I've seen this week a shared web host that offers 40 GB space and 900 GB monthly transfer for $5 per month. Does that mean "overselling"? How do you deal with "competitors" that offer space and bandwidth quotas typically offered with dedicated servers?

The short answer is another question: “Do they answer the phone?”. In a broader sense, you can pretty much pack anything into a “shared” hosting plan these days, but providing quality, responsive technical support and customer relations is another matter entirely.

A lot of hosting companies “oversell”, it’s the nature of the business these days. Some take it to ridiculous extremes, though. As you said, providing resources that were once only heard of on fully dedicated servers, then attempting to pack hundreds of these accounts on a single server, is a recipe for problems. We don’t do that.

What is actually important for a popular e-commerce web site besides reliability, space and bandwidth?

Security, reliability, and support. We provide the tools - a shopping cart, available SSL & marketing system - just like everyone else does. We sets us apart is our top notch technical support and secure environment. We know your store is, most likely, your livelihood, and even it if it’s just a side project, it’s not any less important. E-commerce site owners need that extra piece of mind that comes from knowing they’re in a safe place that highly values their business.

Why do you offer a wide range of hosting services? You can see many web hosts that offer one web hosting plan?

The core problem with the “one-plan-wonder” hosting companies is there’s literally nowhere to go. Once you’ve outgrown it, you have to leave. That’s why we provide a variety of solutions, from shared to fully dedicated, to give you that growth path.

It’s obvious a lot of one-plan-wonder hosts have identified this problem, as they’re usually the ones driving the ridiculous resource allotments through massive overselling.

Owners of some shared web hosting companies told participants of HostingCon 2006 that the costs of attracting new customers are very high! I've seen you offer $77 per sale to your affiliates? Some web hosts however offer $100 - $120 per sale, on $85/year sign-up price! How do you succeed to keep Apollo Hosting a profitable company? Please also explain what is the highest affiliate commission a web host can afford to pay for $100 sign up price?

Over the past few years the Commission Junction affiliate market seems to have outpaced all reason. We decided not to follow suit, and have continued to offer the same commission plan through CJ we’ve offered for the past couple years or so. This keeps us in the market, but doesn’t break the bank on each sale. Our marketing energies refocused to banner ads and organic search.

Obviously, the $120 commission market is based on customer retention, in some cases for over 2 or 3 years, before an actual profit is turned on that account. With the ever increasing competition, you simply can’t rely on someone to stick around that long.

Do you think that small business owners will move from Linux to Windows hosting?

I would hope they choose the platform best suited to their needs. Windows is only really “necessary” to run some MS-specific applications, such as ASP.NET. If you need that, we have it and encourage you to use it, otherwise Linux will work just fine.

I've seen you are using animated character in your support page? Does it work good for your customers?

The SitePal system is just another means to communicate information about our products in what some might consider a more “engaging” fashion. If someone doesn’t want to bother reading the text, they can get a quick audio overview via the system. We’re always open to trying new things, and this one has worked well for us.

Do you expect a web site service industry to become more interactive? With live video chat with sales representative or support operators?

It possible, though a live video feed would not provide much more utility to a chat interaction than the text itself. More useful are systems that allow remote technicians to view or have limited control of a user’s system in order to more rapidly view, assess, and perhaps fix an issue without having to laboriously communicate each step to the customer and hope they perform them flawlessly. We are investigating such systems now.

How do you see Apollo Hosting's business development in the years to come? Do you set a priority on VPS, Shared Hosting, Dedicated or managed services? And my last question is what would you say to a newbie who wants to enter the online business? How to start, how to outline their future website business?

Our goal is to expand more in the “enterprise” field with dedicated and managed solutions for larger scale businesses, including fully custom solutions. We will continue to provide the best shared hosting solutions possible, of course.

Well, hard to have a “brief” answer on your last question, as one thing is certain, it’s nothing something to jump into with no planning. I think the core thing is to educate yourself, no matter how painful that might be. Read about hosting, read the manuals to the shopping carts you’re considering, learn about SSL and why it’s important, and do research on the hosting companies you’re considering. Yes, that’s a lot of work, but it’s a business, online or not, and no one promised it would be easy. You have a much better chance of success if you’re savvy than if you just cross your fingers and hope for the best.

Eric Lester ia a Marketing manager at Apollo Hosting.