The Future of Web Hosting Is?

For my first trick as a blogger, I will follow my other bloggers over the intellectual cliff and prognosticate about the future of our industry! On second thought let ‘s just focus on how Resellers can survive the Recession of 2009 and then try to tackle items higher up on Maslow’s hierarchy of needs some other day. I plan to explore each of the following topics in detail, in future blogs but for our first time together; here are what I believe to be five keys to surviving the Recession of 2009: 1. Take care of those that brought you to the dance. 2. Let new customers know you are in the game. 3. Cut costs not opportunities. 4. Upgrade quality do not increase quantity. 5. If the products are not making a profit, they do not make sense. Take care of those that brought you to the dance! Your current portfolio of customers, are the cornerstone of surviving the economic downturn. If ever there is, a time to nurture relationships with non-promotional communications now is the time. Surveys, one on one phone calls and polls about what you do well, what you can do better and what do customers want from you in the future are essential to making the corrections to maintaining recurring income. Furthermore, if you have product or service ideas that you are contemplating offer try-buy opportunities to your long-standing clients. Lastly ask what you can do to make their businesses more profitable. Let new customers know you are in the game! Efficient and effective marketing is extremely critical. However, it also means going outside of your comfort zone and exploring new venues for telling customers about your business. Online advertising is relatively inexpensive and can yield excellent results, however, choosing where to hang out your shingle is still more art than science. Consider this; there are millions of small businesses that are not on the web. These untapped opportunities need a different outreach effort and level of care versus the current firms that have web sites and execute some if not all of their business operations over the Internet. While the perception of market maturity is prevalent, the reality is substantially different. The real task is how to reach businesses not on the web, show them the value, and return on investment that results from buying a domain, purchasing a hosting plan and setting up a web site. Cut costs not opportunities! The analysis tells the story in stark positive or negative numbers, the choices are hard and cannot be avoided. Timing is crucial. Creative solutions are not always readily apparent when decisions about where to trim operating costs are involved. In this realm of operating a business, cutting corners on infrastructure will inevitably lead to declines in customer service, and consequently recurring revenue and reduce your ability to take advantage of new opportunities. Strategic alliances, partnerships and teaming agreements are in- expensive ways to leverage your organization and expand your market reach. Identifying complimentary organizations, products and services should be the focus of your efforts to contain and or reduce costs, while increasing the breadth and value of your offerings to your customers. Upgrade quality do not increase quantity! On the surface the above statement may seem to conflict with the last paragraph. However, it does not, this aspect of operating a hosting Reseller is the same as operating a produce store. You have to manage your inventory closely. First by keeping fresh products and packaging in front of the customer and then get rid of those that are stale or that have lost favor due to changes in technology. Also, keep those plans and services that work, day in day out, that don’t break, are easy to service, and they contribute net operating income. I know I know it is easier said than done but actively carrying out this aspect of the marketing process is well worth the effort. If the products are not making profit, they do not make sense! Ahhh! The sharp pencil rules when the revenues are not as plentiful as one would like. The essential element in this discussion is being true to yourself. Yeah, yeah, you may have the lowest price in the western hemisphere but if you have to sell one plan to every man woman and child on the Internet to achieve break even then you might want to reconsider your strategy. Your pricing strategy and product mix is the key to maintaining and expanding your customer base, and your contribution margins are essential in determining your line of services. Also, make sure they are within the scope of your ability to support the customer or better yet the type of business or industry in which you have a strong knowledgebase. Selling Internet services is not the be all and end all of business activity. It is a support activity to operating businesses, such as food distribution companies, auto repair shops, and beauty salons, therefore, keep in mind the role your services and plans play in the overall business activity of your customers. Remember your plan or service helps them make money doing what they do best and consequently you will be profitable. Alphonso Whitfield is VP of Marketing for AIT. AIT offers; Web Hosting, Domain Name Registration, Web Design, Email Services, Technical Training, Enterprise Network Solutions, AIT has Managed Dedicated Servers, for both Windows and Linux Server Environments. AIT has more than 1,500 Resellers and is, home to over 210,000 customers that include Fortune 500 companies as well as small businesses. Founded in 1996 AIT has grown into a multimillion-dollar web hosting and technology company, from its humble beginnings in a garage to its current 93,000 SF headquarters. Small businesses to larger clients like Time Warner, Microsoft, Newsweek, U.S. Federal Government, PC World, United Nations, Business Week, the State of North Carolina, Department of Defense, Wall Street Journal, ZDNet, Pizza Hut, GOODYEAR, Smart Money, Discover Radio, and many more have benefited from AIT's products and services. AIT has achieved 13 straight years of sustained profitability and been named 2 times to The Inc. 500 list of fast growing firms, 3 times to the Deloitte & Touché Fast 500 list, and NC Entrepreneur Firm of the Year. AIT enables businesses and empowers entrepreneurs through powerful technical and marketing solutions, which are unique, user friendly, and unmatched in performance throughout the industry.