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The Length of Time a Cheap Web Host Can Stay Afloat

8/28/2010 11:44:26 AM

The Internet is littered with budget hosts that are extremely short-lived. They go live thinking they're going to change the industry by offering Shared/Cheap web hosting accompanied with feature-packed servers. Most do not make it past the first year. The idea is ambitious, but the practicality and nature of the industry make it difficult.

Different Failed Hosts

There have been small, medium and large cheap web hosting providers that have had this mindset as well as shared and Dedicated hosts. Many were acquired by larger companies and then simply integrated into their corporate structure. Others generated a decent-sized brand loyalty so they kept their moniker while being under the umbrella of a different company.

Analysis of Cheap Web Hosts:

Although these three cheap web hosting providers became successful, there are thousands over the past few years that have failed or been gobbled up by much large companies, such as the above. The cheap web hosting industry is difficult due to costs greatly outweighing revenue. Although there is no finite time period a cheap web host can stay afloat, it's a safe bet that it's less than a few years.

The three examples above prove that cheap Cheap web hosting companies can become profitable and grow into successful corporations. The three budget hosts made their fortunes by keeping costs to a minimum while growing their user base. It's a safe bet to believe the above have passed the hump of failure and will be around for many years to come.

SRC: http://webhostingrating.com/hosting-guide/cheap-web-hosting/the-length-of-time-a-cheap-web-host-can-stay-afloat/


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