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  1. #1
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    One fee forever hosting?

    We see them around, "Pay this amount. We host you forever."

    Anyone know how that's possible?

    Did I miss a class?
    There is no best host. There is only the host that's best for you.

  2. #2
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    I take it you are referring to the Steve Gunnels one?

    I have no idea how the market changed like that....it's terrible that some people believe it is a good way to go.
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  3. #3
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    Re: One fee forever hosting?

    Originally posted by SoftWareRevue
    We see them around, "Pay this amount. We host you forever."

    Anyone know how that's possible?

    Did I miss a class?
    It's not possible unless the owner either has a lot of money to burn or he plans on taking the money and jumping off board once they reach a certain number of customers
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  4. #4
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    Most of those sites should be considered fraud. That is just absurd.

    It is a shame some people still fall for a scam like that.
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  5. #5
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    I'm sure the "business model" that backs this idea looks a lot like a pyramid scheme. As long as customers continually sign up it would be possible to sustain this business model. But like any pyramid scheme it probably works with impossible mathematical assumptions (for example that the host will gain 1,000 customers the first month, 2,000 the second month).

    Of course no matter how well planned out they'll run out of new customers and close shop.

    I remember this was a fad in 1998-1999 for ISPs. A local company did lifetime dialup for $120 and were gone in 6 months. Sometimes I wonder if these people just moved into the web hosting fraud market.
    If you have to operate your company behind the scenes or under a fake name, maybe it's time to leave the industry and start something fresh.

  6. #6
    If you search on google, you will still find web hosts offering one-time fee for lifetime hosting.

  7. #7
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    We see them around, "Pay this amount. We host you forever."

    Anyone know how that's possible?

    Did I miss a class?
    Your school probably didn't offer Con Artist 101 & 102 that these lifetime hosters took.

    The only way it's possible is through the fly by night operations that are familiar to a few in the industry. If anyone can come up with a legitimate and plausible situation in which this will work, then you better call up a few fortune 500 companies right away.

  8. #8
    Greetings SoftWareRevue:

    From a business model perspective, it would be among the most risk-based models.

    New sales pay current expenses; current expenses grow as the number of servers and staff grow to maintain existing clients.

    The caveats include zero incentives to support current clients as those clients are not the ones paying for the current expenses.

    Thank you.
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  9. #9
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    Its possible depending upon the allocations. For example, $200 for lifetime hosting of a 10 mb disk space allocation + 1 gig bandwidth/month is plausible. Especially considering that the only expense would be bandwidth, which is hardly used by people who only need a small shared account, and the initial cost (700 or 800 bucks to buy a decent celeron for static html pages).

    Plus, when you factor in that you'll get a constant stream of customers, overselling, and the time value of money, there's some parts of this idea that work. It's all about managing cash flow well and getting a good ROI with the cash.


    The question is, is it really worth it from your standpoint (you'd probably make more money in the long run by charging month-to-month) and what kind of customers would you be attracting with such an offer...

  10. #10
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    I remember paying 50 for lifetime internet access (56k) and got a year out of it, that was really well priced (and still is) comapred to todays prices here, however waking up and trying to get online to find the phone number's gone isn't too great!

    It will be the same with hosting, I should doubt it would even last a year though, everyone knows in this saturated market theres no guarantees on signups!
    Xurial.net

  11. #11
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    Its possible depending upon the allocations. For example, $200 for lifetime hosting of a 10 mb disk space allocation + 1 gig bandwidth/month is plausible. Especially considering that the only expense would be bandwidth, which is hardly used by people who only need a small shared account, and the initial cost (700 or 800 bucks to buy a decent celeron for static html pages).
    I knew plausible wasn't the word I was looking for.

    Practical was it.

    I think people are too wary of the lifetime scams to seriously consider upfronting hundreds of dollars - especially a large number of people (large enough to cover overhead as well as other expenses incurred).

  12. #12
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    Looks like plenty of people have forgotten cyberwings 4 years on...

    I'd advise anyone to look into the cyberwings case study because it is likely one of the best the industry has to offer on "how not to do things".
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  13. #13
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    To me, it's right up there with "unlimited space & bandwidth" in the spectrum of impossible offers.

    Very few companies will exist forever. Those who do last longer than 10 years aren't offering ridiculous plans like this. They are offering stable services, with realistic features, and prices.

    In the end, the guy who paid $xxx for a lifetime of hosting gets ripped off. Then, he turns around and falls for another scammer who is offering impossible plans.

