Recommend hosting providers - thought I should post this in my own blog also

clubbeyourself posted 4th of May 2010 in Community Voice. 20 comments.

This blog post refers to: Recommend hosting providers - http://www.boonex.com/unity/blog/entry/Recommend_hosting_providers

The big problem here is that Boonex wants a $100 pay out for every referral that comes from them for a host. 

To make hosting affordable this is simply unachievable. 

There are many out there that have the ability and can without a doubt host dolphin and meet the requirements but the asking price from Boonex for £100 is just simply not right... 

For most hosts and the prices that they charge it would take more than a couple of years to recoup this money that Boonex are wanting for the referral. 

So should these hosts run at a loss in the hope that people that host with them do not jump ship for lets say 3 years minimum to try and get at least the amount that Boonex require as a fee to refer them to that host.

I am very sorry but this is a joke, Boonex like any other affiliate should adhere to the set amount that a site (host) might put in place for affiliates to earn as per agreements that they set in place ( if they don't accept the payout structure of course they don't include that host).

I was involved in a small time hosting service before and would have loved to have been included on the list that Boonex provide, but I could not afford to stump up the required fee that Boonex required to be included. 

I have an email that was received after suggesting that I (as in the hosting service that was set up) be included on the list of hosting services that Boonex prefer or recommend that states: BoonEx would like to receive $100 (+ ongoing commission interest also preferred) commission per referral.

To me and many other well equiped hosts this is beyond affordable.

We (as in the hosting that was set up) configured our servers to host Boonex Dolphin... Just Dolphin, anything else could be hosted but if the requirements for hosting other scripts required more or less than what was on offer (as far as setup of the servers go), More... we could handle, Less or a change in configuration to host something other than Dolphin (which might / might not, whichever the case may be would compromise a dolphin site) would not be welcome on our servers.

So, again I say that what Boonex are requiring from hosts to be suggested as a preferred or recommended host is absurd. 

$100, what could you do with that money, let alone a business that is attempting to  establish itself in the market place.

I am an affilaiate marketer of products ( some successful, some not so very successful) but do I get $100 for referring something to somebody... Not on your life.  For most it is 1 - 20% of the paid amount (ie. the cost of the service or product).   20% being an exception to the rule of affiliate marketing, it would mostly be closer to 1 - 5%.

So, just for arguments sake the $$$$ dollar hosts that are around that Boonex has readily promoted now or in the past, How, even if they are a huge company do they make money off people hosting Dolphin sites with them when they need to pay Boonex $100 for the recommendation (referral).

It is beyond me how they can do this..... and so now I think I shall leave this post as I can not work it out in my mind how any company BIG or small hosting service or company would survive having a payment structure that is what is required from Boonex. 

If any other hosts, or hopeful hosts can shine some light on how they would survive (as a Boonex preferred or recommended host) and have to pay out that kind of money (Remember: BoonEx would like to receive $100 (+ ongoing commission interest also preferred) commission per referral.) then please let me know so I may re-enter the marketplace with an affordable, efficient and Boonex Dolphin optimized hosting service that Boonex would readily promote.

 
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One20
If you are a nickle host it would be hard to see a profit in the first year. If you sell VPS or Dedicated I can see it possibly work. You can even sell services such as mods and fixes. Hosting guys need to virtualize. That's where it's all going. The cloud gents, the cloud.
clubbeyourself
It does not matter what prices or services you are charging as a host, BoonEx would like to receive $100 (+ ongoing commission interest also preferred) commission per referral. No matter what you are charging this an extreme amount of money and takes time to recoup the costs.
Andrew Boon
Well, some hosts are happy to pay up to $200, but don't comply with other requirements (technical). You're right, in affiliate world 5-20% is a normal cut, but hosting is different. It's very competitive and $100 is an industry standard now. Moreover, if the hosting pays $100+ for referral, the do their best to retain a customer, which is only possible with good service (we all know how good modern customers are at taking refunds). So, in my opinion, the more hosting pays to BoonEx, the better it see more is, considering all other factors equal.
clubbeyourself
No matter how good a service a host provides, unfortunately there are a lot of people that download the software, sign up for hosting (as referred by Boonex), then decide a month or two later that the software is not for them for one reason or another.

I won't waste time on this post by creating a reason list. It could be any reason.

So, If someone jumps ship and decides the software wasn't what they wanted or needed and therfore leaves the host, Does Boonex refund any of the $100 commission see more they have been paid? I doubt it, I have never read anything like that in correspondence when being invited to be a preferred hosting provider.
killerhaai
I 'am sorry not agree with that Andrew. If you see how the prices are low for a normal hosting. Most small hosting compagnys haven't possibilitys to pay every referer.

So don't call me.

I 'am agree with the author of this.
clubbeyourself
@killerhaai

Thanks for your support on this topic.
houstonlively
Andrew, standard, everyday web hosting, may be very competitive, but that's not what is being discussed. Proper Dolphin hosting is a niche market, and I can say with 100% certainty, that it is NOT very competitive.
clubbeyourself
@houstonlively

My point exactly, we configured our servers setup to host Dolphin (that niche market you mention) and only dolphin, as was stated we would take other people that wished to host other things but would not change the server setup to accomodate them. Our servers were built with hosting Dolphin in mind.

We were attempting to be competitive, Not Cheap, But competitive.... However, without being featured as a host on the dolphin pages It is a complete up hill battle to get customers see more to sign on with you.

