Want to add hosting to your services? Use these tips for success!
Danny, October 5, 2019
Before you start to sell hosting, there’s some thing to keep in mind. In this blog we’ll give you some tips on how to successfully sell hosting services. So read this blog carefully in order to not be confronted with surprises. Offering hosting isn’t rocket science, but you’ll benefit from taking the right preparations.
Convince your customers
When hosting becomes part of your service package, you need to be able to sell it as well. Which benefits will your hosting bring your customers? Make sure you can clarify this and make sure you’re telling your customers.
For the customer who uses your products or services, it is nice to have everything under one roof. This saves hassle in invoicing. For many customers it is therefore nice to have a total package. When you add hosting to your service package, you can provide the customer with this wish. This makes your service or product range more complete.
Many hosting providers have so-called reseller programs. This gives you the opportunity to purchase server space at reduced prices. By buying large, you create extra turnover every month without overpricing your customers. This sometimes makes it even more attractive for the customer to sign up for hosting with you than directly with the hosting provider itself.
When customers host their websites with you, you’re able to provide service to them by dealing with hosting issue’s. In case of hosting problems you’ll be the mediator who contacts the hosting provider. Emphasize this piece of extra service. It saves a lot of time for the customer if he doesn’t have to go after hosting problems himself. For this reason you should get a contract with a quality hosting provider. You don’t want to lose your own focus by constantly working on hosting issues. Managed hosting is therefore a good option. This allows you to continue to focus on your core business without regularly running into hosting problems. We call that #NoMoreWordStress.
Convince your customers of the hosting quality you’re offering. With a good provider backups are automatically created, all security certificates (ISO certification for example) are present and there are various performance-enhancing features on the server. All in all, a website becomes safer and faster with less downtime. What entrepreneur wouldn’t want that for his website?
Your customers might already have hosting at another provider. You could offer a trial period for them to try out your hosting for free for a month. If they’re satisfied, the contract of your hosting can start right away. If the hosting goes well, there are few customers who cancel their hosting afterwards. The fact that they’ve been able to freely use your hosting for a month means that customers dare to make the switch more easily.
Determine the right price for your hosting
The key question in determining the right price for hosting is: how much value does it bring to the customer? A fast website, puts the customer ahead of his competition. Speed results in more conversions and a better Google ranking. A well-secured website means there is little downtime. Well-protected websites generate more turnover because they are always available (It’s difficult for customers to create revenue when your webshop is offline). In addition, the company website is the brand awareness sign for every company. Non-webshops should therefore also have a site that’s always accessible.
What is it worth to the customer to have a well-functioning website? Is it worth to save 20 bucks a month by not getting quality hosting? Because of the advantages of quality hosting, customers who run a serious business can quickly earn those costs back. How do you find out how much you can charge for hosting? Simple: ask your customers. What price is fair for the quality and service they receive in return? Of course you can also ask your hosting provider what price you should keep. A good hosting provider thinks along with its customers. Make use of this!
Tip: check our calculation tool to find out what the reselling of hosting can do for you!
Form of contract
When you start to offer hosting as a service your clients need to sign a contract. Often you already have contracts with customers for other services you offer. Hosting can then be incorporated into existing contracts as an extra paragraph. This gives the customer a single contract with all the services on it. If the customer wishes, you can also invoice separately. Usually it’s nice to align your clients contract with your own contract at the hosting provider. When you get a contract for a year, it is also nice if the customer concludes a yearly contract with you.
Make sure you have a good administrative system
The fee you charge for your hosting services has to be paid at fixed times. For this to run smoothly, it is important to have a good administrative system. The cash flow you generate when reselling hosting should not be endangered. With the right system, you ensure that everything remains clear and that customers receive their payment requests at agreed times. Some of the payment tools that can help you with this are:
– mollie.com (NL)
Interested in how you can sell VPS hosting to your clients?
Download our checklist or get in touch for some advise!