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Which is the core business of 1&1?How they make money?

Discussion in 'Making Money' started by Auguri, Oct 10, 2012.

  1. Auguri

    Auguri Newbie

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    hi everyone, i wonder about which is the business of company like 1&1, really they make money from the montly fee they get from 1&1 site sold or the real business is elsewhere?
     
  2. themidiman

    themidiman Power Member

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    I think it's pretty clear.

    Domain Name Registration
    Hosting. Dedicated/VPS/Cloud
    Email Solutions
    Web Design
    Search Engine Marketing
     
  3. Auguri

    Auguri Newbie

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    Sorry if i formulate my question so trivial, i refer to 1&1 website. They spend a lot on advertising in tv, radio and magazine and i can't figure how they can earn a lot to cover costs, because i can't imagine so much individuals buy this service when they can pay a very low cost hosting, put wordpress or joomla and create few page like, contact, homepage or going directly to create a facebook fanpage or a free blog, neither i can imagine some company can pay a fee while having to create it's own website with no custom graphics or advanced functions instead of hiring a professional webdesigner to do a real, serious website suited to the company and his market.
     
  4. picapiedra18

    picapiedra18 Regular Member

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    Why do you care? They suck anyway!!!!
     
  5. davids355

    davids355 Jr. VIP Jr. VIP Premium Member

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    My company uses 1and1.
    We have about 250 domains, 3 pro hosting accounts and 3 dedicated servers, they must have lots of clients like us and much bigger that they make good money from.

    I know a lot of people complain about them here, but we have almost 100% uptime with them over 3/4 years, their basic support is pants admittedly, but for serious issues their level 2+ support is excellent and their servers are fast.

    Because of the above I always feel like I have to stick up for them a little :)
     
  6. anfyd

    anfyd Regular Member

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    Here in Germany they are also big in selling the latest phones and also a SIM provider.
    They are advertised all over on TV.

    Sincerely,
    anfyd
     
  7. therage

    therage Senior Member

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    They dump the money in advertising to avoid paying big taxes on revenue. It is how they keep a float, also you have to see if the company has stock and investors. Sometimes, companies will use something like this to dump unwanted money into it, even if it takes a loss.
     
  8. CoyoteAssassin

    CoyoteAssassin Elite Member

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    To me, it's pretty simple - they advertise.

    Ask most people to know a web host and they will say GoDaddy - only because they advertise. Even though we all know they are very bad. But others have never used anyone else and have no idea how things should work. They just know that they have been around and must be "the best".

    1&1 is trying the same approach but with class and dignity. Those that do not like the trashy side of GoDaddy's commercials will go with the next/only other company they know and that is 1and1.

    Yes, there will be a few that will compare sites and go with HostGator or HostMonster or any of the other sites. And that is fine. Competition is good.

    I've used 1and1 for Windows VPS in the past and they were good. But I do not need them any longer since I have learned what other companies exist that are as good.