Web Hosting Reviews & Ratings

August 20, 2010

The Length of Time a Cheap Web Host Can Stay Afloat

The Internet is littered with budget hosts that are extremely short-lived. They go live thinking they’re going to change the industry by offering cheap web hosting accompanied with feature-packed servers. Most do not make it past the first year. The idea is ambitious, but the practicality and nature of the industry make it difficult.

Different Failed Hosts

There have been small, medium and large cheap web hosting providers that have had this mindset as well as shared and dedicated hosts. Many were acquired by larger companies and then simply integrated into their corporate structure. Others generated a decent-sized brand loyalty so they kept their moniker while being under the umbrella of a different company.

Examples of Cheap Web Hosts

The first is one of the most well-known hosting companies in the world: GoDaddy. They began as a cheap web hosting provider in 1997 and have become the largest domain registrar in the world. Due to the sheer volume of clients that utilize GoDaddy’s services, they are still able to keep costs to a minimum.

Another familiar site is HostMySite.com. Also founded in 1997, they’ve grown since; boasting 250 employees and hosting more than 65,000 websites. Although in their early days they focused on cheap web hosting, they are now big in the VPS and dedicated server hosting market.

Hostway.com is the third of the cheap web hosts that have become successful. Founded in 1998, Hostway hosts over 400,000 domains! Since their conception, the company has greatly expanded to include 250,000 square feet of data center space with major corporations as clients.

Analysis of Cheap Web Hosts

Although these three cheap web hosting providers became successful, there are thousands over the past few years that have failed or been gobbled up by much large companies, such as the above. The cheap web hosting industry is difficult due to costs greatly outweighing revenue. Although there is no finite time period a cheap web host can stay afloat, it’s a safe bet that it’s less than a few years.

The three examples above prove that cheap web hosting companies can become profitable and grow into successful corporations. The three budget hosts made their fortunes by keeping costs to a minimum while growing their user base. It’s a safe bet to believe the above have passed the hump of failure and will be around for many years to come.

Tags: budget hosts,  Cheap Web Hosting,  failed hosts,  dedicated hosts,  GoDaddy,  HostMySite,  vps