(WEB HOST INDUSTRY REVIEW) — Examining some of the currently successful Web hosts, Tucows domain product manager Adam Eisner connected the dots in his Monday morning HostingCon presentation, “Differentiating Your Hosting Business in a Saturated Market,” in which he explained some of the common trends that make these companies different — and better — than competitors.
“I’ve got a lot to run through in 45 minutes,” Eisner acknowledged in beginning. After all, it’s not simple to build a successful hosting company, and what is defined as “successful” has changed enormously within the past decade.
In the 1999 to 2002-era, selling Web hosting was incredibly different. People were only starting to get online. Most of the hosts would offer a handful of hosting plans: maybe call them silver, gold, and platium. And without having to be very sophisticated, people would still signup.
“There’s a new generation of hosting companies,” Eisner noted, pointing to a slide with a plethora of emerging hosts that have come to prominence in the past few years. “How’d they get there?” It turns out they’re been doing roughly the similar things.
Simplify the offering: Rather than offering a confusing array of options, they promote a single, low-cost plan. “They’re really taking a different approach… they’re offering one package, or a dominant package on their website.” If the customer doesn’t want the main package, they can go to the next page and configure something different — if they want something different — which, chances are, they don’t.
Determine who you are marketing to: Marketers are actually going back to traditional marketing practices because people finally understand what hosting is. Everyone either has or understands that they need a website, so Web hosts can now use billboards and TV commercials to advertise.
Win friends and influence people: “I like the way that hosting companies are going out on Twitter and … trying to be your friend,” said Eisner, noting that they are offering deals, and, by interacting with customers on a personal basis, they are establishing themselves as a company that cares about their customers. “When you engage individually, it will only do good things for your brand.”
Having fun: Eisner suggests that Web hosts don’t take themselves too seriously. Some have made a funny YouTube video to great success. It doesn’t have to be put together professionally and vetted by everyone in the company. He noted that a lot of successful companies in this area, actually don’t consciously think about it too much.
Use affiliates and resellers: “A lot of growth is coming out of affiliates and resellers,” said Eisner. They actually take a lot of the workload from hosting companies, and puts it into the hands of partners. He notes that this is “a really easy way to grow really fast.” Heart Internet has a very extensive program, but any host can use the channel to their advantage by starting small by just, for instance, offering domains. Later on, a host can step this up.
Go where the growth is: Eisner sees a lot of potential in foreign markets. High growth markets at OpenSRS include India, Eastern Europe (Poland, Bulgaria), and Western Europe (Spain, France). It is important, however, to really consider if the area is worthwhile, and really customize the solution for the market — it’s not good enough just to change the billing unit from dollars to euros. Serious study must be put into the target market, and it’s best to “have feet on the ground.”
The world of Web hosting has changed considerably over the past decade, and it’s up to hosts to change with the times, or become an artifact of a bygone era.