  14. #14
    Greetings:


    Originally posted by fgraph
    Its possible depending upon the allocations.

    Even then, you have the monthly costs which should include all costs of running the business.

    Thank you.
    ---
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  15. #15
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    The thing with that, is if something goes wrong with the host or he ever decides to stop hosting you, you end up out a lot of money in the end. Purchasing 1-2-3 and up to a year are fine, but come on.... a lifetime? seems dumb.

  16. #16
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    It's a clear business model:

    "Dear client

    Please pay $99 so that we can upgrade your account to one of our new servers.

    The server where your account is hosted is getting old, insecure and unstable!

    Thank you"

    Or

    " Dear customer

    The past 5 years were fantastic years. I'm very happy. Unfortunately, our company is facing financial dificulties. And we are going to file for bankrupcy.

    I'm also going to retire to the beautiful island I bought.

    Goodbye!"



    Why do people go for it? Isn't there a guy that sells real estate on the moon? And on Mars? Do you want to buy 100 acres of land on Mars? It's just $1000! Where will you buy 100 acres of land on Earth for $1000? It's a lifetime opportunity. Don't miss it!
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  17. #17
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    lol. Anyone with half a brain wouldnt even look at a deal like that.

    Are you going to able to host that client for 80 years?

  18. #18
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    Lifetime hosting can be practical if and only if they have a clause stating that to be a client you need to be 80 years and above : )

  19. Be very aware of the scams some companies are using to attract new customers, another common myth is unlimited bandwith or space.
    Last edited by Dave.Gianninotti; 08-05-2005 at 09:32 PM.
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  20. #20
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    Re: One fee forever hosting?

    Originally posted by SoftWareRevue
    We see them around, "Pay this amount. We host you forever."

    Anyone know how that's possible?

    Did I miss a class?

    LOL gotta love SWR threads
    Wasnt it years ago that nomonthly did something similar? I remember it was pay for your domain and then nothing else.
    Havent you ever noticed on the lifetime deals they never state whose lifetime that actually is? The host, owner or it could be life of the website....a good ploy to take your $$.
    We cannot predict "lifetime" can we?
    That was only ONE of Gunnels tactics.
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  21. #21
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    I'd be willing to pay $1 for lifetime hosting.

    wait.... wouldn't that be a form of Unlimited hosting? Unlimited time or something....???
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  22. #22
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    Originally posted by Tekster
    I'd be willing to pay $1 for lifetime hosting.

    wait.... wouldn't that be a form of Unlimited hosting? Unlimited time or something....???

    LOL, yep, I believe it would
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  23. #23
    You can see it from another perspective as well. Pay $5 for lifetime hosting, get a fair amount of space and bandwidth for it. However, your bandwidth doesn't get reset every month, it's like a one-timer. If you use up your bandwidth you have to pay another $5. Or am I missing something?

    Surely risky, but can be done.

  24. #24
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    Originally posted by Tekster
    I'd be willing to pay $1 for lifetime hosting.

    wait.... wouldn't that be a form of Unlimited hosting? Unlimited time or something....???
    Well, there's no such thing as unlimited life.

    That is.. unless you're talking about mother nature, or god. Then, you know.. you would have to check to make sure your host is owned by mother nature or god, or if you are god or mother nature. Then, if you are either of those two, you could unleash a plague of locusts on your scamming host who went running off with your dollar. If your hosting company is owned by mother nature or god, then I don't think you would have much to worry about, since they already have all the resources of the universe in their hands.

    Don't forget to read their terms of service / acceptable user policy either

  25. #25
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    most hosts will not do that (ones that are out to take your money) but its a very good idea that some hosts have done.

  26. #26
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    Hi there,

    Interesting enough, I've seen it done well before. Sorry, I don't know how well the host did and whether or not they kept themselves together. But I saw a model that could possibly work

    They were a new company and had $2,000 startup funds. That was barely enough to register the company and trademarks they wanted. So they started posting around that they'd offer 200 lifetime plans at $200 each. These included 200MB disk space and 4GB transfer, so they weren't huge plans. But for a small web site that doesn't intend to grow, $200 is good for life and it got the company $40,000 within three months. At that point, they bought five servers each at $1,000. Four of these hosted the customers they'd already got, and they put them in their rivate suite. Then they used the other server (which quickly grew to many servers) to host the new clients they got from the intensive advertising they were able to do with these new found funds. Now they have to sustain the bandwidth costs of 200 * 4 = 800GB with their other regular paying customers. Not bad if you ask me. Whether or not the company are still doing well with their monthly paying customers (as I said the lifetime hosting was only for those who signed up before they launched and they only allowed 200) or whether they couldn't hold it together (either because they couldn't be bothered or it just flopped) I don't know as I stopped following the story a few years back.

