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Is It Still Ok To Get Into Web Hosting

If you are in the market for hosting you might be looking for hosting reviews. I bet you were disappointed quite a bit because it is almost impossible to find decent website hosting reviews that do not look fake. Let’s face it, web hosting is a huge market to be in and there is a lot of money to be made. Accordingly web hosting companies are spending a ton of money on advertising and these efforts certainly influence independent Internet hosting reviews.

The customer pays the bill in one way or the other. Either the consumer follows a web host review that turns out to be completely wrong or the consumer just gets scared and does not do anything. In both cases the marketing efforts are wasted and another consumer becomes upset about the marketing tactics in this industry. I do not think that is what hosting companies had in mind when they created their web hosting affiliate programs.

Website hosting is a fairly easy product to create and to maintain. The hosting industry follows certain data patterns and this data shows that once a website hosting customer has settled into an account at a web host they never leave. Once the website is up and running and the web host keeps the server online the customer has no reason to doubt his decision to go with a Internet hosting provider. Accordingly web hosts calculate out the cost of acquisition and once they are able to match that to a dollar amount, they make the appropriate marketing efforts.

Internet hosts create loyalty programs or promote so-called friend referrals and offer free hosting to customers if they refer another customer. But they also set up an affiliate program where the marketing is done by a 3rd party provider. The web host does not have to spend the same time and effort to market his products to customers. The so-called affiliate will do the marketing and for any customer sign-up the affiliate receives a commission.

The web host further cuts out the risk by putting a time frame into place for when the commission becomes vested. What does this mean? To avoid fraud the web host puts a hold of up to 90 days on a commission before it gets paid out to the affiliate. That way the affiliate is motivated to only send honest leads and not to cheat. The web host is also protected in regards to his existing money back guarantee that he eventually offers. Sometimes certain types of customers are looking for a free ride and move from one web host to another to save money. These customers use a money back guarantee to save money on web hosting. The hold on a web hosting referral commission also protects the web hosting provider from people who use a stolen credit card to pay for their web hosting bill.

All in all, many of the problems described above are caused by high referral commissions and often by fake website hosting reviews. So, if you are in the market for someone who can host your website, be aware of the marketing situation and pick a host who eventually has earned the trust of a friend or family member already.

Tags: web hosting
Posted in Hosting · August 26th, 2010 · Comments (0)

More Information About Paid Hosting. Part IV.

Buying the channel, you should demand from the Hosting Company the schedule of loading of the channel, frequently MRTG is used for this purpose (Multi Router Traffic Grapher). This Graph is something other as the degree of congestion of the channel.

It looks this way:

On the schedule we can see waves. Their reason is in that the most part of visitors are citizens of the USA. Accordingly in some hours it is more in some at their (late night) less. What would be, if restriction was, for example 36 megabit? Then we would see an equal line, and our schedule would represent itself a trapeze. And at that time when the schedule would approach to the restriction, sites would start to be loaded more slowly, or couldn’t be finished loading absolutely.

MRTG – is the means for monitoring of loading of a network communication channel. Mrtg watches the channel and gives out results in html a kind with graphic objects.

The traffic can is go upwards sharply. At times it can look very extreme, when from 5 megabit it turns out to 20.

The second Variant -is payment per gigabyte. This variant is good that at such kind of payment the provider is terribly interested to make your channel as much as possible wider and speed of work of the server as much as possible faster. So that you could make the maximum quantity of the traffic.

Figures.

We take for example the initial data of some company:

$55 a month for Celeron 2.0, 512mb ram, HDD 60G also we will try to deduce the price taking into account a recoupment 2 years. (bigger term leads to essential obsolescence of techniques)

The server (per month) 250/24 = $10,4

Switch 50/24/16 = $0.14

Rackspace $10

There is a cost of the traffic and a support , minus percent to bank for processing of credit cards and 20 % of profit.

So we receive the equation: 10,4+0,14+10 + X + Y = $55-3 %-20 % we receive the traffic and a support that cost $21.8

Let it pass with a support, let it be 2 persons with the salary of $3000 a month for everyone.

And, suppose, from each server they get $6. Then 1000 servers will give the chance to them to live. Truth is that , they will have to work without days off and holidays and it is impossible to be ill.

Can 2 persons operate 1000 servers? It is a question of course.

As a result on the traffic we still have $15.8 i.e. for 1000 gigabyte of the traffic hardly less 16 dollars.

Let’s look as it is possible to reach such price.

100mbs we assume cost minimum $2000 (at great volumes and at the worst channels it is real)

100 mbs makes 30000? gigs

X (clients) * $16 = $2000

It means we should have 125clients and it is necessary for everyone? To sell? 1000 gigabyte

From here the result:

125000 gigabyte we sell and in reality we have 30000 gigabyte.

Figures turn out too strange. Though it is necessary to make the reservation.

In a reality not everyone needs 1000 gigabyte and 10 gigabyte or 100 are enough.

In real life there are over-expenditures (costing more expensive) and upgrades (which as a rule cost more expensive too) therefore these moments go plus to such companies.

As in real life there should be a bookkeeper at the company, the sales manager, the director. They must be paid the salary. And taxes it is necessary to pay sometimes. Therefore in my calculations there is only the sketch. It can deviate very much and very strongly from real state of affairs. Truthfully, it is thought to me in the worst for the client side.

Anyway the picture is clear. Someone is strong in overselling, someone is not so considerable. All it anyhow affects attendance of yours online resources.
Given article isn’t urged to turn away clients from the similar companies or to discredit them. I only want to show principles of construction of the prices.

Before you purchase any website hosting, you need to go through the hosting reviews routine. Of course you need to be realistic and understand that now every cpanel hosting will be unbiased. But if you go through the nice number of web hosting unlimited sites – you will see the real picture.

Tags: cpanel hosting, Hosting, hosting reviews, web hosting
Posted in Hosting · August 26th, 2010 · Comments (0)