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  1. #1
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    Attentions to ALL RESELLERS!!!

    Ok I got a question. Why resellers trying to offer sow low prices for shared hosting?
    You are people ruining web hosting industry this way. Donít you think when real client looking for service they are not really paying attention on low price. They worry about only uptime and security.

    I have seen some resellerís offers following plans
    For $0.99 month
    1 Gb Space
    100 GB BW.

    Common people why you do this? You donít make any money of this you just killing industry.
    I remember like 4 years a go for 50 MB of space the price was like $50 per month. That was a great way to do a business. Please provide me with some answers why it is happen?

  2. #2
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    If they offer it people will buy it. Unless hosting companies stop offering reseller accounts then this won't stop. There is money to be made in all these sectors, some just involved bad support and large amounts of downtime.
    ē Greg Lubbelinkhof

  3. #3
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    Why not. This is called free enterprise.

    Most of these hosts offering unrealistic pricing are only attracting the type of clients you dont want anyway.

    Then they realise it is impossible to manage the company because there is no funds for expansion - they fold up. And clients paying those kind of prices get what they deserve...

  4. #4
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    But look is not batter to have a few hundred costumers who payís you 40 bucks a month for shared hosting in stand of having few grand pay you 5 bucks a month?
    When more clients who pay low there are more problems always come out. Also people who always looking for low price hosting they are required more support help then any one, and it is true

  5. #5
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    Fierce competiton could be one asnwer... Anyone being able to start a hosting business witha relative low budget (even though they lack business sense and knowledgeability) might be another answer.

    Most of these hosts offering unrealistic pricing are only attracting the type of clients you dont want anyway.
    That's very close to the way I see it.

  6. #6
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    i think there shuld be a association of hosting provider so that they can fix the minimum rate.

  7. #7
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    Originally posted by hsg70
    i think there shuld be a association of hosting provider so that they can fix the minimum rate.
    The internet would have to be regulated then. I mean anyone who can plug a server in can offer hosting.
    ē Greg Lubbelinkhof

  8. #8
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    but people will trust a host if he will be a member of webhosting provider association and new host have to be the member of association and follow the rules and regulations..



    this is only wht i dream....

  9. #9
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    3 month a go we bought a hosting company who was in death because of this. They where making 60k month and they expenses was about 64k month Also they where owe to the bank 38k. But it was not reseller; it is a dedicated hosting company. They where offering for 49.95/month unlimited reseller hosting. Basically what we did we bought them, then send every one email saying that price will be increased and each reseller who has over then 65 domains will be required to move to dedicated servers. In result a lot of wanted accounts where dropped and people who decide to stay they agree with a new policy and new price what was no longer 49.95/month for unlimited it become to $79.95/month. In total was dropped about 50 resellers it was not a lot.

    Every one who offers low prices they end very fast. So please stop offering low price. Because you will cause your business problems in a feature.

  10. #10
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    It is not a dream it can be realized. Same as a Car Gas all prices almost the same only few cents a different.

  11. #11
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    yes i agree allinet
    but to implement this. all r from different corners of world.

  12. #12
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    Originally posted by hsg70
    but people will trust a host if he will be a member of webhosting provider association and new host have to be the member of association and follow the rules and regulations..
    People will trust a host based on their service and reputation, and not because they belong to some type of "hosting association." Besides, I wouldn't want to be part of an association that has their own rules and regulations on hosting, no matter how good their intentions may be.

    Quote Originally Posted by ALLiNET
    Ok I got a question. Why resellers trying to offer sow low prices for shared hosting? You are people ruining web hosting industry this way.
    I honestly don't care if our competition offers hosting for 3 cents per month. Let them. They are not ruining the web hosting industry. They are only ruining themselves. If they are successful at offering hosting at such a low price, so be it.
    ē IceStorm.com - Top Provider of Web Hosting, Reseller Hosting, and Cloud VPS Plans.
    ē Why IceStorm? Two Words: Proven Reliability.

  13. #13
    My boss always tells me to stick to our pricing, we come up against people who offer very low prices all the time and we lose a lot of deals that way. BUt just as someone else said we can't lower our prices since the level of service that we give is tremendous compared to the rest.

    Since I was an engineer in datacenters for many years I try as hard as I can to show the benefits to people but most of the time it falls on deaf ears because the level of knowledge of the prospect is tiny.

