So doing my normal perusal of the industry today I came across the normal amount of what I call ultra cheap web hosts, the $1.50-$2.99 web hosts per month (often having to pay yearly to get that rate). But what occured to me, are there any that actually last? The ultra cheap hosts I used to remember don't seem to be around anymore, so it occured to me, does this model even work? Does anyone know of a host that has $1.50 accounts that has been around for more than 2 years?
The ultra cheap hosts I used to remember don't seem to be around anymore, so it occured to me, does this model even work?
In theory it's possible to sustain a business while offering those prices, but it's rare. You would need a very high volume of customers and low expenses, and even then it's difficult. Most real businesses do not want to bother with the margins, even if they can find a way to "profit" from those prices.
There are a large number of hosts out there offering ultra budget hosting, but as you've noticed, they don't generally last very long. The majority of them are started by people that haven't planned ahead or done the math, and by the time they realize that their business model can't be sustained, it's too late.