  27. #27
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    Originally posted by GTX Network
    Hi there,

    Interesting enough, I've seen it done well before. . .
    A name, so that we could see how well this worked, would be nice.

    Although the outline you presented seems plausible, on the other hand, it seems like a hard sell.

    For the resources offered, one could likely get hosting for a long time by not paying two hundred dollars up front and spending less than two hundred dollars for hosting expenses for years. (Not with me. But with some host.)
    There is no best host. There is only the host that's best for you.

  28. #28
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    It's basically fraud, there is no way a hosting company can guarentee lifetime hosting. Plus it's a bad buy anyway, you never know how a companies speed/support will be effected with time.

  29. #29
    I dont know how they stay in business. It's hard enough to have a customer signup for a year let alone LIFETIME??... At some point the host will go out of biz and try to sell his clients or worse, just let them go.

  30. #30
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    Originally posted by Tosi
    It's basically fraud, there is no way a hosting company can guarentee lifetime hosting. Plus it's a bad buy anyway, you never know how a companies speed/support will be effected with time.
    I guess I find it ironic that you point this out as fraud, when in fact, your company sells unlimited disk space and unlimited bandwidth hosting.... want to talk about fraud?

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  31. #31
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    well said sirius

    I definitly think the same way.

  32. #32
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    different companies offer different deals. some of it is good and some of it can be considered bad. the whole thing for web hosts is competition. and thats all it is. COMPETITION and if your a customer that gets a deal like the one stated in this thread...then you should open your wallet cuz your probly cheap. theres usually some kind of catch towards a deal like that and in the long run youll see it.

  33. #33
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    forever? huh... what is term of uses for those sites? Could you give some sites?... how will they manage or rent servers if they charge one-time? What happen if there are few people are purchasing while there are 3000 people in servers? :|

  34. #34
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    Maybe I missed a class too, but in my current class I would say such offers are nothing but con-offers. Maybe not today, but for tomorrow.

    Such business cannot survive for a lifetime.

  35. #35
    sounds like a lot of redirected traffic to me, or tons of ads on the footers and/or headers

    do people still do that, or do they limit it to redirecting 25% of your traffic?

  36. #36
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    People host for Free and they sometimes last years I dont see how onetime fee hosting is that unrealistic when you compare them to free hosts.
    I could tell you a joke about UDP. But I'm not sure you would get it!

  37. #37
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    Free hosting is an entirely different business model and I see it as a free hosting site and network that generates high traffic and sells advertising.

    Check out the Gunnels thread. He received high fees for lifetime hosting. That will not generate a high traffic site and network. It doesn't have the free label associated to it.

    It could be a viable business model, but would need a lot of maths and it would always be a high risk model. And it could only be implemented by a big hosting company with economists in it's staff.

    Just a VERY exxagerated example: if every customer payed 1 million dollars for a lifetime hosting account, it would be a viable business model.

    I wouldn't buy life time hosting. And I will NEVER sell life time hosting.
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  38. #38
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    I saw it about before in this forum.... how will they maintain server and take care customer.

  39. #39
    Originally posted by Dan541
    People host for Free and they sometimes last years I dont see how onetime fee hosting is that unrealistic when you compare them to free hosts.
    If you want to add banner ads on the lifetime hosting accounts then you have a revenue stream that helps pay for the maintenance and upkeep of the clients. Somehow I don't think there are many people out there that want to pay for a site with banner ads.

  40. #40
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    Originally posted by Eu1net
    It's a clear business model:

    "Dear client

    Please pay $99 so that we can upgrade your account to one of our new servers.

    The server where your account is hosted is getting old, insecure and unstable!

    Thank you"

    Or

    " Dear customer

    The past 5 years were fantastic years. I'm very happy. Unfortunately, our company is facing financial dificulties. And we are going to file for bankrupcy.

    I'm also going to retire to the beautiful island I bought.

    Goodbye!"



    Why do people go for it? Isn't there a guy that sells real estate on the moon? And on Mars? Do you want to buy 100 acres of land on Mars? It's just $1000! Where will you buy 100 acres of land on Earth for $1000? It's a lifetime opportunity. Don't miss it!
    That was well put!
    Right, people DO buy crazy things like land on the Moon, so why not "lifetime hosting"....
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