Cheap web hosting companies are basically newer companies who aim to win over the customers of older and bigger companies by lowering their prices. web hosting can these new companies reduce their prices and still earn a profit? Cheap web hosting providers take advantage of the fact that servers, bandwidth and storage space are much cheaper these days than they were several years ago. Bigger and older hosting companies are aware of this fact too, but since they have a stable customer base they would not reduce their price as it would mean a slash on their gross income.

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It is said that you get what you pay for. This is basically true in the web hosting industry. High end web host would naturally have more features...bigger disk space and bandwidth and back up service to all customers. While these are important features, not all website owners can fully utilize the bigger bandwidth and storage space. Moreover, costly backups are not needed by everyone but since they are included in the web hosting package, webmasters who have opted for expensive packages will have to pay for them. A cheap web hosting company would offer all the usual features needed by the webmaster but the backup would be an add-on feature that can be availed only if the client needs the service.