subject: Reasons Why Hosting Companies Fail? [print this page] The web hosting business is now so much in vogue that increasing competition amongst numerous web hosting companies has led many of them going out of business drastically. Like any other business, even successful web hosting businesses speak volumes about marketing. And there is one strong reason behind the failure of many web hosting companies the marketing approach towards selling of products and services and acquiring clients. Web hosts generally tend to make common mistakes that make them lose out of the market share in the web hosting industry.
In its initial years, the web hosting business was not much severe like it is today. Some used to take it as a part-time affair and never required a strong marketing plan to foster it, while word of mouth used to be a strong promotional tool for the web hosts. Also, downtime was not a big issue either in those times. Unfortunately, many new webmasters still continue to practice in the same manner even in this fierce competitive market of today, while assuming that quality service would only comprise a basic server, a couple of features and that the clients will only run for signing up. However, internet marketing today is abreast with huge competition which requires web hosting companies to properly devise a marketing plan setting themselves apart from their prevalent competitors in the industry.
When you closely analyse the market situation, you will understand the trend of frequent price change in web hosting packages. Many new webmasters do not undergo market search and tend to fail in the later stage. Hosting being an affordable affair now, if overcharged can lead to loss of potential clients.
You will be surprised to know that companies also entertain self-inflicted damage by setting very low prices, which can surprise even potential clients in terms of products reliability and suitability.
Customer Support is another critical feature, which if left ignored can lead to problems in the successful running of your web hosting business. If a web hosting company is not offering an up to the mark customer support service through telephone or email, it is bound to crumble within few months in comparison to the competitors who are doing exceptionally well in providing customer support.
