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Providers: Why Didn't Your Monday Start With a Ton of New Orders?

Scrooge McDuckRecently I checked the cost of Google Ads (formerly known as AdWords) for terms such as “vps hosting” or “web hosting”.

For those who don’t know, GoogleAds are what appear on the top of searches, on the side of searches, and as ads on many web sites.  If you want to advertise this way, you pay a per-click cost.  If you’re advertising for your florist in Smallville, Wyoming, the odds are that your costs are going to be pretty cheap since it’s an auction-like system.

But what if you want to advertised hosting-related terms in, say, North America?  North of $2 per click.  That means every time someone sees your ad and clicks on it, that costs you $2.  Doesn’t matter if they buy or not – they clicked the ad, it costs you $2.  Somewhat galling is when you search for something and see an ad at the top, and then a normal search result right below it.  You know people are going to click on the ad since it’s more prominent, and hence cost you money.  No wonder Google Ads recommends a $500-750/month budget just to start!

Now, what is the real cost to acquire a customer?  It isn’t $2 because not everyone who clicks will buy.  Is it one in five?  One in ten?  One in twenty?  If it’s one in ten, it cost you $20 to acquire that customer.  If they sign up for a month, pay you $5, and then leave, you took a loss.

Even if they stay for a year, how many months do you have to keep them before you break even?  If you’re selling VMs for $3-4 per month, it can take a years’ worth of profit before you net out the advertising cost and start earning.

But the real problem is the shotgun approach.  Someone wanting $50-a-month white glove WordPress service is going to click your ad and not be interested in your $1-a-month cheap cPanel.  Or they’ll see “dedicated server” and click, only to find out you don’t offer service in, say, Florida and so they leave.  It’s like advertising on the SuperBowl: sure, if you’re selling a mass item like cell phones or trucks, it makes sense.  But for niche players, it’s suicide.

Needless to say, there’s a better way.  Might I recommend the LowEndNetwork?  Let’s compare:

  1. Extremely targeted advertising!  Our readers come here because they’re looking to learn about and buy hosting.
  2. Cheaper rates!  Our advertising is not going to cost you the $500/month – in fact, you can start for $75/month.
  3. We also offer advertising on our high-traffic forum, LowEndTalk, where you can directly engage with your customers.
  4. And finally, we’ll even post your offer for free on LowEndBox!  Just fill out the template.

In a nutshell:

  • Better advertising
  • Cheaper advertising
  • Some free advertising

If you’re not drowning in sales, you need to advertise.  Why not get the week off to a roaring start?

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