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  1. #1
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    How do new honest hosts get up in the game?

    With all of these overselling companies and the big companies that don't have good support out there how do small companies get up in the game? How do they get their name out there so people who want good service notice them? It's nearly impossible to do now-a-days. Anyone have any good suggestions or opinions?

    Thanks,
    Nick Kitmitto

  2. #2
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    well if you constantly do good..people will gradually recognize you...
    (but you still have to promote your site tho..people won't just come by and visit you. )
    2nd thing is make sure you make the packages that will make your profits still in the long run..

    being started as small isn't bad..at least you do still have chance to face different customers while you can handle; and gradually build up your experiences to be able to handle more and more customers..one day, it will be big.

    and don't forget..every big company used to be small.
    so there's no over-night miracle.
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  3. #3
    Quote Originally Posted by redkid View Post
    well if you constantly do good..people will gradually recognize you...
    (but you still have to promote your site tho..people won't just come by and visit you. )
    2nd thing is make sure you make the packages that will make your profits still in the long run..

    being started as small isn't bad..at least you do still have chance to face different customers while you can handle; and gradually build up your experiences to be able to handle more and more customers..one day, it will be big.

    and don't forget..every big company used to be small.
    so there's no over-night miracle.
    I agree with that. Reality sucks that web hosting is very competitive these days. So if you are planning to immerse into this industry and start small, you need to exert lots of efforts to be trusted by customers.

    You need to have:

    (1) competitive products in an aggressive price (don't offer to much though and people might say you are overselling)
    (2) quality support that customers and even site visitors can observe
    (3) legitimate website promotion
    (4) patience, as trust from people doesnt come overnight

  4. #4
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    Heh thanks I did not expect an over-night miracle but it seems my advertising isn't doing much, I plan on going many months more into this maybe a year or 2 before I start having second thoughts but only if it's as slow as it is right now

  5. #5
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    Quote Originally Posted by Internet-Guru View Post
    Heh thanks I did not expect an over-night miracle but it seems my advertising isn't doing much, I plan on going many months more into this maybe a year or 2 before I start having second thoughts but only if it's as slow as it is right now
    direct contact with your target market is probably more important than advertisement tho..as people don't seem to trust advertising for a small company..
    but once it turns big...people tend to trust the advertisement.
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  6. #6
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    I have been trying to go through the Steam Game server list for games and asking the clans what they pay for web hosting, but that has gotten me nowhere, I also tried it on Teamspeak and through Clan websites. Are my prices not competitive enough?

    Thanks,
    Nick Kitmitto

  7. #7
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    the direct contact with target market does not receive over-night effects either. Everything is always slow at the beginning..

    Hosting is not a visible thing..so it depends on reviews and recommendations..

    and the chances (depending on how long you plan to invest and how competitive your target market is) are..> the ones that turn big is a small number.

    So are you ready for it?
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  8. #8
    Oh you need to have at least five people to act as the engine for your promotion. If each of them targets different types of advertising (socialization, blogging, etc..) -- you might be able to start having customers in at least 6 months. It really depends on your efforts.

  9. #9
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    Quote Originally Posted by Internet-Guru View Post
    With all of these overselling companies and the big companies that don't have good support out there how do small companies get up in the game?
    I think it's important to note that the term "overselling" is a controversial one, but should not be presumed negative. Ditto for "big companies" since a firm of any size is capable of either good or bad service. Still, I understand what you mean.

    As to growing a company, one has to examine their own uniqueness and exploit it fully in order to develop a niche in the market.

    Here are a couple of real-world examples:
    • One guy was installing community scripts for friends and decided he wanted to start hosting websites. His niche is that he provides plans which focus on the Dolphin and phpFox communities and installation of the scripts.
    • A former trucker with a desire to become a reseller opens a site to list semi's for sale. The many contacts from this venture provide him with webhosting leads.

