It’s for money. Bluehost pays $65 for a sign up while Dreamhost pays $15-$200 depending on the plan that people buy. WP Engine pays $200 per sale. These are huge incentives for bloggers and youtubers to try to get you to start up a website using their referrals.
Affiliate Payout vs How much the Customer Pays
These payouts represent a huge percentage of what the customers pay for the hosting services. It gives you a gist of how much these companies are paying for marketing and sales versus providing a quality product.
Just think about it if you’re paying Blue Host $90 for a yearly hosting contract and Blue Host is paying $65 to the person who referred you, they’re only going to have $25 to spend on actual servers, support, and technology to host your website.
Dream Host is willing to pay $50 for a yearly contract on their WordPress hosting which costs $48 on a yearly contract. This means they’re expecting to get you to pay them more than that thru upselling additional services that you probably don’t need, or by over charging you in the next renewal.
The truth about most cheap web hosts
Your personal blog probably doesn’t need an expensive web host especially for the first year. If you use a CDN like Cloudflare, you’ll be able to dramatically speed up your website’s speed for free even if your web host isn’t the greatest. Shop around! Just because your favorite influencer says X is the best, I bet if you checked their website they don’t even use it for their host.
I have links up to I know (and my sponsored links are clearly marked which many people do not do), and they’re not terrible web hosts. But so many of the websites pushing both of these hosts are only doing it for the referral dollars. They don’t care about you actually launching your website successfully, they only want you to use their links.