The Prospect Said This About Hosting...

12 years ago

Explain to him what hosting is...

Lets get real here, if he still refuses to pay his hostings fees even after getting explained what he is paying for, then tell him that he can do it in-house purchasing a server and an internet connection.

Then proceed to explain that there is no way of putting his website live on the internet without servers.

He can wage the cost-benefit now.

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Colm Whelan

12 years ago

Or maybe it's because he knows that hosting doesn't cost $20 a month and that he can buy his own for $5?

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RyanLester 12 years ago

Originally Posted by Colm Whelan

Or maybe it's because he knows that hosting doesn't cost $20 a month and that he can buy his own for $5?

$5 would not have impacted his decision.
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AussieT

12 years ago

Explain to him that it is like having a mobile/cell phone you still need a mobile plan to make it work.

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RobinInTexas

12 years ago

I'd say the client is not a potential customer...never was. It's time to move along, rethinking your method of finding prospective customers. Whatever time you spent providing them with a quote was wasted.

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RyanLester

12 years ago

Originally Posted by RobinInTexas

I'd say the client is not a potential customer...never was. It's time to move along, rethinking your method of finding prospective customers. Whatever time you spent providing them with a quote was wasted.

What do you suggest in terms of prospecting? You are right - it was wasted time. I did a demo and all.

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RyanLester 12 years ago

Here is the answer: Inherently, people do not like to commit to something indefinitely. It's a common thread in all spheres of life.
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- Rus Sells 12 years ago
  
  So you posted why?
  
  Originally Posted by RyanLester
  
  Here is the answer: Inherently, people do not like to commit to something indefinitely. It's a common thread in all spheres of life.
  
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- Eddie Spangler 12 years ago
  
  Originally Posted by RyanLester
  
  Here is the answer: Inherently, people do not like to commit to something indefinitely. It's a common thread in all spheres of life.
  
  Blah thats nonsense,
  I bet he would like to commit to making an ongoing profit every month from that website indefinitely.
  
  Up your sales game and stop buying into this false thinking.
  
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- Aaron Doud 12 years ago
  
  Originally Posted by RyanLester
  
  Here is the answer: Inherently, people do not like to commit to something indefinitely. It's a common thread in all spheres of life.
  
  But it isn't indefinitely it is "going forward" and minus a contract they can end the hosting at any time. About 4 years back we changed our hosting and web development company. Wasn't hard minus making sure the transition went smooth. Real companies deal with this all the time.
  
  That business owner simply thought it was a BS add on charge. As soon as he was educated if he was truly interested he would have been sold.
  
  Objections are not in our way they are our way in.
  
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- shane_k 12 years ago
  
  Originally Posted by RyanLester
  
  Here is the answer: Inherently, people do not like to commit to something indefinitely. It's a common thread in all spheres of life.
  
  This is what I was going to say, because you wrote that he said he didn't want to pay for the rest of his life.
  
  I was going to say that you should then have either said it wasn't for the rest of his life, and/or offered up a 1 year or 2 year contract. So at some point he knows his payments will end.
  
  Another thing that I would have suggested is if he didn't want to pay monthly you could have charged him the full year upfront.
  
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- Colm Whelan 12 years ago
  
  Originally Posted by RyanLester
  
  Here is the answer: Inherently, people do not like to commit to something indefinitely. It's a common thread in all spheres of life.
  
  Don't think so. You can be damn sure he's committed to his electricity, phone, gas, internet etc. etc.
  
  Either he didn't understand, thought he was being ripped off or was objecting...
  
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Anthem40

12 years ago

Originally Posted by RobinInTexas

I'd say the client is not a potential customer...never was. It's time to move along, rethinking your method of finding prospective customers. Whatever time you spent providing them with a quote was wasted.

Never a potential customer?

Of course he is a potential customer.

The guy said he would be willing to pay $800, that is more than a potential customer. That is someone that is broadcasting clear buying signals.

OP just failed at negotiating the monthly fee. You live and you learn, but you don't say that this person was never a potential customer.

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TheBigBee

12 years ago

Originally Posted by RyanLester

Prospect: "I understand the $800 once-off (design) fee but I wont commit myself to $20 p/month (hosting) for the rest of my life".

Yes, i just got off the telephone with a prospect uttering these words. It's just another example of commitment that clients do not want to undertake.

What are your thoughts?

Why not just give him free hosting for a year, then charge him an annual account maintenance fee + hosting in year two?

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TheCG

12 years ago

I have run into this more than once myself. Alot of people out there simply don't know how the internet works.

