I totally agree on the bit about having fewer customers and making more profit per customer. I used to own a disaster resoration company.

In 2004, we had 900 customers and we were making an average of £275 per customer. We were also running round like headless chickens and the business was so disorganised.

The following year, we found more ways to make additional revenue from each customers. We stopped chasing after work for customers who weren’t right for us, so we had half the amount of customers we’d had the year before - but the difference was that the average customer was bringing in £1000 a year.

It was so much better. We were able to deliver a beter service while making more money and we’d almost eliminated the type of cusomers who give you a huge headache.

And I’d still say you’re definitely a bad ass internet marketer.

The numbers don’t lie

-Robert

Adam, we offered high-end solutions with multiple dedicated servers, load balancing, your own switch, etc. This was for startup companies that expected to scale. We were actually pretty cheap for what we offered, and raised our rates several times to compete with others. We were far cheaper than, say, Rackspace for a similar setup.

@Michelle: Agreed. I found it was hard to convince shared hosting customers to pay more (”but there are so many companies out there under $10!”), so for us, it was all about moving into the managed dedicated server market, where there was far less competition and a willingness on the customers’ parts to pay more.

-Erica

So, I’ve taken a similar approach. I’m providing all the tools they need and plenty of hand-holding to build websites, create marketing materials, establish their markets in a membership site. Heck, I’ll even do the research. My aim is to increase the per customer revenues by partnering with other providers to offer additional services affordably. A one-stop shop, if you will.

I’m the mediation marketing mensch, a sweetheart to work with and that’s why my come back month after month.

Dina Lynch Eisenberg
ADRPracticebuilder.com

And it totally got me thinking about my business.

Right now for my program I charge $100/month and I truly 1000% guarantee it’ll work. I believe in it with all my heart. And I put my money where my mouth is. If clients don’t feel or see results…they get their money back. No questions asked.

My clients tell me all the time I can charge more but I’m hesitant even though I know I can.

I’m from the school of ‘Bears make money, bulls make money but pigs don’t,’ and charging insane prices just to charge them clearly is no strategy.

Erica, I’m curious to know (as someone who has used and uses web hosting providers) what you were offering for essentially $425 per month besides a dedicated account executive and insane reliability and knowing the person’s name?

Or was that enough?

Also, were you by far the most expensive in your space or were there other players in the high end of web hosting?

I only ask this b/c I don’t know of any online health and fitness programs that charge much more than I do?

Thanks!

-Adam

Excellent insight! Keep at it!

ttp://business-vs-technology.blogspot.com/