I am planing for a new cheap and best hosting comapny like http://www.34sp.com

Can some one tell me how these people make money by giving hosting accounts 18$ per year?

probably by over loading there servers. I dont see how anyone can make a profit offering hosting for such a little amount. Most hosts who charge $50 a year have problems with being profitable.

Originally posted by Technics
probably by over loading there servers. I dont see how anyone can make a profit offering hosting for such a little amount. Most hosts who charge $50 a year have problems with being profitable.


Please don't generalize. We are doing very well and we offer top-notch service, support and reliability...and we don't overload our servers.

We are making a very good profit, but we also had a SOLID business plan going into this back in 1997. It hurts my business when people generalize and say that budget hosts can't make a profit or will go out of business soon.

Basically, it depends on what the budget host is offering. If a $50 per year host is offering 20 GB of bandwidth and 100 MB of webspace - they will surely fail. If, like us, it is well thought out and the hosting packages are actually based on real numbers and profit projections...it can be done and quite nicely.

--Tina

well they don't seem all that far out of line. Their bandwidth quota is very small (400MB/month) so it is quite possible that they would make a profit even without relying upon under-usage.

Originally posted by AffordableHost



Please don't generalize. We are doing very well and we offer top-notch service, support and reliability...and we don't overload our servers.

We are making a very good profit, but we also had a SOLID business plan going into this back in 1997. It hurts my business when people generalize and say that budget hosts can't make a profit or will go out of business soon.

Basically, it depends on what the budget host is offering. If a $50 per year host is offering 20 GB of bandwidth and 100 MB of webspace - they will surely fail. If, like us, it is well thought out and the hosting packages are actually based on real numbers and profit projections...it can be done and quite nicely.

--Tina What she said.
If it weren't profitable, we wouldn't be doing it. It ain't a hobby, it's our livelihood. And yes, hard to believe but true, we get people occasionally who complain that we're too expensive at $5 a month, they found someone else who will host them for $4.95...

i didnt say all hosts, Most hosts for example WebNetics did things on the cheap now they have gone bust. Some hosts really think about it but others aren't in it for the long haul.

Originally posted by Technics
probably by over loading there servers. I dont see how anyone can make a
profit offering hosting for such a little amount. Most hosts who charge $50
a year have problems with being profitable.

Not quite true Ed!! :) Some hosts provide the best of both worlds and still
make a profit! You'll find that there are more hosts that over charge than
under charge.

Avoid the 2 bucks and you get a free domain type sales, because more often
than not they are a con.

I know that we undercharge for what we offer, but the hardest thing to do is
to increase your prices. And you know how the quote goes. "If it ain't
broke, dont' fix it!"

I do recommend that if you are just starting, start at the higher prices and
work down. It will bring in the business customers first who are a lot more
reluctant to move around. Then you can bring down your prices and keep your
customers really happy.

Originally posted by shpilkus
... we get people occasionally who complain that we're too expensive at $5 a month, they found someone else who will host them for $4.95...

That's freaking hilarious. HA!

I remember when price used to be ny number-one factor in choosing a web host. Oh, the young and silly years... Well, I'm still silly.

Originally posted by bigmattyh


That's freaking hilarious. HA!

I remember when price used to be ny number-one factor in choosing a web host. Oh, the young and silly years... Well, I'm still silly.


Yeah, I'm still recovering from the guy who sent me an urgent email - asking how he could transfer to my service...because his current host was absolutely horrible (no support, mega downtime, etc.). I sent him a price quote and his response was "Why so high?!? I get ALOT more than that for less with my current host!"

I still giggle when I think about it. :D

Yep, a lot more downtime...

I think I would have emailed him your supersaver package: (beat his price by $2) and let him know that you'll match his host and not answer email support requests, and set him up on a server that's not connected.

How about some feedback from you guys... Considering our service uptime is top notch, and that support mails are answered quickly and effectively etc etc.. how much would you expect a host like us to charge for what we offer?

chicken, I always like to read your 'sarcasm'

Originally posted by Chicken
Yep, a lot more downtime...

I think I would have emailed him your supersaver package: (beat his price by $2) and let him know that you'll match his host and not answer email support requests, and set him up on a server that's not connected.
Or just send him to our new division...
www.obsoletehosting.com.

It is very cheap - you'll see why! ;)

Originally posted by Technics
probably by over loading there servers. I dont see how anyone can make a profit offering hosting for such a little amount. Most hosts who charge $50 a year have problems with being profitable.

This is a comment that I have seen a lot recently... people who don't know how it works making comments that put doubts in peoples minds.

To make each server you have profitable you can mix a number of different plans with different profit margins. This is a necessary activity for marketing and competitive pricing but it sure doesn't mean that you can't be profitable.

There is another forum similar to this where the people that run it now seem to believe their own BS and have started advising hosting companies on matters of profit and marketing.. heh heh

This information is believed by many who trust the comments of these 'gurus', who might knock up a nice web page, but couldn't run a bath let alone a business.

If you rented a dedicated server for $200 and put 200 web sites on it at an average $5 a month each... well you make $800 per month on one server... 10 servers is $8000 a month profit... gee!

Some plans could be $3 per month and balanced with others at $10... maybe the alternative for a startup hosting business that needs time to get known is an empty server... well, $18 a year is better than $0 per year ....

Overheads in this business are pleasingly low if you set up correctly..

This is of course incredibly simplistic, but sufficiently basic to make the point..

BTW... for those who think there is a quick buck here.. *LOL* I forgot to mention that many of the guys here are working 20 hours a day to keep their profit... but again that's their choice...

As with used cars, there are those in web hosting who pounce on the unwary customer with their various scams, and make it difficult for those who make a living out of it to retain their credibility...tough luck for us... that's life!

Neither is it a reasonable practice to expect genuine people who run a business, any business, to divulge the intimate details of their operation... other than as a statutory requirement... there are better ways to determine whether you're dealing with a competent business or a 14 year old who's decided to scam himself a few extra bucks ....

It could be a full time job weeding out the alleged experts from the real one's, but bottom line is that you shouldn't judge a hosting company first by the fees they charge... do some research and find out if they have happy customers and for how long they've had them...

The old story is sell 1000 widgets at 1 cent ea., or 100 widgets at 10 cents ea., or 10 widgets at a buck ea...


Cheers... :)

Well said :)

Originally posted by shpilkus

Or just send him to our new division...
www.obsoletehosting.com.

It is very cheap - you'll see why! ;)

Is that a Commodore VIC-20?!?

Absolutely! Only the best!
It's a standard Vic-20 Server - although we have upgraded it and doubled the RAM on it - to 32KB! ;)

I like Chicken's sarcasm as well.

I think we should call them Chickenisms. LOL

Thanks for the laugh. That's twice now this thread! :)

Originally posted by shpilkus

Or just send him to our new division...
www.obsoletehosting.com.

It is very cheap - you'll see why! ;)

ROFL, someone get a doctor...

Can't believe it.. The VIC-20 was my first ever computer.. I used to read all the Basic source code and that's when I first started to program.. I was only 8!

Wish I never sold the thing! I remember reading about Modems and pestering my parents to get me one..

Great days!!!

ccreighton. I agree

btw, does anyone know where you find how many posts correspond with each tag?
anyone??

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"I have been with them for 2 months now..." - yeah, yeah, *someone needs to 'check out' the forum rules.
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