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  1. #1

    Unhappy Why so cheap? What's the catch?

    I've been reading the threads here, and researching hosts, looking for someone to set up a reseller account with and something seems funny.

    A lot of the hosts seem too cheap. Not that I want to get ripped off, but even some of the highly-recommended hosts seem too cheap to be a good deal long term.

    For instance: Dathorn, JVDS, Reseller-Center

    What's the deal? Am I totally off, thinking that you get what you pay for, and if it's cheap, then what you get is cheap?

    Any thoughtful, experienced help would be appreciated.

    - Pelirojatica

  2. #2
    well you are right, in most circumstances you get what you pay for, so i would send them a couple of emails, tsting their responce time and knowledge. Also look at their server specs, are they running low end celerons or high end Xeons etc?

  3. #3
    It could also be that at WHT only the best survive Kudoos to all those guys.... check them for their reviews..... and WHT is the place to be...

    My Disclaimer: I don't know anything about them.

    Good Luck

  4. #4
    Join Date
    Aug 2003
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    305
    Originally posted by flush()
    Also look at their server specs, are they running low end celerons or high end Xeons etc?
    I'm not sure that's where the difference lies. They might be running high-end hardware but it won't get you anywhere if they overload their machines. Also, if they don't allow you to oversell, chances are they will oversell.

    Just my two cents .

    GDO

  5. #5
    Join Date
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    Originally posted by Glanhosts
    It could also be that at WHT only the best survive Kudoos to all those guys.... check them for their reviews..... and WHT is the place to be...
    Wrong, on so many levels.

    If you base your target on WHT, and WHT users' suggested/demanded prices, your business is doomed.

    I'd say 0.1%, if that, of our business comes from forums such as WHT, HHO, and the numerous development forums.

    WHT is a good forum for discussing the hosting sector, but by no means is it a yardstick.

    Simon

  6. #6
    Originally posted by IHSL
    Wrong, on so many levels.

    If you base your target on WHT, and WHT users' suggested/demanded prices, your business is doomed.

    I'd say 0.1%, if that, of our business comes from forums such as WHT, HHO, and the numerous development forums.

    WHT is a good forum for discussing the hosting sector, but by no means is it a yardstick.

    Simon

    May be its the interpretation thats wrong at so many levels..... First of all i never said that there customer come from WHT.... when i said only best make it in WHT and look for reviews....these guys did have some good reivews espically dathorn the first of the three mentioned and WHT is good place find reviews about a hosting/reseller provider...

    Secondly: I never demanded any pricing or hardware requirement from them.....

    Thirdly: I don't mean to be rude unless you own that company or have been monitoring there customer backgrounds.... your wrong to say 0.1% doesnot come from WHT....that may be very valid in your hosting business but thats a pure speculation not for one but three companies.....may be your right but still a speculation... and with a speculation they are claiming i am wrong for looking for a cheaper host....but i didnot start the thread and all i did want compliment and encourage reviews...and about your .1%thats a wrong yard stick....


    Sorry about the confusion in your case.....

  7. #7
    What's the deal? Am I totally off, thinking that you get what you pay for, and if it's cheap, then what you get is cheap?
    it's a competition.
    P4HOST.COM -- Specialize in quality Web Hosting solutions.
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  8. #8
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    My apologies,
    Apparently I interpreted your post wrong. So many have said it before you, that I guess it's becoming old.

    Simon

  9. #9
    Like i always say.....

    If it sounds to good to be true...it must be!

    -James

  10. #10
    I am sorry i came little harsh about your reviews....

    Good Luck 4 everybody
    I love this wavey thing....

