Research: Hosting pays off in ROI

Liquid Web’s study uncovers how self-employed professionals are navigating hosting preferences to optimize expenses.

Liquid Web’s latest study examines how independent professionals approach website hosting.

Solopreneurs – those running single-person businesses – focus on efficiency and scalability to grow their operations. Freelancers provide specialized services to clients across industries and require hosting that supports their dynamic workloads. Digital nomads operate entirely remotely, often while traveling, making flexibility and reliability critical to their hosting solutions.

We surveyed 505 independent professionals across these categories to uncover their hosting preferences, challenges, and priorities.

This report explores their insights, from the financial impact of hosting to the growing demand for sustainable solutions and responsive support.

Key points

  • On average, independent professionals own two domains; 1 in 10 own more than five.
  • On average, they spend $214 annually on hosting services and estimate a 2,319% ROI from it.
  • Nearly 7 in 10 have switched hosting providers at least once, with 13% switching at least once a year, on average.
  • 54% would pay an average of $50 extra per year for sustainable hosting solutions.
  • 42% rate their current hosting provider’s customer support as average or worse.
  • 31% expect technical issues to be resolved in 1 hour or less.

The shifting priorities of domain ownership

For solopreneurs, freelancers, and digital nomads, domain ownership is both a business asset and a recurring investment. This section explores how these independent professionals manage their domain portfolios, balancing financial considerations with long-term planning.

Domain statistics infographic: the average independent professional owns 2 domains, and spend an average of $86 on renewals. Professionals also plan to drop domains, sell domains, or have abandoned domains due to high renewal costs.

On average, independent professionals reported maintaining two domains. However, 1 in 10 respondents owned more than five domains, reflecting more complex digital footprints or diversified ventures for some.

Managing these assets comes with costs – independent professionals spend an average of $86 annually on domain renewals, a figure that can rise quickly for those with larger portfolios.

This financial burden drives difficult decisions: 36% of respondents said they have either abandoned or sold a domain due to high renewal costs. Looking ahead, 28% plan not to renew at least one domain in the next cycle, while 16% intend to sell at least one.

These trends highlight a growing need for cost-effective domain management strategies among this audience. For many, maintaining digital assets is essential, but financial and strategic priorities often dictate which domains stay – or go.

Shows the outlook of self-employed professionals on hosting, spending an average of $214 on hosting annually and 23% spending more than $500. The most desired hosting features in order: cost-effectiveness, high performance, customer support, advanced security, scalability, migration, and sustainability.

Hosting services are another major component of online management for independent professionals, with respondents reporting an average annual spend of $214.

While many keep their hosting budgets modest, 23% have invested over $500 annually.

When selecting hosting providers, independent professionals prioritize cost-effectiveness, high performance, and excellent customer service. These preferences reflect the need for hosting that balances affordability with the reliability and support required to sustain their business operations.

ROI impact of hosting investments, the average being earning 2,319% of the purchase cost back. Solopreneurs achieved the highest ROI, followed by freelancer and digital nomads. Most respondents chose annual plans with discounted pricing.

Independent professionals reported exceptional returns on their hosting investments, with an average estimated ROI of 2,319%.

Solopreneurs reaped the highest returns, estimating an impressive 2,846% ROI on their hosting spend. These figures highlight the critical role hosting plays in enabling business growth and efficiency for those who rely heavily on their online presence.

These figures highlight the critical role hosting plays in enabling business growth and efficiency for those who rely heavily on their online presence.

When it comes to payment preferences, 2 in 3 independent professionals favored an annual subscription model for its simplicity, predictability, and affordability – paying for a year up front allows professionals to take advantage of exclusive discounts, especially during the Black Friday timeframe. However, preferences varied by group.

  • Digital nomads leaned toward monthly subscriptions (26%) for their flexibility.
  • Freelancers were the most likely to opt for pay-as-you-go pricing models (12%).

These diverse payment preferences reveal the importance of customizable pricing options for hosting providers seeking to cater to this varied audience.

