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View Full Version : The High Cost of Free Service



milkyway
January 18th, 2009, 18:03
Whatever happened to the saying, "beggars can't be choosers?" I know it's old, but it's just as relevant today as it always has been. I honestly didn't come here to complain; I came here offer some free service because almost a decade ago I came here looking for a free web host that had Perl so I would have a place to use the scripts that I had written when learning the (awful) language. I was extremely lucky and glad that I was able to find some great providers that helped me back then, even if I was limited to 5MB disk space and 100MB of data transfer - which is the reason I came back here now, to see if I could help anyone else that's trying to learn and build amazing sites and utilities.

I am shocked however, to see the balls that some people have by asking for 25GB+ disk space and hundreds of gigabytes of data transfer. OH, AND cPanel, Fantastico, no ads, no links, no posts / no effort required, plus resale rights. Does anyone understand that not one of these things are free to the service provider?

Lets use a cheap dedicated server for example: in the "Bargain Bin" at a well known dedicated hosting provider, the current cheapest offer is a Intel Pentium 4 3.4 GHz, 512MB memory, 80GB disk, and 750GB monthly data transfer for $99.19/mo. I'm going to keep the free Linux OS they provide to keep costs down, but I will add cPanel/WHM with Fantastico as that is what I've seen the most requests for, which adds $25/mo.

This means that now, for the cheapest dedicated server money can rent, the person you're asking so much from has to pay at least $124.19/mo. plus any taxes, AND a $25 setup fee.

This does not even take into account admin time, such as making sure the server is up-to-date and your data is secure, regularly backing up data, tech support, etc. So now I have to ask, why the heck should anyone paying for the server and doing all of this work for you, for free, allow you to resell the space you receive for profit? Some have posted that they will share 50% with the server owner, and profit sharing may actually be a pretty sweet deal for anyone that wants to sell their server space without the hassle of doing the actual sales work necessary - but anything less than 70% going back to the person whose actually paying for the service is not right in my opinion.

I'm sure that some will respond about how they're not actually asking for much because everyone oversells (or 'overgives'), but why not just ask for what you really need and work out the upgrade path when necessary?

I actually work for a managed hosting company (not the one I used pricing from for my example above, as we only offer managed services) and we always find out what our customers will be doing with us to help them purchase just what they need and upgrade only as they need throughout their contract to help keep their costs down. Believe me, they appreciate it much more when we do this rather than up-selling them on services they will underutilize. It's probably hard for some to see what I'm getting at with this comparison, but please start thinking about whether you would be asking for so much if you were the one actually paying for these services.

theraptor
January 18th, 2009, 19:32
Thank you for having the guts to come out and say this. I would +Rep you if i could figure out how in vB.

hamster
January 18th, 2009, 23:04
Moved to Free Hosting Discussions.

Well said ;)

JonnyH
January 19th, 2009, 04:26
I totally agree with what your saying. It's stupid. Something needs to done about it or it's going to continue to get worse.

RU-Adam
January 19th, 2009, 12:16
A lot of demands are high, but these people tend to abuse the accounts and are quickly removed anyhow. I find most legitimate users are well within the limits and even a cheap server can handle them. One person asked me if I could offer 1TB of bandwidth for free, but he was soon removed for using Rapidleech.

[JSH]John
January 19th, 2009, 13:22
I agree, people seem to think they can get everything for free these days. As long as they're happy, that's all that matters.

TSO
January 19th, 2009, 20:38
You are spot on. As a little "real-world case study"... at our free hosting company, we offer quite large packages. It is interesting to see that most users (well over 99%) only utilize less than 5% of the resources allotted to them. However, each time we raise limits on bandwidth, disk space, or databases, our daily average signups always rise.

Sad but true: the Web hosting industry is stuck in a nasty spiral of "more is better" and unless hosts continue to ratchet up their offerings, they are stuck in uncompetitive positions. Perceptions are everything in this industry, and hosts with "bigger" feature-sets are perceived to be better - though we all know that is not always (rarely, even?) the case.

Sadly, I don't think the folks the OP's article was meant for will ever even really read it.

dbbrock1
January 20th, 2009, 18:21
My favorite requests are the free dedicated server, free reseller plan, free VPS, etc.

Now I am not saying I have never given out free dedicated servers, because I have and have been very successful with converting the sponsorship to money. However, I certainly would never give away a free dedicated server to someone requesting it on a free web hosting forum lol.

SiberForum
January 21st, 2009, 03:31
Nice article is here. And the most important thing: that is truth. If you want be sure in tomorrow you will need to pay for that.

RU-Adam
January 21st, 2009, 21:55
My favorite requests are the free dedicated server, free reseller plan, free VPS, etc.

Now I am not saying I have never given out free dedicated servers, because I have and have been very successful with converting the sponsorship to money. However, I certainly would never give away a free dedicated server to someone requesting it on a free web hosting forum lol.

I think this is a very feasible idea, but you must be choosy in selecting who to give the server to. You could definitely setup a specialty server for someone and get a nice bit of exposure from it.

Jessie911
January 22nd, 2009, 13:15
Internet users are always going to want to be provided with free hosting. And, of course, the hosting will have to perfectly meet their needs for them to be happy. Otherwise, you will gets hundreds of emails asking for more space or more bandwidth or a free domain, etc.