    The idea is to use what you know to an advantage, and seek out newsletters, forums, and email lists where you can provide lots of free help + advertise your hosting services.
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  10. #10
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    I am willing to put as much effort and time I need to get this company off the ground

    I know a lot about E107 and could do support and all on it, would that be considered a good niche in the business? I see a lot for PHPNuke but not for E107 even though it's better.

  11. #11
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    Quote Originally Posted by redkid View Post
    direct contact with your target market is probably more important than advertisement tho..as people don't seem to trust advertising for a small company..
    but once it turns big...people tend to trust the advertisement.
    I agree very much with the direct contact, this is really working the best to get your name established, after that they will be the engine and telling about your great service. Once you have established a good name advertising might start to work better.

    Just to add, overselling hosts do not per definition need to give bad support at all. There are also hosts which do not oversell and have bad support.

  12. #12
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    Take a look at the comissions paid by SuperbHosting to affiliates to gain a new customer and you will find how much hard and expensive this industry is to a mom-and-pop shop succeed.

    And I disagree "every big company used to be small". It is a romantic, old-fashioned view, the American Dream.
    Last edited by dotHostel; 01-20-2008 at 05:45 AM.
    You will only find out how good a provider is when the going gets tough

  13. #13
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    Ya, true, are you saying though if I offer commission (high) then I would get more customers?

  14. #14
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    Good customer service. Fast response times to support requests. Fancy designs to look reliable. Lots of patience!

  15. #15
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    Quote Originally Posted by dotHostel View Post
    And I disagree "every big company used to be small". It is a romantic, old-fashioned view, the American Dream.
    so some big companies used to be 'big'? any example?
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  16. #16
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    Quote Originally Posted by redkid View Post
    so some big companies used to be 'big'? any example?
    Softlayer.
    You will only find out how good a provider is when the going gets tough

  17. #17
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    Quote Originally Posted by dotHostel View Post
    Softlayer.
    ya right. I am not going to argue with you.
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  18. #18
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    Quote Originally Posted by Internet-Guru View Post
    Ya, true, are you saying though if I offer commission (high) then I would get more customers?

    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 suggest you take a look at this thread: http://www.webhostingtalk.com/showthread.php?t=663828
    You will only find out how good a provider is when the going gets tough

  19. #19
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    Quote Originally Posted by dotHostel View Post
    I suggest you take a look at this thread: http://www.webhostingtalk.com/showthread.php?t=663828
    I do understand your point of view and agree that might work for some. But have you counted the number of companies that used the same strategy and have not succeed?

    I would suggest invest the right way for your company. Do not over consume the resources you have in a short time. Be always checking out the environment and develop the right strategy(investment plan) for your company.

    remember: profit > cost = successful business

    and Good luck. I wish you the best.
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  20. #20
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    Quote Originally Posted by redkid View Post
    I do understand your point of view and agree that might work for some. But have you counted the number of companies that used the same strategy and have not succeed?
    My point of view is shared hosting is not a good business anymore for new entrants. It is a commodity and requires economies of scale to a company succeed. In the US there is a mature market where you have high cost to gain customers and low profits due massive competition.
    Last edited by dotHostel; 01-20-2008 at 07:54 AM.
    You will only find out how good a provider is when the going gets tough

  21. #21
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    I think that it is extremely important to keep all the expenses at a very low level so you can invest in advertising. And since it is getting more and more expensive in this industry you can search for alternative ways to gain popularity. Working in partnership with bloggers, social networks, different community groups and etc.
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  22. #22
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    And I disagree "every big company used to be small". It is a romantic, old-fashioned view, the American Dream.
    American Dream, I personally hate that expression because it expresses a sense of utopia that can only be found in a country like the United States of America. Anyway, if you set a goal and strive to reach it you'll do it regardless of how much you start out with and where your from.

    Some of the most successful people started out with nothing a made something of themselves. Find your niche and perfect it and you'll be successful but if you reinvent the wheel, you'll roll along with the rest of the guys trying to make it.

