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Low Budget equals new trend?

T

tru1

New Member
Noticing that most threads on these forums for paid webhosting has extremely low budgets.

I dont blame them personally, but what I dont understand is why they always ask for 50Gb space/500GB BW for X < $10

I mean common now, be real. And funny part is, when we say, please up your budget for that type of specs, they in crease by X < $5..

No Cheers to that!pirate2
 
Well, you can't blame them for trying.

Many probably feel that if they're paying, they should get more, substancially more than the sometime already large plans apparently available for free.
And there are so many offers from relatively well-known paid hosts that will make them believe that if you're competing with those guys, then you should be offering even "bigger numbers".
Like H*stgat*r offering 100GB space / 1000 GB bandwith, 99.9% uptime, unlimited features for just under 10$/month.
Or 1&1... unless you do your research on them and find that their php/mysql performances don't seem all that great at least on the smaller plans, looks like a pretty sweet deal doesn't it ? They even often have not too shabby reviews in major magazines that smaller hosts probably will never get.

But as far as I know, sadly nothing beside word of mouth is preventing anyone to claim speed & support & uptime they don't have, powerful servers they're only sharing, a lifelong devotion to hosting when their aim is to sell off when the box has become more or less full of hostees that'll start stepping on each other's toes if they use but a fraction of what was promised, and so on...
And not much will keep the worst offenders from disappearing and reappearing with new identities.
 
Hang around here for awhile and the providers come and go.

Always in it for a quick buck. Those are the ones that fail the most and there are tons of them. :(
 
I know its frustrating for a lot of hosts that try to compete.

What I really wonder is for those that come and go, how much they spent getting their hosting companies up?
 
Probably not much. They get one of those cheap reseller plans that allow overselling then they try to oversell. They grab a domain and find a cheap template and they're ready to go.
 
Yea but the thing is, they would have to invest a little more than that right?

Im assuming kiddie hosts get a template + reseller package, but what about support?

If support is lousy the first couple of days then a client can just cancel and ask for a refund, so Im assuming these guys have to pay for support. which can be quite costly no?
 
Support for most hosts around here are managed by one person. We are getting into Silly season (Summer holidays) kids have loads of spare time to provide support and earn what they feel is money.

templates are often downloaded from warez sites, and you can pick a reseller up for as low as $5/month now, and the amount of free/cheap billing systems out there. Support can be managed by themeselfs, so no cost to them.

Also, many newer hosts "share" profits (Not that they make any), so two or three people could be working for support, without being paid till they make a profit. ;)

Many of the hosts opening these days spend a maximum of $30/month for their billing software and reseller account, but I have seen hosts opening for less than $10/month.
 
Volt.Networks: No refunds? Even as one of 'those people' (cheapass hosting), I felt I was responsible to provide refunds...

Oh well.
 
overselling IS a trend.... because newbies who know nothing like big numbers! the bigger the better, obviously lol. don't take offence though, i'm not saying anyone's noob^^
 
...I have seen hosts opening for less than $10/month.
Click to expand...
:S

Wtf? $10 / month? How is that possible? like, what could you do with 1 GB space and 10 GB bandwidth per month? My client management system's account itself, eats nearly that much.

I don't get how they make any profit at all.

I have been as a member here for quite sometime now (under 2 different usernames) and have seen such requests from the beginning (not that I haven't ask'd any ;))
 
Free billing systems, cheap reseller accounts (You can get 10GB DiskSpace, 100GB Bandwidth for $10/month)
 
I tottaly agree that this is quite a sd situition on the web hosting market. Users say I need this, thisand this and I pay 2 usd via (any payment method) definitely it is a consumer market because of the tremendous number of web hosting companies nowadays
 
Margins are so much lower in the hosting industry than they were 6 years ago, I don't see how it's possible for new hosts to compete in this space. IMO if I was starting a new host I'd ignore all the budget market and try to provide a quality hosting service to local businesses, friends, associates.
 
umm well i am going to fight this trend by raisng my prices :)

As you will notice i raised my base package by 2$

tumble
 
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