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  1. #1
    Would you rather 1000 small clients or 100 large clients?
    1000 clients could mean more work, but wouldn't be as bad if you lost one and vise versa.

    Discuss!

  2. #2
    Melbourne DataCentre RackCentral's Avatar
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    Hi Andrew,

    The actual answer to your question depends on the services they are subscribed too.

    If it's shared hosting - you most likely don't want 1000 shared customers as this can put a lot of strain on your support staff. Generally shared customers
    take up the most time on the helpdesk. This is one of the reasons RackCentral does not dabble in this market, oh and the fact that we don't like to compete
    against our customers who offer these services.

    On the other hand if it's 1000 co-location customers there support is minor in comparison and you would ultimately prefer this option.

    Cheers
    Shaun

  3. #3
    Thumbs up
    Quote Originally Posted by RackCentral View Post
    Hi Andrew,

    The actual answer to your question depends on the services they are subscribed too.

    If it's shared hosting - you most likely don't want 1000 shared customers as this can put a lot of strain on your support staff. Generally shared customers
    take up the most time on the helpdesk. This is one of the reasons RackCentral does not dabble in this market, oh and the fact that we don't like to compete
    against our customers who offer these services.

    On the other hand if it's 1000 co-location customers there support is minor in comparison and you would ultimately prefer this option.

    Cheers
    Shaun
    Haha yeah good points.
    With larger company's like GoDaddy, do you think they would be more interested in having lots of smaller customers?
    I feel as if their package deals are aimed at that target audience.

  4. #4
    Melbourne DataCentre RackCentral's Avatar
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    Godaddy are different - they have taken square aim at the consumer market. This typically sees an average maximum spend of XX per consumer and base there growth on that.

    The problem with putting yourself in that category and being there for so long - it's hard to move into services in the hosting industry as people recognise the brand as a consumer brand only.

    Creating other branding entities allow companies like GoDaddy to offer services into other markets without brand confusion. The problem is that itself is not easy to carry out correctly.

  5. #5
    Registered User Fluccs's Avatar
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    Quote Originally Posted by Andrew - Gohost View Post
    1000 clients could mean more work, but wouldn't be as bad if you lost one and vise versa.

    Discuss!
    I think the secret in this industry is to have multiple streams of revenue, and focus on ARPU.

    For every business customer that buys hosting/domains may also need things like SSL, CDN, SEO, SMS, email marketing etc.

    The more services a customer has the more likely they are to stick around because they have one point of contact. At the same time means you have to go above and beyond to keep them happy to keep your margin!

  6. #6
    Quote Originally Posted by RackCentral View Post
    Godaddy are different - they have taken square aim at the consumer market. This typically sees an average maximum spend of XX per consumer and base there growth on that.

    The problem with putting yourself in that category and being there for so long - it's hard to move into services in the hosting industry as people recognise the brand as a consumer brand only.

    Creating other branding entities allow companies like GoDaddy to offer services into other markets without brand confusion. The problem is that itself is not easy to carry out correctly.
    VentraIP are the Australian version of this, they've started out mainly going for the consumer market but have then setup other brands including Zuver for the budget end of the market and Synergy Wholesale for the wholesale end of the market.
    In terms of your question, its fine having 1000 customers but you need to have both the capacity in terms of hardware and software and more importantly you need to be ready to handle the increased support load.
    Its one thing buying a heap of customers or running a huge marketing campaign but you need to have staff available to answer support requests.
    CPK Web Services
    The one solution
    Get in touch www.cpkws.com.au/contact.php

  7. #7
    Quote Originally Posted by Fluccs View Post
    I think the secret in this industry is to have multiple streams of revenue, and focus on ARPU.

    For every business customer that buys hosting/domains may also need things like SSL, CDN, SEO, SMS, email marketing etc.

    The more services a customer has the more likely they are to stick around because they have one point of contact. At the same time means you have to go above and beyond to keep them happy to keep your margin!
    Yeah I agree with this. Plus you need to keep up to date with technology as it changes, I mean a few years ago CloudLinux didn't even exist but now everyone is using it.
    At least for shared Cpanel hosting anyway.
    It does make it harder to come up with new ideas when we all use the same technology.
    CPK Web Services
    The one solution
    Get in touch www.cpkws.com.au/contact.php

  8. #8
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    in my opinion 100 big customer, as they will need less work and time. so I can do another stuff

  9. #9
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    Quote Originally Posted by Chaddy View Post
    In terms of your question, its fine having 1000 customers but you need to have both the capacity in terms of hardware and software and more importantly you need to be ready to handle the increased support load.
    This. One of my friends runs a web hosting business and has around 400-500 clients. He says most of his time is spent on support.

    I would always go with a relatively small number of big customers.

  10. #10
    Registered User lomeydecos's Avatar
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    Thumbs up
    first we should know how do you classify Big and small? Big pays you 10 times more for same service as the small?
    if yes, 100 big clients are good option.

  11. #11
    It is very important to treat your customers equally - as a service provider you shouldn't put priority on a big client's issue while making your "small" or "regular" client to wait and be unsatisfied.

    This way you lose credibility and you lose the respect and trust of your customers.
    And trust is everything in the service industry.

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