    We actually have a 24x7x365 NOC, our own datacenter and our own in-house support staff of over 100 people.

    People just look at the bottom line and end up paying for it down the line. Then they feel embarassed and go with another crappy host.

    When will CIO/CTO's actually be knowledgeable in computers. They are few and far between even the ones with IT/CS degrees.

    Sean
    crisper

  14. #14
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    I can't imagine how those people stay in business. How can one afford the monthly rent on a dedicated server when hes only receiving roughly one dollar per customer each month?

  15. #15
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    Hey, there are plenty of people with their own servers offering ridiculously priced shared and reseller plans too. It is unfair to put all the blame on resellers.
    New site: www.talkutas.com

  16. #16
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    Originally posted by hsg70
    i think there shuld be a association of hosting provider so that they can fix the minimum rate.
    Firstly: that would necessitate every host belonged to the association, which is totally unrealistic
    Secondly: even if it were possible, that's price fixing and in most places it's illegal.

  17. #17
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    This is my opinion. The price is not everything. Yes, it is important of course, but in my opinion the Quality of Service is what`s really important.
    There is place for every hosting provider.

    Resellers (customers) usually start with cheap solution. They are 'newbies', the wish to test, and to
    see what is this business about. They do not seek for high reliability, they want decent service for their money,
    they want minimal loss in case they give up.
    If a reseller starts in this way decide to invest in the business, he/she will end with more reliable host, for higher price
    with certain benefits, reliable uptime/support. If everything is okay, the reseller`s business will grow, and he/she will
    eventually end up with VPS or dedicated server.

    I think that it is a proven fact that, not the cheap service is what makes customer stay with you.
    It has some role, but in my opinion it is not the leading one.

  18. #18
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    Re: Attentions to ALL RESELLERS!!!

    Originally posted by ALLiNET
    Ok I got a question. Why resellers trying to offer sow low prices for shared hosting?
    You are people ruining web hosting industry this way. Donít you think when real client looking for service they are not really paying attention on low price. They worry about only uptime and security.

    I have seen some resellerís offers following plans
    For $0.99 month
    1 Gb Space
    100 GB BW.

    Common people why you do this? You donít make any money of this you just killing industry.
    I remember like 4 years a go for 50 MB of space the price was like $50 per month. That was a great way to do a business. Please provide me with some answers why it is happen?
    Sounds to me like someone is being under sold and losing business, can't cope with it and is getting mad. In a free enterprise when you can't compete you find another nitch, another genre or quit. There is no web hosting monpoly and thousands of nitches. Find yours.. and stop competing with providers you can't compete again. Then you won't be so sad

    arngy:

    This is my opinion. The price is not everything. Yes, it is important of course, but in my opinion the Quality of Service is what`s really important.
    There is place for every hosting provider.
    Nope price is not everything, but I am sure its the #1 things most people are looking for. Why is wal-mart so popular? Its not because its great quality!
    www.JGRoboMarketing.com / We Filter out the Bad Leads and Send you the Good ones!
    █ Office: (800) 959-0182 / Automated Lead Funnel Service

  19. #19
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    What kind of ignorance is this
    Well if you stop being ignorant and remember that in the days when hosting was 50$ for 50mb even dedicated servers were costing a fortune and even the first resellers accounts were so costly that nobody could even dream of setting up a hosting company
    I cannot understand the logic i think ALLiNET you still think that in the days when hosting sold for 50$ a month reseller accounts were availble for the same price it is today and you are calculating on that basis how much you can make and starting up this thread
    Hello wake up there has been a revolution in internet connectivity bandwidth prices have crashed and the main reason is with increased connectivity you are having global competition.
    I dont think this thread makes any sense
    I only protest against the resellers that charge less because they oversell thier accounts more than 200%
    i dont see this allinet putting that as the reason
    Hahahhah ok lets say that what you want happens then picture this all the decicated server companies gang up and keep a "fixed price" hehe for eg 2004 pricing for a 10mbps unmetered server from ev1servers was 349$ approx now it is 199$ and better servers specs
    now i think the 50$ per month charge will be legitimate
    Dont be so greedy and lazy it takes hard work to make money you are asking for monopolistic monitoring to be done so that few ppl can make more money i dont think the todays free world is willing to head that way

  20. #20
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    I would have to agree with this somewhat. I always get prospective customers who say XYZHost offers 1GB for $2.00. I try to explain to them how that is not possible but they never understand. Most people who are new to hosting think hosting is about the same no matter where you get in terms of support and reliability.