    The "dot-com bubble" busted roughly 1995–2001 (with a climax in 1999) and the novelty of that time is rubbing off fast!
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  23. #23
    You might want to clear up the discrepancies on what you are offering for shared hosting. The package descriptions and features on the "shared hosting" page are different than those on the "shared comparison" page. That would give me second thoughts if I were customer. For example, on the opening page it claims that the basic package hosts 5 domains and on the comparison page it states that it is only 1 domain and 5 subdomains. This is one out of a number of examples. Consistency and attention to detail is important, especially with your package descriptions.

  24. #24
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    Quote Originally Posted by H0stD3m0n View Post
    Anyway, if you set a goal and strive to reach it you'll do it regardless of how much you start out with and where your from. Some of the most successful people started out with nothing a made something of themselves. Find your niche and perfect it and you'll be successful but if you reinvent the wheel, you'll roll along with the rest of the guys trying to make it.
    The comment posted refers to the shared hosting business. It is a commodity and requires economies of scale to a company succeed in a mature market.

    It was not a general comment.
    Last edited by dotHostel; 01-20-2008 at 04:49 PM.
    You will only find out how good a provider is when the going gets tough

  25. #25
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    Quote Originally Posted by webdevi View Post
    You might want to clear up the discrepancies on what you are offering for shared hosting. The package descriptions and features on the "shared hosting" page are different than those on the "shared comparison" page. That would give me second thoughts if I were customer. For example, on the opening page it claims that the basic package hosts 5 domains and on the comparison page it states that it is only 1 domain and 5 subdomains. This is one out of a number of examples. Consistency and attention to detail is important, especially with your package descriptions.
    I didn't even notice that! I fix that right a way! Thanks!

    And thanks to everyone whose been helping me out This thread grew quite fast.

    -Nick Kitmitto

  26. #26
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    my hosting strategy is simple and it works to. if i get stuff for cheap prices why not offer cheap prices. if i hate being scammed why scam? if i hate crappy tech support why give crappy tech support. so if you tell your clients how it is in the real world such as "honestly we are not 100% secure because as new technology comes out people will hack it and take advantage" see thats what customers want to know. they want the truth to be honest. they want good support good price. they want to know you aint just trying to make cheap dollar off of them. and if you talk in like chatrooms and such just ask some people if they need some hosting for website or IF they wanna start a website with you. that usually works like 75% of the time. anyways what im getting it down to is if YOU trust the buyer and the buyer trust you you have a freindship theyll stay and you can make profit in long run. trust is 95% of hosting after all they should trust you being behind their website that it'll stay up. and then theyll tell freinds and so own or you can advertise on forums such as these. so hope that works sorry for bad grammar i just didn't feel like making it all pretty as it doesnt matter we all read the same way anyways =]
    Last edited by TrentH [WhirlHost]; 01-21-2008 at 05:27 AM. Reason: my post made no sense at all.
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  27. #27
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    Well, I think it's important to note that there are quite a few "big" companies that offer reliable service and good support, in some cases, much better than a small host trying hard.

    So just being an honest host isn't sufficient. You need to really find a niche you can work on.

    Offering 24x7 support and high reliability etc. is no longer enough in this industry as it's not difficult at all to provide support and uptime.
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  28. #28
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    That is true, very true... Well I am still trying, taking baby steps at a time!
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  29. #29
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    Quote Originally Posted by dotHostel View Post
    Softlayer.
    LOL!!! My friend, Softlayer very much was small when they first started out.

    Did they grow quickly? Yes.

    Did they ride an incredible wave of popularity right from the start? Yes.

    Did they clearly have sufficient financing to support their growth and daily operations? Yes.

    However, when they first started out, they definitely were considered a small business. In fact, by many standards, they would still be considered a "small business." It's not that they're so huge, it's that there are so many truly micro-businesses in the industry.

    (Not that that's bad, either. Just trying to offer a little perspective.)

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  30. #30
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    Quote Originally Posted by xxdosxx View Post
    if i get stuff for cheap prices why not offer cheap prices.
    Because running a business is about making money, not running a charity. Charge the maximum price the market will bear, and that brings you the greatest profit.



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