How in the world someone can offer 5/10 gigs of space and 10/30 gigs (or higher) of bandwidth for only $2/$3 a month?
I have even seen companies/web hosters (if they are really companies that is) go even lower on prices?
Being in the hosting business for 3 years now (consulting business for 10 + years) I have never figured out how these people do it and make a profit. I realize that the cost of getting a dedicated server has dropped a lot over the years but the cost of support people have gone up.
At one time hosting a web site meant a small to medium business wanted to place there company on the web to do business. These clients either hired a web master or had someone in the company that understood the ins and outs of it. Now days everyone that surfs the web are setting up web sites for one reason or the other (some for profit some not). 70% have no idea how to even set up an email address in their own email program at home much less how to administrate a hosted site.
This in turn causes higher support issues which means 24/7 support which cost money.
So how do companies/hosting services (once again just because the offer it as a company does not really mean they are a company) do it?
What do they know that I have not figured out yet?
What do they do when a client has a problem?
How can they offer prices that will not even pay for the server cost much less allow a profit to hire personal to provide quality support?
Ok enough of my rant I just had to get this out of my system back to work with me now.
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When they say it can't be done.
Thats when they call us.
Look for these "companies" in a year, I bet you won't find them, or they'll have changed their pricing structure dramaticly. It's just not possible to compete on price alone and a lot of customers get burned by this. A company offers the world for $1/month and customers sign up and put their prized website online only to have the hosting company go under 3 months later. It happens all the time.
You dont get much support for that kind of money. If you are running a website for a business or even for personal use, just go the extra mile and spend a little bit more on a nice hosting company with good support.
Also, companies that give alot of bandwith and space oversell, which means they offer 10Gb per account, but they know most people will use only one 1gb, so they have tons of sites jamed onto one server and it is slower and less reliable.
