To the hosts offering the same packages for 80% less than the other guy

[urbanhostonline]

I have a question for all hosts. How do you do it? Potential clients have been searching for hosting in forums. I don't mean just this forum but, all forums in general. And like usual, every host gives the package they offer and the price. The first few hosts offer higher prices, but still competitive. Then towards the end of the thread you see hosts offering the same packages for only $5 when the first host was offering $40. Then you do a little research and realize those hosts that want only $5 have only had their site running for a month or even less. Sure the customer gets a better price, but who really gets hurt in the end when that host goes out of business? The customer is going to be pretty upset when they realize their site is gone.

If you hosts that offer great prices like stated above and still maintain a profit read this. Please let me know how you do it hahaha. I would really like to know. Until then, good luck!!!


Nick

 

[Petter]

It depends on server he is on. If the guy offering to host for 5$ per month (this looks alot like my thread), it might be because he's renting a reseller for 16$ per month and as long as he doesn't run under what the server really costs him, I bet it's OK

 

[PolurNET]

That company you're referring to, NemoHosting, is undoubtedly an Overseller as proven in below thread:

http://namepros.com/showthread.php?t=84093

That guy denies it, but quite obviously, he is attracting hundreds of customers on his only one or two servers, assuming they do not use up all what he bought at the datacenter. It's companies like those that one must watch for. On the other extreme, overcharging for a simple plan is also a common practice among some new hosts, so you have to be an established company with fair and PROVEN business practices to offer reasonable, yet feasible prices.

Calling yourself the #2 host in the world like nemo did in the above thread just demonstrates what I mean by unfair/misleading business practices

However, if someone is going for the financially cheapest host around, like in Petter's case, then they can decide to take the risk of a one-man company who is overselling/overcharging. They may regret the decision in the future, but you get what you pay for!

Just my 2c's based on experience

 

[slipondajimmy]

PolurNet great as always. I understand that everyone is looking for a good deal we all know the best deal is not always the best product. I have tried to sell some of my extra space without overselling but I cannot compete with a 50gig plan for 3 bucks a month and Im not going to try.

But I must say that im working on a few things that will compete in the near future.

 

[PolurNET]

PolurNet great as always. I understand that everyone is looking for a good deal we all know the best deal is not always the best product. I have tried to sell some of my extra space without overselling but I cannot compete with a 50gig plan for 3 bucks a month and Im not going to try.

But I must say that im working on a few things that will compete in the near future.

Thanks, Donnie for your kind comments.

Glad to here you're trying to compete. But don't be pressured to go below just because others are going with lower prices. Most people who have gone with previous webhosts before know that there is no correlation between support & quality with pricing. :tu:

 

[slipondajimmy]

lol I wont be competing price wise..lol I have other ideas. But it is annoying. But then again for every cheap hosting package I have seen there is alway another post someone looking for cheap hosting because their cheap host went down ...hahahah

 

[-db-]

Some of the people looking for the cheapest host possible (today), will be back in a few months after their provider goes out of business. Many of them will have learned an important lesson, and be willing to spend a little more money this time around. Having to relocate your site(s) is a pain, and once they get burned by a $2 overnight wonder, their web hosting priorities will change.

A bad host can be the best free marketing tool for a good, reliable provider to make their case.

 

[grungemusic]

Some of the people looking for the cheapest host possible (today), will be back in a few months after their provider goes out of business. Many of them will have learned an important lesson, and be willing to spend a little more money this time around. Having to relocate your site(s) is a pain, and once they get burned by a $2 overnight wonder, their web hosting priorities will change.

A bad host can be the best free marketing tool for a good, reliable provider to make their case.

Agreed, I always now go with reputable companys that might cost bit more but it's worth it.

 

[brianfast]

Those hosts get out of buisness fast

 

[CrazyTech]

These hosts indeed do come and go - it's been a part of the industry since I've been in it for over two years now. Competitive pricing is certainly one thing - overselling in a reasonable and controlled manner is not a problem. But, when you're giving away 5 GB of space and 250 GB transfer for $5.99 there is a problem. It's nothing but overselling in an extreme manner. They're basing their entire business plan on just trying to have the lowest price and generally these people (whether they be teens or adults - I've seen them both) have no clue about how to run a business or simply lack ethics. Some go as far as lying and making false claims.

