HostArmada is a rapidly growing web hosting company recognized for its innovative and reliable services. They specialize in fast and secure hosting solutions, including shared hosting, VPS, dedicated servers, and WordPress hosting. With 23 data centers worldwide, HostArmada ensures excellent availability and minimal latency for its clients.

I had the opportunity to speak with Simeon Mitev, CEO of HostArmada, who shares the company’s history, how they scaled, customer acquisition strategies, and future market trends. Simeon provides invaluable insights into affiliate marketing for hosting companies. I’m pleased to share this interview, as Simeon promised straightforward answers without any fluff.

Łukasz Gawior: Could you give a brief overview of the history of HostArmada?

Simeon Mitev: HostArmada’s journey began in the last quarter of 2019, a period marked by enthusiasm and vision. We launched with the usual suite of web hosting products housed in just a few data centers. From the start, we committed to our core principles: speed, security, and stability which started resonating with our early adopters and quickly attracted major affiliates, setting a strong foundation for growth. However, the path ahead was anything but smooth. The world soon plunged into unprecedented times with the outbreak of COVID-19, leading to a global recession and increasing inflation. These challenges could have derailed our momentum, but instead, they motivated us to work even harder. Faced with an uncertain economy, we had to recalibrate our expectations and rethink our strategies if we wanted to stay afloat. So we can definitely say that the early years tested our resilience. However, lowering our expectations wasn’t a sign of defeat but a strategic move to ensure sustainable growth. With renewed focus, we embarked on an aggressive improvement campaign, dramatically enhancing our existing products and expanding our portfolio with new, cutting-edge solutions.

Łukasz Gawior: What were the biggest hurdles you had to overcome when entering the market?

Simeon Mitev: Partnerships played a crucial role in our evolution. Aligning with industry leaders like YoastSEO and WP Rocket, we not only enriched our offerings but also reinforced our commitment to providing top-tier services. These collaborations were more than just business deals; they were strategic alliances that strengthened our market position and credibility. Today, HostArmada stands stronger and more resilient than ever. The trials we faced in our formative years have shaped us into a company that not only endures but thrives in the face of adversity. Our story is one of perseverance, innovation, and unwavering dedication to our core principles, guiding us as we continue to grow and serve our customers with excellence.

Łukasz Gawior: What inspired you to start a web hosting company?

Simeon Mitev: After working for a few major web hosting brands, I started identifying negative management patterns that lead to waste of employee potential and lost financial opportunities. My ideas and suggestions were not appreciated in the way how I anticipated and I started asking myself if my time will be more useful elsewhere which born the vision behind HostAramda: I imagined a company where web hosting innovation thrived alongside a productive and positive work environment. I wanted to build a place where employees felt valued, empowered, and free from the daily stresses that plagued many traditional workplaces. The idea was simple yet profound: to blend cutting-edge web hosting technology with a supportive and motivating company culture. I believed that happy, motivated employees would naturally lead to happier customers and exceptional service. This philosophy became the cornerstone of HostArmada.

Łukasz Gawior: What key steps did you take to build HostArmada from the ground up?

Simeon Mitev: Building HostArmada was a journey marked by careful planning, unexpected opportunities, and the invaluable contributions of a talented team. Here’s how we turned our vision into a successful and thriving web hosting company:

  1. Extensive Market Research and Business Planning: Every business starts with a market research, and we were no difference. Understanding the industry’s dynamics, identifying gaps, and recognizing opportunities were crucial. This research was later used in the development of a comprehensive business plan and blueprint that would guide our journey.
  2. Finding the Right Partner: Fate intervened when I least expected it. I was preparing to pitch to potential investors when I was contacted by Mr. Atanas Tanev, who would become our co-founder and CMO. Over a dinner, I shared my vision for HostArmada, and he saw the potential immediately. His belief in the concept was a pivotal moment, as it provided the necessary investment and partnership to move forward.
  3. Assembling a Dream Team: Bringing HostArmada to life required more than just capital—it needed a team of dedicated professionals. The news of our venture spread quickly, and I was fortunate to reconnect with some of my former colleagues. These were individuals with whom I had previously enjoyed great synergy. Their expertise and enthusiasm were instrumental in getting our project off the ground.
  4. Development: With a committed team in place, we spent several months meticulously forming the company and developing the software products essential for our operations. This phase was intense, involving countless hours of coding, testing, and refining our offerings to ensure they met the highest standards.
  5. Official Launch: After months of hard work and dedication, we officially launched HostArmada. The culmination of our efforts was a company ready to make its mark in the web hosting industry, armed with innovative solutions and a team dedicated to our core principles of speed, security, and stability.

