I was shopping at Home Depot for a sander on the weekend. I looked at them all for a good 30 minutes. There was no clear measurement of how to tell which one was better. There was an expensive one, a cheap one and a mid priced one. There was no measurement to judge vibrations per second, there was no measure of them at all. I ended up leaving the store with a sanding block because it was the only one I really understood in the end.
On the drive home it made me start to wonder.
In a recent poll you our visitors and customers said that hosting is a commodity.
Has hosting become a commodity where there is no distinguishable way to tell which one is better. It use to be who had the best support and up time. The stronger servers get the easier it for hosts to achieve high up time and all hosts provide 24/7 support. Instead of it being a service it moved to who had the most space and bandwidth. That model is called overselling. I have explained that before on this blog if your not familiar with that model. If you notice most hosts these days have unlimited space, unlimited bandwidth and unlimited domains. In essence there is no way to distinguish between hosts again. So where does that leave the customer?
I don’t really have any answers to that question. When I was searching for a sander I was confused. Maybe potential hosting customers are confused too.
I am left wondering if our model is out dated and if we need to test models of hosting.
I think we should do several controlled tests of some various models of hosting.
Overselling Model
We will put together 1 server which we will host 100 unlimited space, bandwidth and domain account. The packages will cost $214.80 ($8.95/month) for 24 months or $119.40 ($9.95/month) for 12 months. I will be interested to see how long the server stays online and how long it will take to sell 100 accounts.
High Paying Affiliates
The 2nd model will be based off another trend where more hosts are paying $65 or more per customer lead. This is a lot of money to pay out but again perhaps we can increase sign-ups by paying out more. This model will be controlled again on 1 server. We will create an overselling package for the affiliates to sell in the $149.40 a year range. We will then pay affiliates $88 after 30 days if a customer is still with us. Again it will be interesting to see how well this model works if at all.
What do you think? Any model you think we should try? Which one do you think will work or not work?
Eneida Perez
October 13, 2009 8:10 pm
I recently subsrcibe for to participate in a Web site business, giving me a supously space in their web for 37 dollars. I apply that same day, but my proload visa was empty, by the time that I went and fill it with money and came back, they was wanting from me 427.00 dollars for tu start. when I check very well they did not had a product for sale, or nothing, is empty. I was just trying to make my own web space for to advertise the products of the cosmetic company for whom I work. I am dissapointed, becaue now, I am a “member” of them but I am not a “member” neigther because I did’nt paid. And they are bombarding my yahoo email accoutn, but no one link for me to repend, delete and regret my mistake. I am thinking just for to block their email address, because there is no way in the World for to make them to understand that I am not going to pay that money for a simple, getresponse engine empty of everything. Luz
Minnesota Attorney
October 15, 2009 7:06 am
As you know, consumers of web hosting fall into various categories. I’ve been in three of these categories. First, I was looking for the cheapest hosting when I first started out online. I didn’t understand that there were other factors to consider, and since my site was new, I figured I didn’t have to work about the server’s capacity. As a result, I found the cheapest service at 1and1.com for $4 a month. Thus, it may make sense to market a package to consumers who want the “cheapest web host.”
After my first year online, I grew frustrated with 1and1′s terrible customer service and their poor control panel (they don’t use cPanel). I heard great things about the servers and customer service at HostGator.com, so I went there.
Later, I wanted multiple servers on different C-class IP addresses, so I went to SEOhosting.com, a division of HostGator.
Thus, it may make sense to have a package for each user category. Of course, there are other user categories than those I have been in (e.g. dedicated server, etc.). It may also make sense to brand them separately (e.g. HostGator.com and SEOhosting.com) because each category is targeting a different customer group (target market).
blogadmin
October 15, 2009 7:10 am
The only problem I have with HostGator’s SEO plans is that they are violating ARIN’s rules. They could potentially lose all their IP’s because of that. Not a safe business model at all if you ask me.
If your going to be dishonest should it be taken to the level of allowing spammers to have servers and just not care about it?
Eneida Perez
October 15, 2009 9:00 am
I finally received an email for to unsubscribe, now I have to deal with their multiple several emails. I am not going to pay 475.00 dollars for a package of CD’s with great ideas how to marketing online, and not guaranteed my success. It is better to subscrime me to ITT University online, there are more guarantee of success at lieas in a diploma withsome kine of specialty that I can use for to work or serve the people. Luz
Dr. Cossack
October 15, 2009 7:07 pm
Are you seriously thinking about creating an oversell package and advertising it as such? After all the talk you’ve done over these last few years against overselling? That’s one server I’d expect to cause more problems and complaints than it could be worth, unless the customers signing up for that are told in *very clear terms* what they’re about to get for their money. Sure, it’s cheaper, but the server will probably end up running slower too.
blogadmin
October 15, 2009 7:24 pm
Not only are we seriously thinking about it but were going to test it.
I have toted for years that overselling is wrong but maybe it just means more to us then it does to potential customers. Again when I looked at sanders there was no way to distinguish them other then price. I wonder if customer for hosting feel the same way.
The test will be localized to 1 server and yes they will be told it is overselling.
Chris Pollard
October 23, 2009 6:31 am
I don’t know. I think it’s a BAD idea. Why? You’re putting your good name, and all the trust you’ve built on a very thin and shaky line.
I know I’ve personally recommended you guys to people who have asked about hosting, because your service has been fantastic for many years for me. (Personal hosting AND business) Now let’s say I recommend bluefur to someone, they see the “hey, that’s cheap!” package, not understanding what overselling is, not knowing it’s bad, just seeing cheap flash in their eyes … now let’s say the server sucks toes because of the abuse it suffers at the hands of the ‘unlimited’ everything. Is that person who saw nothing but cheap hosting going to go, “well, it’s my own fault” or are they going to go “I don’t know what you were talking about man, their hosting sucks toes”? You know as well as I do, it will be the latter.
Just remember, bad publicity, especially bad word of mouth, can take YEARS to recover from. Is all the work you’ve put into creating a product with a good reputation worth a silly little experiment?
Cheap, crappy hosting isn’t what you guys do. Let some other chumps take the folks who aren’t willing to pay a dollar a month more for quality service. Long term, you may be far better off for it.
Randman
October 24, 2009 8:30 am
Personally I have trouble differentiating between one server package and another. I have a site I want hosted, nothing sophisticated and I chose my package as a result of word of mouth and price. While being a webmaster is not my thing and I have trouble understanding what the different choices are and understanding the tools you have available. I do understand marketing.
1st identify your target market, decide who you want as your customers, where they are, what they want…. I know you know this already as I have been reading your marketing articles.
Two main points here:
If you have an “ideal client” defined then put your resources towards attracting that client. Do you really want the client who wants to be oversold?
Are you fully utilizing the customer base you already have? I have never been asked if I’m happy, what services I need help with, what my future plans are and would I recommend you to my clients… Why not incentivize you existing (warm) market.
It’s always easier and less costly to have your existing satisfied client base network for you, especially if you offer something back or perhaps try to find a niche like purchasing green certificates to offset your server’s power usage. Find a UPS unique product statement, build a niche, perhaps create several niches and market them independently. What I personally need is someone that I can talk with, hold my hand and help me understand how to utilize what I have better as well as get me to where I want to be. Even if it is talking to someone in India, as long as they are friendly, professional and willing to go that extra mile.