New DreamHost Shared Hosting – $2.59/m!

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I recently woke up one morning to find this e-mail. It Talks about the new “Starter” DreamHost shared hosting plan at just $2.59/month !

E-mail from DreamHost about New Shared Hosting Plan

Previously, the cheapest hosting from DreamHost started at $5.78/m and went from there. Here’s a complete list of DreamHost promotional codes. Now they have two different shared hosting plans – “Starter” and “Unlimited”. Here are the differences between the two.

Table of Contents:

DreamHost “Starter” vs “Unlimited” Shared Hosting?

Here’s a comparison table between the two:

DreamHost Starter DreamHost Unlimited
$2.59/month
(No Promotional Code)
$5.78/month
$9.95
Discount: 42% off
Click link on left to apply coupon code automatically
1 Website Unlimited Websites
No e-mail support - need to upgrade In-built e-mail
No Free Domain Free Domain wth 1yr or 3 yr plan

In addition, both plans include:

  • Unlimited Traffic
  • SSD Storage
  • Free SSL with Let’s Encrypt

Is DreamHost’s Plan the Cheapest?

DreamHost’s starter shared plan is now officially one of the cheapest on the market if you sign up for 3 years. It’s even cheaper than Bluehost now! Of course, GoDaddy has a $1/m package, and Hostgator has a PENNY coupon code just for one month’s hosting. But these are gimmicks. They’re traps to make you overpay.

By contrast, DreamHost’s starter shared plan has no hidden costs. They have free SSL, and you can renew for as long as you like.

Does the DreamHost Price Increase on Renewal?

The DreamHost renewal price will change only if you applied a discount for the first billing cycle. For example, the new “Starter” plan pricing is applied without a discount as shown here:

DreamHost Pricing 2.59 for 3-Years

In this, the price of $2.59/month is the natural price. And so when you renew it, you will be charged the same amount that you see in the screenshot above. There is no price increase on renewal. It also means that you don’t need to search for a DreamHost renewal coupon. The rate is yours forever!

However, the “Unlimited” DreamHost shared hosting is available at a discount. You can get a massive 42% for only $5.78/month.

The catch however, is that this plan will renew at the full price as shown here:

Undiscounted DreamHost Plans on Renewal

This is because the original purchase was made via a discount coupon. So it doesn’t apply to renewals. Keep in mind however, that you still get a price reduction for longer billing cycles that persists even during renewals. So the longer you choose to remain with DreamHost, the more money you save!

Does DreamHost Oversell Its Servers?

Of course. There’s no way that DreamHost is able to offer hosting for a couple of bucks a month in perpetuity for “unlimited” traffic without overselling its servers. But then, all shared hosting is oversold. The only question is, which hosts are honest about it and openly tell you what the limits are.

To my knowledge, SiteGround is the only host that is 100% transparent about its limits. But others like InMotion do a great job of transparency as well. But at the end of the day, it’s called “shared” hosting for a reason. Your server will be shared.

To move away from shared hosting, you’ll need to upgrade to VPS servers. Here’s a comparison of VPS hosting prices. If you have the technical knowledge, you can get VPS hosting for just a few dollars a month.

How Much Traffic can DreamHost Shared Hosting Handle?

The promises of “unlimited” traffic are rather unrealistic. The real bottleneck is CPU time. DreamHost assumes that the average shared hosting account uses no more than 5 minutes of CPU time a day. But that’s really very low.

To give you some perspective, WP Tweaks as of today is just a few months old. I get around 250 visitors daily. And because SiteGround is so transparent, it tells me that I use an average of 64 minutes of CPU time daily! So there’s no way my website would be able to run on DreamHost’s basic shared hosting plan.

Be warned. If you have traffic that’s even close to mine, DreamHost will be insufficient for you.

Can I Run WordPress on DreamHost’s Starter Plan?

Oh yes. After all, DreamHost is an official WordPress provider and is recommended on the WordPress site. If your site requirements are low, it’ll run pretty smoothly.

However, if you’re serious about WordPress and are expecting a few hundred visitors to your site daily, you need something more than shared hosting. Better still, look into a managed WordPress hosting provider. Like Kinsta for example. Hosts like this run WordPress as their bread and butter service. No slowdowns, and excellent WordPress focused customer support. It’s a lot more expensive than shared hosting for sure. But then, good customer service isn’t cheap!

In conclusion, DreamHost has thrown its hat in the ring for the contender of the cheapest web hosting without gimmicks. If you have low traffic requirements, and need a starter website to get going, it’s a great and economical choice!

About Bhagwad Park

I've been writing about web hosting and WordPress tutorials since 2008. I also create tutorials on Linux server administration, and have a ton of experience with web hosting products. Contact me via e-mail!

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