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Lots of web design companies offer a year free hosting service when purchasing a website. How do they offer this service? Do these companies use their own server to host sites or do they buy a years hosting from somewhere and use that?

I understand that not all companies would use the same method, but in general, how would it be done?

Thanks for any answers :)

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up vote 7 down vote accepted

This can be done any number of ways. The odds are they have their own dedicated server or a reseller account. Reseller accounts are very inexpensive and can host a decent number of sites. If you can get a couple of paying hosting customers they'll cover the costs of the account for you. Then you can offer free hosting to new customers. After a year they start paying and they cover the cost of the account for the next year's customers, and so on.

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The cost of the first years hosting is also likely to be covered (at least in part) by the cost of the initial site development. – w3dk Jul 25 '13 at 22:12

It doesn't really matter where they host them.. their own dedicated/a shared plan... anything will suffice. I'd expect most web design agencies will have a hosting plan that supports multiple sites (multiple domains, db's etc..)

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