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Why is hosting so cheap?

C

camikazi2k

New Member
What is web hosting so cheap, what can you profit from $40/year on 2gig and 20gig of transfer what kind of money do you guys make and how?
 
Because those kind of hosts usually take a lot of signups in 1-2 months, then kill the business and run off with the money.
 
Hello I am new to this forum but I am interested in everything related to online business and website building. I read your thread and faced a real problem. I don't really know what hosting service to choose. Can onyone advise something from his own experience? Thanks.
 
tandoc said:
Because those kind of hosts usually take a lot of signups in 1-2 months, then kill the business and run off with the money.
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Heh lets calculate 2 gb its not so big quantity, 80 GB normal size of your disk.
80000/2000=40 Clients, 40clients*40$=1600 $ your annual receipt 1600$.
It is possible to find server for 1400$ annual payment... Heh 1600$-1400$=200$ its still profitable =). But in this case I do not see reason in hosting business, its depends on your cost I think...
What about my company it's possible to gain several clients with such estimate, but ... You know due to costs... People cant sell hosting if they suffer losses, if they are, then tandoc right.
I didnt take into account BW because 40 Clients*20 GB of BW=only 800 GB, normally its 1000 GB traffic you can gain buying dedicate :wink2:
 
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the space and bandwidth are just small things. What is much more important is serverload. If your price is so cheap, you will need to put more clients into one server, to get profit. By this way, your server will go to overload soon.

many people see their host is great at the beginning, with cheap price. Then after several weeks, they complain that it goes up and down all the time. Why? Because the server starting overload!!!

I dont want to say, hey, raise our price up :D but customers: be careful when you need hosting. You get what you pay for.
 
You also need to understand that the world is changing. Technology is really only expensive when it intially comes out. The first computer was around 1 million dollars and today is probally isn't worth $10. New datacenters are being built every month. We have our own datacenter, owned and managed by WMS staff. We can run our datacenter and remote servers and our business is just fine. I think that most of it is technology change.
 
If you sell lots of accounts with a smaller profit margin you can technically make more money than selling far less at a high profit margin. However, stay away from super cheap hosts because their servers are most likely going to be strained under the weight of hundreds, or even thousands, of medium to large sites. :shame:

Also, many hosts are assuming you will hardly ever actually use your full disk and bandwidth allocations. If everyone did at the same time they would have a big problem on their hands :tongue2:
 
WMSpecialties said:
New datacenters are being built every month. We have our own datacenter, owned and managed by WMS staff. We can run our datacenter and remote servers and our business is just fine.
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Let me get this straight... You stated that you have your own datacenter? :confused4 Are you sure about this??? LOL

BWT, you might want to fix the dead links. :eek2:
 
WMSpecialties said:
We have our own datacenter, owned and managed by WMS staff. We can run our datacenter and remote servers and our business is just fine.
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this is the most interesting I have seen here :p Do you mean you are the owner of The Planet? :confused4 Or maybe you put customer servers on "your owned datacenter", but your main server in The Planet :D
 
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Decker said:
Curtis do you ever have a point to make??
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Do I need to spell it out for you? If so, sad on your behalf and any host who pretends or claims to own a data center when that is farthest from the truth. Makes me question your services or reason for such a comment. (I won't even touch that $2 website design of yours that displays paid banners.) :wink2: Move along.
 
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Just to let the above 2 people know. This is the last line in their About page:

While keeping dedicated servers in our datacenter, we now are offering shared hosting coming straight to you from The Planet.
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That should answers all your smart comments :).
 
I appreciate you Raizan. For you Curtis, our site is orginal. Everything we have is made not bought, it is fully original from our WMS staff. Also we don't spam, that is why the links don't work.
Yes, we do have a datacenter, It is not a full sized class datacenter. We are not competing with the Planet, lol. We are not the owner of the planet. We are not just a reseller of dedicated servers, we are a different hosting company than most hosts on this board. Understand that a datacenter does not have to be large to be a datacenter. We have one ds3 connection. All on our site, sorry if it is not explained throughly. Riviera Beach, FL 33404. We do use The Planets services, but any dedicated or shared reseller that wants to be in our datacenter can request. We don't advertise this on the net, why should we? Think about it. It costs alot of money to make and run a datacenter. No person on the net will buy from us if this was the case. Our datacenter is mostly for small to medium size businesses that are local and are prepared to pay $100/month for 5GB of Space. I feel bad for Decker, because WebMedia Specialties hosting is about 8x the money we charge for WebMedia Systems hosting. Every time I post with him in a offer, I understand how much it is to have a large overhead, I am the staff member that pays the bills.
Please ask any other questions. We want everyone to be clear, that can find out for themselves. If you have been watching WebMedia Specialties, I have always said that the main WMS site, stays off our datacenter and we also host it remote. I wonder why a dedicated server is cheap on webmediasystems.net, and why was the old WebMedia Specialties hosting so expensive? When you deal with WebMedia Specialties you are dealing with the parent company of WebMedia Systems, the one that costs more, and the one that is located locally. Why should the people on the net care though, they are only really going to be hosted from the planet. Please contact us for any information.
 
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