Ricky’s Online Business Blog

Some time ago, I was asked to join a closed group of fellow bloggers for a new startup.  It is a blog portal consisting of a few columns for different sub-topics.  Each fellow blogger is to blog for his or her own column.

I was initially skeptical of the business model.  The idea seems old and uninteresting.  But after getting to know that the startup was to be backed by one of the most visited web site in Malaysia, my perception changed.  Its very high traffic is going to spill over to the new portal and bring advertising dollars to the new business.

In fact, though the idea is not new, I think the startup is going to work.  Those who joined the group are going to earn, not only financially, but in reputation and authority as well.

But unfortunately, I am unable to fulfill their requirements.  Each blogger is to blog at least one post per day.  So it’s 7 blog posts per week, 30 blog posts per month, at least.

Not that they emphasize quantity over quality.  But the founder said most successful blogs have something new everyday to become successful, though it may not be long essay everyday.

I can’t join because I can’t commit myself to blog everyday.  Currently I’m blogging only once or twice per week.  I’m not a full-time blogger or problogger, but rather an occasional one.  I even consider myself still quite a newbie in blogging.

Furthermore, it’s going to be like a full-time job to blog everyday.  It’s not only the time spent to write, but it’s the time spent to read up, research, think and organize my thoughts that is going to consume most of my waking hours, every single day!

So it’s going to be a job for me to work in rather than a business, and it’s a pretty hectic job.  My personal mission is not to create a job for myself.  My mission is to create a business.  Otherwise, I might as well work for others.

When an opportunity knocks, no matter how great it is, one may still need to think whether it is in line with one’s life mission or not.  In this case, the blogging job is really not for me.

It’s a pity for me not being able to join this startup.  But it’s OK.  Opportunities abound on the Internet.  Our job is just to be ready when they come

Still thinking of using search engines, email newsletter and affiliate marketing to promote your products and services on Internet?  While these are essential, let’s not be outdated.  It’s all about marketing on social media nowadays.

Yes, the Internet is getting more and more “social”, with real people using the Internet to interact and influence one another.  Much thanks to the advent of blogs, and social media sites like Facebook and Twitter (strictly speaking, blogs are not social media).  Even the older generation have jumped on the bandwagon and claimed an account on Facebook.  In fact, if you are not “in” social media nowadays, you are “out”!

Therefore, the social media now presents a natural channel for marketing your products and services on such increasingly social online networks.  After all, many people have always been looking for others’ opinions when deciding to buy (or not buy) something, used to be offline, but now online also.

In the local hosting industry, it seems hosting providers are picking up on marketing through social media.  I know one company has set up their profile on various social media such as Facebook, Twitter, MySpace and Plurk!

This company is capitalizing well on social media.  They offer money for bloggers who write about them.  They give out prizes for lucky draw winners who follow them on Twitter, tweet about them, and ask others to retweet about them.  They also own a company page on Facebook and promise to offer discounts for domain names based on the number of Facebook members who become their fans.  Yeah, many social media jargons here, I know

I also had set up a Facebook group and a Twitter account for BizPartner, and tried to create some buzz in social media.  I have yet to achieve what I want, but I’m trying, and learning.

And we can expect that more and more hosting providers will soon start to use social media for innovative marketing, branding and customer relationship building.

A business partner asked how to sell hosting to customers when there are other hosting providers who can offer super large hosting space at dirt cheap rate.  For example, 100GB at RM180 only!

While I’m facing the same problems competing in such fragmented hosting industry, these are a few pointers we managed to come up with.

Firstly, don’t try to fight them with even larger space at even lower price.  How about going to the other extreme, by selling small but enough hosting space at half or quarter of their prices?  For example, selling only 100MB at just RM80?  But the customers need to be educated that they actually won’t make use of so much space.

Secondly, expose the tricks (even deception) used by hosting providers.  Nowadays anyone can sell any large amount of hosting space at cheap rates using the “overselling” kind of business model.  This works because statistically an average customer will not use even 10% of the space promised to them.  Some customers are “space-greedy”.  They need to know the inconvenient truth in the hosting industry.

Thirdly, bundle hosting service with other services with prices you have more control on, such as web design.  This way, customers may not know even if you charge them double the hosting prices.

Fourthly, but a very bad strategy – fight the competitors with even larger space at cheaper price!  We know some customers will be lured into this but actually never use so much space anyway.  Nevertheless, I’m against this as it is over-promising.

Last but not least, seek out blue ocean strategies that you no longer need to compete with other hosting providers in such a red ocean.  But seek out new markets and sell to them some services which include hosting service.

Just as an example, how about an online service for couples getting married?  Many couples get married every week.  More and more couples start to want a wedding web site to commemorate such big event!  In providing such service, you no longer compete with other hosting providers but customers will have unknowingly bought your hosting service anway.

I went to a shopping mall yesterday.  Parking for under 2 hours is free, and RM1 for over 2 hours.  It seems they encourage us to quickly do our shopping and go home.  Staying for more than 2 hours is discouraged.

I suddenly came up with this weird thought.  Why not reverse the charges?  Charge RM1 for parking under 2 hours, but give it free for over 2 hours?

The purpose is to get people stay longer in the mall, and hopefully spend more as a result?  Yes, there will be those who lepak (wander around) without spending a single cent.  But in overall, more crowd means more business.

Do you think this idea works?