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  #9  
Old December 5, 2002, 04:36 AM
Garry Boyd
 
Posts: n/a
Default Re: $3.95!!!

Well, Dixisys have been in the hosting business a long time. I guess they know what they are doing.
However the costs of starting a hosting service are pretty low. You can get a colocated server for $100/mth up, or a block of space and a couple of IP's for $5 and up per month. To understand this very cut throat industry, take a look at webhostingtalk.com . A lot of these companies are run by very young people, the place they often fall down is in providing support. It costs a LOT to hand hold someone on their first web site. You can not afford to offer much support for 3.95. If you are technically competent then there is no need to fear cheap hosting, so long as it not on an overloaded server in some kids room with a broadband connection.
However, Adam was looking, for seperate IP's I think, which is a different ballgame. As IP's are getting scarce, you will need to pay extra for them. You can ask for a quote on the webhostingtalk forum.
As others have pointed out, unduly cutting costs on hosting may cost you dearly in lost sales due to server crashes, slow load times etc.
> Running a full-bore hosting service with all
> the bells and buzzers is quite an
> undertaking. The way my host provider does
> it at $9.95 is nothing short of amazing.
> Originally I hosted a small web site with
> them only to check them out. Been happy ever
> since! Now I have CrashCourseMarketing.com
> with them too.

> I cannot imagine how thin the profit margins
> would be with a company running at only
> $3.95 a month would be. Or where they're
> finding room to reduce their costs. It would
> be intriguing to see a business plan
> outlining such a venture... and if they
> remain over the long haul. When were they
> incorporated, or when did they launch their
> venture? How long have they been in business
> so far? Amazing.

> The venture capital needed to launch such an
> undertaking as a $3.95 web hosting service
> must have been large. Can you imagine a
> banker reviewing the loan papers for such a
> venture??? Let's see. You're a dot.com'er
> and you need how much? You're going to host
> web sites for how much? Yeah let me run it
> by our Board and I'll go grab the checkbook
> for you. Would you like a toaster with that?
> :-)

> $3.95 huh? Definitely passing right through
> the being 'cost effective' stage into the
> realm of "too cheap for me to
> trust".

> Success and Regards... Mike

> http://www.CrashCourseMarketing.com
> ...fastest growing eZine for Sales
> Professionals Internet Marketers...