It seems that nowadays everybody and their grandma sells Web hosting services. Don't get me wrong, I'm the first one to believe in good competition and I defend this principle firmly. Nevertheless, there are people who think that they can start a web hosting business without knowing the first thing about developing and maintaining a business.
Those I find most surprising are those that offer hosting services at crazy prices. There are web hosting offers from people for $1 a year. Yes, you read right, one dollar for an entire year of service. With prices in the range of $60 to $100 per year for the minimum service, one would think this is a great deal but you must really analyze it first.
Let's do some simple calculations. Lets say a provider gets 1,000 clients, a reasonable number for a small web hosting business. If this provider sells his services at $1 each, then he will have the fabulous amount of $1,000 in a year. Do you think that he will be able to offer quality services, support and upgrades at this amount? I am hard pressed to think he will have enough for food alone!
It can still be a good business if you get enough clients, some will say. Ok, just because I'm in a good mood, let's continue with this example. Imagine this provider-for-a-dollar can get 10,000 customers, a very ambitious goal. Then it's $10,000 dollars of income. Do you really think a business can make it with this income for a year? Just imagine the cost associated with servicing 10,000 clients. Just the cost of rent, phone lines and power would be enough to deplete this small income.
As ever, the human mind is marvelous and searches for a solution. Clients that buy these services reason that if they get the deal for a year, it doesn't matter if the provider goes out of business next year, which is most likely. They already got the service almost for free. And again I ask, is this true?
You will lose access to your services, email addresses and your web site, if your provider goes out of business. Getting a new service takes a couple of days no matter the scenario. Of course, this only applies if you don't screw up and obtain a domain name from the same provider.
In that case, you may even lose your domain name and will have to get a new one. Imagine the time wasted just notifying all your clients about your new email address. What if you lost important emails and documents too? Do you think this is worth the risk?
When purchasing your next web hosting service, take into consideration the support services, the quickness in answering your emails as well as phone calls and how long the owner has been in this market. We have all heard many time that if it sounds too good to be true it usually is, then you may as well start looking elsewhere.
If you want to go with someone else who will only cost a dollar go ahead because we'll be glad to help you when you come back - just hope that too much damage hasn't been done. - 15431
Those I find most surprising are those that offer hosting services at crazy prices. There are web hosting offers from people for $1 a year. Yes, you read right, one dollar for an entire year of service. With prices in the range of $60 to $100 per year for the minimum service, one would think this is a great deal but you must really analyze it first.
Let's do some simple calculations. Lets say a provider gets 1,000 clients, a reasonable number for a small web hosting business. If this provider sells his services at $1 each, then he will have the fabulous amount of $1,000 in a year. Do you think that he will be able to offer quality services, support and upgrades at this amount? I am hard pressed to think he will have enough for food alone!
It can still be a good business if you get enough clients, some will say. Ok, just because I'm in a good mood, let's continue with this example. Imagine this provider-for-a-dollar can get 10,000 customers, a very ambitious goal. Then it's $10,000 dollars of income. Do you really think a business can make it with this income for a year? Just imagine the cost associated with servicing 10,000 clients. Just the cost of rent, phone lines and power would be enough to deplete this small income.
As ever, the human mind is marvelous and searches for a solution. Clients that buy these services reason that if they get the deal for a year, it doesn't matter if the provider goes out of business next year, which is most likely. They already got the service almost for free. And again I ask, is this true?
You will lose access to your services, email addresses and your web site, if your provider goes out of business. Getting a new service takes a couple of days no matter the scenario. Of course, this only applies if you don't screw up and obtain a domain name from the same provider.
In that case, you may even lose your domain name and will have to get a new one. Imagine the time wasted just notifying all your clients about your new email address. What if you lost important emails and documents too? Do you think this is worth the risk?
When purchasing your next web hosting service, take into consideration the support services, the quickness in answering your emails as well as phone calls and how long the owner has been in this market. We have all heard many time that if it sounds too good to be true it usually is, then you may as well start looking elsewhere.
If you want to go with someone else who will only cost a dollar go ahead because we'll be glad to help you when you come back - just hope that too much damage hasn't been done. - 15431
About the Author:
As the founder and actual CEO, Ricardo d'Argence has been in the field for more than 20 years. Alojate.com is now one of the best web hosting providers in Mexico, offering a range of services for all business needs. Dedicated servers, SEO, factura electronica, web hosting & domain registration.
