The latest change to DreamHost promo code is about to make what I have written a year and half ago irrelevant.

Effective next Tuesday, December 11th, $97 will no longer be the maximum discount a DreamHost promo code can give… it will be dropped to $50. Keep in mind, $97 is still the total value of a referral… so if somebody signs up with your $50 promo code you.ll still get $47 ($97-$50) credited to your account.

So if you still want to get $97 discount from signing up a new DreamHost account, which makes a 1 year shared hosting plan as little as $22.40, today is your last chance. Search for “dreamhost coupon” on Google and there are plenty to choose from.

It is indeed an interesting development though, as the $97 discount probably brings them many new sign ups over the last 2 and half years. Some facts and some thoughts:

  • The minimum an individual has to pay now raises to $10.95 (monthly plan, setup fee waived) or $69.40 (1 year plan, with $50 off). A “significant jump” for the 1 year prepaid, which might deter many from signing up.

  • Affiliates/promo-code creator can still bundle extra resources (data transfer, disk space, domains) to increase the value. Extra data transfer and disk space are pretty meaningless in this extreme overselling host so we will probably see many new coupon codes that has $50 off + 3 free domains, or other interesting combinations to exhaust the $97 referral fee.

    A great way for DreamHost to boost their domain count even further!

  • Good strategy from DreamHost to reduce the free riders (significant jump in commitment). $22.40 for the first year is really “too cheap” and I guess it has been attracting signups that DreamHost rather does not want. It also creates too much a jump when the second year comes and they have to start paying the full fee. Even some of my friends, with a proper Monday-Friday office job and have absolutely no problem footing the bill, would ask “how can I use those promo-code again for the second year?”

    A reduction of discount might reduce people’s presumption that web hosting ought to be almost-free.

  • DreamHost affiliates will remain competitive. One reason why there are so many $97 discount coupons is the affiliation market is competitive — to a point many are willing to sacrifice the entire sum of commission payout as hosting discount, in hope that the new sign ups will bring in some secondary referrals (at $5 each). Many long time affiliates complained about the loss of their referral revenue — so many the new $50 discount cap will make everyone even? Don’t think so.

    I think the affiliates will just become more creative in spending their $47 payout on items such as free domains and extra diskspace/data transfer to make their coupon code attractive, so the major might still earn nothing from their first level referrals.

Time to go back and edit my old articles.