Results 1 to 25 of 93
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08-02-2014, 11:26 AM #1WHT Addict
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- Aug 2008
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How do these $1/month Hostings Stay in Business?
Recently have seen Soooo many webhosts popup who offers shared hosting for just $1/month. Have been using 2 hosts one which costs $6/year and another which costs just $5/year and Honestly they have been FINE even customer support is ok for them.
Do they even make money running business like this?0
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08-02-2014, 11:39 AM #2Aspiring Evangelist
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- Jun 2013
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- 430
Its a volume game. For every person that signs up and uses a lot of resources, they will have multiple people sign up who will have as single basic site that uses barely any resources.
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08-02-2014, 11:53 AM #3Web Hosting Master
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They don't. Can you name one that's been around more than a year?
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08-02-2014, 11:57 AM #4Web Hosting Master
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- Oct 2006
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If a company does cheap service on scale, it would work. Having thousands of Shared accounts on one server is not something one would not do. If the company cares more about selling cheap instead of delivering quality Shared Hosting service, that offers good performance, it would do that. However a cheap hosted can not afford to have its own infrastructure.
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08-02-2014, 11:58 AM #5Web Hosting Master
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- Sep 2007
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- UK
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At this time of the year you tend to get a lot of college students setting up a business for the summer so they are just looking to make some money and not really that interested in the customers.
Other companies would use the $1 per month package to attract customers in the hope that they will buy more expensive service or addons that would make the company more money.0
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08-02-2014, 12:11 PM #61
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08-02-2014, 12:16 PM #7Web Hosting Master
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- Jul 2008
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- Seminole, Oklahoma
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The math I've done, the only possible solution with any gain is offering 12 dollars a year paid annually, because even you pay monthly transaction fees eat the profits. So anything less than that is just building some pr really.
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08-02-2014, 12:21 PM #8WHT Addict
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- Aug 2008
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08-02-2014, 12:25 PM #9Web Hosting Master
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- Sep 2007
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- UK
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08-02-2014, 12:35 PM #10Web Hosting Master
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- Aug 2004
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- Canada
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08-02-2014, 12:39 PM #11Disabled
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- Jul 2009
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They don't.
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08-02-2014, 12:42 PM #12WHT Addict
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- Aug 2008
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Yeah I mean in the promotions section, on their regular websites they rarely ever have those $0.5-$1/month prices.
Im currently customer of one which is $0.5month with coupon for a year and just renewed for extra 2years. and then I have also other host for which I paid $6 for whole year and have been using already for 7months. Both have been more or less smooth.
Looking to purchase several now more of these super cheap hosts to get some Very cheap seo hosting with different ips0
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08-02-2014, 12:53 PM #13Web Hosting Master
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- Oct 2008
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- Singapore
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- 4,685
If the host is here to stay, <$1 plans should not be the primary source of revenue as it only serves to gain brand awareness and upsell for profits. Most of these budget hosts tend to disappear quickly.
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08-02-2014, 02:41 PM #14Web Hosting Master
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- Apr 2011
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- Cybertron
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There's a few random ones here and there....and a few I'm surprised are still around. The reason they're around....
^^^^^ Exactly this. They're listed on so many fake top 10 sites, and there's always hundreds or more people everyday looking for hosting and come across those sites.
Customers with a simple 1999 html site....excellent. Bring on thousands of them.
Anyone with more hosting needs, like even a starter WordPress site or email will have issues and will leave to find a better host. Enter the game of EIG Monopoly.
Also another reason they stay in business....free scam money. Most times you can only pay $12 a year. The customer will become frustrated within the 1st month and leave and not bother fighting for the $12 which depending on the TOS you won't get. Instant free $10.75. Multiply that everyday and you have residual income......from a reseller account or one single server0
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08-02-2014, 03:31 PM #15Web Hosting Master
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- Feb 2010
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- Mumbai
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- 680
Summer Hosts B-) run by teenagers for their pocket money.
They get some free template, buy a domain, buy a reseller or a VPS, start with the 1$ offers. People signup looking at the offers and then after 4-5 months, they disappear. Whom are you gonnna catch hold to return your money ?0
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08-02-2014, 03:42 PM #16Moving the Web Forward
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- Jun 2010
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- Modesto California
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- 6,858
I think the best advice that can be given to you is don't host any mission critical websites on these types of $1.00 per month services, much like you shouldn't expect to live off the dollar menu at McDonald's.
Also, I'd be more concerned about who I give my CC info too, at least go with a paypal account where you can cancel the subscription once the host disappears (like I am sure they probably will at some-point).0
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08-02-2014, 04:04 PM #17Disabled
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- May 2012
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- 2,234
They can and they do. Most of those hosting providers will limit RAM to a small number (however enough to run an average website or two) with a small amount of disk space (few gigs).
To make them sustainable they can:
1. Make use of old hardware and processors. i.e: Dual Xeon L5500 series processors, Dual E5500 / E5600 series processors, X5400 / X5500
2. Recycle old drives (or use crappier drives such as WD Greens - NOT recommended)
3. Use larger drives
4. Not use RAID at all! (Some hosts actually do this!)
The list just goes on and on ..0
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08-02-2014, 04:38 PM #18Web Hosting Master
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- Apr 2009
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- New York City
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- 5,169
Their using a very small investment to bring in chunks of money in here and there. They make money of those who purchase the package and don't use it as much as a average person would. For example bob buys hosting that's $1 a month for a month but then never gets to fully use it but stops using it and still continues to pay the invoice for it so the host then has a customer paying for a plan that they aren't even using.
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08-02-2014, 04:47 PM #19Web Hosting Master
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08-02-2014, 04:49 PM #20Web Hosting Guru
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- Mar 2014
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- 292
I just can't see how it's worth it. Would you rather support 10 users paying $1 or one user paying $10?
I can't fathom chasing ~$1/mo -anything-. It's just not worth it.0
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08-02-2014, 04:52 PM #21Junior Guru
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- Jul 2011
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- Wolverhampton, UK
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- 188
I really do have the view that; such hosts are making it hard for hosts which want to provide quality hosting for a reasonable price always lose out / find it hard to survive due to such market practices.
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08-02-2014, 05:01 PM #22Web Hosting Master
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- Apr 2011
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08-02-2014, 05:38 PM #23Top-Notch Hosting
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- Aug 2008
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- England, UK
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- 974
On disk space for example, a host that offers 2, 5 or 10GB etc for say $5pm is cheaper than the $1 host charging for 100, 200. or 500mb disk space?
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08-02-2014, 08:55 PM #24Web Hosting Master
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- May 2009
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- Ft. Lauderdale, Florida
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Maybe they charge you $1 and put your account on a free host?
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08-02-2014, 09:56 PM #25Web Hosting Master
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- Feb 2014
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- 1,700
Those are some but I have a interesting way they could be doing it as well.
What about a technique involving a "half freeze" overselling?
We all know what overselling is but what about a "smart" way that companies could be cheating on their customers?
Here what I means
The host rent a reseller account and reserve say 5GB of disk space and 25GB of bandwidth for their customers, but selling to no end. Then the provider keeps an eye on their overall quota and then once it reaches high enough they simply add the disk space and bandwidth as needed? That's way they are "off the hook", however unless they have somehow a 24/7 system to do it there ought to be a chance that some users could overload their resources before they can act on upgrading manually.0
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