They use promotional prices to push heavily other products. They market like crazy. Finally they restrict domain names. So buy your domains else where, have to wait a month to transfer them out.That's if they will let you unlock the domain without refusing or advertising other products they do.
I have been using 1and1 for a while now, I have used them for web hosting, purchasing domain names and for email hosting. Great service and reasonable price on all of them...
Customer service is great, always get a help when you need it and with a smile (well it sounds like a smile down the phone).
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