As you are already aware that there are a large number of web hosting companies that offer free hosting services to customers. But what is the actual motive behind these offers; I mean how they are earning revenue from these free offers? I am sure they are not doing it for charity. I guess following are the main motives behind this business strategy:
- Free web hosting acts as a gateway for potential customers who will opt for a paid service at a later stage. A person who starts using a free service has to opt for a paid version once the site grows with a lot of traffic.
- Some web hosting service uses it as a platform to display advertisements. So, that is another source of revenue for them.
- It also acts as a WoM (Word-of-Mouth) advertising channel. If a customer is satisfied with free hosting services he will say good words about the service which in turn attracts more customers to the company.