Do you think that shared web hosting providers must increase transfer and space quotas to enormous numbers that no one uses? offering 20 GB - 50 GB transfer per month is reasonable. But claiming you offer anyone 500 GB per month transfer is like offering cruise to the moon.

It is obvious that most web sites can not take advantage of offers like those! So what do you think hosts should do. To offer something that no one will use or to focus on different things like value-added services.

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HostColor.com | HostColorServers.com
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When you see outlandish offers like that they are doing one of two things:

1) Like you said, offering services no one will really use. And the ones who do usually get shut down thanks to a loophole in the T.O.S.

2) Overselling. They have so many crammed onto a box performance sucks...but they make money.

Web Hosting is so competitive that it is hard to stand out in the crowd no matter what you do. Make a reasonably priced service and form partnerships with other companies. Be the "go to guy" when it comes to web hosting so they are willing to host their customers with you.

This really scares me, since I was under the impression that the prices we are offering are very competitive. Since we own our own datacenter and all the servers inside, we thought our prices would be very competitive. I've been reading all over the place across several different forums that people tend to shy away from the inexpensive hosting companies.

We don't oversell, and our boxes scream. We only offer our customers what we know the boxes can handle.

Do you think offering shared hosting packages starting at $4.95 for 1gb of storage and 10gb of bandwidth is a little too underpriced? I thought that would be a good price to offer our customers.

On mine how many we pay so much we should receive. The company should satisfy the client completely)) we in fact pay for that service in which we require.

It probably became too easy to provide web hosting. I think however that it will become very hard for smaller companies to continue their growth. Look at Netcraft's top list by reliability. 1&1 is there as a top web host. They offer plans for $2.99/mo.

So most of them try to bump their offers to get new customers.

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HostColor.com | HostColorServers.com
Web Hosting | Managed Servers
Better Service for a Better Web Site
Since 2000

Hi!
Ah! But they have a terrible rep for nickel and diming folks to pieces..or at least that's what I've heard..with bandwidth overcharges and what-not. One thing is sure..nobody spends more on full colour ads than they do..the price tag must be *waaaaay* up there...in the $100,000 mark..easy.

I wouldn't host with them...too big. Screams to me: We won't have time for you..all we care about is making money. Maybe I'm not greedy enough myself..I'm not sure on that. Time will tell.

Bryon

On mine when at the company the reputation falls, they try to draw as much as possible clients by means of the prices. I do not think that this is a good idea, sooner or later clients will understand with whom deal and after that him will have to change the company, that the most bad for each client.

We at http://chargertek.in always keep a 1:10 ratio like if you take the 1 GB space plan then u get 10 GB bandwidth with that.

The point is that top 20 shared hosting companies can afford to offer prices that might be considered as overselling but at the same time that can afford it.

Relaible infrastructure and network and low costs can produce lower price. I think however the the potential of shared hosting market, the way it looks now is going down.

Companies is better to focus in providing customized solutions instead of pushing the prices down and down. Otherwise they will soon compete the free hosts.

How can you explain the difference between $1.50/per month price and free hosting? I mean a free web host with a smart marketing strategy may earn more money that cheap web hosting companies.

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HostColor.com | HostColorServers.com
Web Hosting | Managed Servers
Better Service for a Better Web Site
Since 2000

You get what you pay for is a good rule of thumb when checking out hosting services. Many customers may not see 2.99 as a sale tactic to drum up new customers. It could easy be view as the company thinking that is all their service is worth. Around 5 bucks is a very good offer for shared service. I don't mine paying over 10 if the service is good.

A good way to check out a new hosting service is to ask them questions via email before signning on. You would be suprise how many times you will not get an answer. While the better sites will offer great responces prior to you being a member. Imagen what there support will be like after you are a member. A 30 day money back guarranty is really great. I have to suckbutt accounts (godaddy and Netfirms) that i am suck with for another year and not even using.