provide GREAT SUPPORT!
    and do not offer

    But yes.. I would think with Higher paying customers = you do not have so many customer to deal with to make money!
    high pricing and 100 to make money or low pricing and 1000 to make money?

    Note: I have no clue what I am talking about.. just random babbling
    Nothing Special: True Archive , just my lil archive for fun... maybe turn into something more?

  6. #6
    Join Date
    Jun 2002

    * Just a thought

    What you have to bare in mind, whether you are a reseller or whatever, is that even if you only get 1 signup you are dedicated to providing them for the year even if you do lose. You can offer a refund of course, or stick at it.

    Its best to begin small and expand, and if you end up with the signups you want then expand!

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