Web Hosting Reviews & Ratings

October 20, 2010

The Setup Costs of Shared Web Hosting

Shared web hosting is often seen as one of the cheapest types of hosting, and is therefore one of the most popular. Most people choose to use a shared hosting plan before they move on to more comprehensive hosting plans. However, many people do not realize just how much it really costs to set up a shared web hosting plan. If you are on a budget and you would like to save as much money as possible on your initial hosting costs then you may want to consider the following information about the setup costs of shared web hosting.

Setup Fees

The most obvious additional setup cost associated with shared web hosting plans is the setup fee, which is usually about $50. Setup fees are required to be paid upfront, which means you will need this money when purchasing your new hosting plan. Fortunately, there are many shared hosting plans that do not have any setup fees associated with them. There are also hosting plans that offer advertising credits as well. Some people decide to purchase a plan that has setup fees simply because it also includes free advertising credits with companies like Google, Yahoo and Facebook, which ultimately negate the setup fee by offering an equal or greater value.

Billing Cycles

Billing cycles are also a very important aspect of the cost of shared web hosting. Although most shared plans only cost a few dollars per month, it should be noted that many plans require payment for a full year upfront. In other words, if you are planning on purchasing a shared hosting plan that costs $7 per month, then the true setup cost would be $7 x 12 months = $84 plus tax and any applicable setup fees. With a setup fee of $50 the aforementioned plan would actually cost about $134 to purchase! For that price you can pay for the setup cost (first month's bill) of a very powerful dedicated hosting plan. It is important to consider billing cycles and fees before purchasing any shared web hosting plan, especially if you are on a budget.

Setup Cost vs Long Term Savings

Although the setup costs of some shared hosting plans are high, the total monthly cost is much cheaper than other forms of web hosting. Once you have made the initial investment to purchase a shared hosting plan for a year, you will be saving money, as other plans are usually at least twice as expensive. Therefore, it is important to weigh the benefits of saving money in the short term by purchasing a more expensive hosting plan on a monthly basis, or saving money in the long term by purchasing a shared web hosting plan on a yearly basis.

Conclusion

Shared web hosting  is a viable solution for webmasters on a budget, however there are some shared plans that require a lot of money upfront. If you are on a strict budget, then you may want to consider a VPS hosting plan, as many VPS plans do not require yearly payments upfront, and you can find VPS plans for only a few more dollars per month than shared hosting plans.

Tags: Shared Hosting,  shared web hosting,  shared hosting costs,  setup cost