04/ 02/ 2008
Net Hosting Services Drop Fees
Here's some good news: Major Internet hosting services are dropping prices, and for some of their small business clients, the drop could be significant.
In February, Yahoo announced it will standardize the fee it charges small business customers to host their Web sites. The company will now start offering unlimited disk space and bandwidth for $11.95 per month. Previously, customers who used more than the allotted bandwidth and disk space could see their monthly charges spike up to $40 or more. Why the drop in pricing? With companies like Amazon entering the hosted services marketplace, the competitive forces have driven down prices across the board. Technology improvements are allowing the cost of storage space and bandwidth to decrease.
Always one of the most competitive markets for online services, the small business Web-hosting market has entered a frenzy in which once high-priced services are dropping in price, and are often free. (Or as they're now calling it in technology companies, “zero dollar.”)
Here are ways to take advantage of these falling prices and things to consider with your overall Web marketing budget.
1. If your online strategy is limited to a Web site that you rarely update and you're spending less than $20 per month on it, perhaps you should rethink your Web strategy.
It's not that you're spending too much; it's that you're not doing enough.
2. If Web site hosting fees (not to be confused with search advertising fees) are a major expense in your marketing budget, you may benefit from becoming more familiar with what you are being charged. It might be time to look for alternatives.
3. Be aware that hosting and bandwidth fees are not the only line items on your monthly Web site bill. Some service providers may charge for add-ons—e-commerce, for example.
4. While pricing may drop for Web site infrastructure fees, your success online will ultimately depend more on how you market and sell your services than on how much you pay for hosting and bandwidth.
