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My View

BY Joyce Johnson | 08-07-2009 | 1:56 PM
This blog is written by a member of our blogging community and expresses that member's views alone.

How does a web hosting company stay profitable in this competitive environment? The internet is a much different place today than it was in just 5 years ago. Statistics show that approximately 5650 new domains are created on a daily basis, which equates to well over 2.2 million domains per year. Granted many of these domains probably won't survive its first year's anniversary, the influx of new merchants and internet users make it a compelling argument for the justification in creating these websites.

This brings us to the question of how a web hosting company makes money. Besides the relatively small income that it gets from registering the domains, a typical web hosting company makes its money from hosting websites on its servers and through advertising revenue streams. It is noted that from Hostgator's parked pages (i.e. unused websites), revenue from google's adsense, alone, has been logged at over 1 million dollars per month.

 

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