I understand the use of promotions and discounts to get new customers, but why give things away? The last two <$10 hosting specials don’t really make any sense to me as it appears that the DH business model is already working. Is $6/month really a struggle for someone to pay to get web hosting?
It’s all about acquiring customers. It costs money to get and retain customers, but if you do it right, you get their repeat business, plus word of mouth. A crazy promotion is just that - promotion. They want more customers, and some people will jump at the chance to get bargain hosting. For some people, a $100 outlay for a year’s worth of hosting is a show-stopper.
This current promotion catches my eye because it’s more like “Register a domain, get a year’s hosting FREE.”