Posted: Thu Dec 28, 2006 8:47 am Post subject: Hosts without affiliate program cheaper at the same value?
I see a few hosts recommended by the most marketers, and they pay affiliate commission. Now I wonder if they cost more than other hosts that don't pay any commission (or not so much) but are as good. _________________ Just COPY the system from Ewen Chia. http://www.AffiliateKickstart.com
Joined: 02 Jul 2003 Posts: 5839 Location: by the beach, Australia
Posted: Mon Jan 01, 2007 10:09 pm Post subject:
If the web host doesn't have an affiliate program to promote its service, it's going to have to spend money on some other form of advertising.
Affiliate marketing is a highly effective form of advertising because the company pays only when a sale is achieved and so the company always knows exactly what proportion of its budget is being spent on marketing. That's a very good position for a company to be in.
Without an affiliate program, it would be very easy to spend money on advertising which did not achieve sales.
So having an affiliate program could actually help a web hosting company reduce its costs.
Yes, there are some VERY cheap web hosts. I've tried a couple of them and been very disappointed with the service provided. _________________ Allan Gardyne
... earning a good living from affiliate programs since 1998.
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I use Godaddy.com for all of my hosting. They are dirt cheap (about $5 a month) and I think overall they are pretty good - at least for my hosting needs. I'm sure their affiliate program helps them keep their cost down, but I'm sure they do other promotions as well. _________________ GETAGRIP Marketing - Now Just $7!
Joined: 22 Aug 2003 Posts: 1322 Location: Gainesville Florida USA
Posted: Thu Jan 04, 2007 12:16 pm Post subject:
AllanGardyne wrote:
If the web host doesn't have an affiliate program to promote its service, it's going to have to spend money on some other form of advertising.
Yup, that's it, well said as usual.
My sense is that one of the dividing lines in the webmaster world is between those who shop for hosting by price, and those who shop for quality.
Someone shopping for a cheap host is basically declaring that their site isn't too good, and doesn't really make any money, therefore it won't matter that much if the site is down.
A winner psychology is to assume that your site is going to be successful, and it will matter if you have reliable service, and thus go shopping for the best host you can find.
Here's an interesting angle perhaps.
I'm researching hosts now who mirror their sites. That is, they maintain an exact copy of your site on a 2nd machine. If the first server experiences any problem, an automated mechanism can begin immediately serving your site from the 2nd machine.
I hope to take this a step further and put the mirror machine at a different web host, in another part of the world.
It's interesting to note the Net was invented by the US military so they could route communications around any catastrophic attack.
I want my sites online, even if my data center takes a direct hit from a nuclear attack and then is swallowed by the subsequent earthquake and then flooded by the resulting tsunami. _________________ Free Email Discussion Group For Your Site
Your visitors will build your site for you.
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Joined: 14 May 2006 Posts: 432 Location: Imperial, Nebraska
Posted: Sat Jan 06, 2007 2:42 pm Post subject:
The only really important thing about hosting is that your website is always up meaning your hosting company does not have down time where you site is not online.
As for a hosting company affering an affiliate program I agree with Allan. They have to get customers somehow and it only makes sense to get referrals from their happy customers.
I host 9 websites with one company and actually make money every month because of my residual income I earn for signing up new members. _________________ Jeff Schuman
Article Writer order website and blog articles. Thousands written, testimonials, sharp pricing
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Last edited by jschuman on Mon Jan 08, 2007 1:10 pm; edited 1 time in total
There is this underlying psychology to a product that has a commission attached to it. If a person realizes there is a commission they feel they are somehow paying too much or they could get it cheaper somewhere else.
Commissions are in place for a reason. The affiliate is in effect an employee for the company albeit non contractual. They are working to earn income by advertising for the company.
It's win/win.
The cost of aquiring new customers can be so expensive that paying an entires years commission (or nearly a years commission) is worth it to the host. Why? Because once hosted most people will NOT switch to a new host at the end of the year. It's just to much hassle. And the hosts are nothing more than big data centers, and the average site will actually use very little of the allocated resources.
Posted: Wed Feb 14, 2007 11:48 pm Post subject: Re: Hosts without affiliate program cheaper at the same valu
Andyz wrote:
I see a few hosts recommended by the most marketers, and they pay affiliate commission. Now I wonder if they cost more than other hosts that don't pay any commission (or not so much) but are as good.
Joined: 12 Jul 2005 Posts: 157 Location: Hampton Roads VA
Posted: Thu Feb 15, 2007 1:51 am Post subject:
I don't want to make it sound like there aren't some lousy hosting companies, but there are also many smaller operations using the latest resources, which often do pretty much "run themselves."
Years ago I started with I guy I met on a forum and he was renting server space to resell. Over the next year, or so, he grew his business to where he was buying the latest and greatest hardware available.
Instead of relying on someone in Florida, with him being in Wisconsin, he found a server operation within a hour of his home. He took his top of the line to them where he literally rented "rack space".
They provided the highspeed connections, the backup generator, etc. He still managed and did backups from his home. Small guy, his wife did the billing, but he built himself a good business. He'll never ba a HostGator. But he offers a good value.
As far as backups, etc. here's how most servers function -
RAID (Redundant Array of Independent Disks) is a method of dividing information between multiple disks in order to obtain redundancy, minimize latency and/or increase disk access bandwidth and maximize the possibility to recover from a hard drive failure.
RAID-1 offers redundancy which means that the data on the primary disk is replicated in realtime on a secondary disk.
They will also do "real backups", but there is "built-in" redundancy with virtually all of the commercial servers out there.
It's easy to be mislead by price, thinking that cheap must be low quality and higher priced must be better.
Here's some examples you might relate to using something we all purchase.
Gasoline has an octane rating, telling basically it's "anti-knock" qualities. Anything over and above the octane rating that prevents your engine from "knocking" or "pinging" is wasted. If your engine does not ping on 87 octane gas you are throwing your money away buying a gas rated at 92 octane. There is no more power, just a higher anti-knock capability.
Yet, many people continue to buy the higher priced gas, because they think there are some benefits. There are none, just a perception that higher is better.
The same goes for "branded: vs. "unbranded" gasolines. Park outside a tank farm and watch the tank trucks load. Brand names and no-names. Use the same loading spouts. Often different name brands will load at the same docks.
Again, you can get the exact same product at the no-name or second tier station, but millions will swear that they get more for their money with a name brand product. Even though they are the same product, from the same refinery.
I'm new to the hosting business, and have not yet set up an affiliate program. I'll have it ready to go next week, I hope. And it will be a 50% commission on my Lifetime Hosting. I just need to get it up and running.
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