If you ask webmasters "How hosting rates are formed", then, as a rule, you can hear either silence or general phrases like "the higher the quality, the more expensive the tariff". However, the market shows that everything is not so simple.

Why are the prices so different for different services, although the tariffs are very similar? Is it really just greed that causes everything, or is everything much more complicated? To answer this question, you will need information concerning one side of any modern business, namely pricing.

The thing is that the price of hosting is formed for the most part not at all because of certain technical characteristics. This may seem strange, but just the speed, volume, number of databases and possible sites does not actually affect the price directly. Otherwise, how else can we explain the fact that many free hosting companies offer very generous services and at the same time easily stay afloat for a couple of years?

The secret of the price of Unlimited Reseller Hosting lies in the cost of the product. In this case, we are talking about the server where the hosting is located. And the price tag is taken not from heaven at all, but taking into account specific expenses.

Hoster's expenses on the data center and office

Here is a short list of the most obvious expenses for a data center and office:

HOUSING AND COMMUNAL SERVICES: Unlike a regular office, a modern hosting data center consumes significantly more energy. Imagine rows of large iron structures. Each of them is equipped with virtual disks. Servers should work around the clock, squeezing the maximum out of their hardware for normal quality of work. It is energy consumption that is the largest monthly expenditure of a 1 Dollar Hosting provider in the payment column for various housing and communal services.

Stable and reliable network performance: In addition, it is necessary to maintain additional employees for full-fledged maintenance of the server center — you need to constantly change some details that deteriorate during round-the-clock operation.

Payment for the work of personnel (technical staff, support service, as well as "blue collar workers").

Regular software updates: In order for the user to work on the website, armed with the most modern software, the company spends a large amount on the purchase of licensed versions.

Maintenance of the building or payment of office rent: Again, there is a big difference between an ordinary building and a room for a modern data center. It is necessary to comply with special world-class standards adopted for buildings of this type. And in order to guarantee complete safety of work, the safety of all equipment (and at the same time the license), the $1 Hosting hoster regularly arranges quite expensive repairs.

Money for advertising: There is no development without high-quality advertising, and the natural growth of the base is very slow for the normal conduct of such a business. Therefore, a variety of marketing tools are used, the use of which requires a lot of money.

All this is necessarily included in the hosting rates, and you pay for these expenses, giving your own money. However, why is the service at different hosting companies estimated at different amounts? Let's go back to spending, as well as the general policy of spending money. Some hosters, for example, have to pay money for office rent, while others do not need it due to the presence of their own real estate, but they spend a lot on advertising.