How does the financial recession influence on your hosting business?

A

andreyknure

New member
I would like to ask hosting providers if they feel any effects on hosting sales caused by the global economical crisis?
 
Well all I've heard is the price of bandwidth with premium providers may go up a bit... but that's about it. The recession hasn't effected us as a company yet, and in fact... we have seen a increase in signups as more companies turn their businesses to more of a online approach, and maybe a small decrease in personal blog hosting as some turn to free alternatives (myspace, xanga, facebook)
 
So far we are doing pretty good as well. We started up a smaller hosting site that is more community based (forums for client to client support for random things, nothing "server" wise but still a small place for everyone to hang out). Prices are cheaper than those of the main site we have but the plans are still well ranged. We have been lucky, I hear some other places right now are already feeling BW prices change over but ours are still decent (for the time being).
 
I'm a marketing consultant and have several clients who are hosting providers and they're doing great for the most part...

One thing is they lost some of the smaller accounts, family websites, things like that. But there's been a spike in people launching small business' and setting up business accounts.

One thing we've been doing though to help my clients is to increase the amount they make from each client instead of just focusing on getting more clients. It's made a huge difference.

<<MOD NOTE: Advertising is not allowed except for in the marketplace forums.>>
 
Same as the others here. No major decrease for the most part. A few more requests of late for users wanting to downgrade packages, however we are seeing more small business ecommerce accounts starting up. A lot of people turning to operate their own mini stores in order to make extra money or support their income.

The great thing about web hosting is that it IS a global market. The financial crisis that is happening in the United States doesn't appear to be affecting too much of the spending habbits of those in Australia, Spain, Germany, Italy or England (our major markets outside of the US).

The one thing that small businesses are doing is cutting back on advertising - this is the wrong thing to do. Pricing for advertising is actually cheaper today than it was last year. Many places are cutting back on advertising expenses which makes it ideal for smaller companies to get more bang for their buck!
 
handsonhosting said:
Same as the others here. No major decrease for the most part. A few more requests of late for users wanting to downgrade packages, however we are seeing more small business ecommerce accounts starting up. A lot of people turning to operate their own mini stores in order to make extra money or support their income.

The great thing about web hosting is that it IS a global market. The financial crisis that is happening in the United States doesn't appear to be affecting too much of the spending habbits of those in Australia, Spain, Germany, Italy or England (our major markets outside of the US).

The one thing that small businesses are doing is cutting back on advertising - this is the wrong thing to do. Pricing for advertising is actually cheaper today than it was last year. Many places are cutting back on advertising expenses which makes it ideal for smaller companies to get more bang for their buck!
Click to expand...

As long as the global market doesn't go into a depression, the web hosting industry should be fine. Since the majority of online businesses have no geographically targeted audience, there's less of a chance we'll see much business loss.
 
We haven't noticed any declines in sales other than the normal holiday-season slowdown that has already started to pick back up.
 
Well EZZI's parent company's main business is digital cinematography and they are definitely feeling the effects of it which are sort of trickling down to the hosting department. But so far nothing too bad other than a little bit extra workload... they know well enough that its not that easy to find a job out in that market right now so they can pile it up on you..
 
The financial crisis hasn't had any effect on Cyberworld Hosting. Since we do not rely on credit for the company expenses and we are a dept free company. This year we are striving on maximum growth of the company and profit too.
 
cyberworldhost said:
The financial crisis hasn't had any effect on Cyberworld Hosting. Since we do not rely on credit for the company expenses and we are a dept free company. This year we are striving on maximum growth of the company and profit too.
Click to expand...

He said it all...
 
The financial status of the hosting companies likely will not play a role, however with more people worried about their jobs and their financial situation, that's where the dropoff in hosting will come into play.

We'll wait and see what happens.
 
Over the last year sales are up 400% a big year for us. Target audience are ages 21 and up, small to medium businesses looking for quality rather than quantity. That formula has really worked for us and of course being in business for 5 years now also helps.
 
In opinion, the people who really need hosting, will purchase it all the time in spite of any financial recessions :devil:

In some countries the business for some hosting companies became even better as the USD rate of exchange has been increased.
 
Yeah, becuase of the US dollar and its weekend state, I have noticed a rise in sales coming from Europe. But, overall business is going strong and im happy :)
 
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