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?

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.

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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.

4. Hosting Directories – Hosting directories have been and still are a tremendous educational tool for the user in choosing a Web host. This is especially true now, according to Charnchon Lavitrangsima of HostSearch.com directory, who says, “Buyers will combine their experiences and seek more information before switching. Hosting directories play important roles in providing that information.”
Directories can be an extremely useful and generally trustworthy source of information, especially if you are trying to narrow your choices down to a few to investigate further. Also, many Web hosting directories offer a myriad of tools and services to help advance your research.

5. Third-Party Validation – Many business owners consider Awards and Recommendations by 3rd parties favorably. It’s a definite plus to get awards from prominent, unbiased sources, such as “PC Magazine”, “CNet” and others.

In the grand scheme of things, this is just one more factor that affects the decision of the consumer to go with one particular company or another.

6. Yellow Pages/Local Ads – The old economy was “location, location, location”. The new economy is “service, service, service”. While there are definitely business owners that feel more comfortable using a local company, where they can simply stop by at any time and discuss their problems face-to-face, most businesses understand that the key today is service and a company in a different location may be able to provide better service and support.

Furthermore, off-line ads in newspapers, magazines, and yellow pages do not provide enough information for a prospect to base their decision upon, which is why more and more of them turn to Internet-based sources for information.

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