by Kevin Hazard, December 1st, 2006 | 6 Comments
You found Site5. By some twist of fate in this mixed up internet world, you are reading our corporate blog when there are more than 100 million other sites on the internet. You may live in Australia, Austria, or Austin, but the simple fact is that somehow you heard of Site5 (and Kevin’s amazing blog posts), and you are here. This information is not earth-shattering, but it gives way to an extremely interesting statistic: If you found us recently, we probably didn’t have to pay anything to get you here.
We are coming off of our most successful month in Site5 history, and we have paid next-to-nothing in advertising in the past six months. Our biggest “advertising” expenses are affiliate commissions for converted sales, and we pay 1/5 what our competitors do for each sale. Something must be wrong with the system. This doesn’t make sense. Wait… Maybe it does.
What’s the Deal with Affiliates?
You might be surprised to learn that in the hosting industry, it is common practice to pay affiliates well over $100 for each new customer they refer. No, that’s not a mistake, and no, that statement needs no qualification. You put up an affiliate link for a web host, a customer signs up for a $10/month hosting account, and you get paid $100. Some quick math would reveal that a $100 payout on a $10/month account is 10 months of service that the host is not getting paid for. These affiliate commissions are clearly built upon an assumption of long-term commitment, but the $20 gross revenue that host gets in the first year (which breaks down to $1.67/mo) would explain why Site5’s plans are so affordable. Note: That $20 gross revenue is likely to decrease significantly when you break out blanket advertising expenses for the year to your hosting revenues, further proving my point.
Site5 pays a small fraction of that typical cost for each affiliate sale, but we can pay off that affiliate expense anywhere from one to four months into the hosting contract. Let’s say we give an affiliate $20/sale. If that sale is on our $20 reseller deal, we gross $220 on that account ($20/mo x 12 mo - $20 payout) in the first year. If that sale is on a $5 shared plan, we gross $40 on that account in the first year. Both of those numbers are greater than our competitors’ $20/account gross, so we would then have more money per account to spend on servers and support… you know, those relatively significant little things. 
If you are looking for hosting and you stumble across Site5, we hope that one of our plans and your website needs go together like lamb and tuna fish (thanks to Big Daddy for that comparison). Maybe it has to do with our prices, our specials, or our ruggedly handsome and witty blog writers, but our affiliate conversion ratios are among the highest in the industry. Go ahead, navigate to our site to sign up for our affiliate program and test out that claim. We are currently using iDevAffiliate for our affiliate system, but our entire affiliate program is being overhauled by Matt and David, so you may not get too much experience in iDevAffiliate before our new system drops.
The new system will be integrated directly into Backstage, and it will be designed with an easy-to-use interface. As an affiliate, you will be able to easily set up ads, track sales and get payouts via paypal or have balances applied directly to your hosting account. Because we are tying the system into our customers’ account management panels, every Site5 customer can easily become an affiliate and take advantage of the opportunity to make a few dollars by simply dropping a “This Site Is Hosted By Site5″ link or image at the bottom of their page. When the new system is released, we will probably increase payout levels on a tiered system (the more sales you get, the higher the commission you get per sale). Before you crack your knuckles and prepare to call us out on our diatribe against high affiliate payouts, we are not going to get up to the $100 mark, but because you need a Site5 account to use the Backstage system, we feel a lot better about sharing the wealth with our customers (slash affiliates).
Not coincidentally, Site5’s most successful campaign has been the “Tell Your Friends” Multisite deal simply because our community is our most valuable resource when it comes to marketing and promoting our services. Extending a discount to new customers is essentially writing off the discount to advertising expense. All of the decisions we make for the future of the affiliate program will be with the understanding of the dollars and cents of the hosting accounts (as I discussed above) as well as the common good of the Site5 community… We’ll make Web Hosting Communism work: I’ll be “Karl Heinrich Marx,” Matt will go by “Mao Tse-tung,” you can call Todd “Vladimir Ilyich Ulyanov,” Adam will respond to “Joseph Vissarionovich Dzhugashvili,” and Rod’s can be reached as “Leon Davidovich Trotsky.”
But You’re So “Cheap”
As I mentioned in the recent post about overselling, we do everything in our power to ensure a top quality hosting experience, and our plan pricing is derived from a Keep It Simple Stupid approach. People say we are overloading our servers because our plan prices are so low, but as I explained, a greater percentage of our monthly fee is spent on the quality servers and support you are getting with us rather than the advertising expense you are helping some other company pay.
