Web hosting services are so common now it seems like everyone has one. Not meaning this is a wrong way, trust me, competition is something I truly believe in. But, it seems there are people who think that they don't need to know anything about developing and maintaining a business, to start their own web hosting business.
Those I find most surprising are those that offer hosting services at crazy prices. There are web hosting offers from people for $1 a year. Yes, you read right, one dollar for an entire year of service. With prices in the range of $60 to $100 per year for the minimum service, one would think this is a great deal but you must really analyze it first.
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 always, the human brain is a wonder and it seeks ways to resolve problems. Customers purchasing this kind of service rationalize that as long as they receive the deal for a year, they don't really care if the service is no longer in business after that, which is often the case. They have already received the service for almost no cost. So, again I ask, is this true?
If your provider suddenly goes out of business, you will no longer have access to your services, and you will lose your email addresses and your web site. Even if you have your domain registered with another provider, you will not be able to get a new service for at least a couple of days in the best case scenario. That's only if you didn't make the mistake of getting your domain name with the same provider.
If that is the case you may lose your domain name so you will have to get a new one. Just think about how much time you have wasted not being able to notify clients about a 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.
If you want to go with someone else who will only cost a dollar go ahead because we'll be glad to help you when you come back - just hope that too much damage hasn't been done.
As the founder and actual CEO, Ricardo d'Argence has been in the field for more than twenty years. Alojate.com is now one of the best web hosting providers in Mexico, offering a range of solutions for all business needs. Dedicated servers, SEO, factura electronica, web hosting & registro de dominios.
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