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Paid Marketing vs Free marketing

Discussion in 'General Marketing' started by saiefmahmud, Nov 19, 2016.

  1. #1
    Hello,
    I need to know which one is effective for Hosting Business? Paid advertisement or free marketing?

    Thank You
     
    saiefmahmud, Nov 19, 2016 IP
  2. iwebsocial

    iwebsocial Well-Known Member

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    #2
    Both are Good and reliable source of traffic. paid traffic give instant and high amount of traffic, While free traffic will take some time and it will sustain for a long time.
     
    iwebsocial, Nov 21, 2016 IP
  3. Intuz

    Intuz Member

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    #3
    You can use both marketing strategies. Both have their own advantages and disadvantages.

    Paid Advertising = Less efforts + money + quick
    Free Advertising = Best efforts + Less money + time consuming
     
    Intuz, Nov 22, 2016 IP
  4. jrbiz

    jrbiz Acclaimed Member

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    #4
    You cannot generalize about this. Some paid advertising is complete crap; other paid advertising is really productive. Same with free advertising. What matters is what works for your products/services and their markets.

    In real estate, they say that only three things matter: location, location, and location. Likewise, in marketing, online or offline, only three things matter: test, test, and test. You will need to try many avenues and measure carefully to ultimately determine what will work for your specific business.
     
    jrbiz, Nov 22, 2016 IP
  5. unlimitedoptions4us

    unlimitedoptions4us Greenhorn

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    #5
    Hi:
    As has been stated previously, both paid and free advertising have their place in your business. The theory is that you if you want to get up and running right away then you should start with paid advertising. You basically buy customers to get off the ground and up and running with your business.
    Over time free advertising (or sometimes it's referred to as organic advertising) should be the primary source of traffic as people have found your website, blog, products, FaceBook page, YouTube channel, etc, and you don't have to spend as much or anything on paid advertising.

    Good Luck,

    Dan
     
    unlimitedoptions4us, Nov 22, 2016 IP
  6. Nishant Maliakel Oommen

    Nishant Maliakel Oommen Greenhorn

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    #6
    I strongly believe that its not easy to differentiate paid advertisement and free marketing. When we say free, then should consider taking few stipulations and restrictions. When it comes to paid advertisement the restrictions will be minimal. The main objective behind any marketing campaign is to attract more leads with a lesser customer acquisition cost.
    Even though people see SEO as a non paid advertising, it too takes a lot of resources including money (for SEO specialist). In case of PPC the cost of acquisition depends on several factors. Lets consider that you have set a campaign budget of $100, and the bid for keyword is $1. Considering a click through rate of 10% while your ad is shown 1000 time, you will end up getting 100 clicks.
    So, total expense = 100 (clicks) * $1 = $100
    Out of the 100 clicks lets take a conversion rate of 5%
    Then the total conversion you got is :100 *(5/100) = 5
    So the average expense for conversion per person will be $20. Here the Customer Acquisition Cost will be high if you are selling a product that wont cover this 20$ in the bottomline.
    In case of organic search it adds value to customers, and on long run it helps in getting more conversion.
     
    Nishant Maliakel Oommen, Nov 22, 2016 IP
    jrbiz likes this.
  7. wanessmark

    wanessmark Active Member

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    #7
    Both are beneficial for the business .Paid marketing will give you instant results and free marketing will surely give you returns but it will take time .So if you have less time and more money go for the paid one and if lack of money and sufficient time then free marketing is the way to go .
     
    wanessmark, Nov 23, 2016 IP
  8. marketingwiz

    marketingwiz Active Member

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    #8
    A big factor that you should consider is time vs. cash. Which do you have more of? If you have more time, focus on free. The other thing to consider is whether you want to scale your business. Its much easier to scale with paid traffic. Many times its just a matter of spending more. Good luck!
     
    marketingwiz, Nov 23, 2016 IP
  9. graphicguy

    graphicguy Greenhorn

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    #9
    It depends upon your goal and budget!
    If you wanna start small then scale big, then go with Free traffic sources ..if you wanna grow fast and get Quality rather than Quantity, then you have to send money!

