Apologies in advance for the length of this post...
Furion, you're dodging my questions.
Let me respond to your previous post, and then I'll ask you some questions I hope you'll be able to answer.
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People can only use 0.1 for a month.": I don't understand what you mean by this - please rephrase.
>> I meant, you can try out the service for a month, for a fee of $0.01. You get to host for one month. Check out the scripts the service and all.
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And incase your havent noticed. You can visit any other good web host and they all have 30days money back gurantee. And this is an extension of that.": How does offering a
service which customers
pay for equate to a 30 day money back garantee? I'm failing to see the link here...
>> Most of them offer 30days money back, but somewhere at the back of most people's head is the Question, Will they?? Here you just pay 0.01. So you dont even need to worry about money back if you dont like it.
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As far them charging 0.1 and not making it free goes. It's quite simple they just dont want wasteful free signups who do nothing.": this is the only part of your post I can agree with - it avoids wasteful sign ups. But that pretty much equates their package with a free one. Which again brings us back to the problem of business sustainability, profit and cash flow...
>>> Based on the premise that the service is so good. That the people who go in for trial, would later purchase the service. "Don't question me on this one as it depends on the individuals who go in for the hosting"
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when someone joins after paying, even if it is just 0.1, then it has a prolonged effect. And they think it has to be good as its not free.": I'm afraid this just doesn't work for me. A package at $0.01 (you left out a 0) sets of alarm bells - 'how can they offer such a good package other people are paying $$/mo for for such a low price?!'...
>> If you read my post clearly, you would have seen that it was just for 30 days period to check out the service. Not for a yr or two. Just for 30 days. It works on the same lines as money back, except here you pay way too little to even worry about money back if you dont like the service. And plus its "almost" free. I hope this answers your question.
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I was into advertising and I know how that works.. just think a little, its commonsense.": I sense a little agressivity and a patronising tone in this quote, which I'm not sure is entirely necessary. You've been in advertising - I'd like you to explain several points to me:
How exactly is this business going to make money?
You say they're doing extremely well - I assume they're making a significant profit for you to make such a bold statement. Where is the money coming from?
Supposing they get 100 times more clients than any other host - they'll be making as much money as any other company that charges $10/mo for a similar/identical package. So they'll be making the same amount of money. This is something I can't argue with. What I can't understand is how they can support 100 times more bandwidth traffic, file storage etc... It just doesn't work.
Just to clarify - I'm not trying to provoke you into having an argument. I'm just trying to understand how/why/if the company actually works. It's an interesting case study.
I've done a quick bit of research on the company - I'd heard of them before. Established in 2002, they're not the oldest established host out there, but are comparitvely veterans in the hosting game. They seem to be respected and trusted.But again, this isn't about the host - it's about whether or not hey can make money out of this package. Because believe you me, no matter how reputed they are, if they start losing money because of it, they'll shut it down in a heartbeat.
>> Most host do not even utilize 60% percent of their capability because they cant find customers. Here, the packages they offer, I will quote you in this "What I can't understand is how they can support 100 times more bandwidth traffic, file storage etc... It just doesn't work." - Their packages are very identical to ones offered by other host's. The point of difference is... for example Host A offeres 3000 FTP, then host B offers ftp 600.
Their bandwith is not the highested in the market. Another big host offers 1TB of bandwith. But that hosts has an uptime of 95%-98%. And plus How many people who go in for the services actually even come close to using this kind of bandwith in a month?
This wasn't a package. It was an offer to try out their services for a 30 day period.
I hope this clears all the questions you had regarding this post.
Thanks,
GLD.
EDIT: One more question - how do you know they're doing incredibly well, besides your experience in advertising/marketing?