Why are web hosting services so cheap or even free

Discussion in 'Web Hosting' started by Ricus, Aug 30, 2012.

  1. Ricus

    Ricus
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    In the year 2011 and 2012 many web hosting services have been developed and are offering advanced features for no cost at all or only a tiny amount of money. Actually some companies started by offering reseller plans for a tiny amount of money and simple user interface, with FTP access only to the actual administrator and user accounts. To the root of the server is no access at all. In addition these websites are all hosted on the same server and therefore do not cost much. Large websites choose to rent their own servers from other companies though, where the servers may cost more than $100 per month.
     
  2. DeniseTaylor

    DeniseTaylor
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    I'm not sure if you're asking or telling, but the reason they can give services away for cheap or free is because it doesn't cost them much. Meaning, most websites don't get traffic or use resources and take up very little space. When sites are successful and get gobs of traffic, they consume resources. Any company who gives away for free and doesn't make a profit will go broke. They're making their money some other way, usually by upselling.
     
  3. Business Attorney

    Business Attorney
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    As Denise said, costs have dropped. The primary costs are processing, storage and bandwidth. All of those continue to drop. Most make their money by upselling services. Look at some of the biggies - GoDaddy and 1&1. They sell services that can easily double the bill and cost them virtually nothing to add,
     
  4. daytrader

    daytrader
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    They are just too many in this business thus making to competition tight.and the only wy to be ahead than anyone is to lower their costs.
     
  5. rangrage

    rangrage
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    I would not agree with this entirely, it depends on the market and the client you are targeting.

    For example what I do to get business sometimes when approaching small businesses, I would offer them a website free of charge, so I will create their website at no cost but they will have a monthly hosting package that I make them sign up for.

    If the client is a bigger more established business I would not go in for price, usually they have a budget for their web related services so money is not the question. With clients like these I would pitch them on quality service levels, offering to provide fanatical service and I would not be shy to take my price for such a service. I then tell the client that if they have any problems they should contact me directly on my mobile and I will personally attend to their problem within 2 hours. Most bigger companies jump at this type of 'VIP priority' treatment and they just pay the invoice month after month without any questions, provided you keep to your promise obviously ;)
     
  6. remonray

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    Every company which is offering free services are also going with premium.So,it is also like advertising their hosting service.When they advertise it saying it free,many people will join and become its member so those project/website that survive and become popular that go for premium services.Key point is they think this is the cheaper way to advertise their product also letting people know their status like xx% uptime,easy website installer,etc.
     
  7. smartkathy

    smartkathy
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    I appreciate the answer of Remoray. He mention it properly.
     
  8. asad

    asad
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    what is meant by upselling services
     
  9. sghosting

    sghosting
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    Aside from competitions, hosting provider care about new online business entreprenuer needs. They can pay as they grow ..
     
  10. Leon

    Leon
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    Free hosting services usually offer it with some sort of advertising present on the sites being hosted through the service. Cheap hosting services usually still make profit, as the hosts buy reseller packages which are cheap from the larger companies and therefore use this hosting not only for themselves, but to provide it for others. That's how so many hosting services are offered cheaply, but also unreliably.
     
  11. sghosting

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    Not all cheap hosting are unreliable, even expensive hosting providers are bad in serving their customers help request. It depends on many factors.
     

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