Interestingly, one of the ways to get around information asymmetry problems is testing, certification, and, yes, reviews. But if the review sites are corrupt, that kind of brings you back to square one.
Not only that, but even if the reviews are honest, the reviewers may not be reasonable at all. For instance, there was a rash of complaints about Dreamhost a few years back because of cutting people off for too much CPU usage. This is usually from people running PhpBB and WordPress with a zillion poorly-written modules, who were too cheap to pay for a VPS or something more appropriate to their traffic levels.
A lot of them moved to places like Site5 where they tended not to cut off customers. Sounds great if you're one of these guys using all the resources, but it sucks for the other 50 people on the shared box. I experienced this firsthand where Site5 would sometimes become tremendously slow for no apparent reason, and the support staff would always just say they were "looking into it", but would never come up with a solution after months and months. Meanwhile on Dreamhost, things might not always be as fast as my Xen VPS, but neither would I log in and see a load of 10+. Plus they responded professionally and dealt with serious technical issues with refreshing candor.
That's the real problem with reviews.. I know there's a bunch of false ones for various hosting sites, since the tech support was unwilling to walk people through basic processes, or code their entire site for them.
I can't really come up with a solution to that, as there's no way to accurately tell if someone knows enough to be reviewing the place.
I recently switched hosting to a place called Spexhost, which is run by some people I knew through IRC. That alone makes me trust it a bit more then some random company.
There's also a bias in terms of what gets people worked up enough to comment: bad service, or really, really good service. Ok and pretty good service are less likely to get people excited enough to post reviews and commentary.
The thing about web hosting is that it's undervalued by people due to price competition. A lot of people think it's reasonable to pay $5 for a hosting account and they expect everything to work perfectly and get support if they can't figure something out. Well if they spend one hour of staff time a year helping you then the profit margin is essentially shot. That's why most cheapo shared hosts just offer crap service. It's not worth it to even try.
That's why the momentum is definitely the direction of hosted services for most things people need rather than direct web hosting. If you want to host your own website you should either A) pay a few hundred a month for a managed host, or B) learn to be your own sysadmin (which frankly is not nearly as hard as it used to be).
That's precisely why I find sites like WebHostingTalk.com so valuable. You can talk with others who are interested in all sorts of Web Hosting-related information, moreover, you get to actually converse with some of the web hosting providers' owners.
I spend most of my time on the WHT forums in the colo section, and you see plenty of specific threads trying to find the most applicable type of hosting for a particular need ("Looking for a strong 20mbps colo host in Chicago. What do you guys recommend?").
You also get pretty much first-notices of downtimes there, and you even get the sweet notices of the stories such as the big break-in at CIHost chicago several years ago (where the crooks sawed through the wall, tazed the employees, and stole a bunch of servers, meanwhile CIHost was initially claiming that there was just an outage).
Sounds like a market opportunity. No-BS Hosting Reviews. Affiliate free. Require proof of being a customer (placing an HTML file on their server) to reduce gaming. Sell ads, but make a clear distinction between reviews and ads.
If you google for hosting reviews, and find one that says "No-BS", contrasted against the others, it may stand out. You'd have to develop a reputation for being reliable, like any other site.
That's a good point. Good branding and good execution could overcome that. There are a lot of successful sites out there that position themselves as the no-crap version of crappy sites that do very well.
There is the difference between "make something people want" and "make something people need". It's much harder to make money with the later approach and probably impossible to get rich.
A web hosting review site sounds like an opportunity to make money. But like all profitable ideas, the competition reaches a critical mass and the inefficient die.
Sorry, I didn't mean to be dismissive. It was a good question, and please keep asking them. I've just been having a bad day -- just got through an epic almost-breakup-but-not-quite-broken-up girlfriend problem. So to be clear, I apologize.
Happily bug-free at the moment :) thank you for the thought. I did write a pretty hilarious awkward breakup letter that I should probably post to my blog for memory's sake.
Agreed. Dead worries me and I'm very happy I turned showdead on - not because spam shouldn't be deaded, but because I've seen plenty of legitimate comments "deaded" on threads..
The reason you see dead comments is not because they've been individually killed, but because they were posted by banned users. Often it's obvious from the comments why they were banned, but there are some who oscillate between reasonable and trolling.
That's useful to know - thanks! It's a shame that good comments die with the user, though, although I expect few users with consistently good comments are banned anyway.
