Today it appears as if everyone and their mother is providing Web hosting for sale. Don't get the wrong idea, I believe in good competition more than anybody and I am serious about supporting this idea. Irregardless, without knowing a thing about business and how to develop and maintain it, some people still think they can start a web hosting business.
Those who surprise me the most are the ones that offer hosting services at ridiculous prices. You can find people offering web hosting for $1 a year. Yes, you read right, one dollar for an entire year of service. If you consider that the prices of established providers go from $60 to $100 a year for a basic service, this will sound very attractive, but is it really?
Let's do some math. We will take a look at a case of a small web host business getting 1,000 clients. Should a company offer its services for only a dollar each then they will only make around $1,000 a year. Is it realistic that he will be able to provide anyone with services, support and upgrades with this price? 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.
It is amazing, of course, how the mind searches for and creates solutions. Customers who purchase these services compromise that they get the deal of the year, not making a difference if the company goes out of business the following year, which is very likely. They already acquired the service pratically for free. And I ask to you again, is this true?
If your provider suddenly goes out of business, you will no longer have access to your services, and you will lose your email addresses and your web site. Even if you have your domain registered with another provider, you will not be able to get a new service for at least a couple of days in the best case scenario. That's only if you didn't make the mistake of getting your domain name with the same provider.
If that is the case you may lose your domain name so you will have to get a new one. Just think about how much time you have wasted not being able to notify clients about a new email address! What if you lost important emails and documents too? Do you think this is worth the risk?
When you buy your next web hosting service, consider the support services, the promptness in answering your emails and phone calls and the time the provider has been in the market. Yes, do check the price too, but if it sounds too good to be true, it may be a good idea to look somewhere else.
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.
Those who surprise me the most are the ones that offer hosting services at ridiculous prices. You can find people offering web hosting for $1 a year. Yes, you read right, one dollar for an entire year of service. If you consider that the prices of established providers go from $60 to $100 a year for a basic service, this will sound very attractive, but is it really?
Let's do some math. We will take a look at a case of a small web host business getting 1,000 clients. Should a company offer its services for only a dollar each then they will only make around $1,000 a year. Is it realistic that he will be able to provide anyone with services, support and upgrades with this price? 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.
It is amazing, of course, how the mind searches for and creates solutions. Customers who purchase these services compromise that they get the deal of the year, not making a difference if the company goes out of business the following year, which is very likely. They already acquired the service pratically for free. And I ask to you again, is this true?
If your provider suddenly goes out of business, you will no longer have access to your services, and you will lose your email addresses and your web site. Even if you have your domain registered with another provider, you will not be able to get a new service for at least a couple of days in the best case scenario. That's only if you didn't make the mistake of getting your domain name with the same provider.
If that is the case you may lose your domain name so you will have to get a new one. Just think about how much time you have wasted not being able to notify clients about a new email address! What if you lost important emails and documents too? Do you think this is worth the risk?
When you buy your next web hosting service, consider the support services, the promptness in answering your emails and phone calls and the time the provider has been in the market. Yes, do check the price too, but if it sounds too good to be true, it may be a good idea to look somewhere else.
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.
About the Author:
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, Search Engine Optimization, factura electronica, web hosting & domain registration.
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