How do you all feel about the price war that is currently going on.
I mean, if I see the offers that are made on this forum sometimes (I just saw an offer which had 2 GB transfer for an annual fee of only $12), I can hardly believe that the hosting industry is done any good by these cheapo's.

Really - competition should be in the game, but I have my serious doubts about people offering their services TOO cheap. This really can't be good for the industry...

What's your point of view in all this? Any thoughts? Any experience in problems with these incredible cheap hosts?

Eventually it will come to an end. Smaller companies will close or be bought out and the industry will stabilize. Nobody should have to survive on razor-thin profit margins, most can't and will soon realize it.

-Matt

If you base your business model on the pricing here at WHT you will be broke in no time. In the real world people pay more for hosting. I have gotten to where I pay no attention to the pricing here other than just to wonder how stupid it will get next.

Exactly my point, Monte - the competition in here is ridiculous...
Thanks for your replies though!

The best advice I can give you is to use the advertising forums only as enhancement to your business, not the backbone. I am sure many of the new hosts are getting in to this business because it looks like an easy way to make money. I believe many think; get a server or reseller account, post on WHT, and sit back and get money. Wow what a great idea. The biggest problem with this plan is that too many are already doing just this.

The best way to grow your business is to get referrals. If you check with any of the big hosting companies I am sure you will find that most of there business is from word of mouth. Getting and keeping the first few clients is most important. To get these first clients you need to find your own little niche in the market. The best place to do this is near where you live. Look around; do you have any smaller shopping districts/malls around?

Getting and keeping the first few clients is most important. To get these first clients you need to find your own little niche in the market. Here! Here! :beer: Smaller companies will close or be bought out and the industry will stabilize. The problem with this is that for every "smaller company" that closes "two more pop up". It's as if the "get rich quick by being a host for only $99" buyers are multiplying like rabbits. The good side of this is that Site Owners are becoming wise to the risk of loosing their sites/service/uptime by going with these types of companies and these "wise shoppers" are beginning to ignore the "ridiculous deals" as well.

Always offer according to your OWN calculations. What others offer doesn't mater. Others can be crazy or misguided.

Hello,

Myself I was thinking about the same. There way too many bedroom hosting that are offering huge amount of disk space and monthly traffic allowance with cheap prices.

As a friend mention in this threat, it has got an advantage which still *real companies* will stay remaining. And it's people who's been hosting with hosting providers like US$ 20-40/year will have the experience that you *get* what you*pay* for.

This makes them to go and look for a real hosting, somehow maybe expensive, but the customer service, technical support and reliability is EXCELLENT.