How about offering 1Gb space with the ability to host up to 5 sites, unlimited MySQL, 20Gb bandwidth plus the ease of one-click installation of over 50 open source applications like WordPress and Joomla all for $9.75? But you want to make sure your service gets known, so you offer discounted rates according to how many people are in your "network". By referring people you get a discount, but their network also counts towards yours. You can receive up to a 50% monthly discount!
And there is a shortcut. Members of Linked In and OpenBC get an automatic 50% discount.
Plinkd is the company offering this service. While most hosts offer discounts according to the length of your prepayment - Plinkd has chosen to go for volume discounting instead and I'm very interested to see how it plays out.
It looks like they are aiming at the cutting edge Web Designer set - offering PHP5 and Ruby on Rails. The ability to host 5 domains in their base plan (up to 20 for $24.75 in their extended plan) plus the discount and one-click install of many options leaves a healthy margin of profit.
I've yet to use their service or check out their support, but I've got some potential clients that this might work for. If anyone has some feedback on Plinkd, let me know and I'll post it.
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