Hosting business

ParkInHost

Member
Verified Provider
Hello,

How long does it take to have a stable business with decent orders every day for a start up hosting company?

Please share your experience.
 
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TurnkeyInternet

Active Member
Verified Provider
It should take some time to get a viable real business going with customer referrals, and traffic - that said if you have money to burn you can buy traffic with ad-buys pretty fast to propell you up.  The issue is that you will spend a lot more to acquire a new customer when you have no ratings, feedback, reviews etc - as less people will trust once they get to your page to convert to a sale.   So you really have to build it with reputation for the first year(s) before you sink into the growth phase of investing in marketing.
 

ParkInHost

Member
Verified Provider
It should take some time to get a viable real business going with customer referrals, and traffic - that said if you have money to burn you can buy traffic with ad-buys pretty fast to propell you up.  The issue is that you will spend a lot more to acquire a new customer when you have no ratings, feedback, reviews etc - as less people will trust once they get to your page to convert to a sale.   So you really have to build it with reputation for the first year(s) before you sink into the growth phase of investing in marketing.
Thanks for the good info.
 

Mid

New Member
I am not any business owner or a marketing specialist, but even before getting to the basic things you have vps/servers ready in 3 locations (russia,germany,NL). If you get the vps or servers only upon orders from clients, that's OK, otherwise you are already on the back foot, unless you are a mega/giga player like godaddy/etc/etc. 

http://w3bin.com/hosting_infographic

most hosting locations seem to be in usa & europe, how many would prefer a russia vps (it accounts to about 4% when compared to us & eur locations added)

I might be wrong, but unless you know why you choose the russian locatioin (cheap?), more prospective clients might not choose them. If you are targeting russian clients, that's OK, otherwise it might be a mistake.
 

ParkInHost

Member
Verified Provider
I am not any business owner or a marketing specialist, but even before getting to the basic things you have vps/servers ready in 3 locations (russia,germany,NL). If you get the vps or servers only upon orders from clients, that's OK, otherwise you are already on the back foot, unless you are a mega/giga player like godaddy/etc/etc. 

http://w3bin.com/hosting_infographic

most hosting locations seem to be in usa & europe, how many would prefer a russia vps (it accounts to about 4% when compared to us & eur locations added)

I might be wrong, but unless you know why you choose the russian locatioin (cheap?), more prospective clients might not choose them. If you are targeting russian clients, that's OK, otherwise it might be a mistake.
I started my business with some risk. I cant buy service based on the clients orders.

Russia is one of the good hosting location. In your info-graphic link you can see Russia is in 8th position aswel. And yes, we are targeting Russian clients and i have few European clients hosting on Russian servers.
 

RTGHM

New Member
You have to remember not to go 100% low-end right off the bat, start off with reasonable prices - you won't "storm the low-end market" - you'll have to spend atleast a few months building a stable business before you dabble into that market.
 

ParkInHost

Member
Verified Provider
Thanks, Yes i understand. I have configured with very reasonable profit margin. I would retain it for another year probably to build my business.
 

HostAg

Member
I think it takes longer than one year for the orders to appear on a regular basis. It is very hard to build the reputation, but once you do that, the clients are in the bag. Think yourself as a consumer, when you go and buy something, what do you look for? Then you already have half the answer.
 

Aurimas

New Member
Verified Provider
Building a good name is the most important thing for all beginners. The effort you put now to ensure a reliable service (with great support - preferably) will really pay back in the future.
 

RTGHM

New Member
Thanks, Yes i understand. I have configured with very reasonable profit margin. I would retain it for another year probably to build my business.
I saw your above comment about Russia, you should try Moldova, they have cheap prices there, if you get in with hosteasy I believe they're piggy backing off of Voxility's ddos protection, but it's all free to.
 

William

pr0
Verified Provider
Their system however means ALL traffic is routed through Bucharest, which removes any sense with hosting in MD.
 

drmike

100% Tier-1 Gogent
Hello,

How long does it take to have a stable business with decent orders every day for a start up hosting company?

Please share your experience.
6 months~ if you keep a clean nose, are good about customer responses and right price [depending on niche / market].  Plus service uptime should be good and minimum of noise out there.

You'll get orders prior to that obviously, but that's about when it should start clicking well or due to really revisit your plans and approaches.
 
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