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$4.95 hosting with 250GB of space!?!?! What's wrong with this picture?

Discussion in 'General Discussion' started by jols, Aug 19, 2007.

  1. jols

    jols Well-Known Member

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    Okay, I hope this is not too off-topic for this forum, but...

    Lately we have seen hosts do the 'ol gas price wars thing in terms of hosting account disk space allocation. Each trying to UP the other until the numbers are downright bizarre.

    IMHO, hosts offering tons of space that they KNOW that no one will ever even come anywhere close to maxing out, is clearly deceptive. Especially when you consider that any allocated web hosting space in a shared server is not a HARD allocation, but rather a virtual limit.

    It's as if they are selling real estate that they KNOW will never been fully occupied or utilized in any way. So they go on selling the same acreage over and over again to different people, just hoping that no one will actually take possession of it.

    Yes, this has always been true of how web hosting space allocations work, but HOLY MOLLY! Cheap-o 250GB accounts?!?! Hand me a shovel. It's getting deep around here.

    So what IS this all about when the main drive for most servers are barely large enough to contain a single $4.95 per/mo account?

    I just don't get it. Perhaps someone could explain this one, and shed some enlightenment for this particular practice.
     
  2. Infopro

    Infopro cPanel Sr. Product Evangelist
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    I'd be interested in hearing others thoughts on this as well. Not that this is exactly a topic for cPanel forums, might be better suited over at WHT forums, but unless someone at cPanel has a problem with this thread, I'd like to see what others have to say about it too.

    I've been asked this before by customers as to why they should host with us and not these other guys seemingly offering a full server+ of space, for less than 10 a month.

    I don't have an exact answer for them, but do state that you get what you pay for. Recently when I was asked, the user gave me a link to the host offering this stuff. A well known company too. I checked out the site, and clicked the demo link for their panel. Server load was very high, site was slow, and HDDs were about maxed out. I sent that user to go see what I saw and he signed with me that afternoon.

    Imagine several users wanting to do their own backups mid afternoon on one of these guys' servers... :rolleyes:

    BTW I used to have an account with one of these jokers, years ago. Server crashes every evening, MySQL crashes constantly, backups failing often and on and on.

    You get what you pay for. Want cheap? Go for it. (and keep yur fingers crossed) It's a roll of the dice.

    I wonder if anyone has ever signed up for one of these terabyte packages and then uploaded that much data to the server. Surely they'd be stopped before they even got close to the limit.
     
  3. jayh38

    jayh38 Well-Known Member

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    I feel the same way. I only offer modest realistic packages ranging from 100meg to 400meg tops. If anyone needs more than 400meg at this day and age, then they need a vps or dedicated server.

    The offers out there are indeed impressive and by all standards not deliverable. I had a request for an account topping 200gb space because "the other guy" offered that for $2.00, LOL. I laughed and send the poor fella on his way and told him to visit back when he wants quality service. So he did a few weeks later and his needs only top 60meg of space.

    Anyway, most sites offering outrageous resources usually have a TOS indicating the storage is for web hosting purpose only and not personal storage. This should cover things for them by voiding a user that will actually try to "get what they are paying for (an entire server for $2.00)".

    I can not understand these unrealistic packages and offers myself but rest assured, someone will take them up on their space offers and tear down servers. So how do you manage an single account thats taking up 50GB space, LOL.

    I tend to categorize these type of hosts along the same line as spammers. Unrealistic, poor quality for the most part and certainly no common sense.
     
  4. electric

    electric Well-Known Member

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    Personally, I think these "overselling" companies are great. They actually help our customers understand that there is more to web hosting then just disk space.

    Once a customer has been "burned" by one of these budget companies, then they will start looking for actual quality web hosting. And that's when they find us. And they will stay with us, even though we are more then 50x the price they were paying.

    Yes, I agree that "you get what you pay for". But sometimes a customer will not realize the truth to this motto until they are hurt by one of these big discount cheap companies. And after they realize they need to actually spend money to get good service... they will "move up" and purchase better web hosting from a good provider.
     
  5. jayh38

    jayh38 Well-Known Member

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    Thank goodness for templates, LOL
     
  6. PWSowner

    PWSowner Well-Known Member

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    Most of those companies have terms of service that allow them to terminate an account if it actually gets big. Last year I checked out several of those companies and found most of them have terms that say no video files allowed, or things like, all files must be linked to from the site, or accounts may be limited by cpu usage or server resources. They make sure that if you use more than $5/month of their server abilities, they have a reason to shut you down.
     
