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Hosting Discussion > Operating a Web Hosting Business > Promotion and Marketing > Offering hosting for 1 cent for the first month
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  Post #16 (permalink)   07-15-2013, 08:15 PM
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Thanks for all the input! We have seized to run these types of promotions, as we were indeed attracting the wrong crowd. Instead, we are now offering 75% off the first invoice when a client signs up. This way, we are covering the CC processor fees and putting a dent in our overhead. We have not had any "host hoppers" yet. Time will tell!
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  Post #17 (permalink)   07-16-2013, 06:14 AM
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Quote:
Originally Posted by hostmything View Post
Thanks for all the input! We have seized to run these types of promotions, as we were indeed attracting the wrong crowd. Instead, we are now offering 75% off the first invoice when a client signs up. This way, we are covering the CC processor fees and putting a dent in our overhead. We have not had any "host hoppers" yet. Time will tell!
Good luck with this new method, let us know how this one plays out. Sorry to hear the 1 cent promotion didn't .
 
 
 


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  Post #18 (permalink)   07-18-2013, 09:14 AM
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Originally Posted by HostLeet View Post
Specially if you only have a few servers. You could be jeopardizing your good clients by filling your servers with bad apples.
That's a good point, but a quick workaround would be to put all the $0.01 bad apple customers together on one server

Although, that's not to say anyone who uses the coupon is bad, but if they have a suspicious domain (warez, pharmaceuticals, torrent tracker, etc), you can put these guys together
 
 


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  Post #19 (permalink)   07-20-2013, 01:51 AM
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Definitely the biggest problem with offering penny deals is spammers! This is from experience!
 
 
 


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  Post #20 (permalink)   07-20-2013, 05:23 AM
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Originally Posted by RH-Jordie View Post
if they have a suspicious domain (warez, pharmaceuticals, torrent tracker, etc), you can put these guys together
If they has a suspicious domain then they would not get past our fraud/security checks, so they would not even get placed on a server.

but what you say would just damage your companies reputation anyway.

Place all bad apples on 1 server, they start spamming etc. from their accounts, so your server provider/DC says

Oh thats good he has done the right thing and placed all the bad apples on the one server.

WRONG

It would be more like

Your server **** has been suspended due to the amount of spam reports received. We will give you 24 hours to correct this issue or you face having your account terminated.


so you have other servers with that provider/DC with genuine users on then, and because you thought you were being clever and placing bad apples on 1 server you now face having all your servers taken down.
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  Post #21 (permalink)   07-20-2013, 09:01 PM
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I'm not saying that you have to host the spammers or anyone who is doing something illegal. Obviously, if someone is spamming, you suspend their service. I'm saying that putting suspicious accounts on 1 server can protect the other accounts with legitimate customers.

Quote:
Originally Posted by easyhostmedia View Post
If they has a suspicious domain then they would not get past our fraud/security checks, so they would not even get placed on a server.
Yes -- the same is true with us. I didn't say that this is a practice that I follow, but if a certain company is in such a great need of business, this will enable the business to accept these orders that would have previously had to have been declined.

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but what you say would just damage your companies reputation anyway.
I'd appreciate it if you wouldn't be so quick to accuse. I don't follow this practice, and I never claimed to. Get the facts out first, then make a conclusion. The attack on my business wasn't needed or justified.
 
 
 


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  Post #22 (permalink)   07-21-2013, 02:34 AM
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I'd appreciate it if you wouldn't be so quick to accuse. I don't follow this practice, and I never claimed to. Get the facts out first, then make a conclusion. The attack on my business wasn't needed or justified.
I never accused or attached your business, just any business would have their reputation damaged by placing bad apples on a single server as this would soon get around, so if an order looks suspicious to warrant this action then it is simple a case of not accepting the order in the first place.

Yes you will always get hosts that would accept such orders and risks
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  Post #23 (permalink)   07-21-2013, 11:04 AM
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I never accused or attached your business, just any business would have their reputation damaged by placing bad apples on a single server as this would soon get around, so if an order looks suspicious to warrant this action then it is simple a case of not accepting the order in the first place.

Yes you will always get hosts that would accept such orders and risks
Terry, I apologize, I thought it was meant as an attack on my company
 
 
 


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  Post #24 (permalink)   07-22-2013, 12:24 PM
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Part of the conversation in this thread that has nothing to do with its topic was moved to this thread.
 
 
 


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  Post #25 (permalink)   07-23-2013, 05:42 PM
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Definitely the biggest problem with offering penny deals is spammers!
Couldn't agree more! We like to keep our servers free of them because they end up causing more trouble and take up too much time that could be better spent on genuine customers.
But we tend to see more and more spammers get by through adding addon domains
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  Post #26 (permalink)   08-03-2013, 07:23 AM
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we did run a promotion last year where we offered 'A free month' take note how i stated 'A' and not the 1st month free.

It worked like this

A client signs up and pays for the first month as normal, once the funds have cleared we adjusted the next due date on the system so they got the 2nd month free, this way also cuts down the spammers who look for 1st free month plans so they can use the free month to send out spam and then do a runner.
This is a good idea for hosting environments. Exactly what you stated would happen upon offering the first month free!
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  Post #27 (permalink)   08-15-2013, 01:19 PM
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Best thing is to run promotion with certain % off. And not like 1 cent
 
 
 


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  Post #28 (permalink)   08-22-2013, 08:30 PM
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I would personally recommend against doing this, it will only attract abuse and the wrong type of clients (IMHO). Sure, some big hosts like EIG brands can offer such deals and market them successfully, but the volume of orders they receive alone is one of the main reasons they can offer such deals and "get away with it".. They have huge marketing budgets, lots of staff, and many, many servers. A smaller host or new startup is just asking for trouble running super low promos. Specially if you only have a few servers. You could be jeopardizing your good clients by filling your servers with bad apples.

My advice is not to try and compete based on price alone, you can not, and will not win.. Instead, ask yourself 'what makes my service better than others, and why would someone pay more money for it?'..
Couldn't agree more with this.

I've had experience with budget offers for the first month and it attracts nothing but trouble. I gained 50 clients in a month from an offer like this and lost around 48 of them, had IP's blacklisted, ended up on Spamhaus blacklist and had many DMCA takedown requests. The point I am trying to make is that if your service is truly worth the price you put on it, people will pay that. I wouldn't offer more than 75% off the first month, or even go for a 20% recurring discount or something.

The only thing I would ever offer a free tiral on is something like Shoutcast, not much damage can be done there!
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  Post #29 (permalink)   08-27-2013, 04:28 PM
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I think it could lower the perceived quality of your brand and probably wind up costing you more money in labor, etc. dealing with spammers, etc than it would generate in revenue.

An alternative that might start some good viral marketing would be to contact new clients after a few months to follow up, and give them a free month service as a thanks for their business.
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  Post #30 (permalink)   09-26-2013, 05:05 PM
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In general you can implement a "free month" option several ways and indeed it seems that adding that month to an already paid order would be the best way to work with it...

When it comes to spammers tho, it doesn't matter what kind of promo you offer - you can always attract them and having an efficient anti-spam procedure for all customers is a must. With order monitoring and certain spam filters you can catch spammers in their tracks before they even send their first email and then remove them from your servers

I personally believe in the method of having a good reasoning about your prices - normal and discounted ones. The employees should be trained and experience the company culture every day so they can defend this company willingly. Knowing your products and their value is a cornerstone to find the right approach for each person.

As for Host Hoppers - well they all eventually find their perfect host, so treat your customers like you want to be that host for them
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