Is this site rental package viable?

by AmyKay
17 replies
Here's the package I'm putting together. $77/mo or prepay one year for $777.

Includes:
website (actual full site w/premium theme, not just one page lead gen site)
keyword domain (veterinarianlansingmi.com, for example)
hosting
aweber optin form. leads go right to clien'ts e-mail
one e-mail mail blast monthly (client writes content. i'll send the blast)
custom logo
ongoing SEO (backlinking)
on page seo

It's a nice site, not crummy. I want to own the domain and site. I really like the site rental model. I'll sell this from the perspective that "I know you can't afford to pay $2000 up front for a nice site and SEO. Get exclusive rights to my site for a low monthly fee."

I'll have a mobile website as an upsell. Maybe $27/mo additional.

I will give them limited access to the backend to blog. I want them to blog and really make this their "own" so that they can never cancel. I'll make it quite clear in my sales letter that I own the site, so there is no confusion. That's fair, right?

To teach them to blog, I'll include this dashboard plugin v2 | Video User Manuals

Notice I'm making no guarantees of google rankings. (Although I think they will do well.)

So, is this a fair package? Is it viable? If I make it clear they are renting the whole package, it's fair to take it away if they cancel their subscription, right? I'm not obligated to send them the site and transfer the domain? if they cancel, I delete their posts and customization and rent it out to their competitors.

Any thoughts? I feel like I'm missing something.

Thanks!,
Amy Kay
#package #rental #site #viable
  • Profile picture of the author Dr Dan
    I would charge alot more than that for all the work you are offering.
    {{ DiscussionBoard.errors[4930307].message }}
  • Profile picture of the author SiteSmarty
    I think you have the right idea. I'd probably price it a little differently.

    In your scenario I'd think about add-ons instead of the upsell. This way you can get the details ironed out easily and up front.

    Your pitch will have to show them that the site will convert. That's key.

    I'd do this using gravity forms in lieu of in person, because your client/s will have time to think about your offer while mulling over your site.

    The form would look something like this:

    $77. Base Price includes (whatever you want to include. I'd go with $125 a month)
    $27. Mobile Site
    $XX. Regular hosting at HostGator.com
    $XX. Cloud hosting at VPS.net
    $XX. aWeber consulting
    $XX. Google Apps

    And so on. With Gravity you can let them select what they want and integrate it with PayPal.

    Basically you're putting your client/s in control of what they want each month and how much they want to pay. You don't have to sell them. It's like Dell does with their PC building site.

    $77 a month isn't worth the trouble. Plus, once you get over the $100 per month, they show a little respect. You can test your base price and see how it goes.

    I don't rent sites, but I have a lot out there for sale. It takes a while to get enough set up so you can get the coin rolling in. There's taker for every site, you have to be patient.

    If they cancel with you, you can do whatever you want with the site, although I'll bet once they start with you and see results, they'll keep the site.

    It's a good idea. Go for it and good luck.
    {{ DiscussionBoard.errors[4930309].message }}
    • Profile picture of the author s62731
      2 things here; $77/month is ridiculously cheap. How much is one new client worth to them? Maybe $1000 lifetime value? Then you could easily charge AT LEAST $200/month.

      One other thing is this; I would pre rank the sites. Get the site to one of the top 3 spots before you even start leasing it. Then when you make the sale, you are not selling a website for $200 per month, you are selling a website with instant traffic they would have to spend lots of $$$ on if they were using google adwords.

      Thats my personal opinion any way.

      Lease out sites with high search rankings, then you can justify higher prices
      {{ DiscussionBoard.errors[4930789].message }}
  • Profile picture of the author Seth Bias
    Here is the plan I currently run off of that does me the most business.

    6 Months: $1,194

    12 months: $2,388

    Buy Out: $5,000 (Love these paydays

    All based off $199 a month rental. I only accept 6-12 months upfront so I am not chasing the business owners around monthly. Hope this helps you!
    {{ DiscussionBoard.errors[4930954].message }}
  • Profile picture of the author krzysiek
    It depends on where you live. If in the US, you have a lot of towns and suburbs/cities to go after that can net you some good results.

