Why we moved to an Unlimited Shared Hosting Plan
Written by Rob Spurlock
Friday, 19 November 2010 01:09
Back in August 2010 Infinity Hosting Solutions decided to roll out the Infinity Plan, an unlimited shared hosting package to replace ALL of the other shared hosting packages we offered. Basically we now provide more disk space, bandwidth, databases, e-mail etc and lowered the price. Why would we go after the Unlimited market? We had our reasons…
Here they are in order of importance -
- Make it easier for our customers to decide on a plan (only 1 to choose from)
- Compete with larger hosting companies with the same type of plan
- Move to a yearly prepay option to monetize the customer immediately
It was our experience, as much as we tried to give tons of options, our customers or potential customers just ended up confused. Many new customers had no idea how much disk space they wanted or even what data transfer was. They simply went for the cheapest package. We also found out that most customers used very little disk space and very little bandwidth or data transfer.
Most of the larger web hosting companies used the unlimited hosting plans as a marketing ploy to get new signups. All unlimited web hosting plans have actual limits to keep the usage fair for other customers that share the servers. While we and other hosting companies push unlimited everything, we still have to be able to make money and put more than a single customer on a single server for $4.95 each month.
Lastly, by moving to the Infinity Unlimited Plan, yearly prepays are required. This helps to eliminate a lot of the 1 month customers that spend $4.95 for a single month, never pay for another month, then eventually get canceled. The result is time and money spent to set up a new client where you get very little money in return. A loss is realized and time is wasted. When a customer wants the unlimited hosting plan, they prepay for 1, 2 or 3 years at a time and a free domain name is included the first name (either free registration or free transfer for selected gTLDs).
Read more about the new Infinity Unlimited Web Hosting Plan and our on TOS and free up your website from silly limits!
