For the warrior experts! I would like to hear your thoughts!

Have you tried giving a modest app or product away for free (or preferably, for the price of an email sign-up - you ARE building a list, aren't you?) - or a lite version of a product with the option of an upgrade to a Pro (paid) version that features more bells and whistles.

If you've never studied the loss-leader concept, you can do so here:

The Art of Using Loss Leaders to Attract New Business | QuickBooks

As you know there are lots of providers online such as yourself. IMHO you want to beat them as being the best among the lot. It seems to me most dont care who takes advantage of their free offer but you'd have to take that into consideration if you get popular. One thing you can do is find sites that are showcasing these type of site builders and get them to list yours amongst the others, maybe offer them something in exchange that wont cost you anything like a premium service for free or discounted a lot. Try to get lots of positive reviews. Ramp up your service see what they are doing and make yours better.

As far as attracting business owners maybe a email funnel get a front end free ebook or videos made telling them why you can help them better then anyone else. Advertise your funnel, of course you can always cold call, email, direct mail businesses hope that helps some. Also get a video made by you talking or an actor describing your services and start a youtube channel build the channel up with professional videos all about the free and paid hosting services