    In Australia, unless you go after the prime cities (Melbourne, Geelong, Sydney etc) it's hard to make anything valuable.

    In such a case, you could rent out a site for $77/month but in some towns you'd be lucky to see even 1 lead, considering the low search volumes + all of the Google Maps in the way. Of course, you can always ensure they get some leads by targeting a lot more KW's - and in this case, perhaps you can offer several packages, each guaranteeing X amount of KW's on the first page?
    {{ DiscussionBoard.errors[4930988].message }}
    • Profile picture of the author oogyboogawa
      Originally Posted by krzysiek View Post

      It depends on where you live. If in the US, you have a lot of towns and suburbs/cities to go after that can net you some good results.

      In Australia, unless you go after the prime cities (Melbourne, Geelong, Sydney etc) it's hard to make anything valuable.

      In such a case, you could rent out a site for $77/month but in some towns you'd be lucky to see even 1 lead, considering the low search volumes + all of the Google Maps in the way. Of course, you can always ensure they get some leads by targeting a lot more KW's - and in this case, perhaps you can offer several packages, each guaranteeing X amount of KW's on the first page?

      There may generally be more opportunity in America, I won't deny that because I don't have the slightest idea what the markets are like in Australia. However, not all of the US is a sprawling metropolis.

      There are probably more larger cities in America than Australia. I know this wasn't your main point, but since I live in a rural location, I think I have a stronger urge to point out when people assume that all of America is vastly populated.

      More to the point of the thread though, regardless of where you live, there is nothing to stop you from targeting cities that have a larger economy and try to rent your sites to businesses there.
      Signature

      {{ DiscussionBoard.errors[4933551].message }}
      • Profile picture of the author krzysiek
        Originally Posted by oogyboogawa View Post

        There may generally be more opportunity in America, I won't deny that because I don't have the slightest idea what the markets are like in Australia. However, not all of the US is a sprawling metropolis.

        There are probably more larger cities in America than Australia. I know this wasn't your main point, but since I live in a rural location, I think I have a stronger urge to point out when people assume that all of America is vastly populated.

        More to the point of the thread though, regardless of where you live, there is nothing to stop you from targeting cities that have a larger economy and try to rent your sites to businesses there.
        Definitely right. Sorry if I came across the wrong way here, but you're right in the end anyway - we can target the main cities here and do just fine.
        {{ DiscussionBoard.errors[4936162].message }}
  • Profile picture of the author AmyKay
    I don't feel right about keeping their e-mail list. They will likely send their own leads to optin in by business cards, etc. I think I should open an aweber account for each client, and if they cancel, transfer it to their credit card.

    Maybe I'm a big softie. I really want to find a way to help the "little guy." I should make a "do it yourself" training course for them, which would cost much less.
    {{ DiscussionBoard.errors[4933046].message }}
    • Profile picture of the author Aaron Doud
      Originally Posted by AmyKay View Post

      I don't feel right about keeping their e-mail list. They will likely send their own leads to optin in by business cards, etc. I think I should open an aweber account for each client, and if they cancel, transfer it to their credit card.

      Maybe I'm a big softie. I really want to find a way to help the "little guy." I should make a "do it yourself" training course for them, which would cost much less.
      idk if I would transfer the account. I would just copy the list into an excel file and give them that. The list is theirs but the set up you did should not go with it.
      {{ DiscussionBoard.errors[4936198].message }}
      • Profile picture of the author MRomeo09
        You haven't given us enough information to let us know if that makes sense or not.

        How many UV's a day is the site getting? What type of traffic can you expect?

        If you're getting 10 UV's a day or 300 per month, and get a 5% conversion rate that means they get 15 leads per month. If they convert 25% of those leads that equals 4 new customers a month.

        Now you have to figure out how much the lifetime value of that customer is to the customer. A roofer at $2,500 is quite a bit different than a nail technician at $200.

        So without knowing your traffic figures, and without knowing your lifetime value I have no idea if $77/month makes perfect sense or it's too cheap or it's a complete rip off.

