How hosting companies offer advertising vouchers?

Discussion in 'General Marketing' started by Asmar757, Aug 4, 2010.

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  1. #1
    Hello,

    I'm interested to know, how web hosting companies like hostgator,powweb and etc offer search engine vouchers. PowWeb is even offering facebook advertising voucher.

    The question is, we pay less then the voucher amount so how they arrange extra money for it?
     
    Asmar757, Aug 4, 2010 IP
  2. flanagan

    flanagan Banned

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    #2
    I am also know about this fact.
     
    flanagan, Aug 4, 2010 IP
  3. micksss

    micksss Notable Member

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    #3
    I believe it's because they have a partnership with the advertising companies. The free Adwords, Facebook, etc advertising credits/vouchers can turn a new customer into a long term advertising client. It must be worth it to the advertising companies in the long run otherwise why would they do it.
     
    micksss, Aug 4, 2010 IP
  4. biggunn

    biggunn Active Member

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    #4
    The larger hosting companies get the Adwords, Yahoo, Facebook vouchers for free because they act as lead generators for the advertising companies. For every person that gets a free Adwords voucher, a lot of them continue to invest money into Adwords. The smaller hosting companies make the money back in the hosting fees as the vouchers only cost $5 to $10 each..
     
    biggunn, Aug 7, 2010 IP