Managed Hosting Solutions

[TonyK]

Hi I need some info on managed hosting: like when you manage a site for a client do you charge extra for managing the site for them and if you do, then what is a good fee.Any info will be apprreciated.
Thanks
Tony

[jmbeach]

you mean more like website maintenance? That concept is different (to me anyway) than managed hosting.

For instance, Matrix sells us managed hosting. We, in turn, resell this hosting to our customers - so long as we are the ones helping our customers with hosting issues, we are providing managed hosting to them.

Now, maintaining a web site is different, and yes you should charge for that. Typically I charge hourly for anything that takes less than one working day to complete (about 8 hours or less). If it's more than 8 hours, then I'll bid the job for a set price (plus or minus 15% for unseen changes).

Just find a price per hour you're comfortable working at. I'm sure there is a wide swing of prices amongst all of us, depending on skill level. Just remember one important thing... always get it in writing. If you're doing work up front at all, you should at least have a contract or some documentation that the customer understands they are obligated to pay. I'd even say do this for your most prized customers - it maintains your precidence and they'll appreciate the professionalism.

[Brangwyn]

For most customers I'll do small 1-3 hours worth of work for free, anything larger than that then I'll charge by the hour, provide an estimate of the time required first and get agreement from the customer on the price. If it's a really large amount of work then I may request a desposit up front from the customer as well if I've not done anything previous for them.

[TonyK]

Thanks I never charged anything for extra work I do, the sites I'm hosting I created them and I maintain them. My customers don't know how to and I don't think they want to know. I'm going to make a price list and I'll charge them hourly.
Now everything they need they call me from web sites to graphics, scripts, a client asked me to do the art work for his flyers for free! Is that S on my forehead that visible???

[mresell]

If you are a business,you are for profit. Selling resources is one thing. Anything else you should charge for services rendered. You could have some plans w/ a certain amount of this included in the price, but plan it well. Otherwise, you are setting a bad precedence for customers and you, which will result in no profits and you having to stop your business. You should never work for free unless it is a charitable thing. Get a signed contract upfront w/ retainer. Based on what work you are doing. This is for your protection, as well as, your customer. Gray areas only lead to problems. People constantly claim ignorance whether real or not and having a signed contract is very important.

[jmbeach]

Originally Posted by TonyK

Is that S on my forehead that visible???

That's the reason you set a precedence now. I have found over the years that changing a customer's expectations after giving them a bunch of free work is like pulling their teeth. Make it clear that you cannot live by working for free ultimately makes them come to expect to pay - and then you only hear from them when they really need you, as opposed to getting that dreaded phone call when they can't figure out how to open Outlook Express!!!

That's another thing - charge for support time, if it's something that you feel is beyond the scope of what they're entitled to for free. One customer of mine is virus/spam/adware prone, and it got to the point where 20 minutes here and 30 minutes there really started adding up. I finally had to tell him that I had to start billing for this time, since it (and a handful of other clients that got into this habit) was seriously taking away from my ability to get my work done. Now I have a nice extra stream of revenue offering support.

[mresell]

Originally Posted by jmbeach

That's the reason you set a precedence now. I have found over the years that changing a customer's expectations after giving them a bunch of free work is like pulling their teeth.

Yep, do it now...be direct, but diplomatic. Customers will take advantage if you let them and truly you have to blame yourself if you are not clear. They cannot help themselves(most anyway). It will seriously impede your work. It also shows you are professional, which is what you are supposed to be. People respect this. If you don't charge people will be suspect or your abilities and your judgements (wouldn't you). You also need to have a clear idea of what your business model is so you can focus on doing that well. I have had some people with ridiculous expectations for hosting. Better to lose a potential customer upfront than to start a bad relationship. This has saved me a LOT of heartache over the yrs.

[TonyK]

jmbeach
I have found over the years that changing a customer's expectations after giving them a bunch of free work is like pulling their teeth

I know jmbeach but this is me, I lost my job because of this "My boss tolled me you are a working manager, because every time the techs didn't know anything I was there to do it for them. So I was out of the door and this the reasson "he associates more with the common employees then the suppervisory staff" We have an Ice cream business in our family and after I lost my job worked there for well till they told me off! I give more free ice cream then I sold for profit!!