“There’s an incredible return on investment on hosting for independent professionals. The 2,319% ROI underscores the critical importance of reliable and cost-effective hosting for driving growth and efficiency.”

David Eblen
SVP, Chief Product Officer at Liquid Web

Why independent professionals switch hosting providers

Switching hosting providers is a common reality for independent professionals. This section explores the factors driving these decisions, the frequency of changes, and the costs involved in migrating to a new provider.

Depicts the frequency of which professionals switch hosting providers, most switch every 3 years or less, followed by those who switch never. Most common reasons for switching in order: cost increases, downtime or performance issues, poor customer support, lack of scalability, difficult migrations, lack of multilingual support.

Nearly 7 in 10 independent professionals reported switching hosting providers at least once, most often due to these challenges:

Cost

Includes cost increases and unexpected bills.

Performance

Includes downtime, site speed, and optimization.

Support

Includes service quality and availability.

More than 1 in 10 professionals (13%) have changed hosting providers at least every year on average, perhaps due to ongoing dissatisfaction or evolving needs.

28% of independent professionals have encountered unexpected charges from their hosting provider – these professionals were 35% more likely to have changed hosting providers as a result, compared to those never experiencing unexpected charges.

Changing hosting providers isn’t without cost. Respondents estimated that the process required 6.6 hours of work, or an average of $115.

Depicts what professionals are willing to pay more for in order: Increased performance and reduced downtime by 50%, faster/superior customer support, sustainable hosting solutions

Sustainability is also becoming a factor in hosting decisions for independent professionals. Over half of respondents (54%) indicated they would pay an average of $50 extra per year for hosting solutions that prioritize environmentally-friendly practices.

The importance of responsive customer support in hosting

For independent professionals, reliable and responsive customer support is a key factor when choosing or retaining a hosting provider. This section explores expectations for issue resolution, satisfaction with support services, and the impact of unresolved tickets on provider loyalty.

Shows statistics on the value of customer support to independent professionals, 43% rate their current hosting as average or worse, with the expectation of their  issues being resolved in 3 hours or less. 1 and 5 have left hosting providers due to unresolved tickets.

Nearly 42% of independent professionals rated their current hosting provider’s customer support as average or worse, indicating significant room for improvement across the industry.

When technical problems arise, expectations for resolution times are high. On average, respondents expected hosting providers to resolve issues within 3 hours, while 31% held even higher standards, expecting resolutions in 1 hour or less.

The stakes for meeting these expectations are clear – nearly 1 in 5 independent professionals reported switching hosting providers due to unresolved support tickets.

“It’s fascinating to see how solopreneurs, freelancers, and digital nomads prioritize sustainability and customer support. It provides valuable insights to tailor our offerings to their evolving needs.”

David Eblen
SVP, Chief Product Officer at Liquid Web

Insights for hosting providers

Independent professionals are redefining what they expect from hosting, prioritizing value, sustainability, and exceptional support. With an impressive ROI and growing demand for flexible, tailored solutions, hosting is more than a utility – it’s a cornerstone of their success.

Providers who meet these expectations have a unique opportunity to empower this diverse and dynamic group to thrive in an increasingly digital world.

“My advice to solopreneurs, freelancers, and digital nomads is to prioritize hosting providers that not only deliver performance and scalability but also invest in responsive customer support.”

Carrie Wheeler
President of Liquid Web

Carrie Wheeler

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Learn more

For this study, we surveyed 505 independent professionals about their website hosting preferences, experiences, and pain points. Among all respondents, 48% identified as solopreneurs, 45% identified as freelancers, and 7% identified as digital nomads.

Liquid Web is a comprehensive, top-rated web hosting provider specializing in cloud VPS, managed VPS, and VPS server solutions. Their offerings span cloud VPS hosting, managed VPS hosting, VPS cloud servers, and VPS server hosting, catering to diverse digital needs. From dedicated and bare metal servers to WordPress hosting, Liquid Web empowers businesses and individuals to maximize their online potential.

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