1&1 Internet Sees Rapid Growth in US Market

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November 24, 2004 -- (WEB HOST INDUSTRY REVIEW) -- Since entering the US market a year ago, 1&1 Internet has become one of the country's 10 largest Web hosting and domain name registration companies.

1&1 Internet Sees Rapid Growth in US Market

After launching ground breaking free promotional Web hosting offers in September 2003, 1&1 introduced its full product line nationally in January. Through that promotional campaign, the firm offered free Web hosting for an introductory period of three years. Since then, the company has registered in excess of 300,000 domains.

"It is extremely rewarding to be among the biggest names in US Web hosting after just one year," says Andreas Gauger, 1&1 Internet's chairman. "It confirms our strategy of capitalizing on the US market's growing need for inclusive packages of Web hosting, email and Web services."

1&1's top 10 entry continues the firm's momentum as one of the world's fastest growing Web hosts based on known server deployment. It operates four highly secure data centers, housing over 25,000 servers. Internationally, 1&1 currently maintains over three million customer contracts and has registered 4.5 million domain names.

Statistics compiled in independent surveys by Internet research company Netcraft confirm 1&1's position as one of America's and the world's largest and fastest growing Web hosts.

"The main reason for our success is the fact that we are very experienced in Web hosting," reveals Gauger. "We have over nine years of experience, which manifests itself in our products. Our products are also very inexpensive to the typical consumer and supported by strong marketing and technical support. This is in accord with our mission to provide innovative, full featured Web solutions with the utmost value for small and medium enterprises and sophisticated private users."

Gauger notes that 1&1 Internet's fast growth is focused around its Linux-based shared hosting offerings. The firm however is experiencing at least half of its growth from domain name registrations.

"Our services are very popular because we specialize in offering everything in one complete package. Our services aim to be all-inclusive and the most integrated in the marketplace. We provide domain name registration, Web hosting, email and site building capacity all in single packages."

Due to customer satisfaction from such an inclusive approach, 1&1 Internet experiences a low churn rate. According to Gauger, customer churn only equates to between 0.7 and one percent of its hosting base per month. This low rate, in conjunction with the firm's substantial growth, makes the company's operations cash rich.

Presently, 1&1 Internet experiences a consistent growth rate of 10,000 customers per month in the United States. The long-term strategy, according to Gauger, is "to continue to grow the growth." Currently, the firm commands one percent of the US market, based strictly on domain name registration. The ultimate aim is for the company is to control at least 10 percent of the name registration market, and plans to continue to concentrate its international efforts in the US for the next two years.

1&1 Internet is a subsidiary of publicly traded Frankfurt firm United Internet, a company with $521 million in revenues and a $1.3 billion market cap.