We see it every where, cheap Web Hosting or the Budget hosting plans that are plastered every where possible! However if what you do is of any importance this is the worst choice you could ever make.
I personally have well over 10 years of experience in the Hosting industry and every year it gets cheaper at all of the budget hosts, and we are talking £10 a year for a shared plan? I mean come on! Really?
I am going to go over the clear reasons to avoid these types of Companies and why paying a good price is much better long term than your lowend cheap hosting providers.
Now we have to be honest, every Business is built on an aim to turn a good profit or (ROI) Return on Investment, right? The only reason the profit is required is to provide funding for staffing costs, better technologies and paying their own providers then of course every Business owner is rewarded for their hard work.
So we have a £10 a year hosting plan or £20 a year and then we have a server that costs £200 a month or £2000 a year for example.
So if we sell plans at £10 a year, we require 200 customers to just break even, so most providers will aim to double that = 400 customers or more on one server.
Let’s look at a £50 a year plan – Would require 50 customers maximum to churn a profit, so of course we need profit for wages, technology, bills etc so we are going to double it to 100.
That is an ample profit per server and is more than enough for decent long term growth and stability.
100 Customers on your server or do you prefer to shared with 400 users all slowing down that server so bad that you pull your hair out every day?
400 Customers on a server is really going to ruin your server stability, even if there are restrictions in place such as CloudLinux which restricts each account to a certain amount of resources, imagine if everyone is maxing them out or even trying to? The server is going to crash constantly and to define it is oversold and overloaded in attempt to line peoples pockets with profit.
Then we have the higher priced service with a maximum of 100 customers on which is running nice and stable.
The cheaper host is really going to cause you some serious Stability issues.
Effects on support
Now support is essential to a successful business, but we have a problem with the Cheap service.
Cheap – More customers = higher staff requirement – Yet we have such a low ROI (Profit) we cannot afford to offer more support staff to our users.
Profitable – Less customers = Increased staff due to better ROI (Profit) – Happy customers with focused support.
I have watched other Companies run themselves into the ground because they thought cheap was the way forward.
So what do I do?
The best option is, if your website or business is of serious importance then avoid the 50GB for £5 a month plans or the £10-£30 a year hosting plans.
Be prepared to pay a higher rate for a decent quality of service and a good level of friendly support, any Cheap hosts who sits and says their service is the best and their support is the best for those sorts of rates, well I would be questioning that.
I have experienced working at some very big companies, and trust me – All the ones in a bad price range oversell and get complaints daily + Have much less staff per 200 customers than anywhere on the planet.
Oh did I mention the outsourced support that is also terrible? These are all the procedures of a cheap budget hosting provider.