How some web hosting companies offering dead cheap hosting plans?

[Rikabu]

I see some hosting companies (don't want to mention them) offer way cheap hosting plans, like $1 for a month or even less

Is that even profitable? how they run their business?

Their reseller plans are shocking to me, $6 for 50 Cpanel accounts with unlimited storage

I guess they are not a company with loads of human resources, a single or a few people involved business

I thought maybe I can use their reseller plan for my clients but I fear that at any time they can go out of business as they were only a year or lesser in the market.

And Does anybody have experience in building this kind of business, with cheap hosting plans.

Thanks

 

[Stitches and Burns]

By packing thousands of accounts in one server, and hope that the server doesn't crash. If a server costs $100 a month and they pack 1,000 accounts at $5 each, then they gross 50x.

They can get away with it because majority of their customers don't make full use of available resources.

 

[bartosimpsonio]

Low margin, low profit, lots of customers. Rate limiting, strict quotas, limited bandwidth and data transfer.

Buy physical infrastructure for U$ 100, resell for U$ 125 = 25% margin.

 

[Carnaged]

By packing thousands of accounts in one server, and hope that the server doesn't crash. If a server costs $100 a month and they pack 1,000 accounts at $5 each, then they gross 50x.

They can get away with it because majority of their customers don't make full use of available resources.

thats spot on. thats why youll see alot of accounts with 1wordpress & 500mb usage for $1.
i have dummy/parasytes on different 50cent a month accounts. they barely use any resources but different ip's so thats what im after

 

[Stitches and Burns]

thats spot on. thats why youll see alot of accounts with 1wordpress & 500mb usage for $1.
i have dummy/parasytes on different 50cent a month accounts. they barely use any resources but different ip's so thats what im after

Yes, overselling is pretty common in the web hosting industry. It's a race to the bottom of cheap prices.

 

[Couch Monkey Media]

The only way to really do this is to way over pack the servers. Or reseller account they have that did not have a limit to how many sites they could put on it. With the cost of just the IP and cpanel license and payment processing fee no way they are making money. Heck even if they used the same IP and put everyone on that. They would be making at most maybe 30 cents. That is a host that will not be around much longer.

 

[stromind]

I searched a lot and i didnt find a good way to reduce the cost that much for my own hosting business, the only way I found is to use cracked cPanel licenses and find an onshore server, they are usually cheaper than offshore.
To be very frankly if you want to offer quality on services it wont get cheaper.
I even saw lifetime hosting offers for few bucks,

 

[Rikabu]

I searched a lot and i didnt find a good way to reduce the cost that much for my own hosting business, the only way I found is to use cracked cPanel licenses and find an onshore server, they are usually cheaper than offshore.
To be very frankly if you want to offer quality on services it wont get cheaper.
I even saw lifetime hosting offers for few bucks,

Yeah I even saw those lifetime deal, they charge 50 or 100 for lifetime, that was a pure scam or you won't expect any server security with those deal, that was like balancing on a rope, you don't know when you fall

 

[Frammer]

dont bother man, they are fly-by-nights hosts

 

[Rikabu]

dont bother man, they are fly-by-nights hosts

That is why I don't want to move there, they were barely a year old comapnies

 

[dasdon]

Doesn't always mean bad quality. Some of them i.e. namecheap are good. I have seen hostings that I pay 250 per year performing worse than hosting I paid 30 per year

 

[Rikabu]

Doesn't always mean bad quality. Some of them i.e. namecheap are good. I have seen hostings that I pay 250 per year performing worse than hosting I paid 30 per year

Namecheap were in business for a decade, they do this to acquire customers n have more resources, bluk resources to profit from this. I'm saying about some new hostings that comes up with ridiculously low price, that hits me red flag

 

[dasdon]

Namecheap were in business for a decade, they do this to acquire customers n have more resources, bluk resources to profit from this. I'm saying about some new hostings that comes up with ridiculously low price, that hits me red flag

I agree with that. I had a website on one of those 1$ hosting companies and when I tried to access the site the other day it was offline. And again few hours later. Only thing you can do is try, some of them are ok some are bad. But if it's not a money site I'd rather risk it spending 1$, if you find the good ones with some site optimization it does the job

 

[milk_and_cake]

Speaking as hosting admin & tech support here. It's easily explainable. Low or no server maintenance, support that simply dont care, packing crazy number of accounts on same IP, no backups, etc. The servers themselves are usualy good but quotas are as low as they can be. No SSL. Same as cPanel features etc. High downtime.

 

[Rikabu]

Speaking as hosting admin & tech support here. It's easily explainable. Low or no server maintenance, support that simply dont care, packing crazy number of accounts on same IP, no backups, etc. The servers themselves are usualy good but quotas are as low as they can be. No SSL. Same as cPanel features etc. High downtime.

Is fleetssl not free I see that anyone can get ssl at a single click

I agree with that. I had a website on one of those 1$ hosting companies and when I tried to access the site the other day it was offline. And again few hours later. Only thing you can do is try, some of them are ok some are bad. But if it's not a money site I'd rather risk it spending 1$, if you find the good ones with some site optimization it does the job

Yeah these hosts can be used as PBN or landing pages for some offers, but not good for affiliate site as anytime it may disappear