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The truth about web hosting |
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The truth is that there is no money in web hosting. Unless you want to engage in what I describe as "supermarketing". You can dolly up your front page all you like, but you still have to deal with a critical mass before you can turn a profit.
I coined the term "supermarketing" in the 90s, largely as a result of my experiences working in a supermarket and studying the laws of marketing at University.
But basically this law states that, on average, you will make a profit. However, it relies on a large turnover and you have to put the fresh produce (which delivers a particularly high margin) near the entrance to the store.
This means that an effective, low-cost hosting company relies on not interacting with the majority of its customers in order to make a profit.
I don't do that. I tend to focus on the little people. So I may not be making a 2% profit on a multi-billion annual turnover, but I, and the customers that actually pay me, are happy.
Blue Sky Host is going to undergo some renovations. We will be stripping back to one super-powered server and those that choose to come along for the ride shall reap the benefits.
In the meantime I would appreciate it it if those idiots ostensibly from California would stop trying to purchase hosting accounts online. We all know what you're up to.
Chris Bell Head Geek Blue Sky Host -- |