It's A Web Hosting Price War


By Dan Kehrer, Business.com Editor
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Question: I'm starting a new business and setting up a domain name and Web site are top priorities. I need a service that's easy, reliable and - above all, inexpensive. I saw an ad the other day for small business Web site packages that sounded incredibly cheap compared to what I remember a few years ago.
 
Answer: There's no catch. Honest. After a multi-year lull, new domain name registrations are soaring, competition among hosting services is keen and prices are tumbling. And the action is being fueled largely by small business.


A mass move to the Web is underway, thanks in part to lower prices. No matter what type of business you operate - from a one-person dog walking service to something much larger - customers expect you to have a Web site. It needn't be fancy, just loaded with essential details of what you offer and why people should do business with you.


There are literally thousands of Web hosting services to choose from. Many are small - perhaps just a few servers in a closet - and not totally reliable. Some of the biggest names among full service providers include Network Solutions, Yahoo! Small Business, Hostway, Interland, Bigstep, 1&1 and Microsoft Small Business Center.

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GoDaddy, a rising star discounter, now claims nearly six million domain registrations, with hundreds more added every hour. GoDaddy offers bargain basement pricing on a full range of Internet services, including e-mail, Web site development tools and hosting, e-commerce services (shopping carts, etc.) and "secure site" certificates for customer peace of mind.


Depending on the extension you select (such as .com, .net, .biz), GoDaddy charges between $4.95 and $9.99 per year to register a domain. That compares to $34.99 for a one-year registration at Network Solutions, the largest domain registrar. GoDaddy charges $6.95 per month for a 10-page do-it-yourself Web site, compared to $15 at Network Solutions. And GoDaddy's secure site certificates are $49.95 per year versus $150 to $800 elsewhere.
Not to be outdone, Web hosting giant Yahoo! has cut prices on Web hosting, domain registration and other Internet services for small biz. Yahoo! Small Business now offers more disk space, bandwidth and e-mail boxes at a lower price. Domain registrations, for example, have dropped from $35 to just $9.95 per year. Meanwhile, hosting giant, Hostway (www.hostway.com), just doubled the amount of disk space, traffic and e-mail accounts in all its plans. 

Biz owners are the big winners in all this. You can now establish and maintain a professional-level Web presence at a fraction of what it cost a few years ago.


Here are some host-selection tips:

  1. Before selecting a host, evaluate your current and future needs. If all you want is a simple online "brochure," an off-brand discount host may suffice. You don't need loads of storage capacity or bandwidth (for high-traffic sites).
  2. If you expect to grow, select a host that offers "step-up" plans that can easily expand your Web presence as needed.  
  3. Also consider your personal time constraints. The time required to create and manage a Web site can quickly balloon - especially if the hosting company doesn't offer simple site development tools. Test drive site building tools whenever possible.
  4. Finally, pay attention to customer support services. Look for free 24/7 support by phone, Web chat or e-mail.

Daniel Kehrer (editor@business.com) is Editor at Business.com, the leading business search engine.
© 2006 Business.com, Inc.

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