Wow, they aren't even shy about it: all of the advertisers on their front page (except adsense) are also in the top 10 list. Shouldn't that be a conflict of interest?
I do a little web hosting on the side. Only for friends or companies that are run by friends, though. Depending on what they want I charge somewhere between 10 and 40 euros a year. If you don't know the dollar/euro exchange rate, just assume it's 1:1 for now.
I've also built several web-hosting (static HTML and PHP/MySQL) systems for ISPs (years ago) along with the management and backup solutions to go with them.
I make a small loss doing the hosting I do for friends, but that doesn't bother me.
I over the years I've often been asked by the people buying my services why I am more expensive than a lot of advertised hosting services.
Ha! More expensive, now there's a joke. The key word is 'advertised'. I basically re-sell capacity below cost and re-sell domain registration at cost plus one euro a year for administrative overhead (read : the cost of sending a yearly invoice through snail-mail).
My hosting services are 'expensive' because this is what the actual cost is.
If I'm running this at a loss in my spare time on a good-will basis, why are there parties out there with full-time staff charging less for (superficially) identical services?
Well, let's see..
Registering a domain with a random party is generally a bad idea. For example, some hosting companies put themselves in the registrant information (as owner). In other words, the domain doesn't belong to you and you do not have control over it. Not something a non-techie will know or understand (unless you explain it to them).
The price for registering a domain is generally lower when you go with a big hoster, because these organizations have bulk registration deals, which lowers the price they have to pay to register an individual domain. Buy 1 domain at 10 euros, buy 1000 at 1000.
Some hosters also play bandwidth games. Ooops, you got linked from a major site and that's caused a spike - which is why your site is now shut down. Please wait 24 hours or upgrade to 'premium'.
Pay extra for email. Oh yeah, this is a popular one. Besides not having proper forwarding facilities (or a POP or IMAP server - forward to one address only), many providers will store any email on their own systems and charge for it. Bonus points for "adding email addresses to your domain", which will cost more (of course).
So right now the old I-hate-Java-frameworks post from 2005 and this one from 2006 are both front page "news." Has the internet finally run out of actual news? Perhaps it is a dump truck, after all, as opposed to a series of tubes.
I'm actually launching a hosting review site right now (tonight) so it's interesting this came up. I've found this is very much the case across all hosting review sites.
I decided to shift focus towards working with hosts (any host) that want to be included in the directory, whether they had an affiliate program or not.
Of course if a host happens to have an affiliate program, I see no reason to not use it as long as your transparent with your users.
Plus it keeps the site free of regular banner advertising.
Even grocery and department stores can have financial considerations around product placement and the location and quantity of shelf space for a product that is made available within the store.
When in doubt (and when you can), always follow the money.
They're right, but I doubt this post will have much effect. It's a profitable game and of the thousands of people who click through to that hosting review site, very few are already Dreamhost customers, have read Dreamhost's blog, or, heck, probably even know what a "blog" is.
All those horrendous price comparison sites, catalog sites, and other junk sites are still out there and still thriving just because consumers are pretty ignorant when it comes to online research. These sites won't be going away any time soon, alas.
I've been using Dreamhost for years to host The Black Stripe (http://www.theblackstripe.com) and while there were some rough times at the beginning, things have gotten much better in the last 2 years. I recommend them as a host for my freelance clients because they are so cheap for what you get.
If anyone is looking for a dreamhost promo code, you can use HACKERNEWS to save $65 off the first year (or more) of hosting.
52 comments
[ 2.9 ms ] story [ 104 ms ] threadhttp://www.welton.it/articles/webhosting_market_lemons.html
Interestingly, one of the ways to get around information asymmetry problems is testing, certification, and, yes, reviews. But if the review sites are corrupt, that kind of brings you back to square one.
A lot of them moved to places like Site5 where they tended not to cut off customers. Sounds great if you're one of these guys using all the resources, but it sucks for the other 50 people on the shared box. I experienced this firsthand where Site5 would sometimes become tremendously slow for no apparent reason, and the support staff would always just say they were "looking into it", but would never come up with a solution after months and months. Meanwhile on Dreamhost, things might not always be as fast as my Xen VPS, but neither would I log in and see a load of 10+. Plus they responded professionally and dealt with serious technical issues with refreshing candor.
I can't really come up with a solution to that, as there's no way to accurately tell if someone knows enough to be reviewing the place.
I recently switched hosting to a place called Spexhost, which is run by some people I knew through IRC. That alone makes me trust it a bit more then some random company.
