I think that if you want to attract more users to your hosting company, you have to do something that no other hosting company does besides lower your prices. I think you should offer them sometihng for signing up.

For example, I saw a host recently that was offering a free iPod for the 1st 25 users that signed up. It was a draw and it really attracted people towards their service.

Remember, you have to spend money to make money.

I agree that you have to spend money to make money but how do you know that this offer "really attracted people"?

Any host could make the same offer but it wouldn't mean much if no one knew about it.
How do you get the word out that you are making the offer?

There are many hosts with 'free gift' opportunities, were you talking about Brius web hosting? They were doing an ipod promossional offer.

It does attract users in my opinion, but only to whom are actually looking for the real product..

For example, with the first 25 people and an iPod thing, I don't think that someone would just sign up, for the iPod, I think that they would need to be interested in THEIR web hosting specially.. the 'free gift' just lures them in..

Midphase gave away a car ($15000 value). That kind of thing can spread by word of mouth (and it did).

However, IMO, hosts must find extras that relate to the service itself, and give them a true edge over the competition.

Very true. Another thing they would need to do is add some things that would be beneficial to the user like good support, money back guarantees, and etc.

With the vast amount of hosting companies, you have to make yours stand out or you won't make it far.

I continuously work on making sure that my company's standards are the best possible before anything else. Without good service, all the freebies in the world won't do any good in keep that customer on a long-term basis. I am always pondering and working on giving customers free stuff for signing up as well as continuing to host with us. This is something that keeps my brain flowing with new ideas, deciding what to do is the hardest part in my opinion.

I guess I am in the wrong business. I was hoping that offering good service and a great product would be enough.

Now I see that I need to give away cars and stuff to compete. Maybe that is why business is so slow.

I will tell you that I run a forum for crafters and we actually give rewards for posting. They can earn points to buy TV's Stereos and home stuff.

Each time they post, they earn points and they can spend the points in our company store.

Its off to a slow start, and its going to cost us a bundle, but so far the advertising is more than the money being earned.

So there just may be something in this car givaway thing.

I never said give away a car.

I just said if you want your hosting business to be more appealing, you have to offer something new. If you don't have anything new to offer, then they don't have any reason to choose your company over other companies.

Honestly, I don't really care about the "prize"...either its a joke or a product no one needs. I just look for the best offers and the hoster's ratings...

wow, car, never heard about this

Gifts, surely attract more people and wonder midphase giving a car got how many new registrations?

The $15000 would surely have been recovered in that month plus profits. These simply attract more and more people and nothing else. I would do this too! and wont give the car to anyone:p
I will just post on my site that blah blah is the winner and he got the car, even he isnt actually there..so, wonder how much profit in that case....

Who offers free prizes?
What time span do you offer them? (e.g. once a year, once every 3 months etc?)
Does it bring more clients?

If you're going to give up just like that then you're right you're in the wrong business. Stick with your goals and have patience.

Lolzzz at first hosting was pretty expensive, but now thanks to some peeps itz almost available for free with full features and now someone gave away a car, so everyone gonna offer car's ha ha ha ha

Tere will be a booom in da car industry for sure

There are laws against this practice. At least in the U.S., and I assume in other countries as well, you have to follow some pretty strict regulations for sweepstakes. Here is an overview of the U.S. laws: http://www.the-dma.org/guidelines/sw...dosdonts.shtml.