How can DH afford the Rewards/Promo code program?


#1

I have a question about the Rewards / Promo code / Referral code / bonus deal… whatever you wanna call it…

I see in my control panel that I can make a promo code that gives 5 free lifetime domain registrations, or I can instead give 3 free lifetime fixed IPs.

Domain registrations go for around $10 a year… DH pays what… $5/year for them? $6? $7? Let’s say $5… that’s $25 a year… not too much…

Fixed IPs go for $4 a friggin month… three of them is $12 a month… x 12 months = $144 a year… I don’t know what a fixed IP costs DH… but even assuming a 50% markup, DH is still getting killed if someone signs up with a basic account with a promo code for 3 fixed IPs and uses all of them, without signing up extra stuff like SSL certificates or whatever…
I guess that most customers just don’t use fixed IPs without spending lots of money on other stuff?


#2

Those goodies keep people here. Staying here = more than enough money to cover any expenses.

There are hosts that offer less and pay out more than Dreamhost to their affiliates.

It’s nothing more than an advertising budget. Look how companies pay millions for a super-bowl commercial. And that doesn’t even guarantee sales, whereas a host doesn’t pay out until there’s actually a sale.

I believe the cost of IPs is asking for them. That’s why they seem to range from free to $5 each depending on host. There are also cheap hosts (Alabanza panel) where every domain gets a unique IP whether you need/want it or not.


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#3

Yeah I guess you’re right if it works as well as or better than advertising, then it’s no more or less of a cost of doing business than advertising is. Yeah I forgot about the tons of cash that companies spend on advertising.

about fixed IPs - Last I knew, static IPs had to be justified for Internic or whoever it is to give them out. Like you had to have a documented reason why you needed one, e.g. “I want to run an FTP server.” Is this no longer the case?


#4

The justification thing is pretty much people misreading. Like I said, Alabanza has put every single domain on it’s own IP forever. Their justification could be “That’s how our panel works.”

Here it is from ARIN:

The bold part is important and “technical” justification isn’t the same as “you can’t have these unless you prove you need them.”

Kinda like saying, “Help yourself – mind if we ask what you’ll do with them?”

So, if you want the warm feeling of justifying it, you can just say something like, “All hosting accounts are offered as ecommerce-ready.” There you go… can’t have SSL without the IPs. Or build a panel that won’t work otherwise, etc…


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#5

DreamHost owns a few blocks of IP addresses. It’s theirs to do with what they want…like adding new servers. Some of them shared, some of them private. They only have to justify and pay for a block at a time. You’re kinda like sub-leasing it from them.

-Scott


#6

I think this is the key, and it’s actually consistent with DH’s doing away with the $97 codes.

Free unique IPs and free domain registrations are “gifts that keep on giving”. The straight $97 off codes give you all the benefit in the first year and then nothing after that. That would be fine, but it’s possible that the psychology of getting a little benefit every year is better - particularly if you’re interested in retention.

Think about all the people who come here looking for renewal promo codes. Sure, a lot of them were just looking for $22 hosting forever, but some of them are just responding to the psychology of wanting a little bit of a “good deal” every year. :slight_smile:

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#7

Yeah the free domain/IP credits each year are a real drawcard.

A little off-topic, but the biggest benefits with DH I think are the ‘stock’ ones - like having unlimited user accounts with the ability to grant priviledges all the way up to shell access. I had to jump through hoops to get shell on my main account at two other bulkhosts I’m with. Even had a private server require my driver’s licence details before they’d grant me shell.

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#8

[quote]
A little off-topic, but the biggest benefits with DH I think are the ‘stock’ ones - like having unlimited user accounts with the ability to grant priviledges all the way up to shell access. I had to jump through hoops to get shell on my main account at two other bulkhosts I’m with. Even had a private server require my driver’s licence details before they’d grant me shell.[/quote]
Yeah… I have one account at other well known host which I have to post my scanned ID card (with photo) to grant me a shell access. But I think it is ok with that, but in DH you can get as many shell account as you like without any obligation except ethics and DH’s Terms Of Services :slight_smile:

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#9

Yup, that’s common. The easiest I’ve had it at another host that advertised “SSH!” was requesting it through them with a reason, then waiting a day or two for it to be activated.

It’s harder to enable SSH through some hosts than it is to go out and buy a gun.

And though I’m sure it’s not always the case, I always feel like the ones that make it hard, or don’t offer it at all, aren’t as good in the security department… even though they claim they don’t do it for security reasons.


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