Why there are different web hosting prices for the same package?

A question that is asked quite often is  "Why do various web hosting companies have different web hosting prices for the same package"?

Like in any other business, web hosting industry also has a small number of scamsters who want your business at any cost. They believe that they can sell you anything at any price "from Eiffel tower to the Kitchen sink". Some of these will give you web hosting prices that are much higher simply because they think that they can convince you to pay more. Others will offer the world for very-little and hope that you will be satisfied with whatever they dish out.

However, a majority of web hosting providers may have genuine reasons for higher / lower web hosting prices. In this article we will study significance of the real factors that can affect the price of a web hosting package. Awareness of the same may clear the confusion cloud generated by huge web hosting price variations.

1. Hosting Support: This is perhaps the single most important factor that determines price. Hosting Companies that provide responsive technical support and are quick in fixing problems have a higher-ratio of "well trained employees" TO "customers". Due to the costs incurred in maintaining a larger number of efficient support personnel, they usually charge more from their customers. "10 satisfied customers will automatically become a 100 in 5 years time". Many web hosting providers who do not believe this axiom offer throw-away web hosting prices and generally their businesses do not last long.

2. Web Hosts' Network: Most web hosting companies put their servers in different datacenters across the world. For a high quality network (with redundant fast connections and reliable back up power) a web host has to pay more to an advanced datacenter. In turn they charge you more for their hosting packages to maintain reasonable profit margins.

3. Web Server power: Another factor is the speed of the machine your website resides on. A Dual Xeon can serve pages and handle applications faster than a P-IV. Web hosts who spend less on fast reliable servers charge less from their customers.

4. Loss Selling: Sometimes hosting companies sell at loss to expand their client base and hope to sell other products at a later date to the same customers. For example, some hosts price hosting packages at lower than base cost and hope to sell services like web design, ecommerce solutions, search engine optimization etc. While there are benefits to attracting customers with unbeatable web hosting prices, it is still a gamble. If the gamble backfires they may not be able to maintain quality of service in the long run.

5. Over Selling: " The supreme gift of a good artist is to know when to stop ". Hosts that follow this principle usually restrict the number of domains-per-server to a decent number. This ensures that they can maintain 'Quality of Service' for their clients by offering sufficient server resources to each. It also means that this host will have to charge more to recover the amount they pay to their datacenter. Then again, there are providers who sell 400 accounts of 1 GB each on a hard disk of 80 GB !!! (You can smile at this point of our study) These companies hope that most customers will never use their full allocation of resources. What if the customers actually start using full resources allocated to them?

6. Web Hosting Features: Windows, Linux and other server operating systems have different base prices. Features like database support, JSP, scripting languages, SSL support vary from package to package. A web hosting provider who offers more features (in a similar hosting plan) is likely to have a higher web hosting price.

Points to remember: The adage "You get what you pay for" is generally true. Please be aware that leaving aside the scamsters, there do exist genuine factors that affect web hosting prices. The highest price may not give proper ROI (return on investment) and the lowest may not help your online business grow. Prioritize your needs, ask the right questions, avoid unscrupulous web hosts and choose wisely.

Accepting Credit Cards Online with Third-party Merchant Accounts

It's a jungle out there when you're trying to figure out how to accept payment over the web. We'll help give you the straight goods of accepting online payments. 

About Credit Cards

Credit cards are almost universal. Whether you’ sell memberships over your Website, widgets over the counter, or office supplies through a catalog, you should accept credit cards. 

Accepting credit cards can enlarge your user base in two ways. Firstly, it lends credibility to your business, which is of the utmost importance if you want to close the sale. That credibility stems from the fact that people believe that you have to be a 'real' or reputable company in order to accept credit cards. And secondly, shoppers feel safer buying this way, as credit card companies only hold consumers liable for the first $50 if fraud occurs.

However, because of the nature of Internet transactions, there is no physical credit card present for you to swipe, nor is there a customer to sign for the purchase. This means that ecommerce purchases fall into a higher risk category known as Mail Order/Telephone Order (MOTO) transactions, or "Card Not Present" transactions. Due to the higher risk of these transactions compared to their in-store counterparts, fees are higher than purchase situations in which a card is present.

Third-Party Merchant Providers

One of the easiest and most popular ways to accepting online payments is by using a third-party merchant account. This is an ideal account for small to medium sized companies that wish to look larger by accepting credit cards without the need of having your own merchant bank account, instead you use the third-parties.

