Why do hosts rip you off?

It sounds like you need a better business model, because all i saw was bitching. From what you said it sounds like you buy a server, make me pay for it, then throw it away (no value), and then buy new ones because no one will ever use the server again and you can't sell it.

What you left out in your insults and grips about your business is that once the server is paid for you can sell it for at least half the cost to build it. Yes tech moves fast but you don't need the latest and greatest to run a simple html server. It it was good enough to run high end resource heavy site then they it will be able to do the same thing next year. Java, html, php do not move as fast as high end games. It will not be top of the line but its not useless.

Which brings me to another thing, you have a server paid off by some idiot renting it for your crazy prices. If you didn't just cash out you still have a server that could be sold at a discounted rate, a hybrid plan, or even some sort of shared hosting. Don't even try it with your crying that it will be worthless to you in one year. I expect any good business man could get 2-3yrs out of a server and even then still sell it on ebay or CL.

Also if you started with servers, you would have to sell one of them to put in the new one. You at least got $100-200 bucks to invest into the new server if not more. Who here has seen P4 servers on CL sell for $100? Because I have.

If everyone only wanted the most high end, newest server there would not be so many companies offering different options. I have seen dedicated mac-minis, I have seen dedicated 1.2Ghz ATOM servers (wtf), you really think next year someone is not going to pay to have a i7 in their machine.

Clearly your vision is to closed minded for you to find better ways to make your company more profitable than ripping your customers off.

And for everyone here saying how much colo would cost, I have already researched the costs involved. It basically comes out to $160-200 for colo, yes its unmanged you will have to hire someone for that. But its your box! If you want 16GB of ram in the thing then you can do it. How much would a provider charge your for 16gb of ram? Do you want a RAID? or SSD fuck it you can do it. The initial cost to you will be 1-2k but the same tech from a host would be 500+/MO. Pay yourself off in 5months not them.

Wiredtree gave me a great deal since I was already a customer on my dedi, so ill stick with that for now. But I am already making a shopping list for my new dedi box.

You keep saying 'you need', 'you have' and lots of general 'you'. I don't deal with asswipe clients, and I don't run a hosting company because of said asswipe clients. I know the costs because I've managed several top 100 alexa sites over the years, and I'm not unfamiliar with five to six figure colo bills and seven figure server orders. 'My company' makes money because it doesn't deal with whiney little bitches like you.
 


Its clear that most of your are in or have friends in the hosting business and are not customers. Do you also rent your house and lease your car? Banks and car dealers need to make money too!

Typical reply of an a-hole.


First, you run your mouth on shit you have no fucking clue of.

Then when everyone says you have no fucking clue, the only possible conclusion you can come up with is:
"OMGs they must all be united in a conspiracy against me"

If you would use your brain, you would understand 99% of WF = A client of a Hosting company. Probably only 1-2% have a hosting company. I would say a much greater % of that probably has though of starting a hosting company, but re-considered their options for more profitable/less competitive niches.

I personally have 12 accounts with 9 different companies, across 70 class C IPs. I've been working online for 10 years.

It isn't that I like paying for hosting. It is that I understand business enough to know that you are vastly oversimplifying it.

Additionally, it is an open business, anyone can get into it, and there are decent profit margins, so because of that there is strong competition and good providers out there at very reasonable costs.

If you think this isn't the case, and you think it is so easy to run a hosting company, and there are such 'HUGE profit margins' (in your mind), then why don't you stop whining and put out a better service at a better price? That is the beauty of capitalism.

Of course, that would mean action and not bitching, which you sound completely incapable of dealing with. Now, STFU.
 
Typical reply of an a-hole.


First, you run your mouth on shit you have no fucking clue of.

Then when everyone says you have no fucking clue, the only possible conclusion you can come up with is:
"OMGs they must all be united in a conspiracy against me"

If you would use your brain, you would understand 99% of WF = A client of a Hosting company. Probably only 1-2% have a hosting company. I would say a much greater % of that probably has though of starting a hosting company, but re-considered their options for more profitable/less competitive niches.

I personally have 12 accounts with 9 different companies, across 70 class C IPs. I've been working online for 10 years.

