Would You Rent An Office From Your Employee?
by BobTheTeacher · Filed Under: Business Building · Discover cPanel · Getting Started · Rants · Web Hosting
Imagine this scenario:
A business owner (let’s call her Nicole) decides she needs to get an office. She doesn’t want to buy space (for budget reasons or whatever) so she decides to rent.
One of her employees, let’s call him Tom, happens to dabble in commercial real estate and has space to let. The office seems to fit all the criteria Nicole wants in an office: great location, affordable, good layout, already wired and ready to go. She signs the lease for 2 years to get a great rate on the monthly rent.
They make some changes to the office, make it look even better by bringing in a feng shui expert and work flow designer. They get new carpeting, install better lighting, and go to town on the signage for the lobby and outside the building.
Everything seems perfect until about 3 months later, when Tom starts showing up late to work. Nicole starts to notice that Tom’s work is becoming shoddy. She meets with him, shares her observations and Tom agrees he’s not been doing his best. He promises to improve.
For the next couple of weeks, it seems like everything is back to normal. But then, Tom starts slipping up again.
Nicole reaches the conclusion that she has to let Tom go. She fires him on a Thursday afternoon.
Tom seems to take the news in stride. As it turns out, he’s been moonlighting anyway at a different job that he’s more energized about. His lack of focus and attention to Nicole’s business was an obvious symptom of this. In fact, Tom’s been working for one of Nicole’s competitors.
What happens next probably won’t surprise you.
As she learns more of Tom’s work for her competitor, and realizes just how poor of a job he’s been doing for her, she gets increasingly more furious.
She can’t sleep at night, and every day it seems like she finds out some other way that Tom’s actions (or lack thereof) really cost her business.
The next Wednesday, she’s going through all the invoices, paying the bills, and running the numbers. One envelope gives her an instant migraine: it’s the monthly rent payment notice on the office.
She realizes she’s in month 5 of the 2 year lease. She can’t seem to shake the thought that even though that jerk Tom turned out to be a horrible employee, she still has to send him a substantial portion of her hard earned money each month for another year and a half.
Nicole tries to reach Tom to break the lease, but her calls go unanswered. Her emails and even a certified letter get terse replies that she’s obligated under the contract to keep paying the monthly bill.
She decides that every time she goes to that office, her attitude and energy are so negative that it’s affecting her work, her employees, and even how she deals with her clients. So Nicole looks for a new office. Even though she’ll have to pay twice the rent, a change of environment is in order.
She finds a new office and starts the arduous process of moving. But most of the improvements they made to the office can’t be removed.
Horrified, Nicole realizes that she’s going to have to start virtually from scratch with the new place. Months of her business, and thousands of dollars in workplace design and expenses have been flushed down the drain.
It takes another year for Nicole to generate the additional revenue to pay for this mistake. She barely survives the situation, coming close to shutting the doors forever several times.
Fortunately, this story is fictional, although I’m sure there are situations like this that happen.
So what’s the point of this story?
Obviously, you shouldn’t rent an office from an employee. Which I’m sure you already knew. And there’s a good chance you don’t really care because you work from home, right?
But this is exactly the same kind of mistake business owners are doing with their “online offices”, i.e., their websites.
I see this happen way too often, and I hope it won’t happen to you. I can guarantee you that at some point in your business, you will fire your webmaster. As a former webmaster myself, and now an internet marketing teacher and consultant, I don’t know a single person in business who hasn’t had to change their webmaster for whatever reason at least once.
And yet, most business owners who hire a webmaster are actually renting their virtual office from them. Sure, a webmaster is typically not an employee in the IRS terminology, but they do work for you. And the way webmasters make most of their money is by the monthly (or annual) web hosting bill they add on to their services.
Just like Nicole and Tom’s situation above, things usually start out working really well. But eventually, the customer load of the webmaster makes your site less and less a priority to them. When you get fed up enough, you will want to fire them and move to someone else who can give you more attention.
At that point, you’ll have a serious problem because you won’t be able to easily move your website to the new webmaster. In a worst case scenario, the webmaster you fire can change all the account settings, disable your website, and essentially shut down your business. And if you registered your domain name with them, you may never be able to get that unlocked and put in your name.
So how can you protect yourself from a scenario like this destroying all your efforts of building up your online business?
