Sometimes I think I am crazy. The web hosting business is literally one of the most competitive industries in the world. If I knew how market conditions would be right now 3 years ago I may never have started Bluehost.
Let me give you a VERY typical example. Many hosting companies that charge the same price as we do (Basically $100 a year) will pay upwords of $150 or more to aquire a new customer. Seem crazy to you? Me too, but that is the business. How can you make it work if you charge $100 for something that costs you $150? Well, many hosts don’t make it work. Last I checked there were over 12,000 “hosting companies” in the world. There are 50 that make it into the “club” where you really sit at the top.
It is now common practice and belief in the hosting market that it is totally acceptable to make no money on a customer for the first 2 years, and in some cases even longer due to extremely agressive marketing strategies. We advertise with the best of them, but we have an advantage that many don’t have. LOYALTY! We lose money on MANY hosting accounts in the short term, and sometimes in the long term However, we know that if we exceed your expectations that you will stick it out with us. At least, we hope you will.
I was just checking our numbers today, and our long term customers (Those that have renewed at least once already) tend to stick with us. For accounts that are set to expire in April (This month) 91.67% of you have renewed, and there is still 12 days left this month to get the other 8.5% to do so. We can’t express our appreciation enough! Actually, we can. We will work harder to make the service even better. Also, expect package increases in the near future (Free of cost of course!).
In a business where you have to be in it for the long haul to make 2 wooden nickels, we really appreciate the loyalty of our customers. Thanks again for everything!
Matt Heaton / President Bluehost.com