Sell Web Hosting for Fun and Profit
Sell Web Hosting for Fun and Profit by Dan Forootan
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.” This is an especially good business to be in if
you are a web designer or IT consultant. It fits naturally with
the business model of such small consulting firms. Why refer out
or miss out on selling a service that most small businesses
need? Hosting is an excellent source of monthly recurring
revenue.
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!
Also, 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 quickly generate a large number of accounts.
There are permission-based email marketing services, such as
StreamSend, that work very well for earning more revenue from
your current customers and gaining additional customers. Try a
free trial of one or more of these services to find one that
works well for your needs.
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!