  7. Infopro

    Infopro cPanel Sr. Product Evangelist
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    Yep. And don't forget the pay for two years for the best value. Then if you're terminated for whatever reason, no refunds.
     
  8. jayh38

    jayh38 Well-Known Member

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    If you pay for ten years, you get 10 months free but unfortunately we will be out of business in one.
     
  9. jols

    jols Well-Known Member

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    Yup, exactly what I thought; It's a marketing scam, pure and simple. But what exactly can we do about this, when the average consumer has no concept?

    True, I used to get fill-ups at the absolutely cheapest gas station in town, until one day my car would not run any more due to all the water in my engine, because of a fuel tank leak at the station.

    Consumers are just looking at the numbers, and the numbers are selling masses of hosting accounts. Period. Obviously these unscrupulous hosts have a kind of "Just get em in the door, and we'll deal with the rest later." all in the name of market share, and yes, there is a "sucker born every minute", as any kind of truth in advertising is out-the-window when it comes to the Internet. And CERTAINLY these best-host evaluation web sites are playing right into this game. It seems that never any more do you see top-ten/best value account listings that are below the 200GB for 5 bucks a month mark.

    This month our current crop of satisfied customers are keeping us alive with WOM referrals, but just barely.

    The best thing I've been able to come up with as a counter measure to all of this is a kind of a public awareness campaign. Oh yeah, we know how that works.... sigh.http://forums.cpanel.net/images/smilies/confused.gif

    So, do we jump in with these rat-scum carnival barkers, or hold-out with our "truth will set you free" flag held high, and potentially starve in the process?

    I think we need a marketing genious to figure all this out for us.
     
    #9 jols, Aug 20, 2007
    Last edited: Aug 20, 2007
  10. bhd

    bhd Well-Known Member

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    Over the years I've written to a many (many, many) of them with this:

    I have a website that genuinely requires 200G of regular drive space. We get about 1,500G of actual traffic per month. Before I sign up, I would just like to make sure that your budget $5 plan will work for us.

    In 7 years, I have not once had a positive reply back. They range from "we can sell you a dedicated server for that" to "unfortunately we must decline" to "please see our TOS regarding server resources" to no reply at all.

    Bottom line is in almost 3/4 of a decade I have yet to find a $5/200G/1TB/month host that will commit to what they actually offer on their site.
     
  11. aisagtr

    aisagtr Guest

    Ironically clients DO FALL for these tricks.

    On a side note, it would be good to use these space for backup purposes thou.:rolleyes::D
     
  12. AtlantisService

    AtlantisService Active Member

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    I'm going to sound like the devil, but here it goes...

    We shut down a "Bad" competitor once with their own plans. They thought it nice to e-mail all OUR customers and troll on OUR forums with their deals. The plan was crazy... 10.00 = 1TB space & unlimited bandwidth.

    We opened 60 accounts with them (covering all their servers) and uploaded a few Red Hat ISO files. Took only 1 week for each of them to fall.

    :p
     
  13. rpmws

    rpmws Well-Known Member

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    I have been doing hosting for a long long time guys and when I started ..way back 10 years ago I tried like mad to give it away. In the last few years I have gone just the oppisite. The way I see it ..if a real small business can affoard $2.95/month and can't affoard $22.95 ..then I don't want his business. When you keep your prices reasonable and your service top notch you will screen out kids who drive you nuts anyway with support and you will attract reasonable thinking greatful small business people that would rather spend a few $$ more to get solid service. The result for the host is less support and higher profits and more stable service overall that deserves higher premiums in the first place. It's a snowball in either direction. Took me 5-6 years to learn this but it's true.
     
  14. jols

    jols Well-Known Member

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    Here, here rpmws. There's for sure a certain amount of wisdom in what you say.

    But just out of curiosity what about disk space? (Which is more to the core of the topic here.) What kind of disk space do you offer with those $22 per mo accounts?

    All in all however, yes, I agree that quality has staying-power and sustainability over quantity in every case, no matter what.

    Ohhh geeze! Gotta go! Almost forgot. Supplies are low, so I gotta run out and get another boat-load of crap from Walmart!!!
    (Holy cow! Hope I can find a place to park this time of day. Their parking lot is usually JAMMED right about now!!!)
     
    #14 jols, Aug 20, 2007
    Last edited: Aug 20, 2007
  15. rpmws

    rpmws Well-Known Member

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    2GB and 20GB month BW ..and I have maybe 5 clients using close to that.
     
  16. dom974

    dom974 Active Member

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    excellent !!! :)
     
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