Wednesday, November 25, 2009

Breaking Down the Cost of Web Hosting

You may be curious to know why so many web hosting companies have different prices for what is almost the same service. Well, one reason is that, like any other business, the web hosting industry has scams and shady companies who seek to make all the money they can off the unknowing. They offer higher prices for services with the belief that someone will pay for them.Furthermore, most web hosting providers actually have legitimate reasons for the price they charge, whether high or low. Knowing this may help to dispel some confusion about the difference in price of web hosting services. Let's take a look at some of the factors that influence the cost the most. Support - This may be the most important factor that impacts the cost of a web hosting service.Companies that offer quality support and respond quickly to technical issues tend to have a much higher ratio of employees to qualified customers. Because maintaining a well trained staff and an effective support system may be costly, these companies often charge more for their services. For these suppliers, customer satisfaction usually results in more business. Some companies choose to cut corners in the support department to provide a service cheaper.Unfortunately for them, their business usually do not survive. Network and Infrastructure - A large portion of costs for a hosting service can be attributed to the company network and infrastructure. Some companies store their Severs in many different data centers that is not cheap by any means. In addition, redundant Internet connections, electrical systems, backup power and security are needed to ensure reliable service. All this translates into a price structure that allows the host to maintain a reasonable profit margin. Loss Selling - Some web hosting companies to sell below cost in hopes of broadening their clients and selling additional services to these customers even at a later time. For example, a company can price their hosting plans below market costs to other services such as web design, SSL certificates and marketing on search engines more attractive to the customer.Although there are many advantages to be gained from attracting customers with lower prices, it remains a risky approach. If the bet of the host turns against him, it may be difficult for them to maintain service quality over the long term. More Sales - This is one of the most common practices in the web hosting companies and a major reason why prices are so cheap. A perfect example would be a company that offers unlimited disk space on a piece of hardware that only has a capacity of 100 GB. Because the average site requires only a minimum of space, the company is able to get away with overbooking and still maintain a quality service to its customers. However, this is risky because there is always a chance that several customers to maximize the resources allocated to them. When evaluating web hosting packages, keep in mind that lower prices do not necessarily reflect the best value while the highest price does not guarantee the best return on investment.Whatever the cost, it is all the priority of your needs, do your homework and choosing a provider wisely.

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