Web Host Price: How Much to Pay? What’s the Catch?

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Web Hosting Pricing is something that affects almost everyone who wants to own a website.

Hosting prices can vary widely based on the type of hosting, the resources allocated, additional features, and the level of support provided. Understanding the nuances of web hosting pricing and how to navigate them is essential for web host shoppers to ensure they select a plan that meets their needs without overspending.

Here’s a closer look at web hosting pricing and how potential web host shoppers can assess and find the best value.

What Are the Factors that Affect Your Web Hosting Cost?

How to know if you are paying a fair price to your hosting company? Here are a few things to look into when you are planning for your hosting budget. Alternatively – you can make use of our free Hosting Cost Calculator to “guestimate” the cost specifically for the kind of website you are hosting.

Types of Hosting Plans

Demo: How Types of Hosting Plans Affect Pricing
Example: Pricing varies significantly for different types of hosting services. Screenshot showing the prices for Shared, VPS, and Dedicated Hosting at InMotion Hosting.

Pricing varies significantly across different types of hosting services. Shared hosting tends to be the most affordable option, while dedicated and cloud hosting are more costly due to their increased resources and flexibility.

Pricing Models

Different Pricing Model
Example: Traditional hosting providers typically charge users on annual or bi-annual basis to lock in revenue. Cloud providers like Cloudways (as shown in screenshot), on the other hand, charge on monthly basis and do not require their users to pay in one large sum of money during signup.

Web hosting providers typically offer a range of pricing models, from monthly and annual plans to pay-as-you-go schemes for cloud hosting services. A cost-effective hosting plan is one that aligns with the user’s budget while offering the flexibility to scale services according to the website’s growth, without imposing unnecessary costs for unused resources.

Renewal Rates

Demo: Signup price and renewal price are different
Most hosting companies will highlight their discount to new signups but will not tell you (at least not on their landing page) that you will be renewing your subscription at the “regular” rate. SiteGround, for example, renews at $17.99/mo for their lowest shared hosting, a whopping 500% hike from the $3.99/mo signup rate.

Many web hosts offer low introductory prices that significantly increase upon renewal. Transparent hosting services clearly disclose renewal rates upfront, allowing users to make informed decisions based on long-term costs.

Included Features

The range of features included in a hosting package directly impacts its cost-effectiveness. Essential features like SSL certificates, email accounts, domain registration, site builders, and access to control panels should ideally be included without additional charges. The more comprehensive the feature set relative to the price, the more cost-effective the hosting solution.

Scalability Options

The ability to scale resources up or down based on website demand affects both cost and value. Hosting plans that offer seamless scalability ensure users pay only for the resources they use, enhancing the cost-effectiveness of the service.

Resource Allocation

The amount of resources (CPU, RAM, storage, bandwidth) significantly influences pricing. Plans with higher resource allocations generally cost more.

Hidden Fees

Beyond the upfront costs, web hosting may include unexpected charges that affect the overall expenditure. These can arise from setup fees, site migration fees, domain renewal rates higher than initial purchase prices, and costs associated with exceeding resource limits like bandwidth or storage.

How to Assess Web Hosting Pricing?

  1. Define Your Budget and Needs: Start by finding out how much you’re willing to spend on web hosting. This helps in narrowing down your options to plans within your budget that meet your needs.
  2. Compare Plans Across Providers: Look at several hosting providers to compare the costs for similar types of hosting and resource allocations. This comparison helps in identifying the best value for your requirements.
  3. Read the Fine Print: Carefully review the terms of service and pricing details to understand what’s included in the base price and what costs extra. Pay particular attention to setup fees, domain registration costs, SSL certification fees, and any other additional charges.
  4. Consider Long-Term Costs: Evaluate the total cost of ownership over time, including any increases after the initial term and the costs of additional services or resources you may need as your site grows.
  5. Look for Promotions and Discounts: Many hosts offer promotional pricing for new customers, as well as discounts for paying annually instead of monthly. Take advantage of these offers to reduce costs but be mindful of the renewal rates.

Hosting Signup vs Renewal Fees

Because of the extremely competitive nature of the web hosting industry, we have seen web hosting companies slash prices significantly to entice new customers. Signing up for their hosting plans could see you buy-in at very significant discounts even on normal days.

These offers are fantastic and can be a huge cost saver especially if you are willing to sign on for longer contracts. However, you need to remember that these offers are exactly that – sign-on bonuses. Always make sure you know the renewal prices for the plans you sign on for or you could get a nasty shock when you get the bill for renewal.

Examples: Shared Hosting Signup vs Renewal Pricing

Web HostsSignup (/mo)Renewal (/mo)Differences
Hostens$1.00$4.00300%
NameCheap$1.48$4.48203%
Hostinger$2.49$11.99382%
ScalaHosting$2.95$6.95136%
GreenGeeks$2.95$11.95305%
BlueHost$2.95$11.99306%
DreamHost$2.95$6.99137%
A2 Hosting$2.99$12.99334%
TMDHosting$2.99$9.99234%
HostArmada$2.99$11.95300%
Verpex$3.00$6.00100%
Ultahost$3.08$4.3943%
InMotion Hosting$3.49$9.99186%
Hostgator$3.75$9.99166%
SiteGround$3.99$17.99351%
IONOS$5.00$6.0020%
AltusHost$10.92$10.920%

HostScore Recommendations

Based on our market study, a basic shared hosting plan costs $3.50 and $9.00 per month during signup and renewal. Basic VPS hosting plans costs range from $20 – $30 per month. Use this data as your reference when choosing a web host.
  • Avoid Overbuying: Choose a plan that fits your current needs with a little room for growth. Paying for excessive resources or features you don’t need can unnecessarily increase costs.
  • Check for Money-Back Guarantees: Most website hosting companies will have some form or other of money-back guarantee to assure you of the confidence they have in their service. This is important and do not disregard it. Opt for hosts that offer a money-back guarantee. This allows you to test the service risk-free and ensure it meets your expectations before fully committing.
  • Negotiate with Providers: Don’t be afraid to contact sales representatives to discuss your needs and ask for discounts or customized pricing, especially if you’re committing to a long-term contract.

By carefully evaluating web hosting pricing, web host shoppers can make informed decisions that balance cost with the features, performance, and support their websites require.

Keep in mind that the cheapest host may not be the best option for your website. When a web hosting company is offering a competitive product at rates lower than industry standard, either it is making a loss, or it has cut corners somewhere. This could be in any area from server equipment to customer support – something must go. Before signing up for the cheapest deal you can find, we urge you to consider the other key factors that we have stated in our guide.


Choose the Web Host That Suits Your Needs Best

Article by Jerry Low

Jerry Low has immersed himself in web technologies for over a decade and has built many successful sites from scratch. He is a self-professed geek who has made it his life’s ambition to keep the web hosting industry honest. For latest personal updates and news, follow Jerry on Facebook and Twitter.
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