| Reseller -
Marketing Locally |
One of the strengths
of a re-seller is the ability to market locally. Local Internet Service
Providers
usually need to charge a much higher fee for domain name web
hosting than our re-sellers due to higher overheads; by having
the ability to provide their services for a slightly lower
fee, our re-sellers can grab a large share of the local market
and even dominate it if willing to work hard at it.
Here's
an example: Let's assume that you live in Canberra, ACT.
(this is not based on actual current Web Hosting prices in
Canberra, it's meant to be an example only)
Looking
at the local Internet Service Providers, you determine that
the Average Monthly Fee for web hosting is $55. You also
determine that the average Setup Fee is $65, and the average
cost of .com domain name registration is $60 per year.
When re-selling
our Web Hosting services, a cost example would be as follows:
From $13.33 per month for the web hosting.
$33 per
year for .com domain name registration
Giving
you a profit of around $25 per month for hosting and around
$30 a year for their domain names if you sold at the local
average rate.. Even if you only charged for web hosting at
a rate of $25 per month, you will be charging less than half
of what your competitors are asking and still have a 100%
markup.. 100 clients at this rate equals over two and a half
thousand dollars a month profit. At the same time, you are
saving your customers money by providing the services for
half the price of what they would have had to pay!
Whether
you charge a setup fee or not is entirely up to you. If you
need help setting up part of the account, a setup fee will
help to cover it.
How
to get local customers
Let's
take another look at the competition; This
time, let's evaluate their marketing ability. What are their
strengths and weaknesses? Where and how do they advertise?
In the newspaper? radio? magazines? Which ones do they use
the most? Which ones do they use the least?
Suppose
you find that the ISP's in Canberra rely
primarily on
newspaper advertising and marketing to their existing dial-up
Internet access customers, but do very little door-to-door,
face-to-face sales. This tells you that you might be able
to exploit their weakness in the area of personal contact
sales. This is usually also the most fruitful angle to work
in most communities.
To
market locally effectively you need to be where your prospective
customers will be and as often as possible. Join
your local Chamber of Commerce, Sporting, or Lions Club and
get involved as much as you can. Friends and family may already
have a foot in the door of some these places, they might
introduce you or you can even help them make some extra money
by signing them up as your resellers.
Business
Secret: People
do business with people they like, even if they can get a
better deal elsewhere. By ingratiating yourself with various
business owners, you will create a desire in them to send
business your way. Be friendly, have fun, get to know them.
Selling your service should seem to be almost an afterthought.
Another
way to pick up new customers is
by hitting the frog and toad - door to door sales. Concentrate
on the business areas in your city and visit several new
businesses a week. You might simply introduce yourself, drop
off your brochure, and answer any questions they might have.
To make a good impression on prospective
clients, always
have nicely designed professional looking literature handy.
They may never read it, but they will judge you to be a serious
about your business, and this will reflect well on your company.
There
are many other ways to market your services locally. With
a little creativity and work you can easily become the leading
web service provider in your community, we have all the resources
you need to succeed now and grow into the future, please
contact us for any questions you have or if you are ready
to get started, Sign Up for a Pack
Leader or Pack Leader PRO web
Hosting account.
Further
Information about re-selling our Web Services:
Making
Money From Home - Reselling Web Services
Re-seller
FAQ
Web
Developers Can Be Successful Web Hosting Re-Sellers |