Web Hosting Talk : Web Hosting Main Forums : Running a Web Hosting Business : Host Jumpers

[everity]

Have any of you noticed an increase in host jumpers lately?
I have a script to track what happens after a client closes their account. I've noticed that the majority of people who close their accounts have had as many as 20 hosts over the course of a year. The average is probably 6 hosts.
For years, I offered a 3 month free trial. It was a great way to attract new clients. People would sign up for the free trial, and most would stay for the long term. But that was back in a time when people were actually honest.
I've had to get rid of the 3 month free trial. There are fewer sign ups, but at least those who sign up now are serious, so its a lot less work overall, and more profitable.
Still, its a shame. These people never pay a dime for their web hosting. They go to another host that offers a free trial. I almost want to call and warn the other host when I see a client leave for another host offering a free trial, but I guess the market will decide what happens in this regard.
I think I may re-instate the free trial, but only make it available for domains that already exist, and have not previously changed hosts in the last year. Those who have a record of host-jumping would have to pay upfront.
People who abuse the system and who abuse goodwill ruin it for everyone else. Just my two cents.

[SysAdminMan]

I'm not sure it can be classed as dishonest. If you offer 3 months free hosting then you are always going to get people take advantage of that. It surely can only be classed as dishonest if they are deceiving you?
I'd see it as just another marketing tool that you have to monitor and play the numbers and decide if it's worth offering for the number of customers that you retain.
There are lots of industries that do a similar thing banking on the fact that, once people have signed up and set things up, they won't have the motivation and dedication to keep moving on.

[brandon272]

I'm not sure it's that dishonest either. It's someone taking advantage of a market where merchants need to offer 1, 2 or 3 months of free service in order to be competitive.
My question to the host jumpers would probably be: is it worth your time to "moving" your site once every couple of months?

[everity]

I'm not sure it can be classed as dishonest. If you offer 3 months free hosting then you are always going to get people take advantage of that. It surely can only be classed as dishonest if they are deceiving you?
I wouldn't call it dishonest, that is kind of a strong word, but it isn't really honest either. A free trial is universally understood to be a sort of "test drive." If you like it, you buy it. Its understood.
When you sign up for a free trial you acknowledge that there is a chance you will become a paying customer. It is not honest to sign up for a free trial knowing in advance that you will never spend a dime at that company. It IS a form of deception.
I'd see it as just another marketing tool that you have to monitor and play the numbers and decide if it's worth offering for the number of customers that you retain.
It is not worth offering any more. It has gone from being a big marketing tool to a big headache.
There are lots of industries that do a similar thing banking on the fact that, once people have signed up and set things up, they won't have the motivation and dedication to keep moving on.
I would like them to stay because they are happy with the service, not because they lack the motivation to move on, lol. Thats the thing. They ARE happy with the service. When they close their account that say how great everything is. Many refer other people to try out the service as well. Of course, the people they refer are host jumpers too.
I even found a forum a couple years ago (it is gone now) for host jumpers, and my company came highly recommended. It might be that I am just famous within the host jumper world and am being targeted, I don't know.
Anyway, back to the original question. Has anyone else noticed an increase in host jumpers?
Either, they use free trials and leave, or they sign up for the duration of your guarantee and then request a refund?

[brandon272]

The fact of the matter is that there are always going to be people who take advantage of free trials with no intention of ever purchasing the product at the end of the trial. There's a reason why car manufacturers don't let everyone test drive a car for a few months to decide if they like it.
If you want to offer a guarantee that your services will be great, offer a 3 month money back guarantee. A host jumper seems like an individual who is so desperately cheap or poor that they wouldn't be interested in forking over some cash even if they thought they would get it back by requesting a refund as part of a money-back guarantee policy.
On top of that you could offer them three months free service if they sign up and are customers for a specific period of time.
Brandon

[everity]

Thanks guys, I appreciate the feedback, but you are not answering my original question.
I'm not asking for information on free trials. I have been in this business for over 8 years and have always offered free trials, so I am familiar with just about every angle thereof.
I am asking if you have noticed an increase in host jumpers. It is essentially a yes or no question.
Thanks.

