What criteria and methods are businesses using to research and select the right hosting provider?

In today’s online marketplace, choosing a Web host is one of the most difficult and important decisions facing owners of small to medium-sized businesses. With thousands of choices available, what criteria and methods are they using to research and select the right provider?

We conducted a research study with Web hosting companies, directories, and actual business owners to find the answers. The results were quite astounding.

1. Word Of Mouth – The first critical factor in the decision-making process is personal recommendations from colleagues and associates. As trust is essential in any business relationship, any hosting company that is personally recommended by their users already has that advantage over its competition.

Word of mouth is even more important today than a few years ago, as it becomes increasingly simple for a one-man operation running a “business” out of the garage to develop a site that appears to be just as professional, as an established and reputable company.

Whether the company lives up to its promises can easily be discovered from existing users through word of mouth, which is why it becomes such a major factor: Does the company really deliver the bandwidth promised? How long have they been in business? Do they offer adequate technical support? Are its “guarantees” honored?

Michael Yablonowitz, CEO of UpLinkEarth.com said, “Our research is pretty clear that referrals are our number-one source of new customers by almost 3 to 1 over other marketing avenues…. we spend much more time on retaining existing customers than we do seeking new ones. By doing this, we have driven positive word of mouth from our highly satisfied community. We are not discounting the role of traditional and Internet marketing efforts, because we still do that as part of our overall marketing acquisition strategy. But we have tapped into the importance of key influencers within our customer base.”

2. Search Engines – As search engine technology advances, it becomes a powerful tool in the hands of business owners and entrepreneurs. It allows them to find companies to match their requirements and also do the research on the results.

An interesting idea to consider is that some search engines are starting to use the concept of a localized search, where the user can specify a local area in their search term and get back a listing of companies operating within that area. This could profoundly affect their decision, as a lot of them feel more comfortable dealing with a company that maintains a local presence.

It was also noted that prospects felt that the companies appearing at the top of the result pages for their searches were reputable and trustworthy providers. It’s understandable where they are coming from. Hosts that are successful enough to do what it takes to get ready for the next “Google dance”, and wind up in the Top 10 or so once again, are looked upon positively by clients when making their final decision.

3. User Forums & Communities – Web hosting forums are proliferating throughout the Internet in response for a need to expand the “word of mouth” concept from an individual’s contacts to contacts all over the world.

In a simple visit to popular Web hosting forums, such as WebHostingTalk.com, a business owner can read hundreds of thousands of posts about different people’s experiences with different Web hosting companies. Forums are usually divided into sections dealing with different types of Web hosts (dedicated, reseller, etc.), which makes their research even simpler and faster.