What is Shared Hosting?

Shared website hosting is when a hosting company hosts multiple websites on a single server. This is a very common practice in the industry, and almost every hosting company does this. This is why. If a server costs $1,800 (a very low price for a server, but it works for this blog post) and the hosting company has a policy that they need to have a return on their investment in one year, that would mean they would charge themselves $150 per month for that server. This means that if a shared hosting package is, say, $2, they would need to put at least 75 clients on that server to break even.

Now there are two ways to make money using this scenario. The first is to set the 75 clients at $2 per month, and in a year you will be making money on that server. Then there is the way that most companies work, which is to purchase cheap servers, put 300 or more clients on the server (some will stuff a thousand or more on a server) at $4 a month, and you have paid for the server the first two months, and you are making bank, at the cost of your customers’ satisfaction. These companies are not worried about retaining customers; to them, it is a revolving door: they can easily get a new customer with a little advertising, or maybe a year if there is a contract, and then they can leave”.

If you don’t care about your customers, then it isn’t a bad business model. You simply have them sign up for a year, and every 3-4 months, you do some advertising and do it again. So every few months, you are getting a huge influx of new customers. You are making big money on the server, and when a customer is ready to leave, you just let them leave.

Simply Web Services is committed to retaining our clients, so we do what we can to keep them. You will not find 300 accounts on any of our servers, expensive hosting costs, or cheap servers. We invest in our clients, just as they invest in us.