With almost any Web Hosting Company, things aren’t always what they seem when you see the advertised prices per month. Starting anything new for the first time, how much money you spend is always a concern and that’s why we will cover the things you need to know.
By the way, it’s not just Hostgator, I don’t want to seem like I’m picking on them, I love Hostgator, most of the hosting companies play these little tricks. It’s just important now that you are aware of it.
Hostgator has 3 shared hosting plans. The Hatchling Plan is shown at $2.75 per month, the Baby Plan at $5.95 per month and the Business Plan at $5.95 per month. So why wouldn’t you take the business plan instead of the Baby plan, it’s the same price right but more features right? Yes and no, we’ll explain later about that.
Lets use the Hatching plan as we go through the plans pricing . In order to get the advertised price of $2.75 per month you have to pick the 3 year plan. As you can see the price per month goes up as you shorten the length of the plan. If you pick a shorter plan of 2 years, the price goes up from $2.75 per month to $3.58 per month. If you pick the 1 year plan the price jumps up to $5.95 per month. If you take a plan less than 1 year the price almost doubles up to $10.95 per month.
The 3 year plan would cost you an average price of $33 per year. The 2 year plan would cost you an average price of $43 per year and if you pick the 1 year plan the average price is $71 per year…
…Taking the 3 year plan is definitely worth it because it costs you $38 less per year compared to taking the 1 year plan. $38 a year may not seem like a lot to some but over time, especially if you are on a tight budget or just starting out, the savings adds up. I’m sure if you are like me, I don’t like handing more money over to HostGator than I have to.
Another thing to take into consideration when pricing whatever plan you pick are the extras that they try to get you to buy. For each one that you click, your price per year goes up a nice amount and you have to be careful here because they play a neat little trick to try to get you to agree to the extra…
…Lets use the Hatching, 3 year plan as an example. At $2.75 per month, without the extras it will cost you $98 total. Lets add just one extra, the site backup as an example. After I click on it, You see the price changed to $122, BUT WAIT. That price of $122 is not a 3 year total. It’s a 3 year hosting total of $98 plus a one year add on total of $23.95. The add ons are billed annually. So at the 2nd year they will bill you another $23.95 and again at the start of the 3rd year. So in realty you are paying a 3 year total of $170 and not $122, which is an easy thing to overlook when deciding on your add ons. It’s a sly way of getting you to agree to the add ons and pay more money. 
Getting back to what I said in the beginning of the video about why wouldn’t you pick the Business plan over the Baby plan because the business plan has better features but they are both the same price per month. The prices we have been discussing, whether its $2.75 per month or $5.95 per month, these prices are your introductory prices for the plan you pick. After your plan’s term is over and it’s time to renew, you will get renewed at a higher price per month than what you just paid for the plan that just expired.
One more thing to cover, especially if you are just starting out with a web hosting company for the 1st time, you might be hesitant to pick a 3 year plan and get the discounted price and take the more expensive 1 year plan. Any time starting with a new hosting company you may not feel comfortable committing to a long term which is understandable. Don’t forget that HostGator offers a 45 day money back guarantee. So they do give a trial period which allows you to back out if you find out that this company may not be right for you. So I advice to go for the longer plan and maximize your savings.
Thanks for reading and consider these tips when pricing and picking your hosting plan.
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