'Free' web hosting costs small firms dearly

Many UK businesses are inadvertently driving their customers to competitors by using free web hosting to set up their online presence according to recent research.

Research conducted by Fasthosts Internet has found that many small and medium sized enterprises (SMEs) are unaware of the hidden costs of free hosting which can have a substantial impact on their future growth and success.

Distrusted

By using free hosting providers, SMEs are opening themselves up to a number of potential problems the research found. One problem is that sometimes businesses will usually have to append their name onto the end of the free hosts' domain name - making it difficult to remember and could be distrusted by web-savvy customers.

The research claims that this distrust is accentuated by a lack of website security features, pop-up adverts (placed by the free hosting providers) and the absence of designated company email addresses.

The research 'How free is hosting?' analysed 100 free hosting providers and found that, on average, the space offered is 338 MB, and that bandwidth allowances are often heavily restricted. These limits are quickly reached should the SMEs' website be a success.

Furthermore, if the owner decides to finally register a specific domain name, they will need a new web site address and will in effect have to start all over again - which could result in businesses losing customers they had attracted through their original website.

Security

Additionally, small businesses using free hosting are often unable to offer their customers the use of a secure shopping cart or secure ordering system, making the set-up of an online store very complex.

SMEs may need to add outside tools and buy in separate security solutions to get the facilities they need - which could end up costing more than comparable "inclusive" e-commerce hosting solutions from paid-for providers.

Andrew Michael, CEO, Fasthosts Internet, said: "There is no such thing as a free lunch, and in an attempt to save costs online, UK SMEs are shooting themselves in the foot.

"With so many online scams being reported, it's no wonder internet users are getting increasingly wary about buying from companies through websites. Yet it amazes me that so many businesses don't have their own domain name or web space - they are inadvertently helping their competitors!"