Best of the ISP-Lists

Older is Better

A startup ISP complains to the ISP-Webhosting list about tough times. It's good news for established Internet Service Providers—these days it's even tougher to start a new ISP than it used to be.

[May 3, 2001]

On the ISP-Webhosting list in April, JB worried,

"We are a new ISP, and we finally started signing up customers about three weeks ago. Business is so slow that I am in disbelief.

I have been running radio advertising for three weeks, and had an ad in popular publications. I have been posting signs all over town, I have sent out mass mailings, mass emails, flyers all over town, and one of our signs is in a computer store.

After all of that, I have only signed up five dialup customers. Can anyone give me some words of encouragement?"

KL noted that times are just tougher than they used to be:

"The problem is that residential dialup is not as economically feasible as it was in the mid-'90s. I remember when I first started in early '95, nobody wanted to sign up.

I had to cut my price in half to $15/month to make them happy; that got me 14,000 dialup customers reasonably quickly. If I wanted another 14,000 now, I would probably have to sell it at $5.

That's why we do 70 percent of our business with commercial users: the commercial side is growing at 100 percent per year, while the dialup is only growing at 10 percent.

Ask your nibblers what they need to sign up with you, and listen very carefully. Try out different packages, and see if you can find an intersection between what makes them happy and what can make you some money."

Others suggested that it's all about patience:

[PC offered] "It's gonna take a while until word of mouth gets started. Offer the best service in town and word will get around. You have to realize that the majority of your signups will be people moving over from other ISPs, and people don't like to change their email addresses. Offer a free trial to show them that your service is really better than MSN or AOL.

Getting in with the computer store is good: it will help you get newbies. Currently we aren't doing any advertising, and we sign up 50-60 accounts per month on average, strictly from word of mouth. We have the support of local computer gurus and shops: I think that's key. I know it's scary at first, but as long as you are better than the rest, it will get better."

[CP added] "The first few months will make you or break you. I am in month five now, and we are only at about 25-30 dialup accounts and a few web site hosting. Check with local government, tourism, chamber of commerce, and any business or industry committees. If you get one of them as a customer, businesses will take notice of you."

[JB agreed] "Six months to a year and you will see the boom. Give it time, especially with advertising."

DJ added that it's a rough time to be starting out, too:

"Consider that this time of year is traditionally a slow time for signups. People typically buy new PCs in the fall and at Christmas time; you will find that a high percentage of your new signups will be new computer users. Don't get discouraged. Gather the customers you can and service them better than your competitors. Service is the key: your happy customers will bring you customers."

— End