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From my years of experience, I would NEVER place more than 50 sites on a shared hosting server.
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Isn't each add-on domain a "site"?
At an under $10/month price, I would not expect the host to place only a couple of accounts per server. A fair deal means the customer gets good value, and the host gets to make a profit. Anything else can only end up costing the customer more, at a later date.