Rather than relying on large affiliate payouts–not to mention other costly advertising campaigns–to bring in new business, we spend the money providing additional value. And since our offerings are second to none, people who find out about Site5 choose us much more frequently than they do many of our competitors. So in that sense, even our affiliates win, because although we’re not paying triple digit dollar amounts for each referral, the people they send are much more likely to host with Site5 because of the bang-to-buck yield. So the next time you see an ad for a hosting company–whether it be a sponsored Google search result for the keyword “web hosting” (which goes for up to $40/click,.. don’t even ask me about factoring that amount into the equation), a banner on a cluttered hosting directory or a “top 10″ site–know that Site5’s conspicuous absence is our way of saying “Hey, come check out our hosting. We think you’ll like it.” Actually, I’m from Texas, so for the country music fans out there, I can make it a little more clear: “We say it best when we say nothing at all.”
We have been cutting out all expenses that do not make our service better. The result? We have strengthened our hosting infrastructure, improved support policies, implemented new quality assurance systems, and invested in technologies that will ensure the best customer experience possible.
by Matt Lightner, November 20th, 2006 | 11 Comments
I’m one of several people who watch Site5’s careers email address, which means I see quite a few job applications–especially with our current search for systems administrators. The quality of applications we receive obviously varies, but I’ve noticed a disturbing trend: terrible (or entirely absent) cover letters. And I’m not even being picky here. I’m not expecting a full, formal cover letter; I’m referring to essentially any writing that accompanies a resume, even if it’s as simple as: “Hi, my name is Joe Smith and I’m interested in the position.”
I’ll let you in on a little secret: I don’t even get as far as opening the (hopefully) attached resume on probably 90% of the applications we receive. While I expect all applications to include a resume, I also expect that said resumes will contain their fair share of BS (hey, I’ve helped people write resumes before). But when an applicant’s basic introductory paragraph is littered with grammar errors or ridiculous diction, it’s straight to the round file. If someone can’t formulate a few fluent, human-sounding sentences for a job application, I absolutely don’t want them interacting with our customers, much less having administrative privileges on our servers.
Now I know this is just giving away our secret screening process and will only make our selection process more challenging, but I feel compelled post a few “tips” for would-be applicants:
- Make sure your application is free of grammar errors! I can’t stress this point enough. Grammar errors on a job application are a dead giveaway that the applicant either a) isn’t educated, b) isn’t even intelligent enough to fake it or c) doesn’t have command of the English language–all of which are requirements for working at Site5. You’d be amazed how few error-free applications we receive. Here’s a big hint: if any part of your application is grammatically incorrect, you will not get the job. It’s as simple as that. There are tons of resources that will help you here. I have Paul Brians’ common English errors catalog set as a Firefox quick link. If you have even half of those down, you’re in pretty good shape!
- Don’t just send us a blank email with your resume attached. Write at least a paragraph explaining who you are and why you’re interested in the job. We don’t want someone who is simply shotgunning their application to as many companies as possible. If you don’t even have the time tailor your application to the job, you’re wasting our time. Indicate in some way that you, in the very least, looked at our website before applying.
- Don’t use absurd language. The use of phrases like “Dear Respected Sir or Madam” and “esteemed organization” is a red flag. It tells us that you probably don’t know much English. I’m not sure if someone, somewhere is actually advocating the use of this odd verbiage, or if it’s just the result of a poor Babelfish translation, but at Site5 we look for people who speak and write like, well, like real people. You’re not applying for a Shakespearean actor position, so don’t write like one (although we will have such a position opening up soon).
- Don’t be cheesy or overly-flattering. I know Site5 is a great company, but I have a hard time buying that it’s been your lifelong dream to work here. You can just be honest: “I know of Site5 and I like what I’ve seen.”
- Don’t use your stock email signature. It’s tantamount handing someone your business card at an interview… or something weird like that. I don’t want to know what you do right now–a job application is more about want to do in the future (which, since you’re applying, I assume to be “get a job at Site5″). Besides, you should already have your current position listed on your resume. Instead of a 10 line signature with all of seven of your phone numbers (or 12 if you’re Todd, our COO), your current job title and your employer’s tagline, close your emails with a simple “Best Regards,\nYour Name” (oh, and you should know what “\n” means if you’re applying for a systems administration position).
- Use an email address that matches your name in some way. Don’t email your resume from 1337h4×0r@yourdomain.com, and definitely don’t sign your emails with some kind of handle or nickname. Remember, you’re applying for a job. As in… a job. I guess there’s no other way to put it. Save your leetspeak for your IRC buddies.
