Shared web hosting plans offer consumers a lot for the little amount of money they charge every month. It begs the question; how do these companies make money when they charge so little? Actually, it has a lot to do with how shared web hosting plans work.
Thousands Plugged into the Same Web Host
If you had a bag of popcorn, and you charged hungry people a penny per piece of popcorn, you would probably make more money than what it cost you to make that bag of popcorn. That same concept applies to shared web hosting. The host is the company that offers the service.
They know how much room they have on any one of their servers at any time. They sell single web pages to you for a monthly price. Then they offer the same deal to hundreds of thousands of others, knowing that thousands will take the deal. Now everyone is sharing the same server, paying the same price for the service, and the host company is rolling in popcorn, er, profits.
The Benefits to You
The benefits to you, the consumer, is that you pay very little to have your own website. You receive assistance with building your website, and maintaining it. If you do not want to manage the tech end of your website, some web hosting companies will manage it for you for an upcharge in monthly service fees.
Because you are sharing a server with dozens, perhaps hundreds, of other people and companies, the web host is able to charge a really low flat rate fee. This beats the cost of a dedicated web hosting plan, which could cost you hundreds to thousands of dollars. Additionally, you would have to be the sole person responsible for all tech maintenance on your dedicated hosting and site, something a vast majority of consumers do not have the skills or time to manage on their own.
Upgrades to Shared Web Hosting Plans
Basic plans offer you the bare minimum of what you need to launch a website. If you want more "bells and whistles," shared web hosts offer upgrades to your basic package. Do not worry; while there is an increase in cost, it is still extremely affordable. You can choose to upgrade at any time, which is also a nice benefit to shared web hosting. With a dedicated site, your upgrades are never that convenient.