Buyers Beware: Web Hosting Renewal Price

Buyers Beware: Web Hosting Renewal Price

The web hosting industry is extremely competitive, and it is a dog-eat-dog world out there. While it is true that the digital world is growing and there are more websites being added each day, the truth is that infrastructure to run web hosting companies is expensive.

Hosting Companies are Losing Money to Win New Customers

The cost of servers and bandwidth, not to mention the technical expertise needed to support everything can beggar companies that don’t have a large enough user base to support its costs. This means that web hosting companies need to not only retain as many customers as they can, but also grab as large a share of it as possible.

Poaching is the word of the day and most hosting companies slash prices down to the bone in order to entice new users to sign up with them. When it comes to time for renewal, prices usually go up by a significant margin.

Examples – GoDaddy and BlueHost Hosting Renewal Prices

GoDaddy Hosting renewal price
GoDaddy hosting renewal price = $8.99/mo; signup price = $5.99/mo.
BlueHost Hosting renewal price
BlueHost hosting renewal price = $7.99/mo; signup price = $2.95/mo.

It has long been my thought that many web hosting companies in fact lose money on acquiring customers in this way. The reason for this is not just are they lowering sign up fees significantly, but there is also the cost of users acquisition to consider – advertising, marketing, payments to affiliates, and so on.

There is a reason to this madness though.

Getting a customer on-board is often one of the few ways that a hosting provider can demonstrate its true value to customers. It does this by offering an excellent product and strong support for customers. Hopefully, in this way, customers will stay with them and that is something that I do recommend.

Should You Hop Around for Cheaper Hosting Rates?

Although hopping from host to host for each contract is a way you can potentially save a lot of money – there is always the chance that something breaks in transition. You also might be leaving a host that has been good for you, hopping into a who-knows-what kind of situation.

My advice would be to take advantage of these renewal fees to get out of an existing bad relationship rather than simply for the cost. Then, you can hop until you find the right one that suits your needs. If you ever do find that gem – stick with it!

A good host isn’t easy to find and can mean the difference of success or failure of your site.

Compare Shared Hosting Signup vs Renewal Price

I studied the differences between renewal and signup prices for more than 20 shared hosting services. The data is shown in table below. Renewal price is, on average, 160% more expensive than signup price.

ChicagoVPS, HostMetro, Interserver, NameCheap, and Rose Hosting are the few that do not jack up their prices after first term.

Hosting ProvidersSignup PriceRenewal PriceOur Ratings & PerformanceLearn MoreOrder NowDifference
A2 Hosting$1.98$7.99

A2 Hosting Ratings & Performance

HostScore
90.96
Response Time
367.77ms
Uptime
99.99%
A2 Hosting ReviewClick Here303%a2hosting
Bluehost$2.95$7.99

BlueHost Ratings & Performance

HostScore
85.92
Response Time
69.36ms
Uptime
100.00%
Bluehost ReviewClick Here191%bluehost
ChicagoVPS$3.95$3.95

Chicago VPS Ratings & Performance

HostScore
70.00
Response Time
125.12ms
Uptime
100.00%
ChicagoVPS ReviewClick Here0%chicagovps
FastComet$2.95$9.95

FastComet Ratings & Performance

HostScore
70.74
Response Time
124.01ms
Uptime
99.36%
 
FastComet ReviewOrder Here237%fastcomet
FatCow$4.08$13.95

FatCow Ratings & Performance

HostScore
73.00
Response Time
119.31ms
Uptime
100.00%
FatCow ReviewClick Here241%fatcow
GoDaddy$5.99$8.99

GoDaddy Ratings & Performance

HostScore
70.00
Response Time
137.09ms
Uptime
100.00%
 
GoDaddy ReviewClick Here50%godaddy
GreenGeeks$3.95$9.95

GreenGeeks Ratings & Performance

HostScore
75.00
Response Time
144.53ms
Uptime
100.00%
GreenGeeks ReviewClick Here152%greengeeks
HawkHost$2.99$2.99

HawkHost Ratings & Performance

HostScore
79.00
Response Time
137.24ms
Uptime
100.00%
 
HawkHost ReviewClick Here0%hawkhost
HostMetro$3.95$3.95

HostMetro Ratings & Performance

HostScore
64.68
Response Time
130.44ms
Uptime
84.19%
 
HostMetro ReviewClick Here0%hostmetro
HostGator$2.75$7.95

HostGator Ratings & Performance

HostScore
78.00
Response Time
133.90ms
Uptime
100.00%
HostGator ReviewClick Here189%hostgator
Hostinger$0.80$2.15

Hostinger Ratings & Performance

HostScore
78.65
Response Time
191.95ms
Uptime
100.00%
Hostinger ReviewClick Here169%hostinger
HostPapa$3.95$7.99

HostPapa Ratings & Performance

HostScore
80.57
Response Time
125.09ms
Uptime
100.00%
HostPapa ReviewClick Here101%hostpapa
InMotion Hosting$3.99$7.99

InMotion Hosting Ratings & Performance

HostScore
78.50
Response Time
306.77ms
Uptime
99.99%
InMotion Hosting ReviewClick Here100%inmotion-hosting
Interserver$5.00$5.00

Interserver Ratings & Performance

HostScore
87.66
Response Time
129.09ms
Uptime
100.00%
Interserver ReviewClick Here0%interserver
iPage$2.49$8.99

iPage Ratings & Performance

HostScore
72.80
Response Time
130.99ms
Uptime
94.49%
iPage ReviewClick Here260%ipage
JustHost$3.95$9.49

JustHost Ratings & Performance

HostScore
72.00
Response Time
135.49ms
Uptime
99.99%
JustHost ReviewClick Here140%justhost
Known Host$3.47$8.95

KnownHost Ratings & Performance

HostScore
79.99
Response Time
131.03ms
Uptime
99.98%
Known Host ReviewClick Here157%knownhost
Namecheap$2.88$2.88

Namecheap Ratings & Performance

HostScore
81.00
Response Time
145.33ms
Uptime
99.99%
Namecheap ReviewClick Here0%namecheap
Rose Hosting$7.15$7.15

Rose Hosting Ratings & Performance

HostScore
72.90
Response Time
125.63ms
Uptime
99.76%
Rose Hosting ReviewClick Here0%rosehosting
SiteGround$3.95$11.95

SiteGround Ratings & Performance

HostScore
84.88
Response Time
148.17ms
Uptime
99.98%
SiteGround ReviewClick Here202%siteground
Stable Host$1.75$3.50

Stable Host Ratings & Performance

HostScore
85.00
Response Time
134.71ms
Uptime
99.99%

Stable Host ReviewClick Here100%stablehost
TMDHosting$2.95$4.95

TMDHosting Ratings & Performance

HostScore
89.48
Response Time
136.45ms
Uptime
100.00%
TMDHosting ReviewClick Here67%tmdhosting
Web Host Face$1.38$6.90

WebHostFace Ratings & Performance

HostScore
78.63
Response Time
124.28ms
Uptime
98.91%
Web Host Face ReviewClick Here400%webhostface

You should check out these renewal rates in detail and consider the long term cost when choosing a web host.

Note – Price data is extracted and checked accurate on December 2019.

author avatar

Author Profile

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.