- Know the difference between a curriculum vitæ and a résumé. Don’t say one when you mean the other. As a general rule, if you’re not sure which yours is, it’s probably not a curriculum vitæ.
- Double check to make sure your resume is actually attached. First impressions count, and nothing says “I’m careless” like forgetting to attach your resume to a job application.
- Be creative, and a little bit informal (but still professional). We’re a fun and creative group here. Writing an impersonal, formal cover letter isn’t nearly as impressive as writing a letter that conveys both your personality and professionalism. This is where we can very easily tell the good candidates from the average ones.
And remember: these are just the bare minimum expectations. This isn’t a secret formula that guarantees you a job, or even an interview. It’s simply a way to ensure that we spend more than 2.718 seconds looking at your application.
Have your own tips on what to do and what not to do when applying for a job? Post a comment and share your wisdom!
by Kevin Hazard, November 19th, 2006 | 6 Comments
So… I was sitting at my computer at about 10:30pm PST tonight, and I noticed in a Digg-watching widget on my homepage that a story was called “$5 = 55GB (web space) + 5TB (transfer) + 55 (domains),” and it was at the top of Digg’s front page. I thought to myself, “Self (because that’s what I call myself when I think to myself), Site5 has a deal just like that one… That’s funny…” I voyaged over to the Digg page about the story and saw that it was, in fact, talking about our “Totally Ridiculous $5 Web Hosting Deal.” It was awesome to see the attention our plan got when someone (Digg user d0rmsl0b, actually) dugg the deal and it garnered the attention of the all-seeing, all-knowing Digg monster.
Recently, our corporate blog was dugg to the front page when we posted an article about “Apple’s Time Machine, Site5’s Flashback, and a 1981 DeLorean,” so we were anticipating the throngs of Digg fanatics checking out our hosting deal… PHP on Site5’s Corporate Site was not anticipating those throngs, though. About 15 minutes into the digg, we were still at the top of the front page, but the tides turned… Our site’s Digg changed from being “A Web Host’s Dream” to being “A Web Host’s Nightmare” in the blink of an eye (and destruction of a server).
You can read the comments from the Digg users about how horrible of a web host we are for not surviving the Digg Effect (called “The Slashdot Effect” in the Wikipedia article for the same reason, referring to a similar traffic spike coming from Slashdot.org), and you can bet that we were both frustrated and embarrassed by our corporate site’s server going offline as a result of the tidal wave of traffic. Coincidentally for us (and perhaps an act of the internet gods), at this time, the story dropped off of Digg’s front page either because some kind soul at Digg wanted to hide the web hosting company’s site crashing or some of the often-hesitant Digg users thought that we submitted the deal to Digg ourselves as some kind of advertising spam. While we did not submit that story ourselves, it is a bit of a blessing in disguise that the story was buried when it was, given the server’s crash… Speaking of servers crashing, if you haven’t watched our Server Toss in a while, you should go check it out again… it’s always good times.
What happened?
Essentially, PHP PHPwned us.
Our site predominantly consists of .php pages, and each one of those pages dynamically connects to our server/databases to pull our site’s index content. This process is exceptionally useful to maintain a dynamic site, but with a flood of traffic, PHP essentially ate several GBs of RAM and closed off all connections when the server ran out of available memory. The result: www.site5.com is inaccessible, and every user on Digg smiles to him/herself with the intention of writing a witty “Man, they should probably get a new web host that can handle the traffic” comment. These jabs are certainly well-deserved, and we can’t do anything but take them in stride.
How did we fix it?
While we are not immediately throwing down the gauntlet for Digg with the message, “Do Your Worst,” the Digg incident brought about immediate changes in the way our site is hosted (following an immediate wake-up call to a few of the folks working for Site5 on the East coast). We have cached several of our highest-trafficked dynamic .php pages into .html files that do not communicate as extensively with the page’s server, and we are using this traffic-induced crash to re-evaluate our entire site sub-structure.
Thank you to everyone that dugg the $5 Deal. We hope we can be a bit more accommodating to your traffic the next time the elite of digital world notice Site5’s deals.
Now we know how Costco.com felt after being taken down for several hours following their initial sale offer of Sony’s Playstation 3 yesterday.
