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View Full Version : Free Web Hosting Business Models


Worthen
08-23-2002, 01:29 AM
I notice some of the older, big name free web hosting companies have gone to charging for their services. If you have patience and really deep pockets I can see how this business model might pay off.

Also some offer 1 to 3 months free hosting before charging the customer.

Do you know any successful ventures bulit around a free web hosting business model?

vSector
08-23-2002, 01:36 AM
Most of the time when companies offer free or limited free accounts they make money from other revenue streams. for example banners, spamming, demographics. With todays revenue results it is very hard to do just look at banners for example you will hardly get .1% in clickthrus.

and it aint getting better either.

NovaW
08-23-2002, 03:15 AM
Netfirms have a wonderful model

netdude
08-23-2002, 03:28 AM
either that or they design free hosting companies just to take advantage of the mass amounts of adspace for only the cost of servers... :) i am thinking of utilizing this to my advantage soon enough... heh... :) but thats assuming the person has access to cheap/free adspace in the first place to promote the free hosting service...

archie2
08-25-2002, 12:38 PM
the words free and business don't fit together :)

Akash
08-25-2002, 01:01 PM
Originally posted by vSector
Most of the time when companies offer free or limited free accounts they make money from other revenue streams. for example banners, spamming, demographics. With todays revenue results it is very hard to do just look at banners for example you will hardly get .1% in clickthrus.

and it aint getting better either.

I think the average CTR (click through ratio) is now below .1% - around .07% or so. Unless the advertiser is paying by the impression, you can't make enough money to cover server expenses.

However, in my testing (for providing free service), I've notice CTRs ranging from .08% to about .12% which is pretty good, but I haven't broken even yet.

thomas830
08-25-2002, 01:29 PM
Originally posted by akashd


I think the average CTR (click through ratio) is now below .1% - around .07% or so. Unless the advertiser is paying by the impression, you can't make enough money to cover server expenses.

However, in my testing (for providing free service), I've notice CTRs ranging from .08% to about .12% which is pretty good, but I haven't broken even yet.

akashd, do yo offer free hosting services? can you provide the URL?

I'm thinking of setting up another server just for free hosting, I would put banners and advertise my paid services and that way gain new customers. I was doing some math and I think it's good idea. What do You guys think?

regards,

Akash
08-25-2002, 01:34 PM
Originally posted by VIPsNet


Akash, do yo offer free hosting services? can you provide the URL?

I'm thinking of setting up another server just for free hosting, I would put banners and advertise my paid services and that way gain new customers. I was doing some math and I think it's good idea. What do You guys think?

regards,

I do and I don't, I am only in the testing/researching stages. Nothing very public just yet :D.

As for doing the math and thinking its a good idea - do a lot more math and thinking, I've been researching and testing for about 3 months now and dont plan on releasing anything public just yet. If i do, it'll be months from now (not next week)

Worthen
04-30-2003, 10:29 AM
Well, it's been a few months (6 months) ... perhaps Akash could update us on his real world findings.

All I have done is read opinions. And everybody's got one.

Anything's possible given the right parameters, alignments and management.

:D

Akash
04-30-2003, 01:10 PM
Simply put - Do you see me hosting? ;)

seriously - it's a huge loss and not worth it unless you have the money to advertise and have some method of getting income (ads dont work, pepole dont like spam)