Webmaster Papers

Cheap Web Hosting, What To Look For And What To Stay Away From

"Bargains for sale, Unlimited Hosting for only a Dollar."

"Get your hosting here, 50 cents for the first three months. "

"Use now. Pay later".

In today's world of hosting, instead of who's got the bigger and better thing, it's who has it for the cheapest and don't forget that they usually it at an "unlimited level". But if everyone is offering the same control panel, running off of the same type of servers or even from the same data center, why not get it for the cheapest price you can? The reason is, even though the servers may be the same, the service varies with each company and price. This is not to say that the cheapest can't offer the best service but always remember the old adage "you get what you pay for".

Let's break down the costs involved with running a small hosting company that manages a few, low-cost servers from a reputable data center. The dedicated server business has grown within the last few years and competition has created the availability of unmanaged, low-cost server rentals that can range as low as $49 per month.

For our case study, let's pretend that Bob has leased a server from a reputable data center at an average price of $89 per month. He was even lucky enough to signup during a special that waived the setup fees. At a cost of $89, he now has his own dedicated Unix server running one of the more popular control panels that regular hosting customers like to use. Like many small one or two-man hosting companies, he runs the business out of his house as it would be almost impossible to actually obtain office space on location of the data center, not to mention that he could be in one state and the server might be three states over. Leasing a dedicated server means that he is not responsible for the hardware and only has to maintain the software. This frees Bob up from the added expenses of hardware replacement and allows him to concentrate his investment on marketing, software, scripts and service.

Bob is an extremely good salesman and has a mature understanding of how to run a business. His best friend Billy has a vast knowledge of managing a server and its software, so together; they will be able to manage most common aspects of the business on a day to day basis.

They have purchased or designed a nice website and spent the average of $600 for support items such as tutorials and a customer forum. With the website design and extras, their initial investment averaged at $1000 which they hope to recoup within the first six months of operation. Now, this may be an added cost that some small hosting companies avoid at the beginning, but try to remember, if they are serious about running a company, they will put some type of investment into it. Taking the initial investment spread over 6 months and adding the cost of servers at $89 for the first one, Billy and Bob are spending more than $250 monthly during the first six months of operation on minimum expenses. This does not include other expenses such as their salaries and outside expenses such as phone bills (if they offer phone support), utilities, advertising expenses, etc.

An average amount of customers or domains to have on an individual server is 200 and since Bob is starting out with a new company and no customers, he can acquire 25-30 customers monthly if he works really hard at it. To fill a server, they would need eight months of growth, and that doesn't include the costs involved during that time. The cost of operation during those eight months is estimated at $1700, without any extra expenses and no personal income derived from the venture. If they were to charge $2 per customer on a recurring monthly basis and signed up 25 customers per month, they'd make $100 profit at the end of 8 months. Remember, this is done without any personal income made at all. Once they add in an advertising budget and allotment for person income for Bob and Billy, the cost jumps dramatically. They aren't in the business to make friends, they are in it to make money and $100 spread over eight months is not much.

Let's start adding a small income for Bob and Billy of $1000 monthly each and an advertising budget of $500 per month in order to acquire those customers and calculate what they need to charge to break even after those first eight months. A safe estimate would be $3,000 monthly to cover salaries, server cost, advertising and other miscellaneous items. If they were able to signup 200 customers during the first eight months, they would need to charge $15 per customer to cover the $3000 monthly overhead. If they charged only $2 per customer, they would need to signup an estimate of 2,000 customers to do the same. Because Bob and Billy decided to charge only $2 per customer, they have to support 2,000 customers by themselves because they don't have enough profit to hire any more technicians.

As a customer, you need to realize these things before you start shopping for a hosting company. Now that you are educated on the backend of a hoster's life, you can ask yourself what type of company do you want hosting your website and what kind of website you need hosted. If you are running a small personal site that doesn't need constant uptime and special scripts, then you could choose one of the many free or low cost hosting solutions available. If the company was to go under or lost all of your information due to hardware or software failure, then you are really not at a lost because your website did not contain critical information.

But what if your site does contain critical information and is the lifeblood of your company? Then don't go cheap. Research your options, find the one with the best solutions and don't be afraid to spend more for less. It is very important to find a stable company with quality support and service and that doesn't come cheap. Make sure that if your information is critical, the company offers reliable backup solutions and has a reasonable uptime.

Phone support is a must for quick response and let's not forget the numbers 24/7. Hosting companies with higher price tags can afford to hire the extra technicians to hold your hand as you build your web presence and your company, which can be important in today's market.

But does all of this mean that cheap hosting is a bad venture and should be avoided? Not really, just remember, "You get what you paid for."

About The Author

Robert Lang



The WebSite Host Directory is a resource for webmasters and consumers looking to find a website hosting company or a quality expiring domain name, Robert Lang is a contributing writer for Techpad Agency and PingZine Magazine

This article may be reprinted or published without the authors consent as long as the "About" and "weblinks" are kept intact. If you publish this article, we would love to know the location. Feel free to email us.


