Myhosting - Why do they sell very well,though they are Less known Brand

Discussion in 'Web Hosting' started by herok, Oct 29, 2010.

  1. #1
    Founded in January 1997 and Canadian owned and operated
    Currently on October 25 MyHosting's Web Hosting Sales ranking is 8 th out of 58 Web Hosting Service providers who are with Commission Juncton Affiliate Program.
    Their sales record seem to be exceeding their review/reputation?
    I investgated iPage,FatCow,Hostgator etc and I have some ideas,but People do not talk about very much so I am not sure about their quality.
    But they must be very good as they are rated 8 th Earnings per 100 clicks) in Commission Junction.
    Could someone please enlighten me why?
     
    herok, Oct 29, 2010 IP
  2. RonBrown

    RonBrown Well-Known Member

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    #2
    C'mon, you don't need someone else to point this out - it seems pretty obvious. I don't know anything about Commission Junction, but I guess that since rankings of the companies are by the value of "sales" (translate that to "commission paid") then I'd guess MyHosting are paying more commission per sale so people are more interested in promoting their site over other companies.

    When there's a profit motive, you can't rely upon these rankings as being an indicator of quality, service, or any other factor except how much money you can make from them. Many people who promote sites that they are being paid to promote are doing it for the return, not through some altruistic need to only promote what's best for the buyer. They promote these companies because that's what's best for the people who are promoting them. If Myhosting pays $2 and another company pays $0.50 who do you think they are going to promote? You may be an exception where quality matters to you, but for most people it's all about how much they can earn.

    Commission Junction is not the centre of the universe. Their rankings only matter to a small percentage of the internet - mostly those profiting from their service - so I wouldn't start reading any significance in their rankings except as a way to figure out who is paying the most commission now or in the past.
     
    RonBrown, Oct 30, 2010 IP
  3. herok

    herok Guest

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    #3
    To RonBrown
    The amount of commission per sale across 58 companies is very similar with no significant difference.
    So affiliates have no incentive to promote one based on the amount of commission.
    So they obviously choose top selling products. Personal gains match Web Hosting Service seekers's popularity/demand.

    But the point is this CJ statics to me is in line with reviews in this forum and another forum i.e Top selling companies there reflect their reviews/reputation/quality/support.

    But To me There are some exceptions and those below caugh my attention.
    1. Hostgator - Sales Underperforming
    As I pointed out in my separate thread "Hostgator - If They Are So Good,Why Is Their Sales Recod No Good5",their sales does not live up to their reputation.
    I guessed that it is their higher price.
    Some responded in the thread,saying the same. Some say they would like to choose iPage or Fatcow as they are cheaper,though they acknowldge Hostgator is very good.

    2. Myhosting -Sales Overachieving
    They are not well known brand and I do not hear often about Myhosting so I would like to know why they sell very well.
    They must be doing something good or might not?

    My separate theard and other people's threads solve Hostgator mystery so I thank for that.

    I hope someone can solve this Myhosting mystery.
     
    Last edited: Oct 30, 2010
    herok, Oct 30, 2010 IP
  4. RonBrown

    RonBrown Well-Known Member

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    I'm still not seeing your point. OK, so if the amount of commission is about the same in terms of "bucks per sale", but if people are saying that Hostgator is too expensive, then the commission isn't really the same when you look at it in terms of commision paid as a percentage of the value of the sale. Clearly, some companies are paying a larger percentage of the sale price in commission than others.

    So, again, we have a profit motive. Get $2 for selling a hosting plan that costs $9 or get $2 for selling a hosting plan that costs $4. What's going to give the easiest return and easiest sale?

    I'll also return to the fact that commission junction is not the centre of the universe when it comes to people choosing their web host. The only people who are really interested in commission junction are those making a profit from it. I doubt many people will be thinking to visit commission junction to see what hosts are top of the "sales" list to make their hosting choice (some people will, but only a minority). I don't think my hosting habits are particularly unusual, and if I was looking for a host I'd probably do a search in Google, maybe look at a couple of forums, and maybe ask some people their opinion (online and offline). I doubt commission junction plays are large factor in the majority of peoples hosting decision.

    There's no real mystery it seems.

    Hostgator sales on commission junction "underperform" because their prices are too high i.e. the pay a smaller percentage of their hosting fee in commission.

    MyHosting sales "overperform" because they pay a larger percentage of their sales price in commission, or a larger commission fee, or people are more willing to advertise their product for some other reason e.g. the pay more quickly, or at lower thresholds.

    The exceptions in the CJ ranking, where the ranking is dependent on the money paid to affiliates, is going to come down to how easily (or how much) an affiliate can make (as I said before) and how easily that affiliate can earn that commission (their conversion rate). The differences in "under" or "over" performance will have a simple profit motive.

    There's also the profile of people who advertise these hosting companies. Maybe the people who advertise MyHosting have larger numbers of visitors, or maybe they target a different audience, or maybe they are all Canadian so choose a Canadian hosting company, and maybe it's the only large Canadian hosting company in CJ. So, their audience profile is largely Canadian, they advertise a Canadian Hosting company, and they happen to be paid a better percentage of the fee the company charge. I don't think there's any real mystery to it as it will simply come down to money. After all, what other reason would their be to join such a programme EXCEPT to make more money - as an affiliate or as an advertiser.
     
    RonBrown, Oct 30, 2010 IP
  5. herok

    herok Guest

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    #5
    1. exact quote "So, again, we have a profit motive. Get $2 for selling a hosting plan that costs $9
    or get $2 for selling a hosting plan that costs $4. What's going to give the easiest return and easiest sale? "

    This conventioal theory does not explain MyHostng.
    MyHosting is less known brand and not low price,but it ranks 8 th out of 58.
    After my humble investigation sales statics is relecting overall reviews/brand/price and I understand other compaies's performance standing.
    But Myhosting is not in line with the trend so I am puzzeled and curious about Myhosting.

    2.exact quote "I doubt many people will be thinking to visit commission junction to see what hosts are top of the "sales" list to make their hosting choice (some people will, but only a minority)."
    Unless you are a publsher of CJ,you cannot access the statistics.

    I would appreciate if someone with direct experience with them or a Cnadian member of this forum could share your thoughts.
     
    herok, Oct 30, 2010 IP