How Hosting Providers Grow Their Business in A Hypercompetitive Market

The web hosting industry has grown very competitive. With over 330 000 worldwide and as much as 80% being small-medium providers it is a tough market to step into. A new web hosting company would really need to bring something new and innovative to the table to be considered.

Tools used to sell their web hosting services

Web hosting companies are advertising more and more services for free to get on top of this hypercompetitive market. Here are the tools they use to get clients:

Free WordPress

Many providers advertise that businesses can link their existing or new blogging platform like WordPress for free. Blogging has become an integral part of marketing for any size business and is a good tool to have.

Free professional email

Free emails are a great marketing tool to use when advertising the web hosting company. Usually the higher the package a company pays for the more free email accounts it gets.

Free domain

Most of the providers advertise free domain names and registration that are part of the package, we will chat more about free domains a bit later.

Free SSL certificate

Free SSL certificates relate to the security of the website as well as the security of the user. This feature is quite important and should be free in any way. Most providers use this as a selling point however in our opinion it should come standard and not be an added perk.

Free website builder

More and more people are opting for a diy website builder instead of appointing and paying a website designer. Some companies use free website builders as a selling point. It is a great tool to have, just do research on the quality of the website being built.

Free logo maker

A free logo maker is also a great benefit web hosting providers can offer their clients. Be wary of the quality of the logo as well as the limitation, most likely a payment would be needed for better options or content.

Database

Web hosting companies are marketing free databases. This is also a great tool for a new business. The higher the package the more databases one gets.

Hidden costs and upsells

It’s great to get some features for free or at a discounted rate. Be careful when it comes to hidden cost that providers do not bring your attention to. Here are some of the hidden costs and upsells to look out for.

Renewal pricing

Many hosting advertise and draw customers in with lowered or discounted rates for the first year of joining. Thereafter the renewal fees are really expensive, look closely at the renewal fees.

Domain names

Web hosting providers usually sell domain names at an inflated price. Some add on $25 to the actual cost of registering a domain name. Opt for a free domain option.

Site migration costs

This cost occurs when a company would like to leave their current hosting provider. Site migration does not happen too often, only when it is outgrown or really unbearable to work with them. It can cost from $50 – $200 to migrate. Luckily there are lots of reputable companies that offer the migration service for free.

Ssl certificates

This service should be free, ALWAYS. Most reputable web hosting providers do offer SSL certificates for free. However, there are providers that don’t, make sure to look out for this hidden cost.

Upgrade pricing

Some hosting providers advertise free hosting services, however nothing is for free, and most probably as soon as traffic starts on the page the company is charged double. Watch out for free website hosting!

Look out for free domain

Most providers offer free domain names which is great, look out for the renewal fees on that domain name, the providers charge more than the actual fee.

Our advice

The advice we would like to give our readers is to do research, read reviews, read the T&C’s and look out for hidden costs, even when getting free features, you most probably will end up spending more than you should.

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