Friday, October 31, 2008

Free Web Hosting and Other Stupidities

By Ricardo d Argence

It seems that nowadays everybody and their grandma sells Web hosting services. Don't get me wrong, I'm the first one to believe in good competition and I defend this principle firmly. Nevertheless, there are people who think that they can start a web hosting business without knowing the first thing about developing and maintaining a business.

Those who surprise me the most are the ones that offer hosting services at ridiculous prices. You can find people offering web hosting for $1 a year. Yes, you read right, one dollar for an entire year of service. If you consider that the prices of established providers go from $60 to $100 a year for a basic service, this will sound very attractive, but is it really?

Let's do some simple calculations. Lets say a provider gets 1,000 clients, a reasonable number for a small web hosting business. If this provider sells his services at $1 each, then he will have the fabulous amount of $1,000 in a year. Do you think that he will be able to offer quality services, support and upgrades at this amount? I am hard pressed to think he will have enough for food alone!

It can still be a good business if you get enough clients, some will say. Ok, just because I'm in a good mood, let's continue with this example. Imagine this provider-for-a-dollar can get 10,000 customers, a very ambitious goal. Then it's $10,000 dollars of income. Do you really think a business can make it with this income for a year? Just imagine the cost associated with servicing 10,000 clients. Just the cost of rent, phone lines and power would be enough to deplete this small income.

As ever, the human mind is marvelous and searches for a solution. Clients that buy these services reason that if they get the deal for a year, it doesn't matter if the provider goes out of business next year, which is most likely. They already got the service almost for free. And again I ask, is this true?

All access to your email addresses, website material, etc. will be lost if your provider goes bankrupt. It doesn't matter if you've already registered your domain through another provider because even in the best case it will take a at the very least a couple of days for new service to begin. That is, if you didn't commit the error of obtaining your domain title from the identical provider.

In that case, you may even lose your domain name and will have to get a new one. Imagine the time wasted just notifying all your clients about your new email address. What if you lost important emails and documents too? Do you think this is worth the risk?

When you purchase your next web hosting service, think about the support services offered, the speed at which emails and telephone calls are answered and the amount of time that service provider has been operational. Of course you should always check the price too but, beware; a price that sounds too good to be true usually is.

But if you insist on getting one of these services for a dollar, we will be happy to help you when your provider disappears, just let's hope the damage isn't too bad. - 15275

About the Author: