How does Zoho offer such a low price for hosting?

How does Zoho offer such a low price for hosting?

I have been trying out building my website with zoho site builder. I  appreciate the assistance I have received with this via the zoho forums, and am just about ready to upgrade to the pro plan.
Zoho offers an amazing package with many options for your website, all for only $39.99 per year!
Hosting is also very reasonable at just $10.00 for a domain name, and then $10.00 renewal domain name per  year.

My only question is....How can zoho offer such a reasonable price for hosting including email addresses, unlimited pages for a site, etc etc....I hope there is no "catch," I have been researching other web hosts/site builder companies, and the least cost hosting I could find was $11.99 per month.
Zoho price of $39.99 per month is very reasonable...comes out to about $3.34 a month, if I am understanding the rates correctly.

I am impressed with the customer service, and ease of building and editing, maintaining my site, would like to upgrade to pro plan, however I just needed to ask these things before I commit to pro plan.

Thank you again for your help, I am looking forward to hearing from someone.

Joy.


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