Łukasz Gawior: What marketing and sales methods were most effective in the beginning?

Simeon Mitev: Entering the competitive web hosting market required a multifaceted marketing approach. We primarily relied on affiliate marketing, content marketing, and social media marketing.

Affiliate marketing was our cornerstone. By partnering with influential affiliates, we leveraged their networks and credibility, quickly gaining visibility. Offering attractive commission structures ensured affiliates were motivated to promote our services, creating a win-win situation.

Content marketing played a role as well. We created high-quality, informative content in the form of tutorials, guides and blog posts that addressed common web hosting questions and issues. This established our authority and improved our organic search rankings, driving more traffic to our website.

Social media marketing was also essential. We launched engaging campaigns across platforms like Facebook, Twitter, LinkedIn, and Instagram, mixing promotional content with customer reviews. Active engagement helped us build a loyal community and strong customer relationships.

Promotional offers, such as competitive discounts, attracted new customers and encouraged current ones to advocate for our brand.

Combining these strategies allowed us to penetrate the hosting market, build brand awareness, and establish a foundation for ongoing growth, focusing on lasting relationships and community trust.

Łukasz Gawior: How did you manage to acquire your first 1000 customers?

Simeon Mitev: Acquiring our first 1000 customers was a strategic effort that combined timing, marketing investment, and strong partnerships. We launched HostArmada just before the Black Friday promotional period, a prime time for attracting customers seeking deals. Capitalizing on this, we invested heavily in ad campaigns across Google, Facebook, and LinkedIn. These ads were designed to highlight our unique value propositions and attract a wide audience. Additionally, as I mentioned earlier, we forged strong relationships with affiliates right from the start. These affiliates, with their established networks and credibility, played a crucial role in driving traffic to our website and converting visitors into customers. Their endorsements helped build trust and credibility, making potential customers more likely to choose HostArmada over competitors.

Łukasz Gawior: What are your main competitive advantages over other hosting companies?

Simeon Mitev: HostArmada stands out in the crowded web hosting market through a few key advantages. Our pricing is highly competitive, offering excellent value without compromising on quality. The specifications of our products are best on the market, ensuring superior performance, and reliability for our customers. Our unwavering commitment to the core principles—speed, security, and stability—sets us apart. We prioritize these values in every aspect of our service, from infrastructure to customer support. Additionally, our dedication to every customer request is unmatched. We provide personalized support, ensuring that each client’s needs are met promptly and effectively.

Łukasz Gawior: What were the key moments in the company’s history that contributed to its growth?

Simeon Mitev: One pivotal factor was our ability to maintain competitive pricing despite rising infrastructure, software licensing, and labor costs. This commitment to affordability allowed us to attract and retain customers even in challenging economic conditions. Another significant moment was the introduction of continuous improvements to our services. By consistently enhancing our offerings, we ensured that our customers received top-tier performance and reliability. Additionally, forming strategic partnerships with industry leaders brought new value to our services at no additional cost to our customers. These partnerships provided access to premium tools and resources, further enhancing the overall customer experience.

Łukasz Gawior: How big a company is HostArmada currently? How many people do you employ?

Simeon Mitev: In terms of the number of employees, HostArmada can definitely be considered as a small company with around 20 employees. Despite our modest size, our capacity and productivity rival those of a team 10 times as large. This efficiency is achieved through numerous automation processes and continuous improvements over the standard workflows typical in the web hosting industry. Our lean, highly effective team allows us to provide top-tier service and support, maintaining a competitive edge in the market.

Łukasz Gawior: What services do you offer? Do you plan to expand your offerings in the near future?

Simeon Mitev: We currently offer a comprehensive range of managed web hosting products, including Cloud Shared Hosting, Cloud WordPress Hosting, Cloud VPS Hosting, Cloud Reseller Hosting, and Dedicated CPU Hosting. These services cater to a wide variety of needs and ensure robust performance and reliability for all types of websites. Looking ahead, we plan to expand our portfolio significantly. We are gearing up to completely revamp our Cloud WordPress Hosting products to enhance their features and performance. Additionally, we aim to introduce specific hosting packages tailored for popular open-source platforms like Magento and WooCommerce. These specialized packages will be packed with features designed to optimize and support these platforms, providing even greater value to our customers.

Łukasz Gawior: Which of HostArmada’s services are most popular and why?

