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1. "We lose money on each domain name registration but we make it up in volume."The old joke rings true when $1.99 domain name registration. $2.99 a month hosting. Unlimited domain hosting! You’ve seen the headlines, and they are for real, but maybe you’ve been wondering how they can offer such amazing hosting plans.
Have these deals punched a hole in your last remaining excuse for not creating your own personal web site, or finally starting that online business venture you’ve been day dreaming about?
Why so cheap?
There are two simple facts that account for these amazing hosting plans. The first is the ever-decreasing cost of computing power and bandwidth. And the second is the result of the first: competition.
There are so many web hosts plying their trade today that they are virtually tripping over each other in their desperation to capture your business. This is an eminently good thing. However, it comes with a warning that you’d be wise to heed: Many hosting plans that seem to good to be true are, in fact, too good to be true…..for the web host!
Betting on the come
Companies who offer these amazing hosting plans, especially those offering cheap domain name registration, are taking a calculated risk. They are gambling that once you’ve signed up with them they’ll be able to upsell you to a more advanced hosting plan from which they can earn at least a small profit and/or recoup the loss they incurred on your initial plan.
This is the classic marketer’s “loss leader” approach to acquiring new customers. There’s nothing wrong with it if you’re dealing with a well funded web hosting company who has the capital to play this game.
But because of the low cost of entering the web hosting business, there are a lot of underfunded little fish trying to swim with the sharks. And the only way they can take your attention away from the big guys is to offer the same, or more amazing, deals on domain hosting, web site hosting, and other services.
Solid Bets
At Web-Host-Watch we’ve tried to do some of the heavy lifting for you by locating web hosts who not only offer spectacularly low cost web hosting plans, but also have the financial clout to stand behind them whether or not you ultimately upgrade your service after your initial domain name registration.
All the companies in our Top Hosts section represent those that excel in one or more of the categories that you’ll likely be interested in.
Use it as a guide to help you find the domain name registration and web hosting package that fits your needs right now and again, later, when you’re ready to expand your Internet presence.
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