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  1. #1
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    Ideas on advertising

    OK. So our new site is now done and launched....

    No increase in sign ups!!!! WHY?!?!? But of course.. No advertising.

    Since thats not what we are good at, we really need some direction on some good places to advertise (free and paid)

    Any suggestions are certainly welcome. =)

  2. #2
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    WHT are best place to ads your services.

  3. #3
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    Do you really think so?

    Is this from past experience? So far I notice that most of our WHT sign ups have been fraud sign ups, then again we haven't done any paid advertising with WHT as of yet.

  4. #4
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    Don't advertise on WHT. The majority of visitors here are hosting companies and a few clients doing reviews. Unless you're offering dedicated servers or trying to influence your brand your dollars spent here will be wasted IMO.
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  5. #5
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  6. #6
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    What about Google AdWords?
    You will only find out how good a provider is when the going gets tough

  7. #7
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    We advertise here, and we get clients from it too (actually, most of our clients atm).

    Try some SEO on your site too, backlinks etc
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  8. #8
    Local Newspapers, word of mouth, adwords as mentioned above, specials contests and so on.

    Just my 2 cents.

  9. #9
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    Has adwords worked for you guys? I have the account setup.

    Just waiting to setup billing, and Nick, with WHT are you using Paid or non-paid advertising?

  10. #10
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    unless you have a lot of fund to spend on adwords and overseller, won't recommend..

    We have tried it and conversion rate is low.
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  11. #11
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    I think a good question is how much to spend acquiring a new customer. It is not exactly a question of how much you want to pay but how much costs each new customer in the industry. You may then plan your ad campaign with this average cost and the number of new customers you want as input and adjust your budget and expectations accordingly. I'm not into Web hosting but it is well known the cost to acquire a new customer in this industry is high.
    Last edited by dotHostel; 01-16-2008 at 06:32 AM.
    You will only find out how good a provider is when the going gets tough

  12. #12
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    Quote Originally Posted by jhost View Post
    Has adwords worked for you guys? I have the account setup.
    Be prepared to spend about $40-$50 per conversion if you use AdWords.
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  13. #13
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    Quote Originally Posted by Ramprage View Post
    Don't advertise on WHT. The majority of visitors here are hosting companies and a few clients doing reviews. Unless you're offering dedicated servers or trying to influence your brand your dollars spent here will be wasted IMO.
    A majority of our traffic is actually from Google search (organic) and the membership only accounts for roughly 40% of our page views (maybe even less now, I haven't ran the numbers lately). We have two different sets of audiences that we have to serve with ads, and in my opinion we do a good job at serving both! You will see ads here for web hosts or people providing services for web hosts and many other companies in between.
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  14. #14
    Adwords does not really work for me.

  15. #15
    This seems like a very good question.

    I too am interesting in starting my own web hosting business and really dont want to spend so much as $40 per customer gained (average) by using adwords. I am wondering what other tried and true options there are other than SEO for gaining customers.

  16. #16
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  17. #17
    that was based on a previous post to this thread of someone just using adwords alone if i were not mistaken completely. i would be very interested to know the actual average of costs to spend per customer would be for various successful hosts.

  18. #18
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    Yeah me too. Because one of our customers does image design and he reports that for every $100ish he spends he gets $230 in sales.

    So I would think, depending on our offerings we should be able to make a good profit, and then keep reinvesting it back into advertising.

    It will be very hard to get to the heights of HostGator in terms of advertising, considering I think they do $16,000 a day in advertising.

    But if you do not try, you will never get there.

  19. #19
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    I know an English course (language school) that is just now burning $300,000 in advertising (conventional printed media) to get 2,800 new students. I have said to the school owners they are doing bad but they reply saying they are doing well because the net profit is huge. Then the nominal cost per customer - to be judged high, normal, or low - really depends on the industry you are.
    Last edited by dotHostel; 01-16-2008 at 05:46 PM.
    You will only find out how good a provider is when the going gets tough

  20. #20
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  21. #21
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    Advertise

    I started doing some advertising on webhostingstuff but so far no results. ;(

    Anyone know what the best CPC rate is? We just want to expand the site, get more sign ups so we can reinvest it into getting more clients and providing excellent Customer Service.

  22. #22
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    Quote Originally Posted by dateofexpiration View Post
    I too am interesting in starting my own web hosting business and really dont want to spend so much as $40 per customer gained
    $40 each as a client acquisition cost is considered cheap, with many hosts its closer to $120 - If you're not prepared to invest that in advertising, discounts, adwords, affiliates, whatever to gain a client then dont bother even starting
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  23. #23
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    Quote Originally Posted by othellotech View Post
    $40 each as a client acquisition cost is considered cheap, with many hosts its closer to $120 - If you're not prepared to invest that in advertising, discounts, adwords, affiliates, whatever to gain a client then dont bother even starting
    Yes, you've said it best. Earlier in this thread I mentioned a cost of $40 to acquire a client using AdWords--and that is just "a client" of any sort. Higher cost services can translate to higher client acquisition costs, so "$40 to $120 or more per client acquisition" would be a good way to look at it.
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  24. #24
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    Quote Originally Posted by othellotech View Post
    $40 each as a client acquisition cost is considered cheap, with many hosts its closer to $120 - If you're not prepared to invest that in advertising, discounts, adwords, affiliates, whatever to gain a client then dont bother even starting

    I think it is a tough time to start a shared hosting business. There are no more barriers to entry. Everyone can buy a $10/month reseller unlimited everything account and sell plans yet he/she doesn't know jack about networks, operating systems, hardware, security, customer service. Then there are these kiddies host and their $0.99 scam plans offering 2TB Web space, 15TB bandwidth, 5,000 email accounts, 24x7 live support, Cpanel, all for under $5 -- affecting the credibility of the serious hosting companies and destroying the shared hosting market. And as if that is not bad enough, if you are offering your services to the US market, you are expending $120 to gain not that good customer. As it is a mature market probably a high percentage of your customers will be of problematic customers, or worse, wannabe spammers and scammers. Problematic customers are booted out frequently and they are prime candidates to sign your plan. Anyway, client churn is a serious problem: not only is the cost of securing clients in this market very high, clients can also easily defect to competitors with minimal cost to themselves. Fortunately good customers usually stay a long time with their providers. Concluding, burning $120 to gain a client is not enough alone. You must expend the advertising budget targeting the "good" customers.
    Last edited by dotHostel; 01-19-2008 at 12:24 PM.
    You will only find out how good a provider is when the going gets tough

  25. #25
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    If you're really overselling I would hardly recommend Google AdWords, Otherwise try promoting your business on forums for the reputable web hosting directories, they've got alot of potential customers hanging around.
    Also if you've a good budget try Pingzine magazine. http://[URL="http://www.pingzine.com"]www.pingzine.com[/URL]

  26. #26
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    Hi if you are just starting your business i don't recommend adwords ispent more than 1000$ in and just get 4 or 5 custommer, i recommend visit your local businesses and ask them if they need to build a web site a suggest to help them do it for free or for a small fee. i wish you all the best

  27. #27
    "Everyone can buy a $10/month reseller unlimited everything account and sell plans yet he/she doesn't know jack about networks, operating systems, hardware, security, customer service. Then there are these kiddies host and their $0.99 scam plans offering 2TB Web space, 15TB bandwidth, 5,000 email accounts, 24x7 live support, Cpanel, all for under $5"

    This is an interesting comment. Since there are so many discount web hosting companies, is it worth competing on price? If you advertised your plans for $5/month what sort of customers would you get?

    On the flip side, if your plans started from $20/month. What would customers expect from you that the $5/month companies do not provide?

    Has anyone had success in doing local advertising, such as letterbox drops, targetting local businesses with flyers?