  11. #11
    Join Date
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    For us it depends at what product you are looking at. A few of ours are loss leaders so they are aimed to be run at cost rather than make a profit. However some do make us a nice profit and VPS are a slightly differenet kettle of fish to VPS's as the pricing structure is differenet

    Rus
    Russ Foster - Industry Curmudgeon

  12. #12
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    hey if you see one for 99 cents, you'll only be 99 cents in the hole (worst case senario)

    SERIOUSLY----

    at some of these prices the transactions fees can cost more than the 99 cents, now that will draw a puzzle to my face
    Computer Steroids - Full service website development solutions since 2001.
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  13. #13
    Originally posted by gilbert
    at some of these prices the transactions fees can cost more than the 99 cents
    thats what confuses me too.

  14. #14
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    I don't really think there's a catch... If host manages to thrive for a few years with low prices while providing quality service it means that they made their calculations and they can sustain that kind of pricing.

    Yes, it's wrong for a hosts to fight the price war alone, but that doesn't mean that a host shouldn't try to be as competitive as possible...

  15. #15
    Competition is good for whom? Consumers, that's who. If the companies you listed can charge that price and stay afloat, I would say they are as reliable as the one who charges twice the price for the same things.
    YourCheapHost.com - Low cost multi domain hosting solutions. [Legal adult content friendly]
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  16. #16
    Join Date
    Apr 2004
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    Is there a catch really?

    I think in all business models there is a catch, its a matter of how they implement it.

    We tend to think hosting pricings are getting lower because,

    1. Prices thrown around WHT are low I agree
    2. These pricing info is available for review all in one place, WHT

    These prices you see do not necessary represent true market pricing changes, well, maybe its only true for low-mid level hosting providers.

    Out there you will still find very expensive hosting quotes simply because of the equipment and service they provide.

    If I had a business that relied on the internet for business and it brings in more than $10,000 a month of revenue, what is $1000 a month for making sure that the platform in which this business is operating is there all the time 24/7 ?

    Besides I can offset this cost against the business anyway.

    Yes the bigger players too are lowering their prices because, from the business point of view it doesn't make sense not to penetrate low cost hosting market when its profitable, especially when they have a good brand name to back their product.

    In this case they don't need to do much since they have most of the infrastructure available, just get some low spec systems , do some market research and find a price point where they can be profitable and competitive.

    I always believe you pay for what you get.

    SCSI drives, server management software, server equipment, repeaters, fail safe power supply on the server itself and very qualified server techs (not just some support staff cum sales staff /cum web designer) and loads more - cost money.

    Yes, they tell you they use single, dual , quad XEON , with 8GB of ram.. but what kind of box is it?

    We all know server boards and CPUs and RAM themselves can be bought so easily..

    A QUAD XEON system from company A might not be the same as a QUAD XEON system from company B. Simply because one of them could be using high end stuff like HP or IBM servers with very helpful server management software (which also costs alot of money).

    At the end of the day.. I will tell my friends.. before you buy anything ask youself these questiosns.

    1. Does this meet my requirements and provide some room for scalibility
    2. Can I get the same service, same specs at a better price?
    3. Can I live with their terms and conditions.
    4. Most importantly, what is the opportunity cost for me/them if they buy this , or this product fail them.

    Just my opinions..

  17. #17
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    The key to survival is sustainability. Many hosts on WHT seemingly have little thought for sustainability - they cannot see beyond filling up their current server to add another server and they set prices according to this and the pricing of hosts in a similar boat.

    All too often, we see a new host going live, them getting good reviews for month one, service going downhill for month two then out of business for month 3.

    Some of the more estabilished players can afford to run loss leaders as part of marketing schemes, etc, so you might get a good deal this way.

    nightfall_sg, in regards to your questions, if I was running a business based on a reseller account I'd look for a host that has a sustainable business model that will help support my own business.
    Matthew Russell | Namecheap
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    www.namecheap.com - hosting from a registrar DONE RIGHT!

  18. #18
    Join Date
    Apr 2004
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    No worries.. I have good support.

  19. #19
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    Also, if they don't allow you to oversell, chances are they will oversell.
    ? ?
    If they don't allow overselling it menas they dont allow overselling. has no correlation to whether they oversell or not

    it's like saying if they dont let you host p0rn it must be because they host p0rn
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