Simeon Mitev: The most popular services at HostArmada are our Managed Cloud Shared Hosting and Managed Cloud WordPress Hosting. These products are highly sought after due to their affordability and exceptional value. Customers appreciate the enhanced support and proven performance provided by our meticulously crafted and optimized shared hosting environment. These factors make our Managed Cloud Shared Hosting and Managed Cloud WordPress Hosting the go-to choices for individuals and businesses seeking reliable and cost-effective web hosting solutions.

Łukasz Gawior: From your perspective, how has the hosting market changed since HostArmada was founded?

Simeon Mitev: The onset of COVID-19 drastically altered the landscape. Initially, we anticipated a challenging period, but the lockdowns unexpectedly led to a surge in sales as businesses and individuals moved online. However, this boom was followed by a recession and significant inflation, which reduced the demand for web hosting services. The economic downturn presented challenges as many potential customers tightened their budgets. Currently, the market is gradually recovering, showing signs of renewed growth and stability. Overall, the hosting market has had its ups and downs, reflecting broader economic trends and the evolving needs of our customers.

Łukasz Gawior: What are the key trends and changes you are seeing in the hosting industry?

Simeon Mitev: While there haven’t been many entirely new trends, we’ve observed web hosting companies testing new pricing models and shifting their focus toward Managed WordPress hosting products. This shift underscores the increasing demand for specialized and managed services that offer ease of use and optimized performance for WordPress sites. Consistent trends remain in the widespread adoption of NGINX and LiteSpeed web servers. These web servers have become almost industry standards due to their ability to deliver fast and reliable web hosting, which is crucial for maintaining high performance and user satisfaction. Overall, the industry continues to evolve, with companies seeking innovative ways to meet customer needs while maintaining high standards of speed and reliability.

Łukasz Gawior: What challenges do you see for hosting companies in the coming years?

Simeon Mitev: One of the biggest challenges we foresee for hosting companies in the coming years is financial. The rising costs of infrastructure, software licenses, and inflation will likely force the market to either increase prices or lower quality. Striking the right balance between affordability and high-quality service will be crucial. Another significant challenge is retaining the customer base amidst these financial pressures. Many customers switch hosting providers due to high renewal costs, which can undermine the personal connections we strive to build. Developing new pricing models that offer both value and sustainability will be essential. The company that successfully innovates in this area will gain a substantial competitive edge. These financial and customer retention challenges will require strategic planning and adaptability to navigate effectively.

Łukasz Gawior: Can you tell us what it is like to work with affiliates at your company?

Simeon Mitev: Working with affiliates at HostArmada is a highly collaborative and rewarding experience. We view our affiliates as integral partners in our growth and success. Our approach is built on transparency, mutual trust, and ongoing support. We provide our affiliates with real-time tracking tools and a dedicated affiliate manager who is always ready to assist with any queries or challenges. This creates a dynamic environment where affiliates can thrive, and we can collectively achieve our business goals. Moreover, we regularly seek feedback from our affiliates to continuously improve our program, ensuring it remains competitive and beneficial for everyone involved.

Łukasz Gawior: What are the standard rates for customer acquisition through affiliate programmes in the hosting industry?

Simeon Mitev: In the hosting industry, the standard rates for customer acquisition through affiliate programs can vary significantly based on the company and the specific terms of the program. Generally, commission rates range from $50 to $300 or more. At HostArmada, we strive to offer competitive and attractive rates to our affiliates, reflecting the value they bring to our business. Our program offers retroactive commissions that are among the best in the industry, which helps us attract and retain top-performing affiliates.

Łukasz Gawior: How do you assess the profitability of affiliate programmes for HostArmada?

Simeon Mitev: Assessing the profitability of our affiliate programs involves a comprehensive analysis of several key metrics. We look at the customer acquisition cost (CAC) through affiliates and compare it to the lifetime value (LTV) of the customers they bring in. By monitoring conversion rates, churn rates, and the overall return on investment (ROI), we can determine the effectiveness of our affiliate partnerships. This enables us to identify and reward the highest performers. The data-driven approach ensures that our affiliate program is not only profitable but also scalable and sustainable.

Łukasz Gawior: What strategies do you employ to maintain long-term affiliate partnerships?

Simeon Mitev: Maintaining long-term affiliate partnerships is crucial to our success at HostArmada. We focus on building strong, personal relationships with our affiliates. This involves regular communication, providing timely support, and recognizing their contributions. We also offer competitive commissions and incentives to motivate and reward our affiliates consistently. We encourage feedback and implement suggestions from our affiliates, fostering a collaborative environment where they feel valued and heard. This really helps us maintain long-lasting and fruitful partnerships with our affiliates.

Łukasz Gawior: What technological innovations do you plan to introduce in the near future?