    Compare your Business to a Game. You are a player who deals with different challenges ..the more you practice and apply what you learn, the faster you will achieve the results you desire!
     
    graphicguy, Nov 25, 2016 IP
  10. ericastone

    ericastone Member

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    #10
    U need a good balance of both... :)
     
    ericastone, Nov 26, 2016 IP
  11. Matteo Matt

    Matteo Matt Member

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    #11
    If you have lots of free time traffic is there for free. It might not take forever, but it will definitely take alot of work. I think you should use both, but at least get some free campaigns on marketing forums and social media and see if your landing page / company is good before spending money. Its a very competitive niche so you probably will need paid traffic as well.
     
    Matteo Matt, Nov 26, 2016 IP
  12. qwikad.com

    qwikad.com Illustrious Member Affiliate Manager

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    #12
    I'd try a free route first. Make your hosting packages dirt cheap (something like $2 /mo for shared and $50 / mo for dedicated, if possible of course) that way your free advertising methods may pay off. Once you have a customer base you can raise the prices a bit and try other forms of advertising. Ultimately, good customer service is what you will need to keep your service going.

     
    qwikad.com, Nov 28, 2016 IP
  13. jasontn

    jasontn Well-Known Member

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    #13
    Often goals cannot be reached even with a lot of time. In that case, paid is the better option. However, if your goal is only a small amount of cash, then free could be an option.
     
    jasontn, Dec 5, 2016 IP
  14. kirsl

    kirsl Member

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    #14
    Paid traffic is great at the start. But you need to know - make something to get free traffic sometimes. Like SEO, PR, SMM. It will be generate leads, not just visits, in time.
     
    kirsl, Dec 5, 2016 IP
  15. Carelabs

    Carelabs Greenhorn

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    #15
    How can I reduce my pay per clicks rate, with the best consideration of good paid traffic.
     
    Carelabs, Dec 12, 2016 IP
  16. Chad Eztraffic

    Chad Eztraffic Member

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    #16
    It depends how fast you want your company to grow.

    Paid advertising is great, only if you know what you are doing. Don't just think you can put some money on paid advertising and it will magically grow your business 10x.

    Free advertising is very tricky in a hosting niche.

    Here's why.

    You have to compete with not only other hosting companies but also their affiliates.

    What do you have that is superior to other hosting companies? If you are a reseller, then forget about it.

    The only way that's going to work is you are a web designer and you already have a clientele.
     
    Chad Eztraffic, Dec 18, 2016 IP
  17. Geoff_MedCash

    Geoff_MedCash Peon

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    #17
    both sources are good, however when buying traffic you have the option of buying high quality traffic. Its just generally better for your conversion ratio as well.
     
    Geoff_MedCash, Dec 19, 2016 IP
  18. kb24

    kb24 Well-Known Member

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    #18
    Both sources are good its a matter of if you want to spend time or money.. if you want quick results then paid traffic. If you are looking long term then SEO realize that it will take time. Time is something you can't get back.
     
    kb24, Jan 4, 2017 IP
  19. G2Xmedia

    G2Xmedia Peon

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    #19
    Paid gets quicker results (usually) so if you have a lot of money, start with paid. If you have less money to start, use the free methods available, and if you want to get a lot of traffic and make something big of your venture, WORK YOUR BUTT OFF. Work 10, 12, 14 hours per day, if you can. If you're learning as you go, you will figure out how to get more and more traffic, and eventually make good profit off of your efforts.
     
    G2Xmedia, Jan 5, 2017 IP
  20. DeedOk

    DeedOk Peon

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    #20
    Paid marketing gives you quick response, more traffic where free marketing can give you traffic and response but it will takes time.

    Free traffic is more trusted than paid marketing.
     
    DeedOk, Jan 6, 2017 IP