[Silverbug]

hmm sounds like it pays to be a friend of yours TonyK
The only problem i find is that when i started out i didnt charge much cause i really needed the work, now that ive established myself i still have those original clients expecting to be charged the same amount (which was increidibly underpriced)

[mresell]

Silverbug,
Everybody has to raise rates sometimes. I really try not too, but when your cost go up it matters. All my cost usually do. You know you just have to do it gently and explain. I have done work at a cheaper rate...but I let them know I am expanding in this area etc...so I am giving them a deal. Honestly, it really is best for your clients too, because you can't stay in business or do your best job. I have found some people complain about rates and others think the rates are great. Heck advertising is outrageous..., but you have to do it unless god blessed you.

[bubba]

I have a client with several sites for his travel business. Over the years I have made a lot of money updating and maintaining these sites.

He recently hired an "expert" in-house person to do this work. I decided to treat her as the "expert" and sent her all login/password info for everything. The first call I got from her was....."What is FTP?" I had to log in and make a small update that was time sensitive.

Second day on the job she is consolidating accounts with network solutions and all sites crash. Calls me and said it must have been something I did yesterday when I logged in to make that change.

I don't want to burn the bridge with the client as I still have the hosting but I have a couple of bets as to who will outlast who.

My point is that while I am no longer billing for the updates I'm doing more troubleshooting and handholding than when I did all the work.

The kicker is that I know that the owner is being told that all problems are my fault because with an 'expert' on staff who else could it be?

I think the smart money is shorting travel hosting futures........

[mresell]

Originally Posted by bubba

I have a client with several sites for his travel business. Over the years I have made a lot of money updating and maintaining these sites.

He recently hired an "expert" in-house person to do this work. I decided to treat her as the "expert" and sent her all login/password info for everything. The first call I got from her was....."What is FTP?" I had to log in and make a small update that was time sensitive.

Second day on the job she is consolidating accounts with network solutions and all sites crash. Calls me and said it must have been something I did yesterday when I logged in to make that change.

I don't want to burn the bridge with the client as I still have the hosting but I have a couple of bets as to who will outlast who.

My point is that while I am no longer billing for the updates I'm doing more troubleshooting and handholding than when I did all the work.

The kicker is that I know that the owner is being told that all problems are my fault because with an 'expert' on staff who else could it be?

I think the smart money is shorting travel hosting futures........

My 25c is document..document and bill for time and state what you did.
You should because you need to get paid for time and show what YOU are doing. You can support your hosting features, but it should not be your job to educate this person for free, no less.This covers you and you get paid. Unfortunately, there are MANY people who live their entire life passing the buck. Don't assume the company or owner will care or catch on that she is not an 'expert' she probably was hired to do multiple things anyway. If they decide to go elsewhere you might as well get paid. We all have extra special clients we don't mind spending extra time with, but you only have so much to go! around.

[soky]

I'm with mresell!! Communication is the key. Have you expressed these concerns with the agency owner? If it were me... I would go to the office (or at least a phone conversation) and meet with the owner... express some of these issues in the name of "finding solutions to the situation" and "seeking to provide better service." Find out from the own what lies the "expert" has told him regarding her ability and then you will know where you stand. If possible, have a meeting with the owner and the expert and then corner the expert with technical points and questions... this will let the owner know that he has been lied to.

(Politics)

At least that's how I would do it... Honestly, but with the intent to convey to the owner that YOU are the expert and the money he spends for your services is well invested.

Oh... my definition of expert?

ex = has been
(s)pert = a drip under pressure.

[DigitalSkyline]

Welcome to the real world...

If you do work without a signed contract these days you are asking for serious headaches.

People can and will sue you for not fulfilling their assumed expectations. You need to draw the line before they do.

Read it and weep: http://www.globetechnology.com/servl...ry/Technology/

^--- this guy could be you. He paid all the expenses and did 100% of the work without a contract and now he's a criminal.

(a more detailed article: http://www.zwire.com/site/news.cfm?n...1 41265&rfi=6 )

[Vixen]

Originally Posted by DigitalSkyline

Read it and weep: http://www.globetechnology.com/servl...ry/Technology/

^--- this guy could be you. He paid all the expenses and did 100% of the work without a contract and now he's a criminal.

(a more detailed article: http://www.zwire.com/site/news.cfm?n...1 41265&rfi=6 )

This story is just downright sad but the bad part is people will try to get anything they can for free. I understand wanting to keep your customers and keeping them happy but there is a point where you must draw the line. I totally agree with that you need to draw up contracts for your work and stick to them. Unfortunately, your customers may not always stick to the terms and remit payment as they should. Trust me, I am stating this from experience.