I have seen companies here recently that offer free hosting for life to sell a $599 website. I guess if it brings you enough business and possible upsells, it wouldn't be such a bad thing.

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Vikuna2009+ 12 years ago

If I remember correctly, I Paid $69/month. That was for a website that I had access to do any kind of "blog" entries. To me, at the time, it was worth it. My first year, I made $18,000 because of that site. Was it worth it? Heck yes. Today I know better, lol.

ROI comes to mind, so does LTV,

Eva
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Rus Sells

12 years ago

I would have retorted; Yes, well having a web site and no hosting is like buying gas and not owning a car, the gas being your web site.

This response assumes he really doesn't understand what hosting is, and that the site files need to reside somewhere!

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vndnbrgj

12 years ago

Originally Posted by Rus Sells

I would have retorted; Yes, well having a web site and no hosting is like buying gas and not owning a car, the gas being your web site.

This response assumes he really doesn't understand what hosting is, and that the site files need to reside somewhere!

That is what I used to say, only the opposite. ( I say used to, because I don't sell stand alone sites anymore. )

I used to say imagine your website like a car. You have a large upfront cost. Once you pay that, you own it. Then, to keep your car on the road, you need to pay for gas. Without gas, your car won't go anywhere. Same is true with hosting. It is a small fee that keeps your website online. Without hosting, your website wouldn't go anywhere.
Now, we offer two packages. One covers hosting and maintenance, everyone once in a while a site needs maintenance, just like a car. The other one just covers hosting. Which package makes more sense to you?

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Aaron Doud

12 years ago

I think this was an opportunity for education.

"Why is the $20/mo for hosting an issue for you? Do you already have a hosting account?"

Of course he doesn't he just thinks the $20/mo is a BS charge to get recurring income from him. Once he understands it he would see that $20/mo was a fair price for hosting you don't have to deal with yourself.

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RimaNaj2011

12 years ago

Originally Posted by Aaron Doud

I think this was an opportunity for education.

"Why is the $20/mo for hosting an issue for you? Do you already have a hosting account?"

Of course he doesn't he just thinks the $20/mo is a BS charge to get recurring income from him. Once he understands it he would see that $20/mo was a fair price for hosting you don't have to deal with yourself.

This. And then just explain what hosting is. If the client fights with you on it, then he's an idiot.

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MaxwellB 12 years ago

Originally Posted by RimaNaj2011

This. And then just explain what hosting is. If the client fights with you on it, then he's an idiot.

I couldn't imagine someone arguing about $20 per month or a nominal monthly fee if they knew what hosting was completely.

Would we call that an idiot? Is there something worse than an idiot haha because that would be it.
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Huskerdarren

12 years ago

My thoughts are that he's been to Hostgator and knows what things cost. You'll have to justify charging 400% more than what Hostgator would charge him. How many websites could you host on their $10 plan? For $20 a month, what added value do you offer him? (you, yourself, not Hostgator). I think you could get $10 and no one would blink. If you're going to host it, you gotta get something if you're the one who will have to fix and maintain the site.

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merkado

12 years ago

When pitching something over the phone, I made myself to give an example:
Hey <Name>, Do you think it's expensive to get web hosting from us for your website?
If the client says Yes or even No.
We're giving affordable monthly rates with <give some awesome benefits>compare to others.

Hope it helps.

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deu12000

12 years ago

Easy solution. He pays you $800 you give him a CD Rom with his website.

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spesialis

12 years ago

I completely understand him. When I was a kid, I also shocked, "We have to pay taxes for the rest of our lives?"

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63lincoln

12 years ago

Just send him your affiliate link to bluehost for $5. Get $65 out of it.

Edit: I actually just did that with a quote. Said hosting was $10 per month or you could get it here cheaper, my affiliate link

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xlfutur1

12 years ago

I could say that I don't want to pay a monthly fee forever to....

Aweber, Hostgator, Audio Acrobat, Basecamp, GotoMeeting, WarriorPlus, Freshbooks, etc.

But I don't mind because all of those services make my businesses money, or make things easier to make money.

Its not the monthly fee, its what you can make from the investment. If this guy can't justify 20 bucks a month for something that will make him much more every month, he/she doesn't understand basic concepts of business.

Local business owners never cease to amaze me how stupid they are when it comes to ROI and lifetime value. I guess that's why most go out of business within 5 years of startup.

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TeamBringIt

12 years ago

As mentioned, the client has possibly seen cheaper hosting services or he's not educated enough, on what you and your service bring to the table.

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The Prospect Said This About Hosting...

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