[Mike - Limestone]

It barely seems like it can be worth the time to them, especially with web hosting being so relatively inexpensive these days.
Edit: To try to answer the question of the last post, I think that it is easier to host jump now, but I have not personally observed an increase.
-mike

[infiniteecho]

Hello,
I would venture to say no, we've not experienced a larger number of (or any so far as I know) host jumpers.
We've run a number of free month specials and it's not really been something that people have abused.
Then again we've only offered that for VPSes and not shared / web hosting and there is even more over head involved with switching VPSes around monthly.
Just my $0.02
-Jesse

[TonyB]

Every month we have several people cancel a few days before they've reached the first 30 days of hosting. All with reasons like "your hosting is excellent and cheap but going with another host". They are jumpers and their whois record is a mile long of name server changes. These are mostly shared hosting users so not a huge deal.
One thing that baffles me though is a person who buys reseller hosting has us transfer 40 accounts or some silly number then on the 29th day cancels and has switched hosts again. They give silly reasons no revolving around price or service at all. With these sort of people I'm surprised they have any customers or if they are their own sites it still seems like a ton of trouble.
Not going to lose sleep over cheap people and it's been going on for years with the same % doing the jump every month.

[SenseiSteve]

Thanks guys, I appreciate the feedback, but you are not answering my original question.
I'm not asking for information on free trials. I have been in this business for over 8 years and have always offered free trials, so I am familiar with just about every angle thereof.
I am asking if you have noticed an increase in host jumpers. It is essentially a yes or no question.
Thanks.
NO, I have not noticed an increase in host jumpers.

[brandon272]

I am asking if you have noticed an increase in host jumpers. It is essentially a yes or no question.
No, I have not noticed an increase because I have enough business sense to not open myself up to fraud.

[Orien]

We haven't noticed any increase in customers jumping hosts, but our retention rates have historically been high.

[everity]

No, I have not noticed an increase because I have enough business sense to not open myself up to fraud.
It is only fraudulent if you don't do it right. Back in 2002 was the worst year for fraud, but there are lots of tricks you can use to block out 95% of free trial fraud. I did it enough that fraud is no problem at all.
Host jumping is not technically fraud, it is just annoying.
Anyway, thanks for your answers guys. I guess it is as I suspected. Word had gotten out to a group of people who do this, and they all hit me at once. There was a huge increase in the number of accounts opened in October/November, and they all jumped, which is why I got rid of the free trial. Very unusual. Once I fall off their radar maybe I can go back to offering the free trial again.
I ask because a lot of people are sending sales questions. Some are angry about it. Its like they are on some sort of schedule, lol.

[The Stealthy One]

Have any of you noticed an increase in host jumpers lately?
I have a script to track what happens after a client closes their account. I've noticed that the majority of people who close their accounts have had as many as 20 hosts over the course of a year. The average is probably 6 hosts.
For years, I offered a 3 month free trial. It was a great way to attract new clients. People would sign up for the free trial, and most would stay for the long term. But that was back in a time when people were actually honest.
I've had to get rid of the 3 month free trial. There are fewer sign ups, but at least those who sign up now are serious, so its a lot less work overall, and more profitable.
Still, its a shame. These people never pay a dime for their web hosting. They go to another host that offers a free trial. I almost want to call and warn the other host when I see a client leave for another host offering a free trial, but I guess the market will decide what happens in this regard.
I think I may re-instate the free trial, but only make it available for domains that already exist, and have not previously changed hosts in the last year. Those who have a record of host-jumping would have to pay upfront.
People who abuse the system and who abuse goodwill ruin it for everyone else. Just my two cents.
It's not a matter of dishonesty. After all, if you (and others) offer something for free for a period of time and have no strings attached (especially those which are economic in nature) to entice users to stay after the free trial, of course they will hop to another host with a free trial! These people should get kudos for hunting down deals like they do.
The proper way to get them to stay with your host is to offer, say, an additional 3 months of free service if they signup for 12 months.

[NH-Nathan]

Get billing info/CC to start the trial. Make it auto-renew after the trial, but have it an option to cancel before trial expires.
Requesting billing info should weed out the people who are not planning on buying.