Control Your Own Hosting
First, control your own hosting instead of falling for the “convenience” of using your webmaster’s hosting. Many webmasters will try to convince you of letting them host your site, but you need to stand firm on this.
Plus, when you control your own hosting account, you’ll probably pay less than what they’re charging you, and if anything like the scenario above happens, you’re in control of the accounts. I recommend Hostgator if you’re going to have less than 3 websites or blogs, and ServInt Hosting if you are going to have more than 3 or you’ll be running complicated scripts on it. Both of these have excellent customer service.
Register Your Own Domains
Second, be sure to be the one that registers your own domains. You can use my domain registration service at Shylar.com for great prices (and it’s powered with the reliability of GoDaddy). Some webmasters will register domains under their company name instead of yours, or using privacy settings that essentially lock you out of the picture. If you ever want to take control of it, you’ll have a terrible time getting what you want because you will have lost any real points of leverage.
Set Up Separate Admin Access
Third, when you hire a webmaster or virtual assistant to help you with your website, give them a separate administrative level account that you can terminate if necessary. Don’t just give them your username and password to your accounts if you can avoid it. At the very least, create a new temporary password that you can change easily if something goes wrong.
Know Enough To Get By In A Pinch
Fourth, learn how to manage your own website. You don’t have to become an HTML junkie, or understand all the PHP, MySQL mumbo jumbo. That stuff you can get help with. But learn how to make changes to your site, to upload your own files, to set up your own email accounts, etc. You can learn how to do all this and more at my site, Discover cPanel. This way, if you do ever find yourself in-between webmasters or virtual assistants, or simply in a time crunch where they aren’t available, you’ll still be able to run your business.
You can also download a free report of mine, “7 Questions You Didn’t Know To Ask About Web Hosting”.
The bottom line is, having your websites locked up in the hands of your webmaster is just like renting an office from an employee. It’ll start out problem-free. But eventually, you’re more than likely going to have some serious headaches down the road.
Be in control of your website so you don’t throw time and money down the drain!
Bob Jenkins
p.s. Have a webmaster horror story to share? Feel free to comment below!
12 Responses to “Would You Rent An Office From Your Employee?”
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| Bob Jenkins is an internet business marketing teacher, with ten years experience teaching teenagers and teachers. He is the creator of several online training courses that teach you how to get better customers and increase your profits. Specializing in social networking strategies for business and creating information products from teleseminars, Bob can help you use internet marketing tools and strategies to promote your business online. |
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Control of changes on websites of the competitors…
I found your entry interesting do I’ve added a Trackback to it on my weblog :)…
I completely agree – and I am also a webmaster.
I know a lot of my competitors do exactly what you are saying here – basically, “Trust me! I’ll look aftr EVERYTHING so you don’t have to worry your pretty little head with all this newfangled stuff… you just do what YOU do best and leave the rest to me!”
I guess I am from a different world. Teach a man to fish, and all that.
I walk my clients through the process of signing up for hosting and domain registration. On their own account. AND I show them how to set up a secondary account for me to do my work.
Yes, I recommend my favourite host, but I think it’s a win-win. I am intimately familiar with the host which makes it that much easier to get things done. My customer knows I also use the same service, so they feel confident that it’s good.
The reason I prefer to work this way is because I want to do the work and move on to the next project. I don’t like to linger. I’ve found in the past that clients who get a bill from me for hosting every year somehow believe that also includes the occasional rework of a design or change on content… for free. It doesn’t.
This way, I complete the work and when it’s delivered, I send an email with step-by-step instructions on how to DELETE my account. They seem to find this more “final”.
Anyway, great point!
Cheers -
Lisa Preston
http://graphicswithimpact.com
I’m a developer and occasionally do some freelance stuff. I’d have to agree. If I do anything for anyone other than close friends I always insist they buy the domains & hosting themselves. It’s much less hassle to have it that way for all involved. More often than not the person wants me to take care of it all but even then I’ll give them a recommendation and then its up to them whether or not to go with it. When the account’s setup from a billing point I take over the tech side of setting it up and then they get an email with all the login’s I’ve created.
If you’re trying to make a quick buck on the hosting it is going to cost you pain in the long run. You’re point about clients expecting work done when you invoice them for the yearly hosting is spot on. Good post.
