I would think it depends on your market. If you are truly going at it as a free-for-all pricing wothout a target audience, then you are going to end up competing with the budget hosts not matter what.

But, if you have 1) anything unique , 2) special knowlkedge or skillsets for hosting, or 3) have a target or niche.. then your prices are too low. For the amount of space and bandwidth you offer, the average person just does NOT use that much.


In my opinion... truly:


Make a 5-year plan, then;

Build your site around your goals and target client then;

Build your business locally first. It is absolutely the best form of client AND you will find they are definitely willing to pay you what you are worth...raise your rates by 50%... Good service WILL prodice other clients by word-of-mouth from happy clients then;

Once you have a base with which YOU are comfortable, then expand to the wider world web. Competition is fierce.

Just my .02