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View Full Version : Hosting - Reseller Prices - how can they afford it?


dark_code
10-16-2003, 08:40 AM
As a web developer, I am always searching for hosting for myself as well as my clients.
Recently I found a host (a reseller) that offered me: 1000mb space/ 6000gb transfer for $19.99 for the year with cPanel and unlimited mysql) I’m wondering how anyone could afford that. Any feedback? I’m not mentioning the hosts name and I will say that so far I am happy with the service.

In my past experience, I have found two kinds of site types I need to host. Very small websites and those that are larger and are in a what I call a lose/lose size zone. There is always a catch when using my former hosts. One even got me for file count, and would charge me for additional file counts. Another host wanted to limit a mysql database to 10 meg, and charging me for a 50 meg one if I went over. I didn’t want a 50 meg one, I wanted a 13 mb one!

There is a sweet spot in hosting needs. The sites that are 600 meg ~1 gig are very common. I know because I have run an e-commerce business since 1996 and have needed to find hosting for this size of a website for 7 years. Hosting plans however seem to cater up to 500mb, then above that you need to get a dedicated server. What happens on a dedicated server? Then you have 59 gig free and only using 1 gig on your hard disk. Seem stupid? Well it is.:eek:

So even if I got a $99 a month dedicated server, I still don’t see how someone can sell the hosting for $19.00 a year. Say you re-sold the dedicated server at 1000mb a pop, with a 60 gb hard drive you are looking at: 60 x 19.99 = $1199.40, when it costs you $1188 for the server ($99.00 x 12). And that’s not including any tax or setup. You end up making about $12.

Any input? Thanks.
:confused:

JonR
10-16-2003, 10:46 AM
I presume its the same old reasons that a lot of hosting companies are so cheap. They massively oversell their resources.

You said that price was per year? is the bandwidth per year? just a thought.

Mark_TVI
10-16-2003, 10:54 AM
Even if that bandwith was for the year, that is only 3 cents a gig. I bet that even the larger datacenters pay more than that...

dark_code
10-16-2003, 12:37 PM
Yes, that is the yearly bandwidth.

I understand that most sites probably use no where the amount of space they pay for. Heck, I had a dedicated server with 59 gigs free. ;)

The price seems insane to be honest. I will post the link because of the feedback. Please don't give the seller any problems because so far the service has been great.

http://www.shop-hosting.com

VNPIXEL
10-16-2003, 12:56 PM
and what is your url dark_code?

dark_code
10-16-2003, 01:37 PM
what?

I'm not a host. I don't know who runs the site in question.
That was just an example of one. It isn't the only site offering this kind of thing. Just go on ebay and search for hosting.

Anyways, back at the discussion. the only way I can come up with the math if maybe the space has gone through multiple resellers?

I have used actual hosts and this reseller thing is new to me.
It makes sense to use a reseller. I would prefer to rent out just what I needed, rather that take up 1/60th of a dedicated server.

The price seems dangerously low. Thus the reason for my post.

AdY
10-16-2003, 03:23 PM
Originally posted by Watcher_TVI
Even if that bandwith was for the year, that is only 3 cents a gig. I bet that even the larger datacenters pay more than that...
I can only agree with you.
It is crazy overselling and I don't know what will happen if you try to use half the bandwitdh they are giving you.
I never agreed with low-priced companies (i call them 'cheap companies') so i can not agree with that; however, for 19.99$/yr...you might want to try it, dunno...But honestly, i can't believe they can cover their expenses with those prices.