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  1. #1
    Join Date
    Aug 2008
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    104

    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?
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  2. #2
    Join Date
    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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  3. #3
    Join Date
    Jul 2005
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    They don't. Can you name one that's been around more than a year?
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  4. #4
    Join Date
    Oct 2006
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    US/EU/UK
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    4,886
    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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  5. #5
    Join Date
    Sep 2007
    Location
    UK
    Posts
    761
    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.
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  6. #6
    Join Date
    Oct 2002
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    Quote Originally Posted by StarWebHosting View Post
    At this time of the year you tend to get a lot of college students setting up a business for the summer
    College? From what we've seen, it's generally far younger.
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  7. #7
    Join Date
    Jul 2008
    Location
    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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  8. #8
    Join Date
    Aug 2008
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    104
    Quote Originally Posted by bear View Post
    College? From what we've seen, it's generally far younger.
    I was 14 when I Already had several websites myself and earning already $ from interwebs ,including running some web hostings myself
    but oh well that was soo long time ago when there were almost no competition
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  9. #9
    Join Date
    Sep 2007
    Location
    UK
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    Quote Originally Posted by bear View Post
    College? From what we've seen, it's generally far younger.
    Yes you are probably right - roll on September / October when they go back to school and normal service can resume!
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  10. #10
    Join Date
    Aug 2004
    Location
    Canada
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    3,785
    Quote Originally Posted by stablehost View Post
    They don't. Can you name one that's been around more than a year?

    I can't name any. You might find those sorts of deals in promotions from time to time but the regular prices are typically a lot more expensive.
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  11. #11
    They don't.
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  12. #12
    Join Date
    Aug 2008
    Posts
    104
    Quote Originally Posted by TonyB View Post
    I can't name any. You might find those sorts of deals in promotions from time to time but the regular prices are typically a lot more expensive.
    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 ips
      0 Not allowed!

  13. #13
    Join Date
    Oct 2008
    Location
    Singapore
    Posts
    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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  14. #14
    Join Date
    Apr 2011
    Location
    Cybertron
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    10,484
    Quote Originally Posted by stablehost View Post
    They don't. Can you name one that's been around more than a year?
    There's a few random ones here and there....and a few I'm surprised are still around. The reason they're around....

    Quote Originally Posted by saschoen View Post
    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.

    ^^^^^ 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 server
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  15. #15
    Join Date
    Feb 2010
    Location
    Mumbai
    Posts
    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 ?
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  16. #16
    Join Date
    Jun 2010
    Location
    Modesto California
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    6,858
    Quote Originally Posted by 229tom View Post
    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?
    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 Not allowed!

  17. #17
    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 ..
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  18. #18
    Join Date
    Apr 2009
    Location
    New York City
    Posts
    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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  19. #19
    Join Date
    Apr 2011
    Location
    Cybertron
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    10,484
    Quote Originally Posted by GVH-Jon View Post
    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 ..
    .............
      2 Not allowed!

  20. #20
    Join Date
    Mar 2014
    Posts
    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.
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  21. #21
    Join Date
    Jul 2011
    Location
    Wolverhampton, UK
    Posts
    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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  22. #22
    Join Date
    Apr 2011
    Location
    Cybertron
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    Quote Originally Posted by bwbb View Post
    I just can't see how it's worth it. Would you rather support 10 users paying $1 or one user paying $10?.

    You don't get support from $1 hosts.
      0 Not allowed!

  23. #23
    Join Date
    Aug 2008
    Location
    England, UK
    Posts
    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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  24. #24
    Join Date
    May 2009
    Location
    Ft. Lauderdale, Florida
    Posts
    1,783
    Maybe they charge you $1 and put your account on a free host?
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  25. #25
    Quote Originally Posted by GVH-Jon View Post
    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 ..
    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 Not allowed!

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