If you regularly talk with folks in sales and marketing at server colocation companies, you discover a highly fragmented industry with wide variations in target markets, services delivered, and average client lifetime value (LTV).
So each colo provider ends up needing a somewhat different path and plan for scalable, predictable revenue growth.
At the end of the day, however, colocation is largely based on real estate – location, location, location – and owning assets that, with lots of value-adds, can be rented out for a premium.
This asset ownership is many times what builds leverage into their balance sheets.
So it’s not surprising that executives and sales directors from the server colocation industry love the idea of building lead generation and revenue generation assets that accrue more value over time through sheer leverage.
What are the Best Strategies for Growing Revenue in the Server Colocation Space?
The most important thing: think leverage.
If you put a certain amount of monthly or annual investment into advertising, it could be per pay-per-click (PPC) advertising or something like that -- once your budget is gone, that’s the end of that source of website traffic.
And hopefully, you had some good converting landing pages that generated leads; otherwise, that’s it.
It’s like walking out of a trade show where your only return came from the small percentage of attendees that took the trade show program with them, eventually got to page 71 in the program where your company is listed, and eventually got to your website. Five years later. After three job changes. No longer relevant. And overall not cool!
But on the flip side: when you create educational blog content, social media reach, videos, podcasts, and webinars, as long as the content is reasonably evergreen if a blog is converting to leads and your landing pages convert to leads, until that content stops being relevant and evergreen if it’s working this month there’s every reason to believe that a significant percentage of that will continue to work six months, a year, or two years – or more -- out. That’s leverage!
A Huge Percentage of Colocation Space Leads Come from Efforts Not Undertaken During the Current Month
70% to 80% of what’s generating leads on our website and clients’ websites is typically content not created that month.
Let me repeat that because it’s a hugely important mindset shift:
70% to 80% of what’s creating leads for us and creating leads for our clients in a given month comes from content created in previous months.
So a huge amount of leverage gets created over time by getting to the point that you have a couple of hundred blog posts and a couple dozen well-converting landing pages.
Also, see Has Your Server Colocation Revenue Growth Stalled?
What kind of leverage has your colocation firm deployed in its thought leadership and lead generation? Share your favorite tip in the comments box.
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