    --GSV
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  21. #21
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    Most ppl who are TOTTALY NEW in buying an hosting account will not look at the uptime and security

    they will just want the prices low...

  22. #22
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    Originally posted by mlovick
    Why not. This is called free enterprise.

    Most of these hosts offering unrealistic pricing are only attracting the type of clients you dont want anyway.

    Then they realise it is impossible to manage the company because there is no funds for expansion - they fold up. And clients paying those kind of prices get what they deserve...
    That's not really fair.
    You can't blame a new customers for buying something cheap.
    How does a newbie know what is cheap and what's not?

    OK, the best thing to do would research, but let's face it, when you go down to the shops and buy something new, for a few bucks, do you research it?
    You expect it to work. You expect the company to be there next month. Hosting is different from most other industries. There is no protection for clients.
    Andrew Thomas

  23. #23
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    Originally posted by XeHSean
    I can't imagine how those people stay in business. How can one afford the monthly rent on a dedicated server when hes only receiving roughly one dollar per customer each month?
    They don't.
    Andrew Thomas

  24. #24
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    Originally posted by ALLiNET
    Also people who always looking for low price hosting they are required more support help then any one, and it is true
    One of my friends is like that
    Scion Static - Superb Web Hosting
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  25. #25
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    Originally posted by thomas7
    That's not really fair.
    You can't blame a new customers for buying something cheap.
    How does a newbie know what is cheap and what's not?

    OK, the best thing to do would research, but let's face it, when you go down to the shops and buy something new, for a few bucks, do you research it?
    You expect it to work. You expect the company to be there next month. Hosting is different from most other industries. There is no protection for clients.
    Agreed. It is in no way the customer's fault for signing up to a cheap host if they have no idea what is cheap and what is not.

    --GSV
    MediaLayer, LLC - www.medialayer.com Learn how we can make your website load faster, translating to better conversion rates for your business!
    The pioneers of optimized web hosting, featuring LiteSpeed Web Server & SSD Storage - Celebrating 10 Years in Business

  26. #26
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    Originally posted by nanoSS
    One of my friends is like that
    It's is true that the people who pay the least require the most support generally.

    The people on 10cent packages are normally people new to hosting, and have no idea on how to do anything.
    Andrew Thomas

  27. #27
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    We all seem to have noticed a big disadvantage of the internet.
    It's not possible to tell companies apart from one another.
    I could setup a store identical to amazon.com, or any other website under my name, and look just as big.

    Could I setup a chain of Tesco stores all across the country? Think not.

    We'll just have to see how the internet pans out. With advertising getting more and more expensive, and online advertising starting to outdo traditional advertising expenses, internet retailing will become just as expensive to run as traditional businesses.

    You've all said starting a webhosting business is far to cheap, but it won't be like that for long I don't think- because of advertising costs and with greater awareness, perhaps pricing will start to go up soon.

    It's the same with anything. When things are cheap people spot new ways to make money out of them, which is exactly what advertisers have done.
    Andrew Thomas

  28. #28
    I agree the price war is insane. But the fact is when it comes down to it if you are targeting a specific niche you won't really care who has what price. The value youf your product will do the talking. There is nothing wrong with resellers but there is something wrong with hosts that offer less than average pricing.

    I'm all for discounting but there is a fine line between giving a discount ( Cut to margin) vs Giving service away for free ( Net loss at the end of the day)

  29. #29
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    Originally posted by aceadoni
    I agree the price war is insane. But the fact is when it comes down to it if you are targeting a specific niche you won't really care who has what price. The value youf your product will do the talking. There is nothing wrong with resellers but there is something wrong with hosts that offer less than average pricing.

    I'm all for discounting but there is a fine line between giving a discount ( Cut to margin) vs Giving service away for free ( Net loss at the end of the day)
    We all agree this is a problem, but what can you do about it?
    We live in free trade environment. What can you do? Say it's illegal to start a business that will not be profitable?

    Like I say, I think it will sort itself out in the future. The business is really only 5 or 6 years old, of course its going to be all of the place for a while.
    Andrew Thomas

  30. #30
    Like any trade, the business of hosting will always evolve and the companies with the strongest business model for the times and their intended target marketÖ will survive. Whether that market is the cheap pain in the butt novice or the advanced financially sound high-end system user.

