How does webhosting service providers calculate their hosting fees? Based on a simple equation: Web Space + Bandwidth = Monthly Fee. How do they make their profits? From overselling their bandwidth and web space.
The frenzied advertising campaigns revolve around one simple idea: Give us your credit card number and we’ll give you everything! That’s how the traditional web hosting pricing model works. Create unlimited email accounts. Host unlimited domains. Use unlimited databases. But most casual customers don’t need 10,000 email or FTP accounts.
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