It would be equally useless for those readers to read your review considering you don't need help with the basics, if they do.
That's why the momentum is definitely the direction of hosted services for most things people need rather than direct web hosting. If you want to host your own website you should either A) pay a few hundred a month for a managed host, or B) learn to be your own sysadmin (which frankly is not nearly as hard as it used to be).
Funny; I don't think I ever logged into my DreamHost account and saw a load any lower than 14-16 on a good day...
12:24:03 up 80 days, 11:29, 5 users, load average: 2.58, 2.16, 2.35
Which is a little on the high end of what I usually see. More importantly, when there has been a problem they've identified it and dealt with it.
I spend most of my time on the WHT forums in the colo section, and you see plenty of specific threads trying to find the most applicable type of hosting for a particular need ("Looking for a strong 20mbps colo host in Chicago. What do you guys recommend?").
You also get pretty much first-notices of downtimes there, and you even get the sweet notices of the stories such as the big break-in at CIHost chicago several years ago (where the crooks sawed through the wall, tazed the employees, and stole a bunch of servers, meanwhile CIHost was initially claiming that there was just an outage).
Maybe there's a market for a hosting reviews site run by some company or some person with a good existing reputation.
Same goes for domain registrations, DNS providers etc.
http://news.ycombinator.com/submitted?id=Jaheem12
(You have to turn on showdead in your profile to see spam.)
As it is, he's happy spamming this site, and we're happy not seeing it. Everyone wins.
Apparently I was the only one interested in PG's anti-spam strategy... Sorry for asking such a stupid question.
Otherwise there seems no way to find what the original url was.
I think the items deaded are pretty much spot on, but sometimes I'd like to be able to see what the fuss was about, or points raised in discussions.
I've also built several web-hosting (static HTML and PHP/MySQL) systems for ISPs (years ago) along with the management and backup solutions to go with them.
I make a small loss doing the hosting I do for friends, but that doesn't bother me.
I over the years I've often been asked by the people buying my services why I am more expensive than a lot of advertised hosting services.
Ha! More expensive, now there's a joke. The key word is 'advertised'. I basically re-sell capacity below cost and re-sell domain registration at cost plus one euro a year for administrative overhead (read : the cost of sending a yearly invoice through snail-mail).
My hosting services are 'expensive' because this is what the actual cost is.
If I'm running this at a loss in my spare time on a good-will basis, why are there parties out there with full-time staff charging less for (superficially) identical services?
Well, let's see..
Registering a domain with a random party is generally a bad idea. For example, some hosting companies put themselves in the registrant information (as owner). In other words, the domain doesn't belong to you and you do not have control over it. Not something a non-techie will know or understand (unless you explain it to them).
The price for registering a domain is generally lower when you go with a big hoster, because these organizations have bulk registration deals, which lowers the price they have to pay to register an individual domain. Buy 1 domain at 10 euros, buy 1000 at 1000.
Some hosters also play bandwidth games. Ooops, you got linked from a major site and that's caused a spike - which is why your site is now shut down. Please wait 24 hours or upgrade to 'premium'.
Pay extra for email. Oh yeah, this is a popular one. Besides not having proper forwarding facilities (or a POP or IMAP server - forward to one address only), many providers will store any email on their own systems and charge for it. Bonus points for "adding email addresses to your domain", which will cost more (of course).
Thought it was an excellent blog post and still relevant today and so I posted it after a quick search revealed that it hadn't been posted yet here.
I decided to shift focus towards working with hosts (any host) that want to be included in the directory, whether they had an affiliate program or not.
Of course if a host happens to have an affiliate program, I see no reason to not use it as long as your transparent with your users.
Plus it keeps the site free of regular banner advertising.
Industry analysts and consulting houses can have similar profit motives for their recommendations and implementations over the years, too.
There was a bogus application that showed how shady some of the software award sites can be, too: http://successfulsoftware.net/2007/08/16/the-software-awards...
Even grocery and department stores can have financial considerations around product placement and the location and quantity of shelf space for a product that is made available within the store.
When in doubt (and when you can), always follow the money.
All those horrendous price comparison sites, catalog sites, and other junk sites are still out there and still thriving just because consumers are pretty ignorant when it comes to online research. These sites won't be going away any time soon, alas.
If anyone is looking for a dreamhost promo code, you can use HACKERNEWS to save $65 off the first year (or more) of hosting.