    The two part solution is communicating and listeningÖ not regulation. Cheap is great, but service is better and like myself, the blind will soon see. this is why forums such as this are very important.

    places like wht aid in the decision making process and help to determine which companies are truly committed to the success of this business and who is not. the strong will keep surviving and the inept will keep dying off.

    Just my two cents.


    Out
    ..::: The quality of a person's future life will be determined by their current and past behavior. :::..

  31. #31
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    With unregulated web hosting services, there will come a time that cheap prices and great service will come together!

    Companies are forced to create new business models to gain an upper hand and merging cheap prices and great service will hopefully be a key factor in that business model...

    i hope it comes very soon. so we all might benefit from this "business model".

  32. #32
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    Originally posted by Media4Solutions
    With unregulated web hosting services, there will come a time that cheap prices and great service will come together!

    Companies are forced to create new business models to gain an upper hand and merging cheap prices and great service will hopefully be a key factor in that business model...

    i hope it comes very soon. so we all might benefit from this "business model".
    There's cheap, and there is unsustainable.
    Charging $1 for 10Gb space is not a business model. It's suicide.
    Andrew Thomas

  33. #33
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    The unfortunate thing about this situation is..

    In the old days, there were DEDICATED staff and companys..

    Today, any Tom, Dick, or Harry can make a hosting account on a $4 reseller, sell 500meg for $0.50 and turn a profit.. Won't be much, but it'll be a profit.

    And the sad thing is, those Tom, Dick, and Harry's exist, because the price for hosting is so low, it's available to anyone.

  34. #34
    IMO, Low price always gives low/bad support.

  35. #35
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    If that is the case i think then even register.com should be complaining about godaddy.com and enom.com i bet that allinet would have registered for a domain in any of these sites and for well under 9$
    www.register.com still sells domains for 35$ they have toll free support but i never needed to call my registrar
    you know i think the customers are fools who register with register.com they are just ingnorant
    just notice how ironical the domain scene is
    i think it is just a matter of time before you will have the the same situation in webhosting where there will no frill cheap yest reliable hosting like i wouldnt call godaddy.com cheap i rather call them inexpensive
    I think what allinet wants it what register.com is doing they are still having a substantial amount of ppl who are registering at more than 3 times the price and they actually dont need that many customers to make a profit
    the only thing why expensive hosts are complaining because we have www.webhostingtalk.com to actually show how legible are prices both expensive and cheap
    thank to webhostingtalk.com

  36. #36
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    Re: Attentions to ALL RESELLERS!!!

    Originally posted by ALLiNET
    Ok I got a question. Why resellers trying to offer sow low prices for shared hosting?
    You are people ruining web hosting industry this way. Donít you think when real client looking for service they are not really paying attention on low price. They worry about only uptime and security.

    I have seen some resellerís offers following plans
    For $0.99 month
    1 Gb Space
    100 GB BW.

    Common people why you do this? You donít make any money of this you just killing industry.
    I remember like 4 years a go for 50 MB of space the price was like $50 per month. That was a great way to do a business. Please provide me with some answers why it is happen?
    This seems really ridiculous for ALLiNET to be saying, since they used to (I don't know, but they still might be) offer $10 a year unlimited space/bandwidth hosting plans on eBay. That is even less that $0.99 a month and is an infinite amount more than 1GB storage and 100GB bandwidth. That sounds like it would hurt the industry a lot more than what you are talking about in your post.
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  37. #37
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    Its good for people who cant afford costlier webspace.
    But there should not be any compromize on server security
    and uptime and other important things like speed... etc

  38. #38

    Re: Re: Attentions to ALL RESELLERS!!!

    Originally posted by HostingInsider
    This seems really ridiculous for ALLiNET to be saying, since they used to (I don't know, but they still might be) offer $10 a year unlimited space/bandwidth hosting plans on eBay. That is even less that $0.99 a month and is an infinite amount more than 1GB storage and 100GB bandwidth. That sounds like it would hurt the industry a lot more than what you are talking about in your post.
    Just for fun I tryed out those hosting company's who offer unlimited/all for a few buks /month
    Lemme say this: Server load was 20.0+ at good times.


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