Web hosting services that give discount through coupon codes

There are various ways web hosting services provide incentives to their prospective customers to use their services.
One such incentive is to use coupon codes to get discounts.

These coupon codes are created and shared by existing customers so when new customers sign-up using these coupons, the provider of these coupons earns commission.

The incentive in the form of discount coupons can cost web hosting companies a lot in terms of money and reduced profits.

Dreamhost coupon codes

Some companies like Hostgator and Dreamhost give huge discounts on coupon codes used by new customers. In addition to the discounts, these hosting companies have to give a large chunk of sale to the affiliate whose coupon code was used.

Hostgator discount coupons

That leaves the web host with a considerably less share of the sale.

This is actually a loss for the company as the customer has agreed to pay the full price of the service which means it is affordable for the web hosting customer.
But despite being affordable for the customer, the hosting company has to lose a major chunk of the sale.

This loss is somewhat justified for some hosting companies as they count it as a price paid for advertisement of their company that is done by the referring affiliate.