There are many third-party merchant providers around but the more well known companies are:

2CheckOut

Paysystems

Paypal

2CheckOut Overview

Cost: $50 one-time setup - $0.45 per Transaction and 5.5% of Transaction Amount

 

Provides online shopping cart and highly brandable ordering pages

Payments are sent every month by cheque

Slow support and customer service options such as a toll-free 1-800

Paysystems Overview

Cost: $50 one-time setup - $1.00 per Transaction and 3.95% of Transaction Amount OR $0.35 per Transaction and 5.5% of Transaction Amount 

Provides online shopping cart and logo only brandable ordering pages

Payments are sent every week by cheque

Quick support and customer service options such as a toll-free 1-800 number and live chat

Paypal Overview

Cost: Free setup - Receive Funds: 2.2% + $0.30 USD to 2.9% + $0.30 USD

Provides online shopping cart and logo only brandable ordering pages

Payments must be transferred to your bank account

Low end support and customer service options, email support only

What is Dedicated Hosting?

A dedicated web server hosting involves the leasing of an entire server from a dedicated server host company. The hosting company owns, maintains, and backs up the server while providing all the security, power management, and other aspects of maintaining a data center. The site developer is responsible for all web server software issues.

The demand for dedicated hosting arises out of the expansion of the site with web developers often moving to more advanced technologies which require extensive use of system resources and increased bandwidth to serve the technology to a web browser. With this increased need for resources, having an entire server for your site is often the answer. A dedicated web server is also an option for reseller hosting businesses.

A dedicated server is the best solution for traffic-heavy businesses who lack the staff, resources, and security to build, install, and maintain an in-house solution. With a dedicated server, leasing saves on network administrator position for a company (Crowder & Crowder, 2001). A dedicated hosting account is usually cheaper overall than an in-house solution, and businesses can reap savings of up to 85% on a per month basis (TopHosts' Guide, 2001).

Financially, a dedicated server runs a few hundred dollars per month. Hosting companies often offer packages based on server configuration (space, processor speed, IP addresses, CPanel) and bandwidth allowances.

What is Virtual Hosting?

Virtual reseller hosting offers the appearance of a company's own server but the technical aspects of space sharing. Through virtual hosting, a developer can secure space on a server and have shared access to the server's features. Hosting companies provide this service by maintaining a large server and on that large server they maintain a number of virtual web hosts. The machine examines which "name" it is being called by and then responds appropriately. Thus, visitors to the site enter through the domain name of the developer and therefore cannot recognize that another company's server in fact, hosts the site.

Simply stated by Crowder and Crowder (2000), virtual servers are "nothing more than directories on a hard drive. The webmaster can make each one of the directories seem as though it were a fully functional web server". With a virtual web host, you will have your own identity, but you will not be required to maintain the equipment.

Virtual hosting packages are the most common on the Internet and offer a professional and well-established look for personal and small business web sites. Financially, the average virtual hosting account runs between $15 and $30 per month. Ample space and bandwidth for small businesses, multiple email accounts, cgi-bin access, and a T3 connection are common account features. Additional fees are often required for more advanced features including database software or SSL (secure server) functionality.

What is Colocation Hosting?

Colocating the server gives you the greatest flexibility. You get to choose the hardware configuration of the server and the software that goes on it. The hosting company maintains the connection to the Internet and deals with environmental details such as uninterruptible power supplies (UPSs), fire controls, and air conditioning. On the other hand, you're responsible for that server's upkeep.

Companies that offer colocation say they're moving away from this service and encouraging their customers to rent a dedicated server. This means renting an entire server from the hosting service, but having the hosting company service and maintain it.

When you opt for dedicated server colocation with the hosting company, you pay for the physical space that your server takes up. Colocation hosting usually requires a higher startup cost than renting a server from a hosting company, according to figures from Digital Nation. The server itself will cost around $4000 for a low-end model, and $9000 for a midrange server. A half-rack of space at a colocation facility will cost between $500 and $700 to start up and the same amount each month. Finally, you'll have to purchase a switch or a router, which will cost between $1500 and $2000 at the low end. This would result in an initial outlay of at least $7500 -- and it doesn't include the costs of staff time for setup and configuration, or the cost of equipment depreciation, insurance, and the standby equipment.

Not all colocation service providers require the same capital outlay, however. Concentric Networks' colocation plan includes connecting to a monitored network, fire suppression, redundant power, and redundant air conditioning. Most companies that offer server colocation service also sell service contracts to maintain the server and its connections. These service contracts will guarantee a certain percentage of uptime per month, and the fee will increase as the guaranteed uptime increases.

What is Reseller Hosting?

A reseller is a middle-man who sells web space on somebody else's server. Reselling schemes vary widely. They fall into the following categories:

(a) The reseller acts as an agent for the web hosting company. The service is advertised by the reseller as being with the actual web hosting company. People buy direct from the web hosting company but the reseller gets a cut if customers mention the reseller's name.

