You call GEICO, Anthem, AT&T, or Verizon and they’re not amazing but they do fix things eventually in your battle with them. You’ve been told by their marketing copy that they’re amazing, they have 24/7 support, phone support, and you’re expecting the experience to be like most other companies you deal with. Let’s assume you decided to go with cheap WordPress hosting and you’re paying them $10 per month ($120 per year). So marketing and COGS (servers, infrastructure) alone mean that only 60% of each dollar a hosting company brings in is available to pay salaries and all other expenses. The cost to acquire a customer in hosting is actually one of the highest out there.
You’ll need to spend time finding and hiring freelance writers who are experts at their craft. Trying to outsource for cheap content to places like iWriter simply won’t work. A well written technical article that is at least 2,500 words can easily cost $1,500. You also would need to be prepared to shell out thousands of dollars to create amazing evergreen content that will compete in this niche. We are definitely fans of the organic approach along with content marketing, but it’s a long-term play, and requires consistency and patience. Trying to rank organically with SEO for the term “web hosting” nowadays could take years, due to all the competition. If you’re a VC funded company perhaps you don’t care, but if you’re a startup or bootstrap company, this requires you get creative. 😲 This can vary base how many impressions shares and what you’re willing to bid to appear at the top of the page, and for how long. If you go down the pay-per-click (PPC) route, bidding on a keyword like “web hosting” can cost up to $20 per click with Google Ads. After all, the cost to acquire a customer in hosting is actually one of the highest out there. If the company is still trying to grow (and hopefully it is) then another 10% or so will go towards marketing expenses. That leaves 70% of each dollar they bring in to pay staff and everything else. Average Cost of Goods Sold (30%)įor most hosting companies, the average cost of goods sold ( servers at data centers) is around 30%. Below I’ll break down some of the costs and expenses a typical hosting company has. Hosting companies are for the most part largely like others, where gross profit determines how many people they can staff for support among other things. Click to Tweet Breaking Down the Web Hosting Industry
Jelastic Cloud is intended for well-established websites which already have a very high level of traffic or websites with a highly fluctuating number of visitors depending on the time of year.When you pay $5/month for WordPress hosting (which equates to a cup of coffee ☕), don't be surprised when it fails. If necessary, you will be able to migrate to a managed Cloud server later in a single click.
Learn more Our advice if in doubt: start with a web hosting solution. Unlike a web hosting solution or a Cloud server with a predictable, flat-rate pricing system, only the resources actually used are invoiced with Jelastic Cloud, which can be highly advantageous in certain cases.
Jelastic Cloud is suitable if your WordPress site generates a very high level of traffic and requires a clustered infrastructure with a dynamic resizing of resources. We advise you to opt for a Managed Cloud Server if your WordPress site uses numerous extensions, requires advanced technologies (such as Varnish or Memcached), is poorly optimised or generates a very high volume of traffic.
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Web Hosting meets most needs and incorporates the popular technologies (PHP, MySQL/MariaDB) necessary to create a blog or a professional WordPress site.
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