Recent EIG buyout of HostGator - Solution for Hosting Affiliates

by successmc

Posted: 12 years ago 42 replies

INTERNET MARKETING

Hey guys,

I know there's a lot of talk on the Warrior Forum and other places right now about how HostGator was acquired by EIG and how this could have a big impact on HostGator's affiliates. And I've seen people posting about how they got screwed when EIG bought Blue Host.

I got an email a bit ago that triggered the idea of writing this post and mentioning some alternatives.

I've received over six figures in affiliate commissions from hosting, so I've been around the block a few times with this stuff...

Frankly, when I referred my traffic to HostGator, I felt like I got screwed over all the time. I was always left wondering why I only got paid on 50-60% of the buyers I sent. Even when I sometimes referred people I knew that kept their accounts, I didn't get paid on them and never got a good explanation. Just some BS about it was part of their policy.

Others I talked to were saying the same thing, so I knew it wasn't just me.

For a long time, I could not find a good alternative since whenever I went looking for one, I'd find people posting stuff about other companies that was as bad or worse as what I experienced. So I suffered with HostGator's practices since my customers needed hosting from someone and I was getting paid something.

Then about a year ago I started actively looking around for a better solution that paid on time but still offered a good package to its buyers with good hosting. After doing some of my own research and talking to several other marketer friends of mine, I pretty much came to this conclusion:

Almost all of the bigger hosting companies seemed to change their policies left and right, screwing both affiliates and clients from time to time, but the really small hosting companies seemed to either not be able to offer the same kind of support or low pricing, but also seemed to have a problem paying on time or paying at all (even more so than the big guys).

So the happy area is in the middle -- companies that are big enough to have huge support teams, reputations that they have to keep with affiliates, etc., but small enough where they still can work with you one on one.

There's a few different ones that fit this, but my personal favorite one is Brain Host and I'll tell you exactly why: they have a dedicated affiliate manager that I can always get ahold of and solves any issues I have, they pay a very good chunk in affiliate commissions, have transparent reports, open to custom solutions, pay their affiliates on time, and have a pretty big support staff and reasonable pricing.

I could never have made nearly as much as I have with Brain Host if I'd stayed with HostGator.

And this post was triggered by me getting an e-mail from them with a press release about how they wanted to take advantage of all the worried hosting affiliates now with the recent buyout of HostGator, so I figured I'd offer my two cents on this issue.

And for those that are interested, here's a link to check out their press release that they sent out and the bonus they're offering new affiliates: http://brainhost.com/affiliates/see-...-alligator.php. BTW - that's not an affiliate link and I'm not connected to them at all -- I just think this could be a decent opportunity for many hosting affiliates out there and thought I'd share my experience.

Or if others have any other suggestions for good alternatives, feel free to share.

Shawn Casey

#affiliates #buyout #eig #hostgator #hosting #recent #solution

GarrieWilson

12 years ago

I looked at their site and would avoid them for two reasons.

1. They are using GEO targeting to say they are the best in my state.
2. They say the 7.95 anual plan anual is the best value when 6.95 bi-anual is actually better.

-g

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MacMiller 12 years ago

Originally Posted by GarrieWilson

1. They are using GEO targeting to say they are the best in my state.

-g

How does that effect your views on the company? To me it doesn't seem like a big deal, which is why I am asking!
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- GarrieWilson 12 years ago
  
  Originally Posted by MacMiller
  
  How does that effect your views on the company? To me it doesn't seem like a big deal, which is why I am asking!
  
  Because it's dishonest.
  
  -g
  
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- cjreynolds 12 years ago
  
  With all the folks worrying about HG's service suffering because of the buyout, it sounds like a great time to check out another alternative - you could jump on as an affiliate for a competitor like brain host and catch all the disgruntled HG customers
  
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cjreynolds

12 years ago

Originally Posted by GarrieWilson

Are you sure they're using geo-targeting, or are you basing that just on the fact that you saw "Best Web Host in [My State]" on their website? Not tryin to be a smart-ass, but some folks would make that leap without investigating further...

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GarrieWilson

12 years ago

Originally Posted by cjreynolds

Yes.

[19:17:01.724] GET http://j.maxmind.com/app/geoip.js [HTTP/1.0 200 OK 1107ms]

But you are right. A lot of people do jump make unfounded leaps.