(b) The reseller acts as a marketer for the web hosting company. The service is advertised by the reseller as being with the actual web hosting company. People buy the service from the reseller but all further contact they have is direct wih the web hosting company.

(c) The reseller appears to be a web hosting company in his own right, handling sales and support but 'rebadges' somebody else's service. A customer buys web space from the reseller who buys web space (at a lower price) from the actual web hosting company. Customers contact the reseller for support.

A variant on this scheme is that customers are invoiced by the web hosting company in the reseller's name and the reseller gets a cut. Support will usually be via the reseller in order to keep up the pretence that the reseller is a web hosting company in his own right.

(d) The reseller purchases a large chunk of web space and bandwidth from the web hosting company and can then carve that into individual chunks of space/bandwidth for sale to customers. Customers contact the reseller for support.

Web Hosting Industry Overview

The Yankee Group, a leading technology market research firm, projects that by 2003, the market for web hosting services will grow to $14.4B, at a compound annual growth rate of 48%.

A Rapidly Growing Market The growth in the popularity, size and use of the Internet has been staggering. It has changed the way people communicate, learn, and most of all do business. Consequently, the need for enhanced web services, like web hosting, has exploded in recent years, and it represents the fastest growing segment of the Internet services market.

IDC predicts that the United States market for web hosting will grow from $806 million in 1998 to $18.9 billion in 2003, representing a compounded annual growth rate of 85.4%. IDC also estimates that the international market for web hosting services will grow at a faster rate, from $16.5 million in 1998 to $1.3 billion in 2003, a compound annual growth rate of 138.7%.

According to IDC, small businesses, those with less than 100 employees, accounted for 46% of the total web hosting market in 1998 in the U.S., and IDC predicts this percentage will grow to 61% by 2003, at which time small businesses are projected to account for $10.7 billion of the total $18.9 billion U.S. web hosting market. In addition, IDC predicts that the small business segment of the market will grow at a compounded annual growth rate of approximately 96% between 1998 and 2003, versus 73% for medium and 78% for the large business segments. According to IDC, at the end of 1998 only 17% of an estimated 7.4 million small businesses in the U.S. had web sites. IDC predicts that by the end of 2003, the number of small businesses in the U.S. will grow to 8.2 million, 62% of which are estimated to have web sites.

What is Multi Domain Hosting?

Multiple Domain Hosting is like web hosting business on a shoe-string budget. The first step is to get yourself a multiple domain name hosting account. For example, if you take out an account that allows up to 6 websites (or domains), you can use one of the domains for development of your own site; and, still have 5 domain names to allocate to your clients sites. All you need to do is pay your regular fee to your web host; then, you can charge your clients what ever you like.

It is preferable to have full administrative control over your client’s web sites. Make sure that, not only does your web host provide you with a control panel that includes full administrative facilities to easily manage your multiple account, but that your host provides your clients with their own control panel too.

In short, hosting multiple domain, is a system where web designers can buy a single "Plan" and sub-divide their storage space into multiple accounts.... one for each website they develop. This significantly decreases the costs to the web designers, putting more money in their pockets when they sell the hosting service to their clients.

Web Hosting Choice

We, who spend to much time blogging and advertising needs a reliable source of information about web hosting providers that will help us decide which one is the best. Of course, in order to choose the best, you must know what is the best first.

Good thing, there is a site called webhostingchoice.com. webhostingchoice.com is the largest searchable website hosting directory that features the whole information about all web hosting providers, all their webs hosting promotions, plans, discounts and unedited reviews by real customers. The basis of their web hosting rating is on the customer’s satisfaction, affordability, reliability, up time and technical support.

By this information alone, we will be able to decide quickly which web hosting is reliable and the best. And they also give important articles that you need for your website, from advices to tips. Rankings are also included in their service. Just visit their site and know the best web hosting providers.

Tips on Buying a Product or Service

Sales people are frequently confronted by this question on sales calls, along with some others like "why should I buy from you/your company?" or "what makes you different?". In fact, as identified in my last post, they have probably spent a lot of time at "Product Knowledge U" learning exactly how to answer these questions. In reality, answering questions like these usually end up putting you on the defensive and will not give you the advantage you are hoping for.

Think about it for a minute... if you answer that question you immediately sound like all of the sales people that have come before you, as well as those who will follow you. By answering the question you create "sameness" and a belief in the mind of the prospect that you are just like everyone else. You must also consider that everything you say will be considered as "sales fodder" and is often listened to with skepticism and from an "oh sure" perspective.

Obviously, there are many different situations in which this questions can be asked. Are they currently buying this product from someone else. Is this a product they have bought in the past, or is it a product they have never bought? Knowing which situation you are in will help you determine how best to proceed. Rather than answer the question, you might want to say "I'd be happy to tell you but I'm curious, is this a product that you have used in the past or are currently buying?". Their answer will be a valuable piece of information from which we can plan our next question.

