Sell Web Hosting For Fun And Profit
By Dan Forootan, Fri Dec 9th

Sell Web Hosting for Fun and Profit by Dan Forootan

The market is good for new Web hosting companies. According toForrester Research, there is now “positive — if modest — growthfor Web hosting and managed IT services, at both the enterpriseand SMB levels.” This is an especially good business to be in ifyou are a web designer or IT consultant. It fits naturally withthe business model of such small consulting firms. Why refer outor miss out on selling a service that most small businessesneed? Hosting is an excellent source of monthly recurringrevenue.

The hosting industry is one of the few profitable sectors of theInternet. As such, large corporations such Yahoo are offeringWeb hosting services. You, too, can join this highly profitablebusiness and reap the financial awards -- but only if you do itright. To build a successful Web hosting company, I offer thefollowing two time-tested and proven rules: Focus on offeringhigh-quality services in a tiered pricing schedule.

In addition, it is essential an automated infrastructure tocreate self-sufficient customers. For marketing, it is crucialto maximize intelligent marketing opportunities. Automation willcreate a self-sufficient client-base and reduce your expensesdown 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 existingcustomer updates), system, administration system,end-user control panel, and technical support interface.

Order Forms

The front end of your order form should serve an minimum ofthese four key functions: 1) verify domain information forregistration purposes, 2) validate entered results, 3) processthe customer's credit card or create an invoice, 4) enter thecustomer's information into database for future use.

The backend of the order form must process the domainregistration (if customer needs to register one) and generatethe Web hosting account.

Administration System

The administration system is necessary to manage orderedaccounts. 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 yourcustomers to manage their accounts. At the very least, customersshould be able to set up their own e-mail accounts, view Websitestatistics, and manage their files.

Billing System

An automated system is an absolute must! The billingsystem should e-mail invoices, charge credit cards, and suspendoverdue accounts. The system should also allow the you to issuecredit or discounts as needed.

Technical Support Interface

By technical support interface, I'm not referring to a systemthat merely generates trouble tickets. An effective tech-supportinterface automatically generates an FAQ-interface thatcustomers can search before submitting



trouble tickets. Theseinterfaces can reduce technical support requests by a factor of10!

Also, be sure that the company you go with offers the option oftaking care of technical support on your behalf but branded withyour brand. You can then focus your energy on your corecompetencies and growing your business.

Maximize Intelligent Marketing Opportunities

You know what platform you want to use, you've figured out whatpackages to offer, and set up a tiered pricing schedule andautomated systems. So how do you get the word out about your newhosting service?

Pay per Click

Pay per Click can potentially allow you to reach large numbersof customers. Although you don't pay to list your site, you dopay when a user clicks on your listing and connects to yoursite. 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 topay for each person who clicks through to your site. The stakeshave recently grown pretty high, so be careful about bidding toohigh. Just because someone clicks through to your Web hostingsite, doesn't mean they'll convert into a new account. Also besure to select targeted keywords not competing with everyoneelse for the same keywords. That is a very difficult game towin. Find your niche.

Hosting Directory Sites

There are numerous Web sites known as hosting directories --that attract Web hosting customers. These hosting directoriesare an excellent place to advertise, but be selective in yourplacement. Many offer banner placement, spotlights, searchenhancements, and other forms of advertisement. As a generalrule keep in mind that banner ads are better for creating brandrecognition than generating new accounts, so advertise based onyour 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 beginmarketing to your current clients. A simple e-mail to yourcustomer base can quickly generate a large number of accounts.There are permission-based email marketing services, such asStreamSend, that work very well for earning more revenue fromyour current customers and gaining additional customers. Try afree trial of one or more of these services to find one thatworks well for your needs.

Offer New Products and Services

Keep in mind, once you acquire a solid customer base, you canconsider developing new products and services to keep yourcustomers happy and to generate additional revenue. But alwaysremember: Quality is key!

About the author:Dan Forootan founded EZ Publishing, Inc. in1998. EZ Publishing’s Backend Hostingsolution provides you with the infrastructure needed toachieve the automation of providing hosting services, includingorder form, billing, and the technical support interface. We caneven do the technical support on your behalf.

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