-g

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briankoz

12 years ago

Regarding the geo-targeting debate, here's a question for you -- to all the web hosts that say "we're the best web host" period, are they dishonest? Or are they just dishonest if they say they're the best in one state vs. in general?

If you say your product or WSO is the best of a certain topic, software, etc., does that make it dishonest?

I don't see much argument in saying "best" in general vs. "best in [location]" as to me they both are opinions. If you say it's dishonest in one, you have to say it's dishonest in the other.

And if you say both are dishonest, then a good chunk of the WSO's, ads on TV, and websites out there are all dishonest and shouldn't be trusted.

- Brian

P.S. And for the record, I agree regarding HostGator's old affiliate program. They were bad enough then (my story with them basically reflects exactly what Shawn said above), so I wouldn't be shocked if it got worse like what happened when the same place bought out Blue Host.

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cjreynolds 12 years ago

I think part of the issue is with perception - Everybody and his dog says "My [fill in blank] is the Best Around!" or even "the Best in Town!", so we're used to that - we don't really believe that they've scientifically tested every other competitor's product and can prove that theirs is the best in the world - it's marketing language that we've come to expect.

But when they say "We're the Best in [the state where I come from]", it seems more blatant somehow - especially when you know it can be done automatically for every different state. For some reason it just seems dishonest... :confused:
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GarrieWilson

12 years ago

Originally Posted by briankoz

I don't see much argument in saying "best" in general vs. "best in [location]" as to me they both are opinions. If you say it's dishonest in one, you have to say it's dishonest in the other.

One is being very specific and appears more official. Epecially since states/towns/etc. actually vote on that type of "stuff".

-g

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briankoz 12 years ago

One is being very specific and appears more official. Epecially since states/towns/etc. actually vote on that type of "stuff".

But don't other places also vote on the best in general too? Not just by location? The best restaurant chain, the best web host, the best [enter whatever]? Lots of places can vote on that stuff, and lots of places have completely different opinions.

For instance, if you do a Google search for vacation destinations, you'll see several completely different spots claiming to be the best vacation destination. Several magazines, blogs, websites, etc. even have their own criteria for "the best vacation spot" so it all comes down to an opinion.

I agree that it can look more official, but there's hundreds of other things people do to make something look more official or better than the other.

I don't think you should throw out a company just because of that. It's kind of silly in my opinion, but that's just me -- everyone has their own opinion or say anyway.

- Brian
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GarrieWilson

12 years ago

I don't think you should throw out a company just because of that.

If a company will do something like that to get more convertions, they might also do other things to clients or affiliates.

It's just a warning sign, to me.

And yes, other places say "best too". The valid ones actually say as "voted on by" or give it some type of explanation as to how/why they are saying that.

-g

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HarrisFellman

12 years ago

Hmm.. when it comes to the GeoTargeting issue, I think it's a grey enough area to be a matter of opinion. Garrie thinks it's dishonest. Brian doesn't. Everyone has their own line of ethics. Personally, like Garrie, I'm intelligent enough to see those GeoTargeted marketing messages and think "ruhhheallly" -- I mean, it only takes two or three times for a layman to realize it.

What it does tell me about BrainHost though is that they are at least trying to get the best possible conversions.

That said, I think the real issue at hand here is *do affiliates make money* with Brain Host.

I personally know some of their top affiliates ... I know guys that test the offer against other offers as well ... BrainHost seems to consistently convert better than their competitors (not *all the time*, but pretty consistent from what I hear)... they take good care of their affiliates... and they have never missed a payment.

They're pretty good people and their affiliates are #1 to them.

(Garrie may say "shouldn't the customer be #1"?? well, I actually don't know the experience as a customer LOL - so, I don't know.)

My 2c

Harris

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mojojuju

12 years ago

Originally Posted by HarrisFellman

Everyone has their own line of ethics. Personally, like Garrie, I'm intelligent enough to see those GeoTargeted marketing messages and think "ruhhheallly" -- I mean, it only takes two or three times for a layman to realize it.

For real!

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tpw 12 years ago

Originally Posted by mojojuju

For real!

Clever. That jumped right off the page!!
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ot 12 years ago

Originally Posted by mojojuju

For real!

