how do they do it?

T

turnersloane

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Sep 27, 2006
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We've lost a few clients over the past 6 months to godaddy because of their hosting plan prices versus ours. Sure, we spend a little extra to run RH Enterprise instead of opting for an open-source OS, but that's certainly not the end of it. Their website claims 5Gb space/250 Gb traffic + extras for $3.99 a month, but I just don't get it. Heck, even if you get one of their dedicated boxes there is no way you could make a profit at that price.

I did a reverse IP check on one of the clients we lost to them, and the check showed that over 2400 domains were hosted on ONE IP! See for yourself here:
http://whois.webhosting.info/68.178.211.12

(Now, I realize that not all of those domains may be active, but still, that's a lot of domains on one IP.)

If you do the math, well....that's a heck of a lot a space. There aren't any hard drives that large, are there? I can see adding some NAS, but we're talking tera-quads (Star Trek reference there) of space -- so how do they do it?

Regards,
Sloane
 
All they do is oversell the space/bandwith as a majority of their users won't come anywhere near thier allocated resources. The amount of profit their making covers the expense of the few users that do use all their resources.

Personally i'm not a fan of overselling and I don't do it but in theory it can and will work as long as it is planned out well. I prefer the safer method of just selling what you can provide so to me it doesn't matter if a user uses none or all of their resources.

I guess it just comes down to 2 different business models. If you want to test it signup for an account as it's only $3.99 and try using all the webspace and bandwidth to see if they provide what they advertise.

Steve
 
I was aware that "cheap" hosting companies sometimes oversell, but you'd figure a prominent company like godaddy wouldn't do such a thing....but then again, it was only recently that I noticed they had upgraded from Fedora Core 2 to 4 - and thus they are still behind.

As I have pointed out to my lost clients, it's better to buy a domain name thru a hosting company than get your hosting from a domain registrar.

I think I will establish an account with them just to see what happens when I get near my space & b/w limits....for $3.99 it might be worth the cost....


Sloane
<o>
 
They oversell. It's something that I would never do to my own clients.

People have a natural incstict of getting "the best deal possible". Even if they host a small blog that nobody visits, they see GoDaddy and start speculating on how many gigs of data they could transfer with only a few dollars per month.

Now, you'll run into issues if you'll try using all your bandwidth at GoDaddy or any other hosting company which promises ridiculous offerings for a ridiculously small price. Just google up for reviews and you'll see many angry people at the big guys.

Have your own advantages. Keep your custommers happy. Or hey, maybe those custommers will return because they're disatisfied with GoDaddy.
 
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