Here's what I used to do. For everyone that hosts with you, offer them extra bandwidth to put a banner on their main page. That gets you more traffic.
Hey Mate, Remember to talk directly to those who will buy your service. It seems that you're located in Uk. Am I right? So, I'd start with posts in Local Forums , also some CPC and CPA at Adwords. Affiliate is a win-win situation, and you can offer directly to those who influence the buying decision. Remember that one of the gold rules for SEO (and consequently) for webmasters is to host locally a website to top up their chances to rank top on results. reading and taking part on top industrry blogs might be a good idea. You can host some non-profit websites, that will give you some credibility and backlinks. Webdirectories and "special" packets with developers Good luck., Cheers Lucio
get inspired by 000webhost.com and see what they did. Offer affiliate programs and more bandtwith than 20gb. That will bring you traffic
Do you know what? How about targeting bloggers still using free platforms as .blogger or .wordpress? Most of them havent upgraded for a own domain because they have no idea to how to set up and backup their files to a host. A step by step guide would be handy for them Cheers Lucio
You can focus on organic traffic through article marketing. http://www.submityourarticle.com/affiliates/idevaffiliate.php?id=643
Lucio has a good point. I have sold more server space to bloggers who wanted their own domain but had no idea how to go about setting it up. I even get a small fee for setting up wordpress on the server so all they need to do if login and start blogging.
tons of traffic tips. free ebook (not mine). i'm going to use this over the next few weeks: http://www.nickstraffictricks.com/downloads/Nicks-Traffic-Tricks.pdf
I would recommend posting on bunch of classified ads sites(put webcosmo.com on that list). Best would be advertising your promotional offer. Once you get some people, word of mouth would help. Good luck to your venture.