Thread: What do you think of this statement?

I am in the process of starting a Hosting company that really does offer unlimited Space and Unlimited Bandwidth. This is the following statement that will explain how this is done.

Your comments on this would be much appreciated.

It's true that nothing may be truly unlimited but when we say this it really means you can have as much as you want! We don't believe in offering things we can't deliver or hiding limits in fair or acceptable usage policies.

Lincero Internet Soloutions operate a sophisticated web hosting platform that utilises large network disk arrays. If we need to add more web space we can do this with no downtime by adding more disks to the arrays. As there are multiple arrays, if one fails another one automatically takes over. As all data is synchronised this has no impact on any web sites or email hosted by Lincero Internet Soloutions. This dual system also allows us to carry out more complex upgrades by taking down any array and working on this while another array continues to serve our customers.

We are frequently asked, "If you run out of Web space will the web server be offline when you add more space?" The answer is no, there will be no interruption to your service.

Extremely risky and something you will find you will not be able to offer without dirty underhanded terms or extremely, extremely high prices.

There truly is no such thing as 'unlimited' a few resource hogs and you'll soon find yourself paying more for the servers than you are getting in fees.

Not to forget a servers hardware 'ram/cpu' can only handle so much anyways, no matter how large of hard drives you are running and how many.

So if I was to say offer much smaller packages I would probably have more success? My worry is though with the likes of hostgator and their packages its getting harder and harder for the smaller hosting companies.

All I know is there is no way you can truly offer unlimited without underhanded terms setup to take away the 'unlimited' aspect of it.

Sites that offer unlimited space and bandwidth for $10 a month for example. I pay for 3 dedicated servers and all it would take is one resource hog to come along that could overtax all my servers, hard drive space possibly not, but possible if they upload movies for example. CPU/Ram and bandwidth though, very easy to do.

How could anyone make any money in such a case? Without having underhanded terms to take away the 'unlimited' aspect you could soon find yourself losing money, or having no choice but to cancel those individuals even though you claim true unlimited service.

Well the way it would work if I were to have carried on with this is that the company I have teamed up with are offering me the unlimited rights to resell their service as unlimted. But it would all rest on them keeping their side of the bargain. And its not cheap. The price of this that I would have to pay is quite mega. But I have taken onboard what you have said and do not think that this would be a smart move.

In my opinion,

Don't try to go up against the big guys, try to gain your clients by using "value added" techniques. Start locally by posting fliers around your city, and by visiting local businesses. You would no believe how many business owners will give the local guy a chance!

After that, let word of mouth help you out, if your clients are happy, they will tell their friends.

Over the last 8 years, I have had a profitable hosting business (meaning it pays for itself, and there is a little extra) without really advertising on the web.

I talk to businesses, and I try to take care of all their web presence needs, they dont have to worry about buying a domain from one place, getting their site built by this other guy, and finding hosting from some other place. I take care of all those aspects, and they only have to deal with one guy. Hence "Value Added"

Think about this, I offer only one hosting package (500 mb, 5 GB BW, a few email addys and a few databases) nothing big, just right for most folks. Around town, I offer that to my clients for $10 a month and no one ever complains, and pay promptly. I offer the same package online, for those who might stumble upon my site (since I dont advertise it much) I sell it online for $2.50 a month, and I only have a few takers, cause competition online is so great.

Just a few thoughts that might help you!!!

Thank you for your suggestions and advice. Im definetly not gonna go crazy and offer this unlimited package. Will take all of the comments on board too.

I think Mike has the right idea.
It's tough to compete and you have to provide something that sets you apart. Concentrate on service and you will get referral business from current satisfied customers.

Besides... There are tons of places that offer unlimited everything and most of us know it's full of shit. Do you want to be lumped in with that group?

LeenkzMike has the right idea.

I have just a few clients, just enough to pay for my reseller account.
I don't advertise to get more, as the competition is fierce all over in the hosting business.

And for sure, always stay away from anyone or company offering unlimited storage and bandwidth.

Originally Posted by iowadawg

LeenkzMike has the right idea.

I have just a few clients, just enough to pay for my reseller account.
I don't advertise to get more, as the competition is fierce all over in the hosting business.

And for sure, always stay away from anyone or company offering unlimited storage and bandwidth.

Definitely, on many of the more reputable hosting forums unlimited offers are not even allowed (no matter how you explain it).

My advice is to avoid offering "unlimited".