Monday, November 30, 2009

Facts Behind Cheap Web Hosting

By Loren Allen

People always get attracted to something that is cheap or is on sale, it is a very successful sales channel. We see stores putting up discounts and offering products at cheap prices every now and then. However, when it comes to business of the web hosting services, there are very thinking margins to commit any kind of error since you have to be very careful. There are many players in the market that offer hosting packages at a very low price with all the great features and benefits, while some stick to their promises must fail when it comes to qualifying and performance.

Now let us see how this web hosting is made cheaper. Few people earn more money and also the company involved in earning the money quickly. People purchase the web hosting more and then they will partition it into the smaller parts. After that they will resell the web space. This is done by using the part of disk space, capacity of the data transfer and also uses some of the features of technical support. The whole plan is designed within the budget of client which is less expensive and even with this you can earn more profit.

This is relatively easy to accomplish because you give out a certain amount of disk space, data transfer capacity and special features to users for a small price. Technical support is also included in many of these packages. The objective is to offer users something that cheap while earning a profit for your services.

All of the abovementioned activity is perfectly legal and there are no obstacles or barriers in place to prevent someone from being successful at this business. What this does is create competition in the market and forces those in the business to keep prices low for their customers and/or potential customers. The prices may different slightly but what's a couple of pennies more for cheap service anyway. Furthermore, wherever there's increased competition there will be alterations or adjustment in prices and quality provided.

Although these companies may promise quality and excellent service to their customers it's not guaranteed that you'll get everything that's promised. This would also have a bearing on their turnover in having good profits which quite naturally mean that they will be attempting to lure more customers in through various methods including lowering prices and offering bonus packages and discounts. But lower prices and adding bonuses doesn't necessarily equates into more customers and traffic to your website. If anything, it would cause competition issues.

It's fair to conclude that at one period of time the number of businesses on five servers have been reduced to three servers in order to cut the cost of services which in turn creates problems with speed and accuracy of websites; not to mention, space usage and overall quality. From roughly ten customer service representatives to only two would drastically cut overhead costs. Although this may help companies make a profit it has a negative effect on the quality of webhosting services which doesn't say much for a business a customer is expecting to rely upon. So cheap webhosting services are very suspect but it's up to you make that call. - 16890

About the Author:

No comments: