Difference in owning the house and renting the house.
When we own the house our square foot price is lower than if we rent, and in that case if we decide to rent rooms we can earn more money than if we were to rent a house and rent the rooms.
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Each finger in the pot gets part of the stew to feed their belly with. The fewer fingers, the more stew we have.
Because I'm not a reseller, I can slash prices drastically on web hosting plans because even though my company is virtual, my servers are mine and I have root access on all of them. I can compete with Host Gator so bad I can make them look stupid because they are top heavy. That's the down side to volume marketing, you just can't get there without a staff of people to work that level. Host Gator and I are both resellers for the same registrar. But they can still sell domain names cheaper than I can because of their initial investment.
So ultimately, HostGator in theory could cruse me in the domain name market. So I look at my options and realize the power I have in webhosting because I am not top heavy and I have my own servers even though yes they are virtual and not physical, it still works in all practicality.
This is how leveraging your market works. This past month because of the moves I have made, those are small things in comparison to the greater vision I have for my company. So now after considering the big picture and the flexibility I have in web hosting, I can roll free domain names into my web hosting packages. And I have done exactly that. In the past I have always had better plans than Host Gator because I could charge the same dollar amount on monthly plans that HostGator had to get customers to commit to an annual agreement to compete with.
So I've down under, crunched the numbers and emerged with a new business model that will continue to compete with the top hosts. New customers get a free domain transfer, or domain name registration on an annual plan and with the price structure will be one month cheaper over a year than doing monthly hosting. Both on shared hosting and IP based hosting which I added since moving my network.
I handle my own support tickets and sales and I am completely mobile. I carry a laptop and mobile hot spot with me every day. And even if I am at Walmart or any other place when a support ticket comes through, the moment I get back to my vehicle I can take care of the customer. Some of them call on the phone and it sends to my cell phone where ever I am. Even if I am camping in the mountains, cutting and splitting wood or sitting around a campfire with friends and family.
Yes, I'm cRaZy and I love web hosting that much that I am glued to it. I don't want hirelings handing my support tickets or phone calls. I outsource everything else and if my clients don't like what I'm doing they can call me and let me know and I will listen. In the 10 years my company has been online I only had one customer that was totally unreasonable and even with them I tried to accommodate them. When they moved to another host I remember thinking, they will have to deal with them now.
The key is to own the house, don't rent it. Even if you lease things that go into the house, when you rent rooms in it you can leverage your market. And not only do I want to bring value to what I do, I go the extra mile even when a customer has a script problem that is not really my issue. On rare occasion I have had to tell them to contact the vender. And even at that I have spent two hours sometimes working on my server to make their script work. I often go over and above the call of duty, and believe it or not, the very first customer I have ever had is still with me, 10 years later.
Give your clients outstanding support, own your house even if you rent (resell) other aspects of your product offerings. You'll have a hard time competing with me anyway so I don't mind sharing this.
And the reason I am sharing this is because I know that if more people adhered to this thinking and created similar business models we could break down the top heavy hosts and level the playing ground. I know the market. The problem is getting more people to get this and get on board. And if they did, it would help all of us, but even if they don't, I sharpened my pencil again even before posting this and will continue to sharpen it every day.
I tell anyone I meet, if you aren't happy hosting with my company, you won't be happy hosting anywhere. You need to have that attitude also. Not because you have an attitude, but because your hosting company offers the kind of level of service that nobody can compare with.
May wisdom guide each of us.
$1.00
Good read the the topic might be a little confusing . I believe most
smaller and family hosts are doing what you are doing
Great customer support rules the day.
Great read. I agree with your philosophy and it has been the driving factor in our business for years now. Good to see others doing the same type of thing.
Great read.
Great post,
cPanel/WHM | Domain & SSL Included | 24/7 UK Support | Transfers Included
i like the concept
Quote:
the very first customer I have ever had is still with me, 10 years later
wow, who is he/she?
Quote:
This is how leveraging your market works. This past month because of the moves I have made, those are small things in comparison to the greater vision I have for my company. So now after considering the big picture and the flexibility I have in web hosting, I can roll free domain names into my web hosting packages. And I have done exactly that. In the past I have always had better plans than Host Gator because I could charge the same dollar amount on monthly plans that HostGator had to get customers to commit to an annual agreement to compete with.
So I've down under, crunched the numbers and emerged with a new business model that will continue to compete with the top hosts. New customers get a free domain transfer, or domain name registration on an annual plan and with the price structure will be one month cheaper over a year than doing monthly hosting. Both on shared hosting and IP based hosting which I added since moving my network.
I really like this, great analysis of the market.
Quote:
Give your clients outstanding support, own your house even if you rent (resell) other aspects of your product offerings. You'll have a hard time competing with me anyway so I don't mind sharing this.
And the reason I am sharing this is because I know that if more people adhered to this thinking and created similar business models we could break down the top heavy hosts and level the playing ground. I know the market. The problem is getting more people to get this and get on board. And if they did, it would help all of us, but even if they don't, I sharpened my pencil again even before posting this and will continue to sharpen it every day.
I tell anyone I meet, if you aren't happy hosting with my company, you won't be happy hosting anywhere. You need to have that attitude also. Not because you have an attitude, but because your hosting company offers the kind of level of service that nobody can compare with.
This part not so much, I don't think cockiness is the best effort here.
We all think our own companies are the best out there, and we all think we offer the best support.
I think the only true way to know whether you are doing well, is whether you can make a good living from it.
Well-written post: in fact, I may even quote you in a blog I plan to write about virtual private servers later this year (@webling I'll PM you for permission if I do end-up using anything!).
Thanks!
I handle my own support tickets and sales and I am completely mobile. I carry a laptop and mobile hot spot with me every day. And even if I am at Walmart or any other place when a support ticket comes through, the moment I get back to my vehicle I can take care of the customer. Some of them call on the phone and it sends to my cell phone where ever I am. Even if I am camping in the mountains, cutting and splitting wood or sitting around a campfire with friends and family.
Yes, I'm cRaZy and I love web hosting that much that I am glued to it. I don't want hirelings handing my support tickets or phone calls.
Nice post, it reminds me "ME" a three year before...
