Hosting rates have become increasingly competitive, confusing and even controversial as more and more companies vie for a share of the web hosting consumer market.  Gone are the days when only a few hundred different hosting companies jockeyed for a dominant position in this industry.

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Now, there are thousands of web hosting companies that range from the mom and pop variety all the way to companies Like Godady.com that host over 15 million domains.  Throw in all the discounts, new software options and different bonus features offered by all of the different hosting companies and you have what looks like a free-for–all on the World Wide Web.

Essentially, hosting rates should boil down to how much disk space and bandwidth you get per month.  So, it would make sense to base hosting rates on how much disk space and bandwidth a customer wanted to purchase.  This used to be the case, but now, with the explosion of much cheaper shared hosting packages; some larger web hosting companies are offering unlimited bandwidth, unlimited domain registration, and unlimited email accounts for less than five dollars per month.  Of course, you don’t get the same customer service that you do with dedicated or managed hosting accounts, but with free site building tools, tutorials and software wizards, more and more people are fine without it.  Virtual hosting, which is also very popular, further complicates rates when companies try to use it as a cheaper alternative to dedicated hosting.

Software also comes into play with regards to hosting rates.  While with many operating systems, software and scripts are free and considered public domain, Microsoft continues to charge licensing fees for all of its internet products.  This means that if you decide to go with a Windows based operating system for your web site as opposed to Linux or Unix you will be paying more per month, even with companies that offer both options.  Web hosting companies hesitate to disclose this on their websites and can also be a bit elusive about included features that will cost more down the line:  like exactly what it will cost to take that free domain name with you if you change hosting companies. 

So, how do you get the best web hosting rates and still maintain a quality web site?  Be realistic.  Pay for the right amount of disk storage and bandwidth that it will take to make your site function properly.  If you don’t know a lot about the internet, don’t be self-reliant.  Look for solid customer service and technical support.  If you are looking more at price, the best deal out there right now is Ipowerweb.com.  For $4.95 a month, you get 1,500 gigs of disk storage and 15,000 gigs of bandwidth.  HostRocket.com runs a close second with fewer features, and Dotster.com gets left behind with only 5 gigs of disk space and 250 gigs of data transfer with their basic package.

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