Many of these
"unknown" companies are scams, pure and simple. They are started up, typically
charge an annual fee, and tout the monthly rate (paid annually) as if it
compares to a regular web hosting company's monthly rate. The catch here is that
in many cases, these companies obtain a significant number of customers and then
eventually file for bankruptcy. What happens to the pro-rated amount for the
remainder of the customers' annual premium? Well, that is a mystery; it is
rarely ever refunded back to the customer. We've seen several posts on message
boards of where this has happened, and this is why we do not try to compete in
that "super-low-cost" market.
If ANY web
hosting company charges less than is reasonable for services such as emails,
bandwidth, etc that it offers and it sounds too good to be true, then it
probably is not true, or won't be for long. Here's the deal. Many of these
companies, some of them are the largest hosting companies around, are left over
from the Internet boom when venture capital was flowing like honey in the
Promised Land. These companies still live by the flawed idea of "give it away to
get market share; then raise prices." That idea worked for Microsoft with their
"Word" product because there was no real competition at the time. In the hosting
business, now almost a commodity, giving it away is ridiculous because when you
finally start to raise prices --guess what? -- Your customers will just go to
the next best deal. This time, they'll want someone more reputable and
straight-forward about pricing; companies like Imagion.com!
Furthermore,
these companies that are practically giving away hosting are doomed to go out of
business eventually, and will leave customers stranded. This was the case with
the DSL fiasco when Coved and several other major players claimed bankruptcy.
The stranded customers were then SOLD to other companies and resulted in a
nightmare for many of those affected. Well, similarly, in the hosting business,
once their magical venture capital runs out and their flawed business model
fails, their customers will face the same situation. At that point, many of
those customers will most likely flood the market, if they care about service
and reliability, and they will be looking for companies like Imagion.com,
companies that put issues like reliability, service, and honesty at the
forefront of its business model.
It is
possible to take advantage of these low prices in some cases but eventually, the
customer will probably get "burned." If price and extravagant service offerings
are THE most important, then maybe it's worth it to risk (just hope they don't
get an annual payment and then drop their service). However, quality service,
reliability, and superior support comes at a price

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