Moving unlimited clients to limited packages

energizedit

energizedit

Member
Have you had success in moving purchased clients (on unlimited plans) to a shared hosting setup?

If I were to purchase a smaller company that previously way oversold their vps, but the clients only used around 10 gigs of space, how simple would it be to move these clients to a limited package?

Just wondering if others have done this before without all of the customers leaving.

Thanks

Mark
 
You'll see a big dropoff (usually). People don't pay attention to how much space they're actually using or how much they need. But if you suddenly tell them that they no longer have an unlimited supply and they're going to be limited to "X" instead, you're going to see a dropoff.

I have an unlimited membership at my gym. I go 4 times a week, usually during the day time (10am-1pm), but if they suddently tell me that I can only use the gym between 9am and 5pm (which is the time I use it), I'll cancel the membership and move elsewhere.

It's not a matter of what I'm actually using, but what I can potentially use. Do I need a gym that's open at 2am? No. Chances are *I* will never be there at 2am, but tell me I can't have it and you'll find me wanting it :)
 
If you have no choice and you had to do it, you can try to sweeten the deal a little. If the overselling was obviously visible, you can admit to the overselling on the servers, that the change is to improve the service they receive and that they shouldn't notice the change to their limits.

Either way though, this is just an idea for if you have no choice. I definitely agree with handsonhosting. There are excellent points in his post.
 
It depends of the hosting software used and of the scripts and data bases site owners use. If it is cPanel to cPanel migration for example it should be quite easy to complete it.
 
I can't agree more with Conor. I am an unlimited hosting user. I purchased the shared hosting package for hosting my website. I notice from the stats in cPanel that I usually use less than 5 GB a month. But if they say that they will limit it to say 100 GB, I would think twice to renew my purchase.
 
People always want what they can not have but I would see some serious issues with this. Personally I do not like unlimited anything (as a business person, too many people have already screwed the reputation of good companies and most thing that anyone who says unlimited is scamming them or trying to), but yes, if you tell them no after they have been used to it for how long?

Poof, they are gone in the blink of an eye.
 
This all relates to the perception of value. If your prospects or clients don't perceive value with a limited plan, your sign ups will diminish and your customer churn will increase. How well do you communicate the value of your services? :)
 
In your example I'd mention that most clients use 10GB of space, and your new packages will include x% more space than the average. As a goodwill gesture include a bonus like a free month and let them know how that lowers their amortized monthly rate. (i.e. turn a perceived negative into a positive with a detailed explanation)
 
HostColor said:
It depends of the hosting software used and of the scripts and data bases site owners use. If it is cPanel to cPanel migration for example it should be quite easy to complete it.
Click to expand...

Agree on this. :agree: It really depends on the software used. And yes, that's why I just love cPanel. :D
 
I wouldn't recommend doing that, if your happy with them using the 10GB of space I don't see a problem. Most people think that unlimited is somehow better and ignore limits whatsoever. This normally isn't too bad unless people are using your service for storage purposes.
 
Well, unlimited anything is a bad idea to begin with, but if you start off offering that to customers, and then take it away, it's quite likely that you'll lose most, if not all, of your customers.
 
I did it... sort of...

When I first started offering my hosting service, I packed with with features and lots of bandwith and space. Not unlimited, but a lot. Then I noticed the actual usage was between 1/10 to 1/20 of what I was actually offering. That made no sense to me. So I sent a survey to my members asking them if they would find it acceptable to have plans that are closer to what actual members use instead of paying for something they don't use. I reduced a few of my plans and added new benefits that they did not have before.

The important thing is make it sound like its a business decision to avoid having to increase prices and/or reduce customer service. Don't be rude and don't use a YOu have too approach.

Also, you can offer them at the end of their commitment a new plan with a special discount or gift and tell them that the old plans have expired.

Also make sure to remove the unlmited mention off your site. Offer your exisitng customers more space, more emails, something to make them feel special.

JMO... But it worked for me. :)
 
At Premix Hosting, you dont need to do all those things that makes hassles, feel free to contact our representative to assist you anytime :)
 
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