Sadly enough, they get away with it. The average Joe doesn't know enough and is out looking for the best deals. I'd hazard a guess that around 1/10 accounts actually uses anywhere near the amount of resources they pay for. When you do get to that mark, you're usually cut off from these hosts for excessive resource usage. It's a bit ironic.

 

[brianfast]

Yeah thats really true. So many hosts shut down nowadays.

Divine host handed out "unmetered bandwidth" and 500 mb space for 5 bucks for life.

They went out fast

 

[Sabre]

Its getting increasing hard to break into the hosting business now, with all the cheap hosts, alot of the time, the more reliable but more expensive hosts dont get a look in....

People dont realise, you get what you pay for......

 

[sunken]

I have been a customer of NemoHosting for a few months now and I've found the customer service to be great, as well as the hosting. I believe in the mom and pop organizations, versus the corporate giants. They have been extremely helpful in answering my questions and talk to me like a real person rather than a call center robot reading off a form. I believe that they are dedicated to their customers and their happiness. Maybe I'll bite my tongue later, but I seriously doubt they are going anywhere anytime soon.

It seems that most providers, professional or otherwise, tend to get nervous when you reach a certain threshold. They either delete you or they charge you some large overage fees. If NemoHosting is not doing that practice, and I haven't seen any evidence in this thread that they are, then I don't see what the problem is. To me, it seems very impractical and not very cost effective to maintain bandwidth to cover every client, when it's statistically impossible that each would use their complete bandwidth that they pay for. For instance, if a webhost has 300 customers at 60gig a month, than in order not to oversell by your definition, the webhost would have to maintain 18,000gig, which would be very, very expensive and the customer winds up getting the "savings" in their bill each month. If that 300 users were only using 1000gig at best, than having 17,000gig on hand seems like a horrific waste to me. As long as the webhost maintains a significantly higher bandwidth level than is being used, I don't see the issue.

The Manor uses 9 gig a month on average thus far. When I was shopping around to move it (from phpwebhosting which was extremely restrictive on what could or could not be done), I didn't know how much the new design and features would take. I was scared to commit to a webhost that said 10gig and then charged $5 a gig after that if I went over. I had a vision of it taking about 100gig. I was obviously way wrong, but I picked NemoHosting because of several happy customers and the fact that I could dive in and see where I was without losing my shirt. Now it's nice to know that I have a degree of elbow room to try new things and I am fully aware that if the bandwidth starts getting far more intense, that I will probably have to move it to a dedicated server, but until then, I am happy where I am.

 

[blazingfastball]

Once again, Polur Net to the rescue:

Wow, a personal vendetta against me and yet I have never done anything to you nor do you have any right to bash my company. Someone puts a thread on here and you jump to bash nemohosting.com.

I'm actually getting a little tired of you bashing our company. Server Matrix is the number 2 hosting company in the world. So since we are a dedicated server that makes it ok to put that statement. Now, if you look at nemohosting.com as the number 2 company in the world, this is not true as there is no telling about that.

You are obviously here to make yourself look good. Do you have proof of overselling? Do you know how many servers we own? Do you bill my clients monthly? Do you do support for them?

The answer is no!!!

So please just back off bro, it's seriously getting old.

I treat all of my customers with nothing but respect and answer their support needs within 24 hours everyday and everytime they email or MSN me.

Don't forget that aspect of things.

WE ARE NOT OVERSELLING NOR DO WE EVER OVERSELL

Any questions Polur? Anymore bashing from you will get a nice letter to namepros.com. We are not here to bash people, this is a friendly thread yet it seems everytime you disagree with any other hosting company you come in and put your two cents as you say in just to be heard.

Thanks:

Kevin

 

[Joseph]

Go Kevin.

I also use nemohosting and they are great!

Annoy someone else just leave nemohosting alone.