If they are currently using or have had past experience, it would make a lot more sense to find out what they have used in the past. If they are looking to make a change "what would they like to see different?" This is a questions that would get us information that would begin to form our offer, or identify that we don't have what they want. Remember too, if they are not buying or have not used before, giving away your information can now become a shopping list that will allow them to compare you to the competition and "commoditize" your offer.

Not always, but often times the best answer to a question is another question. By not answering the question but rather asking:

"Was there something that you were hoping would be better?", or

"if we could offer something different or better what were you hoping for?"

With these questions you end up with the chance of finding out exactly what they are looking for and can craft your response based on the feedback you get.

It takes some courage and emotional control to respond this way but you'll find it will put you in an entirely different light with your prospect. Stop answering "what makes you better" and you'll get better information that will help you make more sales!

Orkut still leading in Top 10 Social networking websites

Comscore recently released the list of top 10 Social networking websites in India and unsurprisingly Orkut is still leading the Social networking websites in India.

Interesting  fact is that Hi5 got the maximum boost in last one year followed by Facebook.

One website which I personally never used it Bharatstudent.com manage to get into Top 3 list.

Few months back I wrote about launch of Myspace India and interestingly Myspace also get a boost of 110% from last year.

The top 10 list of Social Networking websites in IndiaSocial networking site % Change in 1 year

Orkut 81

Facebook 150

BharatStudent 88

Hi5 182

ibibo -50

MySpace 110

Linkedin 75

PerfSpot -79

Bigadda -25

Fropper -3

No doubt Indian Internet market has grown up  a lot in this one year and even after Recession we have seen an enormous growth.

Though I’m not very familiar with all of them but I use Facebook, Myspace and orkut most out of them

Let us know  out of these social networking websites which one do you use?

Technorati Tags: facebook, myspace, orkut, social networking, Top 10

If you enjoyed this post, make sure you subscribe to my RSS feed!

Godaddy promo code love99 || Buy domain for 1$

Yesterday I wrote about dreamhost offer which let you buy 1 domain + unlimited hosting + unlimited bandwidth in just 9.24$ which was suppose to end on 17th Feb and because of few hours downtime they have extend the deadline for a day and also added the payment option by Paypal.

Today hot offer is that with Godaddy promo code : love99 you can buy any domain for  just 99cents. Unbelievable but very true.

The dreamhost offer is for the valentine day and Godaddy offer is also for Valentine day and they have extended the offer for few days.

So In case if you planning to buy  a domain name grab the offer from Godaddy else if you need Hosting + free domain name grab dreamhost offer.Webhost Promo code Domain Price

Godaddy love99 1 99 Cents

Dreamhost 777 1 + Hosting 9.24 $

As promised shoutmeloud will keep informing you about the latest and amazing offer and deals that will save big money for you. In case you don’t want to miss any of the deal subscribe to shoutmeloud feeds.

How to pronounce names correctly?

pronounce and sometime we end up embarrassing ourselves by pronouncing these names in a wrong way.

HowToSayThatName.com is one useful  site which maintain the database of most of the name , and has audio recording of the names by there native speaker.

Need to pronounce hi-chewing , search for the name and click on audio icon beside he name and it will play the pronunciation of the name by some native speakers.

If you deal with many people offshore like me , then this website is must have bookmark for you.

Link: HowToSayThatName

If you like the post and found it useful then appreciate it by stumbling.

Technorati Tags: interesting link

If you enjoyed this post, make sure you subscribe to my RSS feed!

Free domain name and One year free webhosting from Microsoft

Microsoft offering freebies I will never believe that even if someone will tell me that but when news source is news.cnet I can’t deny the fact.

Here is the good news who are looking for free domain name they can grab a free domain name and free hosting from Microsoft for 1 complete year and if you want to continue with it you have to pay $14.95 after that. This is a good offer as you can get any domain name (com, .net, .org, or .info) for free of cost for one year.

Well with this Microsoft Office Live Basics is giving you more:

500 Mb free storage

Site-building tool

Projects and documents manager

100  E-mail addresses for free

The offer itself is so mouth watering that any one would love to grab it.

Microsoft Office Live Basics is targeting small business with this offer but even a newbie can use it as a personal blog.

If you not planning to use a free limited host and if you looking for unlimited bandwidth and storage I will recommend dreamhost because of my nice experience with it.

You can read more about dreamhost here and you might avail the 50$ off on dreamhost using code SML50

Link: Microsoft Office Small business offer free domain

Technorati Tags: Tech & world news, webhosting

If you enjoyed this post, make sure you subscribe to my RSS feed!