200 miles away
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- mojojuju 12 years ago
  
  Originally Posted by ot
  
  200 miles away
  
  That happens sometimes. For me, it shows a city that's about 25 miles away. It may be due to the fact that I haven't downloaded a recent copy of Maxmind's IP/location database since February.
  
  So I just downloaded the most recent version of the database and it's now showing the correct citiy for my location. How about for you? Is this more accurate for your location?
  
  Thanks
  
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  :)
  
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successmc

12 years ago

IMHO - when a company says it's the best, they probably think it's true. I certainly think that about my companies. But I never put it up for a vote.

By the way - for those who like geotargeting, you can check out this plugin in the WSO section - http://www.warriorforum.com/warrior-...r-results.html

Shawn

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GarrieWilson 12 years ago

Originally Posted by successmc

IMHO - when a company says it's the best, they probably think it's true. I certainly think that about my companies. But I never put it up for a vote.

See. If you said it as an individual (even though you are your company), I would look at it different than when a company or business name says it.
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Cindy Battye

12 years ago

Originally Posted by successmc

Hey Shawn, thanks for the mention! And yes - Geo Targeting 'can' be used for evil... but I have to agree with these other guys and say that saying you are the 'best' is only objective. Saying something like "[City_Name] Mom makes $336 A Day" would be a factual (and.. most cases incorrect) statement... would be an example of a 'naughty' way of using it.

My husband says I make 'the best' potato salad - but he hasn't tried all of them... so how would he know?

- Cindy

P.S. Using Geo Targeting is such a POWERFUL tool that if you have a blog and you aren't doing some of these clever tricks you are really missing out. We increased clickthrough rates on some of our stuff by over 300%! As a marketer it is silly not to!

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GarrieWilson 12 years ago

Cindy,

I like one of the example ways you used it.

Free shipping to [[city]]

-g
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- AffiliateCraig 12 years ago
  
  I've personally been affiliating for BrainHost for about a year now and have never dealt with a better team/staff to work with.
  
  I have attended numerous VIP parties, everything paid for, I have had 110% support with setting up my BrainHost affiliate program, I've never missed a payment, and by far have never had a hosting offer come close to the conversions.
  
  My customers are also very happy with the results BrainHost generates for them!
  
  With that said, BrainHost all the way!
  
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- Cindy Battye 12 years ago
  
  Originally Posted by GarrieWilson
  
  Cindy,
  
  I like one of the example ways you used it.
  
  Free shipping to [[city]]
  
  -g
  
  Thanks Garrie, yes - there are a lot of very clever marketing tricks you can do with it.
  
  On a sidenote, we have also done very well with Brainhost too. And the BH team are excellent to work with - many of them have become really good personal friends of mine now. Craig, I think you and I may have first met at a BH gig - out in Las Vegas? Fun times!
  
  - Cindy
  
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briankoz 12 years ago

Hmm.. when it comes to the GeoTargeting issue, I think it's a grey enough area to be a matter of opinion. Garrie thinks it's dishonest. Brian doesn't.

Just to clarify, I wasn't trying to say that geo-targeting is always honest -- I was trying to say that it's more a matter of opinion and is too objective to really be true one way or another when saying "we're #1."

Cindy, on the other hand, pointed out a use that I do think is completely unethical, and that is the ones that say "[enter location] Mom makes $541 in 24 hours" -- that's presented as a fact that is most likely completely false. Saying "[enter location] #1 [enter company type]" is more of a matter of opinion and therefore harder to say it's true or not.

- Brian
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listpaydaypro 12 years ago

Brainhost FTW!!! having been to their world head quarters 2X All I can tell you is that its a class act of an organization run by some of the most brilliant minds in marketing today.

taking care of affiliates is one of the reasons I went with brainhost on now 3 projects. they pay on time, and they don't screw you out of a single penny. (unlinke the gator)

they give cool ass swag as well... see pic attached!

USE BRAINHOST [shameless self gloss] "from a marketer that's sold over 1M online" [/Gloss]
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- BPozzobon 12 years ago
  
  Hello All,
  
  I want to chime in on BrainHost. I have been an affiliate of there's for a while and have been very happy. I like the fact that they can customize things to my needs and offers and are always there to help!
  