Unfortunately I disagree (yes, I am a webmaster and a host too).
It entirely depends on your trust level with the client and integrity (not at all hinting the anyone commenting here is not having integrity).
We are pretty much clear that we will release everything owned by the client in a no-hassle, no-quibble way and have done this several times in the past. We do lose clients though luckily that figure in a low single-digit. The business owners are quite happy dealing with us as we take care of everything they need about Internet marketing.
Goes without saying that we do have some clients who have got their own hosting and domain names and we are fine with them too.
Arun
Bob, loved the story … and I couldn’t agree more. I run into so many situations just like this and it gets really frustrating for clients as they feel like they are being held hostage. Thanks for sharing.
Tim
I am also a webmaster.
When I was first reading your post, I started feeling like you were making us “webmasters” out to be potential predators or bad guys (and gals)!
But I do understand your point and your cautionary post… kind of reminds me of the “old days” and all the controversy over who owned the films for a printing project. :)
I tend to follow same lead as Lisa, but I have clients that don’t want to have anything to do with the technical or purchasing side of things.
For them, I still set the accounts up in THEIR name.. record the log ins for them in the event I move on or they fire me. (which they usually don’t) :) And I explain that anything I have to manage out of pocket will be at retail cost plus 15% for my trouble. That way it is up front and also noted separately on every invoice.
They always have the option of moving the billing to their own account if they want to save the 15% or have more control. (ie Aweber, Constant Contact, hosting, purchase of templates, etc.) That seems to work out pretty well for the most part.
But good post and food for thought.
Christine
I have been both a webmaster and a host and would not want to jeopardize my relationships with my clients by allowing petty situations to evolve into loss of revenue because of anything that I did. But that being said, I agree that you want to insulate your businesses to prevent that from happening.
You best bet is to find a reputable webmaster and a reputable host. Maybe even buy the host through the webmaster’s affiliate link. But in any case, make sure that you do not place your eggs in one person’s basket.
Micheal
I agree here as well! You can’t be too trusting these days!
Bob, right on. This post could easily adapt to the self-publishing industry as well. So many authors have come to me because they’re being “held hostage” by their self-publishing services company. Unfortunately for them, it’s actually easier to move a website than a book. I’d love to adapt this post and reference it as it relates to self-publishing. May I?
Thanks! (See you at NAMS4!!)
-K :)
Well your story may be a fiction but somehow it is a true story. I have experience mine in a different way When i stopped a salary job not really that i stopped but a place of work was burnt off. i started my own on 2003, but before i got my store i have suffered a lot from renting agents to the extent that i collected my money on which they paid in a place where the owner told them that he has collected money from one his relation. So as they are wasting my time i collect my money from them. Later they find a very big store for me to pay only two months while their own fees will be times three of what i paid the landlord, i have no choice rather to pay it. As i am staying infront of the yard. He pleaded with me to help him so that he can rent other stores with a promise that whose ever comes through me he will pay me on which he did not fulfill before the months will expire, he is already planing how to rent out my store to another person in order to collect another fee from the person and you know what if not that God was with me he could have succeeded, because at the time of his planing am too busy both with my bible school on saturday also with the work of God that kept me busy.
The story may be fictional but the points taken away are invaluable. I had an interesting experience last year that confirms the value of every point you made, Bob. My website was designed by a member of my Professional Networking group in exchange for work I did for him and I foolishly changed from Hostgator to hosting with him. I left the group and he moved his business so we lost contact. In December I changed my Nameservers on Go Daddy prior to (big mistake!) going to a new host and lost my website for about a week. It took days to track him down, paid for recovery of the back-up, etc. All of this was done by a new webmaster.
I would discourage anyone from using a hosting service that you cannot get access to 24/7 and I appreciate your point about creating another password for admin access. I was not aware that it could be done and have reluctantly given out my user name and password. I’ll research that further. Thank you for an enlightening post.
I soooo agree Bob! This past year alone I have helped 3 clients who have run into similar situations, they had not control and no access and it was painful getting that back. In one case we could not. Just awful. There are horror stories out there and because of my experiences I always recommend the domain and hosting setup – as well as a variety of other online services/marketing accounts needed – get setup in the client’s name using their info and accounts. When we part ways I also send them a note that they should change all passwords to protect us both.