Interesting topic...

I personally don't think gift vouchers are good for the web hosting market. It is different when it's for a book store such as Ottakar's [Boy do I miss that store... no good book store here in France], or a coffee shop such as Starbucks or a chocolatier such as Thorntons.

With a book store - You have the voucher, you go in, and choose from a range of hundreds of books. And there is bound to be one that you like.

With a coffee shop - You have the voucher, you go in, and buy coffee or buy something else that they sell. Gift vouchers do not limit you to one item, it only limits you to what that shop sells [Or at least this is how it works on the U.K.]. And even if you do not like coffee, they are bound to have something you like.


But really, a gift voucher for a web hosting company? It seems a bit far fetched. I can just imagine now an old lady giving her grandson a gift voucher for web hosting!

It's not that I don't think it's professional, as many companies do offer gift vouchers. However, I cannot really see it happening in the hosting industry.

Gift vouchers are usually used as a present when you have no idea what to get the person. The first thing that comes into your mind is a gift voucher. And to be totally honest, I cannot see someone giving another person a gift voucher for a web hosting company as a present. You tell them the URL of that company, you don't give them a gift voucher for web hosting from that company.



However... offering your clients a gift voucher from another company as a way to bring in more clients is another idea. And an idea that I think could work a lot better than selling gift vouchers for your own company.

I think this is a great idea. Anjay, the exact reasons why you say it won't work are the reasons I think would work.

Here's an example you have a parent that hosts a site with you, they have kids, their kids are really getting into the whole internet thing and they want their own site. You sell them a gift certificate maybe have a discounted price for gift certificates, now the adult is paying for the site, so you don't have to worry about the cash, they started their kids new site with let's say a 10% discount from your normal price, you just sold one client two plans (their original one and the kid's plan).

They already have to be a client of your's to get the discount rates and gift certificates. Selling non-refundable gift certificates that are 10% more than the original amount used to purchase it sounds like a very good idea. What's the worst thing that can happen? You wasted time creating another page on your site, that's about it, the potential benefits definitely outweigh the risk. Being in the webhosting business itself is a risk, and this is a very minimal risk. I say go for it. You might be surprised with the outcome.

Gift vouchers or "prepaid hosting cards" would be quite innovative. Where could you sell them? Print shops, your local Mail Boxes Etc. or small business centers, offices, anything having to do with small business. That would be an amazing way of reaching new customers.


JP

we have done this with local clients but thats it. it did work well for local clients and we have considered offering it as an option on our site

This is something that we have been working on and looking into.

However, rather than using gift cards for hosting only, we've seen a bit more value in using Visa gift cards, with our company logo/url on it. They can be used anywhere Visa is accepted.

This encompasses the idea that if they get the card from us, there is a good chance they'll also use it with us. If they don't....no worries, as our company name is in front of them the entire time.

Sounds like a good idea to me.