Selling other products

Z

Zachary McClung

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Back again,

Within the hosting industry we talk about giving customers a one stop shop. For example, a reseller hosting company should provide licenses, merchant account, ect for their very own resellers. Yes, the monthly price might be higher but you as a hosts will make more.

As for selling software. Lets say you include support desk, tutuorials, and billing all within your reseller packages; however, you can also sell them to other clietns that do not hosts with you. Does this set you apart? Reselling merchant accounts, support help desk, tutorials, ect?

What are you opinions on what I hosts should provide?
 
I think hosts should provide hosting.
I think domain registrars should provide domains.
I think graphics people should provide graphics.
I think DemoDemo should provide flash demos.

When hosts start to branch off and start offering too many things outside of their expertise it waters down the quality of what they are there to offer in the first place.

That being said, it's not always a bad idea to form partnerships with other professionals who can provide these services in conjunction with the hosting.
 
The issue it, if a hosting company doesn't go out and seel these things they will be eaten up. Does a hosting company having a store and allowing the products company to handle support really stretch out a host?
 
I'm not sure where you get the idea that a hosting company will be eaten up if they don't have all the fringe offerings.
We have done very well just by selling hosting.
A very small percentage of our clients have any need for SSL certificates or billing software and if they do we can send them in the right direction, so we don't concentrate on those things.
 
Once you get to a certain size (see Godaddy the registrar) the only real way to expand is to branch out in related fields/industries. Hence their new emphasis on hosting. As a small business I'm not sure that trying to be everything for everybody is the better aproach.

Blue had a good idea. You could partner with some good companies (eventually negotiate some type of discount for customers & a commission for you).
 
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Even big companies like Godaddy don't always benefit from this kind of expansion.
I have heard very few good things about Godaddy hosting.
 
Kind of odd, godaddy.com call me today because a hosting company transfer their domain to us today and the only way I could get it is to go through godaddy. Its a sunday, I am not in the office, and they are trying to sell me a domain reseller plan that would costs me more then what I am paying now.

Yeah, I do not hear to many things about godaddy. So, you think a small hosts should stay small even if they have big dreams?
 
BHNSupport said:
So, you think a small hosts should stay small even if they have big dreams?
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Not at all.
I just think that growth does not necessarily mean diversity. Do one thing and do it well, that's what will get noticed.

There will be lots of time in the future to branch out.
 
There will be lots of time in the future to branch out.
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Yup, when you're the Godaddy of the hosting services. :)

Even big companies like Godaddy don't always benefit from this kind of expansion.
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If they don't do it properly, of course they get hurt. Godaddy went the cheap way with their domain registration service, and it worked. Their hosting tried to use the same idea, but apparently they overdid it, and the level of service suffers.

Or maybe we only get to see reports from those 1% who are dissatisfied with their services. :)
 
Like Dan is saying you really do not know how many customers they have and who is having horrible server. From what it seems though that is all you hear about with godaddy though.
 
I am completely agreeing with Blue in regards to this subject. Focusing on one particular market will get your company noticed for being so good at what you do. Branching out can definetly give growing pains. Why don't companies just create branches instead?
 
Do you suggest not offereing domain registrations as well? Most hosting companies make $5.00 or less a year on domain registration. Is it really worth it? Teaming up with GeoTrust and selling SSL is that not worth it?

What do you think makes a good hosts? I guys it dependson views because some people say that if you do not offer everything then you'll get sucked up. On the other hand, if you offer to much you'll hit bumps in the road.
 
I have learned in my years of marketing that you can offer as many addons, extra services, as you want, as long as they compliment your core product/service.

For example, a hosting company should not branch out into selling cellphones, and cellphone services, unless it has something to do with their hosting services.

The key is looking at products and services such as those (cellphones for example), and determining how that product could benefit your customers, in relation to your main service. If you can't come up with any ideas for that product or service quickly, then, chances are it's not the right product or service to add to your offering.
 
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