P.S. People continue to try and call us out for overselling when they see our $5 hosting deal. While I tried covering the topic in a previous post and several other hosting companies have done the same, I will write a post to explain the “Why?” and “How?” of Site5’s plan structure and hosting prices along with several overselling myths and truths within the next week or so. Until then, please understand that Site5’s goal has always been to maximize the productivity of each server and provide an excellent hosting experience for each customer.
by Kevin Hazard, November 13th, 2006 | 1 Comment
Shhh… Be vewwwy vewwwy quiet… We’re Hunting Linux/cPanel Systems Administrators (Remote / Telecommute)…
Site5 is once again on the hunt for some very exceptional people. If you’re looking for a challenging career in the web hosting industry as a Linux System Administrator, Site5 is the company for you. One thing to keep in mind–-Site5 is not your average company. Site5 is filled with talented people and teams that like and want to work. Site5 is progressive, original and proactive. Site5 is exceptional and we’re in need of exceptional people.
How do we create such a dynamic and enjoyable work environment?
- We only hire great people.
- Our employees are dependable and reliable.
- We encourage learning additional skills.
- The management team actually cares.
Sound like a company you’d like to be part of? Excellent–because we’d love to meet you!
System Administrators at Site5 are an integral part of our success. Our administrators keep our site, our clients sites and our infrastructure in amazing condition. You will be responsible & part of a shift based team that analyzes and finds solutions for daily issues that arise in our server fleet.
System Administrators are also responsible for direct, front-end support for all of our valued clients. Our clients expect & deserve the best possible support when an issue arises with their account/service/server, etc.
Like most employees at Site5, you will sport many hats throughout your day. Some include, but are not limited to, Site5 evangelist, customer service guru and master Linux sysadmin. Edit: Removed duplicate sentence per Rob’s comment on this post.
Our work environment is fast paced & progressive. The prerequisites for this position include strong troubleshooting / problem solving skill (Linux & basic hardware), a hardcore knowledge of Linux & networked environments, impeccable customer service abilities as well as the ability to learn / pickup new applications/concepts/ideas at a very rapid pace.
Very strong communication skills, interpersonal skills & scripting skills are paramount.
Essentials to apply for the Site5 Sr. System Administration position:
- 2+ years experience as a Linux Systems Administrator in a production environment.
- Experience on help desks is a plus.
- Experience in the web hosting industry.
- Proven technical troubleshooting experience.
- Experience with Apache 1.3/2, PHP 4/5, MySQL 4 or Exim is a plus.
- Excellent written & verbal communication skills.
- Hardcore Linux experience in a production environment is a plus.
We are currently looking to fill all shifts.
Please send a text (ASCII) or HTML version of your resume to careers (at) site5 (dot) com with the subject line: Systems Administrator - Remote (2QT-11132006).
Selected applicants will receive a one-time cash bonus upon successful completion of our initial probationary period. Cash bonuses range from $2,000.00 USD - $5,000.00 USD depending on shift & qualifications.
Site5 Internet Solutions, Inc. is an equal opportunity employer.
Site5 does NOT accept resumes from agencies or similar. Please do not remit invoices to our contact email address, physical mailing address, fax or to any of our employees or contractors. Site5 will not be held responsible for any fees related to unsolicited resumes/correspondence.
by Kevin Hazard, May 26th, 2006 | No Comments
If I didn’t diatribe against music on websites and we weren’t concerned with what kind of copyright infringement we would be committing, you would hear Ice Ice Baby’s recognizable melody looping through your computer speakers right now. Yo VIP, Let’s kick it.
No, this post isn’t going to talk about “Rolling in my 5.0 with my rag-top down so my hair can blow,” but we are taking another line (very out of context) to heart: “Slice like a ninja, cut like a razorblade so fast…” We’re makin’ moves like we’re wearing parachute pants and sequin-encrusted jackets.
In a recent email to customers, Matt announced, “As part of our ongoing effort to provide a high performance hosting experience, we will be redistributing a large number of web hosting accounts to a fleet of new servers. More specifically, the number of accounts on many of our hosting servers will be cut in half.” In order to ensure that we are providing the best hosting experience across our entire fleet, we are “Spreading the love” to our customers by spreading accounts across a new installation of servers. What will it look like? I thought you’d never ask (I set myself up for another oddball reference)…
Yes… “We will call them Mini-Servers!” (not really, but that would be funny). The process of moving the accounts will run in the next few days, and all customers that will be moved will also be notified about the specifics of their account activity before the process begins.
Upon completion of the server moves, we will have a more balanced fleet of servers with even better uptime, load levels, and service quality. Enjoy, and “Beeehaaaaayve.”