It isn't that I like paying for hosting. It is that I understand business enough to know that you are vastly oversimplifying it.

Additionally, it is an open business, anyone can get into it, and there are decent profit margins, so because of that there is strong competition and good providers out there at very reasonable costs.

If you think this isn't the case, and you think it is so easy to run a hosting company, and there are such 'HUGE profit margins' (in your mind), then why don't you stop whining and put out a better service at a better price? That is the beauty of capitalism.

Of course, that would mean action and not bitching, which you sound completely incapable of dealing with. Now, STFU.

What customer on the planet wants to help a company be profitable? Its not the job of customers to make sure a company is profitable. Its their job to look out for themselves and their own money. As a customer why would I want to pay a continued $20/mo fee for the lifetime of my server for something that costs $40 retail? So my host can be profitable?

As for your exaggerated conspiracy comment if you took the time to look though the topic and its posters you will see that 4 posts (2 from subigo) do actually run hosting companies. This is after all the hosting section of WF where there are a hell of a lot more hosts than in the other sections. Plus that comment was directed more at you, Insomniac and perhaps crackpot the only people still posting who seemed like telling me what an idiot I am and how I have to make my host more profitable and love it. Anyone who jumps so quickly onto the idea seemed to me to have some sort of connection to the industry, why else would they defend them so admittedly, and with such personal attacks none the less. Perhaps I should have just called people out by name instead of "most" it may have been easier for you.


You keep saying 'you need', 'you have' and lots of general 'you'. I don't deal with asswipe clients, and I don't run a hosting company because of said asswipe clients. I know the costs because I've managed several top 100 alexa sites over the years, and I'm not unfamiliar with five to six figure colo bills and seven figure server orders. 'My company' makes money because it doesn't deal with whiney little bitches like you.

I apologize, your fact/insult filled post lead me to falsely believe you were a disgruntled hosting provider. I was wrong, perhaps you could have said it better.
 
What customer on the planet wants to help a company be profitable? Its not the job of customers to make sure a company is profitable. Its their job to look out for themselves and their own money. As a customer why would I want to pay a continued $20/mo fee for the lifetime of my server for something that costs $40 retail? So my host can be profitable?

As for your exaggerated conspiracy comment if you took the time to look though the topic and its posters you will see that 4 posts (2 from subigo) do actually run hosting companies. This is after all the hosting section of WF where there are a hell of a lot more hosts than in the other sections. Plus that comment was directed more at you, Insomniac and perhaps crackpot the only people still posting who seemed like telling me what an idiot I am and how I have to make my host more profitable and love it. Anyone who jumps so quickly onto the idea seemed to me to have some sort of connection to the industry, why else would they defend them so admittedly, and with such personal attacks none the less. Perhaps I should have just called people out by name instead of "most" it may have been easier for you.




I apologize, your fact/insult filled post lead me to falsely believe you were a disgruntled hosting provider. I was wrong, perhaps you could have said it better.


Again, lets keep it simple: you think the industry is a rip off? Then start a business in the industry and bank big. It is hardly an industry with a high entry bar.

I think I get great value for what I pay for. Most people that have a clue think so too. You obviously think you get ripped off. You expressed this opinion and found the community's reply. You can disregard us as 'hosting industry fan boys' or, realize the whinny, uninformed nature of your OP. Up to you.
 
As a customer why would I want to pay a continued $20/mo fee for the lifetime of my server for something that costs $40 retail? So my host can be profitable?

I'll try to explain this without calling you an asswipe any more, since the business logic behind RAM is a little less obvious than the other maths I posted above. Hosting companies typically operate under a very strong 80/20 usage rule. Ask any hosting company and they will tell you that 80% of their users make up less than 20% of their bandwidth costs. For the most part, if you give someone a VPS or shared hosting, they are more than likely going to only use a fraction of their allocated resources. Give them 30gig of space, and they will barely use 100. Give them 100gig of bandwidth, and they'll struggle to use 1gig.

Then comes along the rare power user who actually uses what is allocated to them. This is the kind of person who typically expects their $30/mo VPS to host a million user forum with blazing fast response times.

