Maybe i'm posting this in the wrong forum ...but anyways, i see many hosting companies around that offer 300MB's of space, 5GB's of transfer and 24/hour tech support for less than $6/month. I mean hey, they pay like $4 (at least) for the space, transfer, etc. another $1 for the credit card processing ...which makes them less than $1 per customer/month.

How are they even going to stay in business for a long-term period? :rolleyes:

LOL Kiwi.. read my post :)
http://www.webhostingtalk.com/showthread.php?s=&threadid=13258

Aloha,
well how can Costco sell so cheap ???
volume and they get great deals
also a $ 1 customer that might not use that bandwith
it is like getting unlimited refills at dinner ;)

figure a $1 profit per customer per month
figure 1000 customers on a box figure 100 boxes
$100,000 a month

simple the rich get richer and the poor end up loosing


where is Robin Hood when ya need him

1000 People in 1 box?
I think that 300 or 400 people in 1 box is a reasonable limit.
And how much do you pay to get that box? $400/mo? :)

I need him, I know of a couple of rich ppl for him to attack too......

Honu:

1000 customers on 1 box, eh? :eek: We never have more than 200 per server (1Ghz, 512MB RAM), and i think this is a very reasonable limit.

And you also need some administrators for the administration of those 100 boxes :)

Originally posted by Kiwi
And you also need some administrators for the administration of those 100 boxes :)

And an army of tech support people.

Originally posted by Kiwi
Honu:

1000 customers on 1 box, eh? :eek: We never have more than 200 per server (1Ghz, 512MB RAM), and i think this is a very reasonable limit.

And you also need some administrators for the administration of those 100 boxes :)

yeah I agree about the 200 limit
just a thought a lot of people pack that many I bet or close to it ??

ya hear like ***** had a lot
I know vservers does over 500 per

I hope like you that most people will go with quality over qty
I guess I was just saying how they do it
pack people in and offer no service then when ya reach close to your limit they cancel ya

scary but hearing that all the time

what do you think ?

like others have said playing the odds game 1 out of 200 actually use that bandwith or use cpu resources if they do ya cut em out
maybe that is how some do it ????

not saying that all hosts that offer low prices do this I am sure some have to do it to compete and hope they win out with service ?

just like a place to eat
cheesburger in paradise in Lahaina has crappy food in my opinion but they have the market, location and name to make people think it is good
burger king is better than them but the place is still packed every day.
although burger king is still bigger makes more etc.. because of there size ?

kind of a wierd analogy but both can survive and not be as good as some local joints just because of marketing and biz so the local small good serivce place gos out of biz
so sad ???

Yeah, most hosts offer 5GB's of bandwidth, when their price only covers around 1GB. They are playing a resources game, thinking 80% or more of the customers will use 1GB of bandwidth or less. This probably works as long as they just started out and don't have many customers ...but as more and more customers use up the 5GB's of transfer, their quality of service decreases, they make very little or no profit and in the end they close down. :cartman:

$0.02) These people probably conclude that the low price they offer is most likely to get them a massive number of accounts within a very short period.. but no matter how many accounts they manage to gather, i don't think they could survive by making a profit of one or two buck for each account, eventually they'll get bore..

I don't usually go for "too cheap to be right" host. :cartman: