Hi.

I have a question for all the low-cost hosting companies. How much profit are you making on $2.95 per month accounts?

Our lowest priced plan is $12.95 per month. That gives us a nice margin, but still. With tech staff, phones, salary, equipment, office supplies, etc, it's not all profit.

I am just wondering at the economics of it all. Our low price customers are usually the biggest pains in the butt when it comes to support. Do you guys get the same thing?

I have been doing webhosting for over 4 years (and web development since 1993), so I remember when you couldn't get web hosting for less than $50 a month (back in the mid-90's).

I would love to hear about your experiences.

Pete Stoermer
TotalHosting.com

lots of host think that by volume, low margins, they can make big dollars. Also, lots of people think that if you sign up 50 customers at $1 profit per month or less, they will referr other people to you and you will grow by word of mouth because those 50 customers will promote you heavily...