When a host makes an offer like 10mbit unmetered bandwidth for $100, unless that bandwidth is horrible, they are overselling the hell out of it. No quality fiber provider is going to give you bandwidth in a place like Texas for $10/mbit. People will pay for it because they are paranoid of overages, but in reality they won't get anywhere near using even a 10th of it.

Then comes along the guy who wants the cheapest server, with extra ram and a ton of unmetered bandwidth. It's always the guy who wants extra that is the power user. They push the servers harder so they crash more, or they max out their bandwidth allocation which costs the provider more than they are paying for it. You can think of that extra $20/mo as a way to curb the costs of being a power user. This is why the price of colo is high, it's because the provider knows that you're going to use a good chunk of what you request in your quote, unlike their dedi/vps/shared users.
 
I wouldn't want all the BS that goes with being a Host. I think the Hosting prices these days are great, especially compared to a couple of years ago!! The only Host that has blatenly ripped me off and didn't give a shit is 1and1.com The worst company I have ever dealt with. They even stole 4 of my Domains. I managed to get 2 back so far by getting ICANN involved. I deal with about 5 different Hosting companies now and am happy with them. Last year I changed and have all my Domains with one Hosting company but I have 5 different hosting accounts. seems to work great this way.
 
It sounds like you need a better business model, because all i saw was bitching. From what you said it sounds like you buy a server, make me pay for it, then throw it away (no value), and then buy new ones because no one will ever use the server again and you can't sell it.

What you left out in your insults and grips about your business is that once the server is paid for you can sell it for at least half the cost to build it. Yes tech moves fast but you don't need the latest and greatest to run a simple html server. It it was good enough to run high end resource heavy site then they it will be able to do the same thing next year. Java, html, php do not move as fast as high end games. It will not be top of the line but its not useless.

Which brings me to another thing, you have a server paid off by some idiot renting it for your crazy prices. If you didn't just cash out you still have a server that could be sold at a discounted rate, a hybrid plan, or even some sort of shared hosting. Don't even try it with your crying that it will be worthless to you in one year. I expect any good business man could get 2-3yrs out of a server and even then still sell it on ebay or CL.

Also if you started with servers, you would have to sell one of them to put in the new one. You at least got $100-200 bucks to invest into the new server if not more. Who here has seen P4 servers on CL sell for $100? Because I have.

If everyone only wanted the most high end, newest server there would not be so many companies offering different options. I have seen dedicated mac-minis, I have seen dedicated 1.2Ghz ATOM servers (wtf), you really think next year someone is not going to pay to have a i7 in their machine.

Clearly your vision is to closed minded for you to find better ways to make your company more profitable than ripping your customers off.

And for everyone here saying how much colo would cost, I have already researched the costs involved. It basically comes out to $160-200 for colo, yes its unmanged you will have to hire someone for that. But its your box! If you want 16GB of ram in the thing then you can do it. How much would a provider charge your for 16gb of ram? Do you want a RAID? or SSD fuck it you can do it. The initial cost to you will be 1-2k but the same tech from a host would be 500+/MO. Pay yourself off in 5months not them.

Wiredtree gave me a great deal since I was already a customer on my dedi, so ill stick with that for now. But I am already making a shopping list for my new dedi box.

He_mad.jpg
 
I think if you can buy ram, then you should also start your own datacenter and then I think it would be a little bit cheaper for you, Cmon seriously ?? I have my own datacenter here in fort worth. There are lots of cost involved with just a small part, not to mention labor, cost of running the facility. If it would have been soo easy, then every tom, dick and harry would be running a datacenter.


I currently have a 756mb VPS at wiredtree, I am really trying to get my ecommerce site running at full speed. Its using Magento and its fucking everything up since I have a lot of stuff on there. Time to move it to a new server, but looking at the pricing at most hosts I just can't bring myself to order from them because of the epic scam they are running.

Few things I have seen, 2gb ram server add 2gb more and its a extra $20/mo. I can BUY 8gb of ram for $99 on newegg. Extra hard drives, or extra space still a total rip off. A 500gb WD is now $40 on newegg. Why the hell would I pay 10-20 more a month for that?

Its not 1990 anymore how are they getting away with these prices? I am very very close to just saying fuck it and building a server for colo.