        The biggest determining factor is the traffic the website gets. I rent sites that get as little as 2-3 UV's a day and still get $500/mo from the site(high transaction value customer) and have others that get around 70 UV's per day and only get around $300/mo for it.

        You see there are a lot of variables.

        A rule of thumb I use is I want them to get pay no more than 20% of their profit to rent my site. Profit is important rather than gross.

        So let's look at a carpet installer. They might have a profit of $500 per install. And my site is going to get them 4 new clients a month. That means they are going to be making $2k per month profit. Which means my sweet spot needs to be around $400 a month. Make sense?

        I have to revise downward with less traffic however. If the leads are less frequent, they might get po'ed if they spent the money and didn't get the results.

        So again, a carpet installer, my site only gets them 2 new clients a month or $1k a month in profit. I need to probably be closer to $150 than $200. What I don't want to do is look for new clients very often, it's not the best use of my time. Keep in mind, I'm thinking of net profit, but I talk to them in gross. They probably are selling $2k of carpet and labor for that $500. So I talk to them about selling $8k of carpet a month for $400. They like those numbers.

        It all comes down to ROI. If I can take a business owner and show them for every $20 they hand me, I'll give them $100 take home. They love that math. That's beautiful math to them. You have to be clear on your traffic, your conversion rates, their closing percentages and their gross and net numbers. Because I've had clients who couldn't close 10% of the calls I generated for them who quickly dropped out, and others who could close 75% of the leads. It makes for drastically different numbers.

        So back to your question. I have no idea if $77/mo is a great rate, a crappy rate, or too cheap of a rate. I say it has less to do with the "services" you provide and more to do with the ROI you give them.

        However with all of that said. I think $77/mo is pretty cheap too, and you might be able to get a business person to pay that regardless of whether they get the ROI or not. But if you're looking to maximize your return all the advice I gave above is vital. I personally don't bother renting for less than $200/mo. I still have some legacy clients at $75-$150, but it's not my bread and butter at the moment.

        HTH,

        Marcos
        Signature
        We do not have to become heroes overnight. Just a step at a time, meeting each thing that comes up ... discovering we have the strength to stare it down. - Eleanor Roosevelt

        Your opinion of yourself becomes your reality. If you have all these doubts, then no one will believe in you and everything will go wrong. If you think the opposite, the opposite will happen. It’s that simple.-Curtis Jackson- 50 Cent
        {{ DiscussionBoard.errors[4936289].message }}
        • Profile picture of the author AmyKay
          Marcos, why don't you just sell the leads? Understandably, the site rental mode is easier. I'm just curious.
          {{ DiscussionBoard.errors[4936336].message }}
          • Profile picture of the author MRomeo09
            Originally Posted by AmyKay View Post

            Marcos, why don't you just sell the leads? Understandably, the site rental mode is easier. I'm just curious.
            I do. I rent in small markets and small traffic areas, and sell leads in big markets, and markets I have high traffic. I do both.

            So for instance I might have sites for carpet installers. I'll sell leads in Miami Florida but rent the site in Gainesville Florida.

            And to further clarify, I just don't know how many leads I can generate until I try. I have some niches that I have optimized the hell out of the landing page and know EXACTLY what to do and how to say it to get someone to call. I might get 25% conversion rates on the page, and others where I struggle to get 2% conversion.

            So if I was entering a new niche, I'd try to control as much of it as I can. Test it and tweak it and see if you can make it a lead-gen site. There's a lot more money in lead-gen. But obviously site rentals is easy and nice too. As long as the ROI is there for the client then it makes sense. It's much harder to get a long-term lead-gen client in my personal opinion. They just aren't typically used to this kind of model. They get renting their building/website for $400 a month. They sometimes have a hard time writing that check for $5k when most of the leads happened 3 weeks ago and the money is already spent.
            Signature
            We do not have to become heroes overnight. Just a step at a time, meeting each thing that comes up ... discovering we have the strength to stare it down. - Eleanor Roosevelt

            Your opinion of yourself becomes your reality. If you have all these doubts, then no one will believe in you and everything will go wrong. If you think the opposite, the opposite will happen. It’s that simple.-Curtis Jackson- 50 Cent
            {{ DiscussionBoard.errors[4936360].message }}
  • Profile picture of the author Aaron Doud
    Too low of a price IMO based on the total package.