  Brendan
  
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justaskbigjohn 12 years ago

I probabally shouldn't even be posting this. It's going against my better judgement as I hate having competition, but I've actually been an affiliate with BrainHost for a couple years now and LOVE how they work with you. You're not just another number and the payouts have always been right on time!! Oh and whoever thinks Geo targeting is bad should go back and take another lesson in marketing because it absolutely helps your conversions!!!
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mojojuju 12 years ago

I have a question for Brainhost affiliates.

I just took advantage of one of Brainhost's 12-months free promos, like this one.

My question is, if a brainhost affiliate's cookie is on my computer, how much would the affiliate get paid, if anything, for a free signup like I just did?

Another question, when I signed up, there were 7 pages of upsells , with some items costing a couple hundred dollars. Do affiliates get a percentage of those sales too?
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lanceg 12 years ago

Well, I've tried twice now to sign up on their affiliates page, but both times the webpage just hangs ("Waiting for affiliate.brainhost.com...") when I hit the submit button.

Not my connection either, as other websites load just fine on other tabs. Maybe there's so many warriors trying to sign up as an affiliate right now that their servers are overloaded...

Not a good sign imo when a hosting company's own website can't gracefully process an application form. The damn thing won't even time out...just hangs indefinitely.

I use hostmonster for my own websites, but their payout to affiliates sucks. Any other recommendations outside of brainhost?
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WillR

12 years ago

This thread is what's so wrong with Internet Marketing nowadays.

A lot of you affiliates are so concerned about what company offers YOU the best payout and service.

What about your customers who are actually paying the money and using the service you are promoting?

I would be much happier to work with a less desirable affiliate program and know that my customers are getting the best possible solution they can for their money rather than recommend them a second rate service just because my commissions get paid on time and I make more money with that company.

My customers are a lot more important to me than the commissions I might earn from them.

It's a big distinction to make and most affiliates out there make the wrong choice. They go after what suits THEM not their customers. This thread is a classic example. It's all about me me me.

P.S. I have not used brainhost or ever heard of them before so I have no idea about the quality of their service. But I am guessing some of you who decide to switch over and start promoting their hosting will also have no clue as to the quality of their service before you promote it... and to me, that's just wrong.

But each to their own.

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lanceg

12 years ago

Well, actually that's what prompted my post. I do NOT want to promote a host that is constantly having performance issues, regardless of the payout. My particular market has small websites that are not performance-intensive at all, but the fact that I can't even successfully process the affiliate form is a red flag for me. Perhaps it's just a temporary glitch...I'm not sure as I'm not currently a customer of brainhost. Perhaps a current customer can comment on their overall performance.

As for best payout and service, well YES...that IS important to me as well. Why? Because most of my actual income will be coming from affiliate hosting signups. I provide free work on the front end in order to get a commission from hosting on the backend. Selecting a great hosting company (for customers) that provides small payouts or inconsistent/missing payments would hurt MY business.

What I'm looking for is a good balance...a hosting company that provides good customer service and reliable performance to their customers, AND also provides good payouts and timely payments to their affiliates. I want my customers to be happy...but I also want to have a good experience as an affiliate.

Back to brainhost...another thing that concerns me (in addition to the performance issues I encountered on their affiliate signup form) is the lack of clarity in regards to their payout. On one page they state "Earn More Than $175 Per Sale" but provide no breakdown or details whatsoever. I had to dig into the Terms of Service before I found an actual rate, which is this: "We will pay you a commission on 75% of the net front end sales." That's it. So as far as I can tell, if one of my customers signs up on a monthly plan for $7.95/month, that would result in a commission of less than six dollars...absolutely horrible.

If that's not how their payout actually works, then they need to make it clear in their affiliate signup section...which they don't. Perhaps the potential for $175 is there provided the customer buys all the upsells they encounter during the purchase process, but none of this is made clear anywhere on their website.

Again, any other recommendations besides brainhost? Or more detailed info regarding brainhost's payout structure from all those singing their praises? At this point I'm probably going to promote my own host (hostmonster) if I can't find anything better. Their payout is only $65 per signup regardless of how many signups each month, but at least I know exactly what the payout is and that the performance and customer service is good.