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Web Hosts Reject Rip-Offs, Scams

by Jay Lyman

June 7, 2004 -- (WEB HOST INDUSTRY REVIEW) -- The underlying themes of last week's online hosting discussion centered on Web hosting providers' concerns, from the industry's image, to kiddies and criminals and the practices that are giving Web hosts a bad name. All that led to a discussion of Wal-Mart stepping into the game.

There seemed to be a unanimous rejection and repudiation of fly-by-night business practices and bargain prices from providers that end up punishing their customers not only with lack of service, but with fraudulent charges to boot.

On WebHosting Talk (webhostingtalk.com) much of the criticism was leveled around the troubling case of Pagecreators' Bryan Kruchten, alleged to have ripped off would-be customers by promising bandwidth and delivering bunk charges to their credit cards.

Like the journalists jilted by New York Times' fabricator Jason Blair, Web hosts seemed to draw a number of so-called "kiddie hosts" and otherwise unprofessional or quick buck-oriented ventures into their sites, complaining that an entire industry might pay the price for the actions of a few bad apples.

"I don't know about you guys, but I am sick of all these fraud web hosting companies that rip people of. It is real [disappointing]!" said a post in the Kruchten discussion.

Other users concurred: "[I] feel your pain. [Another] fact is that all this scamming affects the rest of us quality Web hosts, [newcomers] get the impression that we're all bad and trying to steal [their] money..."

The consensus was that bad business translates to a bad future -- lack of sleep or a cellmate or two -- and there was some satisfaction with the idea of punishing a hosting industry scoundrel, but there was also criticism of some business practices that while not necessarily illegal or unethical, are not good for the business.

One discussion of "lifetime hosting" described the practice as everything from an invitation to legal trouble and an impossible feat to a solid startup strategy and highly possible.

However, the consensus was that in the long term, it was not a sound plan and would end up becoming too burdensome to deliver. There were also questions about what is promised and how "lifetime" is defined.

"Companies offering lifetime hosting end up bankrupt or charging you after 1 year because they realize they can't continue with the offer," said one post. "If you have the money to pay $200+ for a lifetime hosting do yourself a favour and go with a reasonable host."

Still, the lifetime model held promise for at least one other poster, who again referred to the issue of ethics and a sustainable business plan.

"To me it is an interesting way to start. Not anyone could do this though, the person would have to be trusted greatly because many people that might try this would probably be in it for a quick buck...."

The debate’s ethical tone was echoed in a Host Hideout (hosthideout.com) thread regarding another recent discussion on regulation.

That discussion concerned Aplus.Net's use of a subcontractor that, in its effort to improve the company's Google search position, installed hidden links on customers’ sites. The tactic, and the Aplus press release on the matter did not prevent the company from encountering criticism.

"Sleezy, sleezy, sleezy, leeching off customers' hard work and messing with their sites and search positions," said a post from April. The thread was revived last week with a condemnation of the spin control and a call for government oversight.

"Just because they bought a press release on Yahoo 'explaining' things doesn't make them blameless. I have said it before and I'll say it again," the poster said. "The hosting industry needs to be regulated to keep this kind of thing from happening. The same as all spammers and quick buck artists need to be stamped out."

The debate on regulation went into the usual issues of the other problems that are created and challenges including, especially for an industry such as Web hosting, the barrier of all of those borders and jurisdictions. Tying the discussion back to the original subject, one poster pointedly put it:

"No form of regulation would have prevented this from happening."

Along the lines of regulation, Big Brother and big business, Wal-Mart caused a stir on the SitePoint (sitepoint.com) forums with its announcement that it would offer Web sites for $5 a month.

Some viewed the addition of the superstore hosting approach just as the small town businesses that were wiped out by Wal-Marts in recent years, arguing the "international corporate superpower" would be a "great way to totally dissolve the value and importance of having a REAL website."

However, others were unthreatened by the low price leader effect, welcoming the giant to the highly competitive industry hosts know and love.

"I don't really care...my client base isn't interested in template sites," said one poster. "They're interested in differentiating themselves from the gaggle of half assed internet businesses who use template sites and nephew designers...and I don't have time for cheap *** clients who want $10 Web sites anyway."


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