An interesting answer from a person with nickname BearsA about the 1 dollar whs (web hosting services)
I decided to check my new e-mail because I am waiting for at least one new job offer but, alas, nothing. There was something interesting though -- an answer from a person nicknamed "BearsA":
BearsA has mentioned you!
and I followed the link below
You can view the full post here: https://www.webhostingtalk.com/showpost.php?p=10363743
but there I've got the
you do not have permission to access this page.
message. In the
To see a full list of mentions, click here:
there was
07-05-22
07:34 AM - Hidden
. And because of all these, I can't read the "full post" there but it's, at least, good that they resent it to the mail and I'll quote it here (which will be useful if that post already isn't present anywhere online. It's a worthy post.) Enjoy:
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Someone wrote:
"There are a few problems with $1/mo hosts.
1. It's a high-volume / low-profit operation.
2. Any support provided to a client automatically causes that client to be a loss / to cost more than they're paying.
3. The customers that tend to be attracted to $1/mo hosts tend to be the most unreasonable with the highest expectations. [no offense MSLYJ - I'm speaking from experience in this industry over nearly 2 decades].
All 3 of these things tend to mean that a lot of people sign up that need a lot of support - all of which cost more than they're paying in.
If a $1/mo host doesn't just fold in short order - the support will be incompetent at best and totally absent at worst."
Point 1:
Sure, it is a high-volume operation. But that is doable. With a reliable hardware and software it is.
Point 2:
"Any support provided to a client automatically causes that client to be a loss / to cost more than they're paying."
So what!? It is a combined costing matter. All things which cost, cost. OF COURSE THEY DO! The crucial question is how to keep the cost under the incoming money.
Next question: How to handle problems which cost money? Do the job right or simply throw out that customer, despite it is not his fault, but of the hoster?
Point 3:
"3. The customers that tend to be attracted to $1/mo hosts tend to be the most unreasonable with the highest expectations."
Dead wrong! Most of the customers are utterly clueless, both with economy and technical handling of web-hosting. How much the customers pay depends on how they get baited. One catch is the price. If it is high, then it of course it is good. Consequence: high prices imply good company, good hardware, good software, good support. And in reality it is nothing but a rip-off.
"[no offense MSLYJ - I'm speaking from experience in this industry over nearly 2 decades]."
Shall I talk about my experience in this industry of nearly 3 decades...?
Point 4:
"All 3 of these things tend to mean that a lot of people sign up that need a lot of support - all of which cost more than they're paying in."
See point 2!
Point 5:
"If a $1/mo host doesn't just fold in short order - the support will be incompetent at best and totally absent at worst."
Wrong. Companies with high prices behave just the same way.
But there is a catch: If the prices are high customers are more likely to complain loud. So, if the price is low, a bad hoster can much easier get away with his fraudulent behavior. The customer loses "only" 20 or 30 Dollars. "So, why worry? It is not worth it to complain." And for exactly this reason the village nuts from India are able to operate in their way. And the scheme works. Their example to follow are the US based hosters, which continue their operations for decades despite it got known that they foul up.
If it goes well, the Indian nuts are hired by American hosters, so they earn money and knowledge. Then they piece for piece buy an existing hoster. And the most simple way: Buy a reseller. Be a reseller, but claim you have a server farm of your own. It is as easy as that.
And, to make the plot perfect: backup the whole thing by hosting forums, backing up the frauds and kicking out the defrauded customers. It IS as easy as that.
----------- I value the truth and the genuinity. This opinion should be well-known because, in my opinion, it shows a lot of valuable truths.