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Thread: Hosting are so cheap now?
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02-08-2006, 10:56 AM #1WHT Addict
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Hosting are so cheap now?
Some one just asks me $2 for 1gb and 10gb bandwidth.
Is there any money to earn by selling sharing host ?█ Submit your site
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02-08-2006, 11:12 AM #2Web Hosting Master
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Yes, there is plenty of money to earn. The key is not to compete on price, but on quality of service. You will never last offering anything for such a low price.
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02-08-2006, 11:16 AM #3WHT Addict
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that means oversell.
one server will take you $100 and you should sell to 50 people at least and the server must be overload.█ Submit your site
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02-08-2006, 02:56 PM #4Web Hosting Master
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You simply can't compete on price.... you'll lose. Better to let customers go to those extremely cheap hosts, have a bad experience, then come to you.
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02-08-2006, 03:20 PM #5Web Hosting Evangelist
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People should carefully choose their hosting company.
PierreB - Montreal
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02-08-2006, 03:35 PM #6Registered User
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You know that they say, “The only cure for cheap prices is cheaper prices”, till supply and demand finds equilibrium.
With the advent of the computer and increasingly better technology we are witnessing the biggest deflationary cycle in the history of mankind and it is not just in Hosting. Like it has been said you need to find a way to add value and not compete on price alone.
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02-08-2006, 04:41 PM #7Web Hosting Master
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well....you get what you pay for. If you are offered something too big for a quarter - be aware. Something should be wrong.
The main thing is service and support - the quality the user gets. And only then -does price reflect quality? If I pay these 2$ - would I get professional support, 99% uptime, livechat, money-back guarantee etc ?
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02-08-2006, 09:41 PM #8Disabled
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As has been stated, unless you are a high-volume company, you cannot make any money selling $2-per-month hosting. There are companies that succeed at this (1and1, for instance), but they are few and far between.
Your best bet is to go with a proven provider like HostGator or Site5 that is known for reliability and that offers reasonable pricing and good support. That $2-per-month host will probably not be around for too long.
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02-08-2006, 11:03 PM #9WHT Addict
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Originally Posted by Ariel74
when we choose hosting we'd choose the cheaper one as the first, right?█ Submit your site
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02-09-2006, 12:32 AM #10Retired Moderator
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Some one just asks me $2 for 1gb and 10gb bandwidth.
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02-09-2006, 12:34 AM #11WHT Addict
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I know that plan and I have bought the DH 1tb plan but I really do not need so much bandwidth.
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02-09-2006, 04:29 AM #12Web Hosting Guru
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2$ seems...too low....
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02-09-2006, 04:50 AM #13New Member
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if the big guys have problems giving good service and plans at that price, why would a little guys(or maybe not so little) be able to do it so easily, maybe hosting 1200 sites on his Pentium Celeron PC at home on DSL connection ... (jokingly)
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02-09-2006, 12:29 PM #14Junior Guru Wannabe
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Originally Posted by Antony
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02-09-2006, 03:56 PM #15Newbie
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Originally Posted by AntevorteNET
And as far as hosts offering ridiculously low prices, they are often overselling and it is not a good idea to trust them, cause they usually don't stick around for too long anyways.Michael :: iVirtualHost CEO
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02-09-2006, 04:24 PM #16Web Hosting Master
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We had requests for over 100GB for less than $10 several times, all denied
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02-09-2006, 06:02 PM #17Junior Guru Wannabe
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I'm probably somewhat unknowledgable on the subject, but even if you "promise" 1 GB storage, don't most people use under 25MB? That would still mean that you could put a lot of customers on the same server, right?
Finding options is easy. Making decisions... not always so.
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02-09-2006, 07:04 PM #18Junior Guru Wannabe
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PsychoBob: sure, that's called overselling. Good idea? Bad idea? Ask 100 hosts and you'll get 100 different answers. High quality web hosts don't oversell and therefore you pay more for their service.
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02-09-2006, 07:52 PM #19Retired Moderator
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That would still mean that you could put a lot of customers on the same server, right?
You see, I have an account with 1Gb of space. Up until recently I never used more than 50mb of space or so, but now I'm using it to exchange pictures with my brother, as he's now living 5000 miles from me. As a consequence, my space usage upped quite a bit. As technology improves one picture will require more and more space and I might be using ever more of my allocated space.
In other words, it's good if one takes into account a bit more than yesterday's statistics when deciding how much to oversell. People use their hosting accounts for more and more purposes. Usage statistics can change in a few years' time, so the business model must be conservative enough to ensure profitability under some of the less favorable scenarios. The average CPU and memory used to push data has been growing and will continue do to so. The usage of databases is on the increase, even for the smaller sites.
Just some random thoughts.
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02-09-2006, 07:59 PM #20Web Hosting Guru
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You have to remember, not every site just contains textual information. Sites which have image galleries, media downloads, and so on require a good amount of space and bandwidth. I think if your company has the best hardware on the market, you can oversell packages.