Web Hosting: Which Is The Host With The Most?
So you want to publish a web site do you? Welcome to the club. These days it seems that almost everyone has a web site of some kind, and thousands more continue to be launched every day. It's challenging enough to design a site and fill it with interesting content, but when all is said and done another challenge still remains - where to host it?
Web Hosting Data Transfer: How Much Is Too Much?
Bandwidth in its simplest terms refers to the amount of data that flows across a network wire in a given time period. For most web hosting providers, that time period is measured in a month. Web hosting providers are charged a certain amount per month or per year for an allocated amount of bandwidth from backbone providers and wholesale data centers. That cost is then passed on to the consumer in the form of web hosting plans.
4 Tips to Find the Web Host That?s Right For You
Choosing to make a web site is a very big decision. However, even more important than deciding to make the website itself, is choosing your web host. There are many web hosts out there, and so it is very difficult to find the web host that's right for you. In order to find the best web host, it is important to find as many options as possible, and have a clear idea of what you want out of your web host. Following these four tips will make your search for a solid web host a lot easier.
The ?Website? CHECKLIST : Domains, Hosting, Web Design
This article is meant to all who already have a website or who propose to buy it. Website ? the term comprises three things : Domain, Hosting (Web space) & Web Design
7 Key Ingredients for Rock Solid Website Hosting
Every website needs a great web host, however when you are looking online for a host you may be overwhelmed with the wide variety available ranging from absolutely free to relatively expensive. How do you know what you need and what is the best choice? The answer to this depends on your business and whether you will have a lot of business or none at all, however you always want to have more space than you think you will need as well as the following options for a great web host.
Windows Hosting versus Linux Hosting ? Which is right for you?
There are literally hundreds of thousands of web hosting companies out there. Many of these companies offer both Windows hosting and Linux hosting plans. Windows plans usually cost more because of the license costs imposed by Microsoft. Knowing this, how can you know when you need Windows hosting and when Linux hosting will work just as well or better? Keep reading to find out.
Hosting Options for an Ecommerce Web Site
Deciding how to host your ecommerce Web site and what approach to take can be daunting. There are several approaches available, each with different advantages and disadvantages.
Avoid Getting Ripped Off By A Hosting Company
Chances are if you host multiple domains or websites you are spending too much money at your current hosting provider. Other hosting companies increase their profits by forcing you to create an additional hosting account every time you want to host a new domain or website. Let's say you have five (5) websites and they each cost you $10.00 a month. It is obvious you are spending $50 a month to host those five (5) websites, but did you know that you are getting ripped off?
What Is Web Hosting?
Many businesses, from one-man-bands to multi-national corporations, have a web-presence these days. i.e. They have a website telling their customers about their companies: what they do, where they're based, their company history, how they're different from their competitors, etc. Many of these businesses also sell products and/or services online.
Importance of Educated Choice While Choosing A Web Hosting Provider
There are many attributes that makes a web hosting provider stand out from the crowd. But in this current highly competitive world the providers have become so adept in posing as the best out there that it becomes very difficult to choose the best for your business. Now it is the "knowledge" about what factors to consider becomes a must have, for your business. This is not an article about the factors themselves to consider but this makes the point for the need to have this knowledge and how to acquire this knowledge. In the services industry knowledge is almost everything. The knowledge about the technology behind the service, knowledge about the folks behind the service, knowledge of the customer service, quality of the hosting available and many more to list here. When you begin your search the first and foremost to decide is the budget allocation for the hosting. This may sound as something to decide at the end of the cycle, but it is important even before you acquire knowledge of the factors to consider. Let me put forward a small example if the budget you can allocate is less then 100$ then you ignore terms like dedicated servers collocation, etc. The more your budget the more you have to learn.
How Can I Get The Web Host Services And Support I Need, Hassle-free?
Choosing a host or switching hosts can be an agonizing experience. There are so many choices and price structures.
The Top 10 Essential Ingredients of Every Linux Hosting Plan (Package)
Any website comprises the following ? Domain name, Webspace, Webpages.
Web Hosts - Not All Are Created Equal
Many people think that all web hosts offer the same level of service within a certain price point. This could not be further from the truth. Fundamentally web hosting is web hosting but when you compare apples to apples you will find a broad range of differences that may or may not be a detriment to your business. Surprisingly the same web host provider that charges $5/month may have a direct competitor that charges $10/month for a comparable service plan. Below are 3 simple steps to help you determine what provider will best fit for your needs and where to find them.
40,000 New Blogs Are Started Daily - How Your Web Hosting Business Can Cash in
The fact that an estimated 40,000 new blogs are being started daily should be of great interest to anybody already in the web hosting business or intending to go into it. Especially those planning to go into the business as affiliates or as resellers because this group of online entrepreneurs are in a very good position to cash in quickly on this amazing growth rate of blogs with hardly any investment necessary.
Five Quick Ways to Determine One Hosting Company From Another
These days, web hosting companies are popping up faster than dandelions. And just like those pesky weeds, they usually aren't going to benefit your business at all. So how do you pick out one hosting company for another for that big Internet move? Below I've provided you some quick ways to sift out the sheep from the wolves.
Web Hosting - Choose Affordable, Cheap Web Hosting
The Basics:
Unlimited Bandwidth in Web Hosting
Bandwidth explained:
Website Sitebuilders: Easy to use Website builders Come with a Price
Professional web designers don't come cheap. A good web designer can easily charge you $1000 or more for a five page website. This high cost leads many people to tackle web design for themselves. How hard can it be? Get yourself an HTML editor, throw up a website and voila! Your website is live right? Wrong! There is a lot of knowledge you need to develop before you can get your self made website onto the internet.
Use Your Hobby To Launch A Successful Website
When you study the really successful websites, you will quickly notice that many are based on seemingly strange subjects, many of which may not easily pass for a serious business.
Criteria of Choosing an Ideal Web Hosting Company
What is a Web Host? A web host is a service provider that places your web site on a computer which is connected to the internet. The term for this 'computer' is called a server.