I'm with Blue too, and another thing to keep in mind, if you charged $1, would that be monthly or yearly? If it's monthly, then at paypal for example, you'd be subject to a .35 transaction fee, which is just for processing it, not to mention the percentage fees. So, out of a $1, you may get .63, so you've already lost 37% of your "profit".

But like others said, $1 wouldn't cover expenses.

No, I have bought a $5/year plan and it is very ugly, high downtimes, and bad support.

I would red flag this idea right away. But like others have said be carful and ensur eyou plan ahead and take all the steps you can to protect your core business

$1 plans would have to be a loss leader for additional services that provide some measureable profit.

Steve,

From my experience $1.00 hosting plans do not work well for loss leaders to then promote some other product. They tend to draw just pure cheap crowd. I had developed a $0.99/month promotion for a client for Virtual Prviate Servers at the thought that they would then upgrade to dedicates or need more resources. There was I think a total of two who did this out of the hundreds we received. Not a good idea. Now doing a cheap dedicated server as a loss leader to gain clients tneds to be a better idea. You have to be bold.

I absolutely agree with you. Loss leaders are a valid marketing strategy, but you absolutely need to measure their projected ROI. Cheap dedicated servers makes better business sense.