How to servers make money?

[gloomer]

Honestly I don't know how..

Some of these company's like IX webhosting boast 100Gig of storage.

100 flippin gig for one customer.

How they heck do they do that.

That's like..... woah.

How can they possibly make money when they give that up for 3.29 or some bogus low price a month.

And unlimited Pop accounts and crazy bandwidth and all that.

My question is. How the deuce do they make money when they have these kind of deals.

Some are more reasonable, but these top web hosting comany's are crazy.

But think of all the expenses.

Let's say they have 8,000 customers.

8,000 X 3.29 = 26,320 a month.

Expenses: Hardware (huge) Employees, Internet connection, electric bill (shudder) etc..

How do they pull off a profit with all these bloody expenses?

 

[kfc469]

who gives 100gb for 3.29 a month? I want to join them

 

[gloomer]

it's actually 3.99 haha.

IXWebhosting. Supposed to be the top webhost on the web.

 

[Nikkon]

I know that alot of companies will offer lower prices for "home" users to get their name out, but charge alot more for "professional" users (ie companies etc).

 

[Deathawk]

And some servers oversell, and that usually isn't a good thing, your performance probably wont be that great, sometimes support sucks too..

 

[gloomer]

But still. How does a small webhosting company compete with these giants.

 

[Sevoma]

It is called Overselling. What they do is sell more than they have and hope people don't use all of it. They also have powerful servers with a lot of harddrive space and fit a lot of users on it. This is not good for reliability. Any one user could cause the entire server to crash which could be thousands of accounts.

As Deathawk said, support will most definitely suck

 

[kfc469]

it's actually 3.99 haha.

IXWebhosting. Supposed to be the top webhost on the web.

haha its auctually 3.95

 

[gloomer]

haha its auctually 3.95

Yeah that's what I thought about the overselling.

Hey wait. Let's just tell everyone to stick as many linux distro's on their accounts as fast as possible

 

[Sevoma]

Yeah that's what I thought about the overselling.

Hey wait. Let's just tell everyone to stick as many linux distro's on their accounts as fast as possible

That problably wont work because they usually have something in the TOS to limit your usage. Usually it is something along the lines of cpu or bandwidth usage. If you exceed it, they may terminate or suspend your account.