Wednesday, January 16, 2008

Pick Your Niche!

With so many webhosting companies around, how can you possibly become successful on a large scale? Why should
anybody decide to go with your company? How will they even find out about your company?

The trick is, don't go after everybody at the same time. The hosting industry is huge with many new potential customers and segments you can go into. Mainstream hosts tend to target those that are new to webhosting, offering a high amount
of webspace and bandwidth which the user doesn't need or will ever fully use. You can of course go into mainstream hosting, but you will have a few large companies to compete with that have a huge advertising budget.

Alternatively, you can take the easier road. Find small niche's which you can exploit. For example, you can offer premium hosting services, local hosting services, country specific hosting services, speciality hosting services, hosting services to your customers of another business perhaps and much more.

When you target a niche, naturually you will have less competitors to deal with. You can set a higher price, have flexibility to offer something you are competent in.

But don't just pick any niche and go into it - write down the things you are good at, things which you know a lot about and see which one closely resembles a hosting niche you can look into. You will have more drive and motivation when you do something you really enjoy and know a lot about.

Of course, just picking a niche won't guarantee success or customers. It will increase your chances at gaining a customer, but you still have a lot more to do before seeing a viable return..Within the niche you choose, you need to differentiate yourself from the rest. Offer something they don't. Everybody promises "fast support", "99.9% uptime", "24x7 support", "backups" and whatnot. That is not enough of a reason for why people should sign up with you. You really need to think hard about what you can offer that nobody does. What "that" actually is something you will need to decide and come up with. Best approach would be to get customer feedback and conduct surveys to see what your customers really want.

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