Don't Sell the Steak, Sell the Sizzle

Nowadays it is common to see web hosting companies offering 15 giga of storage and 40 giga of bandwidth for less then 7 dollars a month. The first idea which comes to mind is that they are overselling, think, a hard disk is normally 80 mega and a server may have up to 2 hard disks, so at 15 giga of storage, one server will have max. 10 - 11 accounts, no web hosting company would survive 2 months with such arrangement!

These companies are simply overselling, knowing fully well that a website will occupy an average of 50-60 mega bytes.

One solution for honest web hosting companies would be to reduce the prices, make it so cheap that they would beat the competion; wrong, this would be the wrong approach, honest companies just have to keep honest and give great support!

Another solution would be: give something extra, have some templates, scripts and software which you can get resale rights and give them to the customers, treat your customers like friends, sometimes visit their websites and then send your customer an email with some pertinent suggestion.

If your customer is having problem with a script, help him to install, this system will make your customers appreciate you, and seldom will a satisfied customer leave you, even if he finds a cheaper deal.