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Adding Value to Your Hosting Company

By Mark Drake
Posted Friday, October 1, 2004

As a hosting provider you face the challenge of constant change and the need to adapt to the Internet market space. The global economy that the Internet generates has given access to markets previously less attainable, while also generating higher competition in those same markets. The hosting industry especially has become much more competitive over the course of the last 2-3 years with consolidations and price reductions as companies fight for the same business. You can now get hosted for as cheap as a couple of dollars per month and get an ecommerce plan for as cheap as $4.00.

How are hosting companies going to stay competitive while their margins are consistently being eaten away?

The answer is straightforward. One of the key aspects of remaining competitive and generating margins is by providing value-adds. Every hosting company already knows this. If you are a hosting company that doesn't offer additional value to your customers and prospects, you may as well just throw in the towel since there are about a million hosting companies out there vying for the same business. You have to have something to set you apart. You have to bring value to the prospective customer.

Enter Private Label Web Design.

Private Label Web Design allows hosting companies to take advantage of the skills and production abilities of companies who specialize in design services. Private Label Web Design also allows those companies to compete in a market without worrying about rising production costs. A hosting company can simply private label the services, mark it up, and sell it to their customers.

While there are plenty of companies out there providing "Do-It-Yourself" services that can be offered by a hosting company, there are mroe companies now offering an option for custom design. What is meant by custom design? Simply any design service that takes the design of a site out of the customers’ hands. There are many different ways this may be offered.

Why Private Label?

Private Labeling is simply the best, fastest, and easiest way to start increasing margins without having to incur large overheads and increasing costs.

Some of the larger players in the industry (Affinity Internet , Interland ) have already started to offer web design solutions to their customers. What does this do for them? It allows the hosting company to enter the design market and capture the larger margins typically associated with design work.

One of the few places to find this service is at DesignVAR. DesignVAR brings hosting companies an opportunity to watch their margins start growing again. In fact, with web design services you can structure plans to create a large amount of up-sell opportunities. The question is how to do this without having to create large fees to the client because of hiring in house designers...especially if you expect a large amount of demand and hence production cost.

This is where Web Design Private Label Web Design comes into play for the hosting company. Outsource companies are typically able to provide attractive contracts to hosting companies due specialization and internal tool development that allows them to offer services without draining the bank account of the customer or hosting company. Web Design Private Label Web Design is the solution for hosting companies looking to stand out from their competition and bring more value to their prospective customers table.

Your hosting business may do well to incorporate this service into your product line as a solution for reenergizing your sales and margins.

Learn More…
If you are interested in learning more about how Private Label Web Design can help increase your revenues please contact us at DesignVAR, or dial direct at 866-880-2754.

About the author:
Mark Drake holds a Masters Degree in Computer Information Systems (CIS) and is a co-owner of is a wholesale design firm providing private label custom design services to hosting companies and ISPs.


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