How dirt cheap hosting providers exist?

[Keira Rogahn]

I have seen many hosting providers providing hosting at dirt-cheap rates. How much margin they will make in each sale? Who provides them with hosting at such as negligible cost?

 

[Tod Stoltenberg]

How much margin they will make in each sale?

um, this you'll have to ask the hosting providers directly, I doubt that anyone knows the profit margin of a random hoster

Who provides them with hosting at such as negligible cost?

they're the ones providing the hosting, and they set whichever prices they want. Also, you need to remember that in 2nd and 3rd world countries prices are different (usually way lower) than in 1st tier countries, and for those guys these prices are normal, they're not considered cheap the way you consider them

 

[Virgie Runolfsson]

Find dirt cheap server providers and use DirectAdmin´s cheap license and you are good to go. Servers are cheap, competition is built on volume not quality so you need hundreds of thousands of customers before making good money.

 

[Keira Rogahn]

Find dirt cheap server providers and use DirectAdmin´s cheap license and you are good to go. Servers are cheap, competition is built on volume not quality so you need hundreds of thousands of customers before making good money.

I agree, Will reseller hosting help in starting up a hosting company? From where do these people get the hosting? Do they setup their own servers? But what a person who is in the initial phase do to avoid high server costs?

 

[Marina Funk]

How much margin they will make in each sale?

They make money by scaling the number of users.
Most of these are reselling cheap servers or cheap reseller hosting.
As a result most of these have an awfull service.

Like they setup a cheap server for $100 a year.
Then they sell cheap shared hosting packages to hundreds & thousands of people.
That's how they make profit and also because of too many websites on a single cheap quality servers the service and performance becomes awful.

Wondering how can servers be so cheap?

That's because some of them are built on refurbished hardware while others use desktop grade 2nd hand/refurbished hardware.

Who provides them with hosting at such as negligible cost?

There are so many providers just goto the web hosting related online communities you will find them.