Last year I interviewed Lou Honick for this blog, recently Lou has started another business – Host Merchant Services which gets him in the hosting ecosphere again. I wanted to provide an update to my readers on what Lou is up to. For those of you that don’t know Lou; he was a founder of Hostmysite, a nationally recognized speaker on service and technology, a serial entrepreneur and a previous The WHIR blogger.
Why did you decide to start another new business?
I’m crazy. Flipping houses is exciting and interesting, but I really wanted to get back into sales and technology a bit as well. The wheels are always turning and this is something I have been pondering for the last year and a half since I left HMS, even being fully immersed in my real estate ventures. What was the reason you decided on merchant processing? I see a need. It is a very simple business, but very complicated at the same time. Esoteric pricing, poor service, and unethical sales tactics have made customers very wary and skeptical. Sounds a bit like another industry I jumped into in 1997. It’s also highly fragmented, and while there are some big players, no one is really a household name. I think honesty, integrity, and great customer service will go a long way in this business. It also has an appealing technological element to give me room to innovate. However, the mechanics of this business are not nearly as tough as with hosting.
There are a lot of companies that provide merchant services, what are you doing to differentiate yourself?
Well, let’s be honest. Price is important. If I can’t save a customer money, it’s a hard sell to get them to switch. We spent the last 8 months negotiating the best possible deal with our sponsoring bank so that we can help our customers save money. However that isn’t everything. Customer service is extremely important to me, and I believe that will be the reason customers stick with us for the long haul. We will service their accounts reliably, with flexible terms, clearly explained rates (that don’t change unexpectedly), and technology that helps them to compete. We aren’t just sales people; we are experts in e-commerce, security, wireless terminals, payment gateways, and all of the tools customers’ need to help their businesses run smoothly.
Throughout your career you have focused on customer service, how do you plan on delivering an excellent customer experience in your new industry?
Well, I like to say that great customer service is woven into the fabric of my being. It is part of who I am, and it is the center of the culture we are creating here. Honestly, that probably doesn’t state it emphatically enough. I believe that if you take care of customers, employees, and partners, that business takes care of itself. We have a long term view that demands we meet the customers’ needs first, make money second. Both are important, but we don’t compromise on the order of priority. As most people in hosting know, you aren’t going to make money on every customer directly. That’s OK. However if you treat people right and provide a valuable service that helps them meet their goals, you are going to build a very successful and resilient business. Referrals were everything for us at HostMySite, and we didn’t get so many because we tried to squeeze every dime possible out of every customer. The same applies here at Host Merchant Services.
Now that you are in a corollary industry to hosting, does that mean that we will see you at hosting industry events again?
Yep, I’m planning to attend HostingCon this year. The hosting industry is a key partner group for us (hence the name). Our business plan calls for us to partner with hosting companies to help them satisfy customer needs and create valuable revenue streams at the same time. Ok, let’s be honest, I don’t have a business plan, never did for HostMySite either. But I’d really enjoy reconnecting with people in the industry that I know and helping them succeed with a merchant services partnership where many companies have failed before. I know that from running HostMySite, the companies offering merchant services partnerships to the hosting industry just don’t get it. I do. And without giving too much of our secret recipe away yet, we will make it work at least much better than any company in the space today. So if you’re a company offering merchant services partnerships to hosting companies, well, the gig is up. Better look for a new industry who will let you waste their time and resources without providing any real value. I’m back, and I’ve never really been afraid to say what I think. Good times ahead!
CODA As you can see Lou hasn’t mellowed in his retirement. Instead of just throwing down the gauntlet, he is likely to throw it at a competitor and then throw anything else that is nearby. But with his focus on service, track record and knowledge of our industry, I wouldn’t bet against him.
