Article by Jerry Low
Geek dad, SEO data junkie, investor, and founder of Web Hosting Secret Revealed. Jerry has been building Internet assets and making money online since 2004. He loves mindless doodling and trying new food.
Sometimes hosting deals are so C-H-E-A-P that it’s almost irresistible to shoppers. If you’re shopping for a good web host, I am sure you’ll see these lines here and there.
“Cheap web hosting, $1.99/mo for unlimited hosting!”
“$3.95/mo – Get unlimited hosting plus free domain for life!”
But hey, don’t get hooked instantly! Even if these cheap web hosting services guarantee 99.99% uptime, there’s still one thing that you need to look at before purchasing – the commitment period.
Believe me, when you look in-depth, most cheap hosting deals are not as good as they look like on the first sight. Example: Lunarpages hosting plan cost $4.95/mo but patrons need to pay 60 months in advance; JustHost, on the other hand, charge $5.95/mo (which is a little higher) but you can subscribe on year-on-year basis.
Assuming both hosting plans has the same features and performances, which hosting plan should you go with? The answer is the latter.
“But why? Lunarpages is cheaper – isn’t the cheaper the better? ” I heard some mumbling.
Even if you are extremely happy with the hosting company, placing your money 5 years upfront in such a fast moving business sounds pretty foolish to me. What if their hosting services turn bad in year 3? What if the company run out of money and went bankruptcy in year 3? There is no way you can turn back time and get your hard-earned money back with a 60-month commitment period.
Moreover, you are actually paying $297 (cash!) in bulk for the “cheap deal”. Financially speaking, this isn’t very wise – you would have make good use of that cash and spend it on better place (for example, in your web marketing plan).
Moral of the story, remember to check on the subscription period when you wish to get some really cheap hosting deals. Cheap hosting offers with extremely long subscription period are not good bargains.