04-11-2010, 07:44 AM
That's a very interesting offer indeed - registry fees on main TLDs (e.g. .com) come to ~$6 unless you're an incredibly big registrar. Therefore, that would probably allow SiteGround ~$4/yr for hosting expenses. In other words, it's fairly unprofitable, and I'm sure somewhere down the line service quality will suffer.
Let's assume that their average server (whether it's leased or colo'ed) costs them ~$120/mo. That's $1440/yr. Therefore, I believe they'll need at least ~360 of these low-paying customers to make bank without taking into account transaction fees, so possibly more. That could mean more people to a server and lower service quality. Presumably they're banking on getting a lot of renewals in the second year so that they begin to make some good money.
Let's assume that their average server (whether it's leased or colo'ed) costs them ~$120/mo. That's $1440/yr. Therefore, I believe they'll need at least ~360 of these low-paying customers to make bank without taking into account transaction fees, so possibly more. That could mean more people to a server and lower service quality. Presumably they're banking on getting a lot of renewals in the second year so that they begin to make some good money.