How do hosting companies benefit from free members?

Discussion in 'Web Hosting' started by nice2cu, November 23, 2015.

  1. nice2cu

    nice2cuMember

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    I wonder why hosting companies offer free web hosting services? By offering a free service what is their benefit in this?

    I think it is a long term play. They actually benefit when a free member updates his membership to a paid one. A free hosting is a blessing for a beginner who just wanted to test his career online. But as and when his site becomes a hit, he has no other option but to go for a paid and better service from the company to take care of the growing traffic. So, that is a mutual benefit for both the company and the user. The user can learn from his experiences and the company starts earning when he becomes a paid customer.

    So, it is very important to give good service to free members as well because they are tomorrow's paid customers. A member will never opt to continue with a company that offers low quality service to its customers. So, a good customer service is a must for the sustainability. Some hosting companies even benefit by posting advertisements on servers

    I am just curious know if there are any other benefits for a hosting company that offers free service to its members.
     
  2. challengewriter

    challengewriterActive Member

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    You have about listed it all and also it makes them a reputable site, as users who have engaged in the free services, will spread the word and it will offer advertisement. Most people will try anything even if they don't need it, as long as it is free, which makes "free" a good marketing strategy in a lot cases.
     
  3. bharath

    bharathMember

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    Free hosts they do come and go because lack of funds. I had used free hosting when new to Internet, but learned a lot of lessons never to use free hosting.

    In these days most domain companies providing free host when they purchase a domain so it will be more beneficiary.
     

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