  28. #28
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    These are really great suggestions. Those conversions rates are pretty expensive. But I can see how it would pay off in the long run, my question is for uberhostNET, how can some companies afford doing this without financing? Because if it takes more to bring a client in compared to what you are getting initially, you create a deficit.

  29. #29
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    Regarding Google Adwords:

    Out of 42,426 times my site has been listed i have had 19 clicks total, which in return costed me $20.40 a average of $1.07 per click. Out of those 19 clicks i believe i had 3 new signups refered by google ....

    Not the best way to advertise, but it can help on a lower end, just don't invest a lot of $$ into it because you will pay more than you expect. But it is nice to invest $20 here $20 there and allow it to take a chance to pick up 1 - 3 new sign-ups.

    Another idea for you would be to start offering a Customer Support center either local or toll free # , this always attracts more loyal customers as they wish to be able to get support issue's resolved fast. This is the most important thing "Customer Service" ... Hope this helps you on your journey.
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  30. #30
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    Customer service does help a lot.

    3 new sign ups for 19 clicks is awesome! I have had 5 clicks and no sign ups as of yet.

    I heard conversion rates are usually 0.5 - 8%

  31. #31
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    I guess it could be awsome to some, However i expected better i guess.

    This is what you need to keep in mind, Keep the business at float, allow your business to expand on its own, Over time it will take off and you will be ok... Don't try to rush it cause it will leave you in the whole. Let the company grow at its own pace based on its own popularity ... if any of this makes sense
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  32. #32
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    It does make sense, it is just frustrating to see people like hostgator, midphase etc getting so many new customers daily, when sometimes some hosts are lucky to get one sign up in a week.

  33. #33
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    i agree, but how do you think they got to where they are today ?

    They started just like the rest of us. The name got around, before they knew it they had atleast 1 signup per day, then grew into 10 signups per day and so forth. It takes time, i have been in the biz for going on 4 yrs ? and i think my max client base so far is 60 clients total ( or about around that )

    I'm not saying to not try, but be careful trying to put alot into it to soon, Cause then you are going to find yourself with way more expenses then income and will never get yourself fixed ....
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  34. #34
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  35. #35
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    I am also new in the industry. So while you journey through, shoot me some helpful hints
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  36. #36
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  37. #37
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    it is very new .... trust me these "big dogs" have put in their time, i'm logging off for the night guys, jhost good luck with your research.
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  38. #38
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    The big companies like HG, BlueHost, Midphase and such who are grabbing like 500 new accounts a day seem to be getting most of their business via Affiliates.

    I was reading a Midphase newsletter which says they paid out 7.5million in affiliate commissions in 07.

    Bluehost says that 70% of their business comes from affiliates I read somewhere.

    HG not sure but i'm sure affiliates program is what is driving them also.

    The issue with the affiliate programs is it's very expensive. If you think your $50 cost per customer is expensive. companies like HG pay $100 per referral. On average affiliate cost via CJ is around $120. If you notice you will see most of these hosts are listed in the top-10 lists which I've contacted some and your looking around $120-150 per referral.

    Sometimes makes me wonder considering they charge $95/year for package. I guess if you want to get serious you have to think long term and you have to be willing to take the loss for over a year to start seeing the money come in.

  39. #39
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    Quote Originally Posted by jhost View Post
    These are really great suggestions. Those conversions rates are pretty expensive. But I can see how it would pay off in the long run, my question is for uberhostNET, how can some companies afford doing this without financing?
    Some companies can't, simple as that.

    Because if it takes more to bring a client in compared to what you are getting initially, you create a deficit.
    Yes, when you look at the ROI on an ad campaign based on the first year of revenue only, it can seem like that. However, if you're really treating your customers right, they become your best salespeople, so you do get residual business.
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  40. #40
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    That is true. and WOW MMH-Moe, that is alot of cash paid out to affiliates, which brings me to my next question =)

    What is the best affiliate software out there to track affiliate progress? We have been looking to implement the program but haven't really found a really awesome program to do the work =)

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