    Depending on what you are truly doing you should get an upfront fee and more per month.

    Unless you seriously plan to spend 10-20 hours tops on this during the year and in the setup that just isn't worth it.
    {{ DiscussionBoard.errors[4936186].message }}
  • Profile picture of the author moneyglue
    Do rental sites work with restaurants? or do you typically look for service based businesses lawyers, roofers, etc...
    {{ DiscussionBoard.errors[4936585].message }}
    • Profile picture of the author Dr Dan
      Originally Posted by moneyglue View Post

      Do rental sites work with restaurants? or do you typically look for service based businesses lawyers, roofers, etc...
      It can if you tweak it a bit.

      You can set up a generic site that show all the local restaurants on the page just listed with a phone number but no live links.

      Then have 1 featured restaurant there with a live link. Thats one way.

      Or you can just build a 1 page wordpress site for the restaurant that links to their main site but ranks better. That way you dont have to touch their site and you can set it up fast. Also you will own the site still and charge them the monthly billing on it.

      If you stick to 1 page sites then you can rinse and repeat them pretty damn fast and easy to change the header and info (maybe 20 minutes max) that way you can switch out the renter if they stop paying fast and rent it out to their competition.
      {{ DiscussionBoard.errors[4947995].message }}
      • Profile picture of the author MRomeo09
        Originally Posted by Dr Dan View Post

        It can if you tweak it a bit.

        You can set up a generic site that show all the local restaurants on the page just listed with a phone number but no live links.

        Then have 1 featured restaurant there with a live link. Thats one way.

        Or you can just build a 1 page wordpress site for the restaurant that links to their main site but ranks better. That way you dont have to touch their site and you can set it up fast. Also you will own the site still and charge them the monthly billing on it.

        If you stick to 1 page sites then you can rinse and repeat them pretty damn fast and easy to change the header and info (maybe 20 minutes max) that way you can switch out the renter if they stop paying fast and rent it out to their competition.
        I disagree completely with having 1 page sites, for a bunch of reasons.

        1. First off Google hates 1 page sites. They don't rank well, and it's pretty difficult to get it to rank for multiple phrases unless you're willing to do a lot of off-page SEO.
        2. The clients don't have a lot of loyalty to the site. I build sites that look a heck of a lot better than their own site. So when I send them business cards with the new site on it, guess what they keep those cards and actually use them.
        3. The effort to change the contact information on a website should cost you no more than $10 to get changed,even if the site is a 10 page site. I have ODesk employees that can get it done in about an hour at $2/hr.

        Realistically it's all about client loyalty. I don't like to look for new clients, I like to keep the clients I already have. I want them to stay with me forever. I make sure they make money, love the site, love me and never want to go anywhere else. I treat it like giving them a turnkey method to bring customers in forever. I've had sites rented going on three years now, and I've doubled prices and not had them leave me.

        And about renting them to restaurants, I don't think that's a viable model for a number of reasons. I think people either go looking for a specific restaurant name or they go looking for a type of restaurant but then want to find reviews about the restaurant. You'd have to build a very deep and complex site for it to have any value to a restaurant. You'd have to have it rank across many keywords, have the ability for customers to leave reviews. A one page restaurant site wouldn't rank, would provide negligible ROI. And lastly the profit margins on restaurants are usually very low. There are much more profitable things you can offer to a restaurant than a site rental. I'd prefer to focus on higher value customers.

        I mean no offense my friend Dan, I just happen to disagree.

        Marcos
        Signature
        We do not have to become heroes overnight. Just a step at a time, meeting each thing that comes up ... discovering we have the strength to stare it down. - Eleanor Roosevelt

        Your opinion of yourself becomes your reality. If you have all these doubts, then no one will believe in you and everything will go wrong. If you think the opposite, the opposite will happen. It’s that simple.-Curtis Jackson- 50 Cent
        {{ DiscussionBoard.errors[4952023].message }}
  • {{ DiscussionBoard.errors[4944277].message }}

Trending Topics