We could not afford to pay Boonex $100 per referral and in the end had to close up shop as the ongoing expense of the hosting service with very few customers (found by word of mouth) was just not tenable.

Thanks again for your input on this topic.
DosDawg
Yeah well I would consider this to be a farce. So you are telling me that those companies listed on your preferred hosting page are hosting Dolphin for $4.00 - $7.00/month. Now i dont know how yall do math in Kyrzegstan, but lets take the median on this number and call it $5.00/month. Twelve times Five is $60.00 for the year.

Ok great we have one customer who is able to pay annually, which most do not pay annually, as you should well know in your attempts at selling license. Now with that annual see more account of $60.00 in $100.00 out, this is a $40.00 or 40% loss immediately. That is neither logical nor good business practice. the loss would end up being greater, because most who have servers, leased or colocated, would still have the expenditure of the staff onboard to setup the servers as well as put the hosting account online. furthermore there are the costs of operating a server, and this is much more than just having power to a local machine running WAMP or LAMP and an internet connection. so essentially on one referral you stand to lose in excess of $100.00.
DosDawg
Ok so next scenario, and you know that you would not have as many license sold as you do if it werent for the ability to put this script on a secure shared environment, because not everybody is going to jump out there and spend in excess of $50.00 for a VPS or much more for a Dedicated server.

Just say that we did all just offer VPS or Dedicated, ok lets think this one through.

VPS --> $49.95 --> now most that will get on this type of an account and not knowing the dolphin script are see more not looking to invest the cost of annual hosting, ok so we as providers have to bend a little in order to attract the customer, so we allow month to month hosting.

VPS --> $49.95 then give boonex the $100.00 customer decides that after one month, the dolphin script is not for them, so hosting provider is now out $50.05 or in excess of a 50% loss. and after you consider the server and all that must go along with it, you are looking at a potential loss of $150.00 for the referral.

now this customer fall off in most cases has nothing to do with the hosting services, but in our experience has to do with the script and the bugs that comes with it and the overall lack of support for this application. it would not matter how well the hosting service is, if the script is the issue, and they are the ones profiting the most from the referral, and offer no support at all, not even limited support for those who are hosting the script, muchless the entirety of the number of paid license that has been set out on the public.

Most support comes from free-lancers, and the little support that is provided free, Boonex does not even recognize that as a contribution to the purpose of monetary gain for the overall of the boonex dolphin entity.
DosDawg
Good Service you say, can you please define 'Good Service' within the realms of consideration of Dolphin?

The more hosting pays to boonex just means that much more they are out of pocket. Please explain that concept, because again, in the US and many other countries where they teach mathematics, this is simply not logical math.

So the concept here has been twisted to that which resembles less than factual, because you guys Boonex do not provide hosting services, you consider it to be a one see more two three step process. When my hosted clients need support they come to me, when others and we will not name any names, but when others hosted elsewhere need support for dolphin, and we are not talking about complexities of programming matters, but simplistics, they are told that is a developers problem go see boonex.

you charge $100.00 for an installation, THS, provides the installs for all customers because we know how daunting this can and has been in the past with installing this application.

We wish for Boonex Dolphin to be the very best it can be, that alignment at times does not seem to reciprocate.

So since we are talking about the referrals department, how is it that you would tend to believe that you deserve $100.00+ for a referral, however, your own referral program is that of 5% of the sale?
DosDawg
At any rate, I think your ideology is way out of line with your product, and if there were hundreds of thousands that were running this application bug-free, and the doors were being knocked down to install this program, then maybe, after an account would mature based on the pricing level of the account acquired by the client, both yours and the hosting service, then at that time, and only after that time, would such a fee be considered feasible.

Alternatively, since you charge in excess of $900.00 see more for one license, maybe you should consider paying the hosting services to take care of your clients.

Furthermore, something that should be revisited is what qualifies a referral back to boonex as a paying referral, because i have been denied payment for referrals of my clients who have purchased the Prime License, with no explanation other than it did not qualify.


Regards,
DosDawg
clubbeyourself
So glad to see a reputable hosting provider to the Boonex and Dolphin community pitch in on this topic, a man never short on words but clarifying my whole point to the discussion perfectly.

Thanks DosDawg
dolphin_jay
What if i host dolphin for free? Would i still have to pay the $100 fee...
clubbeyourself
I would imagine if you wish to be on the hosting page on Unity then yes... None of it makes sense.
clubbeyourself
Good to see we can still smile as well, Thanks Magnussoft
Profesize
see moreI apologise for the slight hijacking of this thread but after reading about $100 commission for hosting and $900 for one licence, surely you Boonex owes it to both of them, that is the hosting company and the member, software that doesn't spike the CPU and cause major interruption to one's website.

Otherwise how do you expect a hosting company to recoupe their losses if they have to suspend their client's site cause it continually brings down their server and every other site on that server too?
clubbeyourself
@Profesize

You did not hijack this thread in any way. What you have just said is totally relevant to the conversation. I 100% agree with what you are saying.
praveenkv1988
I can't agree Andrew in this. It is not true that if a hosting company pays more for getting a customer, the service would be the best. Nowadays hosting market is very competitive and its very difficult to aquire a client.

There are many clients who stay with the hosting company for years. But this rate is very less when they use dolphin (I am writing this with lot of experience). This started from version 7 of dolphin.
 
 
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