A Reseller Business Model That Actually Works - Page 2

hostingpuppy · Post #16 (**permalink**) 06-26-2007, 12:48 PM

You've made my point. 80% of your customers would rather pay than refer you.

I find your numbers a little hard to believe. 2 people netted you 200 *paying* customers in a year? That seems to be an uncharacteristically large number of referrals. Are you sure you're not augmenting your marketing efforts by other means which may be bringing people in?

But hey, if it's working for you that's great.

hostnola · Post #17 (**permalink**) 06-26-2007, 12:49 PM

Quote:

Originally Posted by ldcdc

It does seem so, but you don't need all your customers (businesses) to be recommending your service. A few will do as long as they've got the connections and inclination to do so. Small businesses are often enough little more than a person.

Exactly. And what one person business wouldn't like to save money on their hosting. Especially when you give them the exact same service that you'd give a larger small business. I had clients who were doctors, lawyers, contractors, home businesses, consultants, etc. You'd be surprised who wants/needs this type of personalized service.

hostnola · Post #18 (**permalink**) 06-26-2007, 12:51 PM

Quote:

Originally Posted by hostingpuppy

You've made my point. 80% of your customers would rather pay than refer you.

I find your numbers a little hard to believe. 2 people netted you 200 *paying* customers in a year? That seems to be an uncharacteristically large number of referrals. Are you sure you're not augmenting your marketing efforts by other means which may be bringing people in?

But hey, if it's working for you that's great.

It wasn't just the 2 free customers. They did net me 50. But I also had a lot of referrals from my other customers. Plus advertising in a local niche paper netted me quite a few.

hostingpuppy · Post #19 (**permalink**) 06-26-2007, 12:52 PM

Quote:

Originally Posted by hostnola

It wasn't just the 2 free customers. They did net me 50. But I also had a lot of referrals from my other customers. Plus advertising in a local niche paper netted me quite a few.

Ahh...so your model is really referral plus traditional advertising. Kind of takes the punch out of the whole thing

hostnola · Post #20 (**permalink**) 06-26-2007, 12:58 PM

Quote:

Originally Posted by hostingpuppy

Ahh...so your model is really referral plus traditional advertising. Kind of takes the punch out of the whole thing

Not really. I didn't start the traditional advertising until after I was making money with the hosting. I used the profits to pay for the niche paper ad. It was just a smart decision to make at the time. I could have kept going the way that I did, but I wanted to see a little extra growth.

The local ads also put my business in front of someone who made me an offer that I couldn't refuse.

yphost.com · Post #21 (**permalink**) 06-28-2007, 12:34 AM

Well,
i really appreciate your post and the efforts you put in towards compiling it,
but i do think it wouldn't work if used widely,
the web hosting industry does have certain limitations due to the huge number of people who have jumped into the hosting business..

tru1 · Post #22 (**permalink**) 07-04-2007, 06:05 PM

Quote:

Originally Posted by stealthdevil

No model works for everyone.. If everybody used that model, then soon enough it would be useless as it eliminates any uniqueness amongst hosts..

You need to also consider that you move into many different segments of hosting. You have simply stated a small niche..

Not to mention, that is all easier said than done..

Couldnt agree more