Paul D. Engels What SMBs Want : Research Reveals Buying Habits of SMBs and What it Means to Your Service Business

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THE GLOBAL EVENT FOR THE CLOUD AND SERVICE PROVIDER ECOSYSTEM Hosting Business Outlook “New Silent Killer for Domain Name Sellers & Hosters: Attachment Rate… Traditional 'hosting companies' as they are known today are on their way out, making way for a new kind of online presence provider. …hosting providers are moving away from their traditional service offering, adding essentials such as website building tools (and) marketing and SEO in order to encourage renewal rates.” Source: David Meers, Basekit (LinkedIn Post 2015)

THE GLOBAL EVENT FOR THE CLOUD AND SERVICE PROVIDER ECOSYSTEM Hosting Business Outlook U.S “Internet Hosting Services:” $16 bn Annual Growth: 11.2% Market Share Dominated by: GoDaddy Endurance Int’l Web.com Source: IBIS World, Internet Hosting Services in the U.S., 2015

THE GLOBAL EVENT FOR THE CLOUD AND SERVICE PROVIDER ECOSYSTEM Digital Marketing Outlook U.S “Digital Marketing Services:” $24 bn* Annual Growth: 4.9% Market Fragmented *Excludes Reputation Management & others Source: IBIS World, Web Design Services in the U.S., 2015

THE GLOBAL EVENT FOR THE CLOUD AND SERVICE PROVIDER ECOSYSTEM Hosting vs. Digital Marketing

THE GLOBAL EVENT FOR THE CLOUD AND SERVICE PROVIDER ECOSYSTEM Hosting vs. Digital Marketing

THE GLOBAL EVENT FOR THE CLOUD AND SERVICE PROVIDER ECOSYSTEM Value Adds: Digital Gold?

THE GLOBAL EVENT FOR THE CLOUD AND SERVICE PROVIDER ECOSYSTEM Good, Bad & Ugly… YP Directories: The largest digital services supply segment in the U.S. with hundreds of thousands of high-value web presence subscribers…

THE GLOBAL EVENT FOR THE CLOUD AND SERVICE PROVIDER ECOSYSTEM Good, Bad & Ugly… s The model is all “DIFM.” Senior execs in three cases admit it’s hugely inefficient and loses money.

THE GLOBAL EVENT FOR THE CLOUD AND SERVICE PROVIDER ECOSYSTEM Good, Bad & Ugly… Are You Using ‘-ex Media for Some of Your Online Marketing?

THE GLOBAL EVENT FOR THE CLOUD AND SERVICE PROVIDER ECOSYSTEM Fact 1: SMBs Have Trust Issues Why is my cableco selling me a website? Cold-callers have no idea what I do. I know more than they do. I can’t take phone calls during the day! Why can’t they me? I’ve been burned before…

THE GLOBAL EVENT FOR THE CLOUD AND SERVICE PROVIDER ECOSYSTEM Fact 2: Most SMBs Have a Website SMB Needs (Ranked) 1.To be understood and helped. 2.To get found. 3.To have a good-looking website. 4.To be connected to social media. 5.Site compatibility with all platforms

THE GLOBAL EVENT FOR THE CLOUD AND SERVICE PROVIDER ECOSYSTEM Fact 3: SMBs Want it Done for Them The Reality of DIY 1.It has a 1-2% adoption rate 2.Even knowledgeable SMBs are too busy 3.The results are poor

THE GLOBAL EVENT FOR THE CLOUD AND SERVICE PROVIDER ECOSYSTEM Tip 1: Build Trust & Acceptance 1.Align product modules to prospect’s knowledge 2.Deliver attribution* (*proof that it works)proof 3.Have dedicated account managers 4.Employ friendly pricing terms

THE GLOBAL EVENT FOR THE CLOUD AND SERVICE PROVIDER ECOSYSTEM Tip 2: Customers Don’t Want Tools 1.Most businesses just want it done 2.Risk: service labor doesn’t scale 3.Mitigation 1: Outsource the service 4.Mitigation 2: Automate the delivery

THE GLOBAL EVENT FOR THE CLOUD AND SERVICE PROVIDER ECOSYSTEM Tip 3: Automate Everything You Can 1.CRM/Sales 2.Data & Analytics 3.APIs (you to your SaaS vendors) 4.Automated provisioning/delivery

THE GLOBAL EVENT FOR THE CLOUD AND SERVICE PROVIDER ECOSYSTEM Case 1: HomeTown Media 1.$850,000 ARR; 700 $100/mo 2.Premise based reps = Trust 3.LTS landing pages = High Attribution

THE GLOBAL EVENT FOR THE CLOUD AND SERVICE PROVIDER ECOSYSTEM Case 2: EVO Payments Canada 1.$480,000 ARR; 500 $80/mo 2.Brand + Free Offer= Trust 3.Automated DIFM = Profitable Model

THE GLOBAL EVENT FOR THE CLOUD AND SERVICE PROVIDER ECOSYSTEM Case 3: 411.info 1.Landing pages + SERP = Attribution 2.Telemarketing offer = Take Rate 3.Automated DIFM = Profitable Model 4.Modular Offer: LPs; WS; RM

THE GLOBAL EVENT FOR THE CLOUD AND SERVICE PROVIDER ECOSYSTEM Conclusions: Gold or Dirt? Hosting & Domain Providers 1.Naturally trusted by SMBs 2.Blessed with data, analytics, customer knowledge 3.Typically lack automation e.g. DIFM 4.Typically lack sales capabilities/resources

THE GLOBAL EVENT FOR THE CLOUD AND SERVICE PROVIDER ECOSYSTEM Thank You! Paul D. Engels CEO Veloxsites E-Book Resource: Online Presence - What SMBs Want: How to successfully provide digital marketing services to your SMB customers.