Simeon Mitev: We plan to enhance our existing web hosting products by increasing the value they offer to our customers. A major focus will be on completely revamping our Managed WordPress hosting solutions to provide even greater performance and ease of use. In addition, we aim to introduce specialized web hosting plans tailored for other open-source platforms like Magento and WooCommerce. These plans will be optimized to meet the specific needs of these platforms, offering specialized features and improved performance. Our goal is to ensure that our customers have access to the best possible hosting solutions for their specific requirements, driving both their success and ours.

Łukasz Gawior: What are HostArmada’s long-term goals and visions for growth?

Simeon Mitev: HostArmada’s long-term goals and vision for growth revolve around three key areas: customer acquisition, service improvements, and the introduction of new services. We aim to continue expanding our customer base by leveraging existing or new marketing ideas and continuing our efforts to build strong relationships with our clients. Continuous service improvement is at the heart of our strategy. We are committed to enhancing our existing offerings to ensure they meet the highest standards of performance, security, and reliability. This includes upgrading infrastructure, adopting new technologies, and refining our support processes to provide exceptional customer experiences. Finally, we plan to diversify our portfolio by introducing new services. This includes developing specialized hosting solutions for popular platforms like WordPress, Magento, and WooCommerce. By expanding our range of services, we aim to cater to a broader audience and address the evolving needs of our customers.

Łukasz Gawior: What do you consider to be HostArmada’s biggest success to date?

Simeon Mitev: HostArmada’s biggest success to date can be measured by our exceptional customer acquisition and revenue growth. We’ve consistently exceeded our expectations for the number of customers acquired, demonstrating the strong appeal and reliability of our services. This growing customer base has translated into a robust revenue stream, which in turn has allowed us to sustain consistent growth. Our ability to attract and retain a large number of satisfied customers while maintaining healthy financial performance is a testament to the effectiveness of our strategies and the quality of our offerings. This success lays a strong foundation for our continued expansion and innovation in the web hosting industry.

Łukasz Gawior: What advice could you give to young entrepreneurs starting out in the hosting industry?

Simeon Mitev: Starting out in the web hosting industry, thorough research and building a trustworthy team is crucial. Understanding the market landscape, identifying niche opportunities, and staying updated with the latest technological trends will give you a competitive edge. Equally important is assembling a reliable and skilled team. Your team’s expertise and dedication will be instrumental in navigating challenges and driving your business forward. Trust and collaboration within your team will foster innovation and resilience, essential qualities for success in the dynamic hosting industry.

Łukasz Gawior: You are from Bulgaria. Personally, it surprises me how many companies in the hosting industry just from your country are successful. What makes Bulgaria, despite its small size, the birthplace of so many successful hosting companies?

Simeon Mitev: Bulgaria’s prominence in the hosting industry can be traced back to a deep-rooted tradition in technology and innovation. Interestingly, John Atanasoff, the father of the first electronic digital computer, was of Bulgarian origin, highlighting a historical connection to technological advancement. In recent years, Bulgaria has seen a robust and growing digital landscape. For the past 15 years, the IT sector has become one of the most desirable and dynamic fields in the country. The web hosting industry, in particular, offers a great entry point for young, ambitious individuals eager to succeed. This combination of a historical affinity for technology, a strong modern IT sector, and a culture that fosters innovation and ambition has made Bulgaria a fertile ground for successful hosting companies.

Łukasz Gawior: Is there a Bulgarian hosting community that supports the development of hosting and technology companies?

Simeon Mitev: Currently, there is no formal Bulgarian hosting community specifically dedicated to supporting the development of hosting and technology companies. Most successful web hosting companies in Bulgaria are founded by individuals who have gained their expertise and industry know-how from previous roles in other hosting companies. This hands-on experience and transfer of knowledge have been pivotal in driving the growth and success of new ventures within the industry.

Personal note

In conclusion, my conversation with Simeon Mitev, CEO of HostArmada, provided deep insights into the web hosting industry. From the company’s resilient beginnings and strategic partnerships to its innovative technological advancements and robust affiliate programs, HostArmada stands out as a formidable player in the market. Simeon’s candid and detailed responses shed light on the practical steps and strategic decisions that propelled HostArmada to succeed.

For budding entrepreneurs and established businesses alike, Simeon’s experiences and advice offer valuable lessons on navigating the complexities of the hosting industry, maintaining competitive advantages, and fostering long-term partnerships. HostArmada’s journey is a testament to the power of product vision.

I am confident that this interview will serve as a valuable resource for anyone interested in the dynamics of the web hosting market and the strategies that drive sustained growth and success.

Thank you, Simeon, for sharing your story and insights with our readers.