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Web Hosting Strategy: Cheap domain names boost iPowerWeb

Tag:cheap domain name | 70 Viewers| resellerwebhostingbuzz 2009-06-16 23:55:02 Publish:

Last November, iPowerWeb shocked the domain industry by cutting their domain name prices to a record-low $2.95, making them the cheapest in the world.

Examining their growth since then, statistics company Ipwalk found that iPowerWeb has gone from being just another web hosting company to one of the big players in the business, propelled to success by their cheap domain names.

After cutting their price for a one-year domain name registration to $2.95 last November, making their domain names the cheapest in the world, iPowerWeb has been growing rapidly. Their low domain name price has proven so popular that iPowerWeb has gone from less than 2,000 to more than 20,000 new domain names per month.

This extreme price point is not entirely without a downside. It costs iPowerWeb approximately $6 to register a domain name, so at a price of $2.95, iPowerWeb is losing roughly $3 for every domain name registration.

To iPowerWeb, this is a marketing expense. For the money they are spending on domain names, they are getting publicity, goodwill and a massively increased customer base that they can upsell their other services to.

Calculations by Ipwalk show that at their current growth rate, iPowerWeb would need to upsell roughly 4.5% of their new domain names to one-year hosting packages to balance their costs. iPowerWeb will also earn back money when customers renew their domain names after one year, since the low price is only valid for the first year. Many customers may not be aware that the renewal price is $8.25.

While using low prices to attract customers is nothing new, iPowerWeb has proven that it is still an efficient marketing strategy in the web hosting industry. With this one single move, cutting their domain name prices to the lowest on the Internet, iPowerWeb has transformed itself into one of the fastest growing web hosting companies in the world.

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