Potential Profit?

Discussion in 'General Marketing' started by MrHarper, Oct 30, 2008.

  1. #1
    I think this is the right section. Anyhow, I'm new to the web hosting industry, or indeed any online business at all (other than low amounts from ad clicks on small sites). I plan on offering a hosting package with the following:

    - 250gb Diskspace
    - Unlimited Bandwidth
    - cPanel & Fantastico
    - Billing & Support via WHMCS
    - Not overselling

    for $25 per lifetime - no monthly or yearly payments.
    First of all, would you be interested, and then how much profit do you think I could make if the servers cost me $30 per month? Many thanks.
    EDIT: Oh yeah, and can you suggest a name? I'm not feeling very creative. :p
     
    MrHarper, Oct 30, 2008 IP
  2. norfstar

    norfstar Peon

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    #2
    If you're offering unlimited bandwidth, for life, for $25, I don't imagine the lifetime of your operation will be very long. The only way I think you could profit from this would be to find lots of suckers who think that what you are offering is sustainable, then close down after a few months.
     
    norfstar, Oct 30, 2008 IP
  3. MrHarper

    MrHarper Guest

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    #3
    If I get one new customer per month then it's enough to pay for the server costs (I added $10 as I will be wanting more space as I grow). Besides, I probably won't be offering it that cheap. I'm just speculating.
     
    MrHarper, Oct 30, 2008 IP
  4. allout

    allout Prominent Member

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    #4
    If you are offering unlimited anything, you would be overselling. There is no such thing as unlimited bandwidth. You could say unmetered but you face the problem with one or two webmasters sucking most of your bandwidth. It is a quick way to build a bad rep.

    You are better comparing other hosting packages and cutting the price from theirs to build a solid customer base. Over a certain amount of bandwidth and then offer an additional fee if they use over that. Lifetime anything is often avoided because most times they are gone with in 6 months or less and the customer is trashing you everywhere they can.

    Build slowly and build a solid hosting company and you will be in business for a long time to come. No business that is worth anything covers cost the first few months. Invest now to create good profits later.

    Good Luck :)
     
    allout, Oct 30, 2008 IP
  5. MrHarper

    MrHarper Guest

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    #5
    I know there is no such thing as Unlimited. Ironically, I removed 'obviously its not unlimited, but is more than you'll probably ever use' just before I posted this, because I thought it sounded stupid :p

    Can you reccomend one of these 'cheap + popular' hosts so I can compare? :D
     
    MrHarper, Oct 30, 2008 IP
  6. edasvangen

    edasvangen Peon

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    #6
    So true allout, he would have a few select people sucking all his bandwidth most of the time.

    It would be better to have a bandwidth limit and a monthly fee if you want a long term deal with profits.

    you could make plenty profits if the servers only costs 30$/month but cant imagine that you would get to much for that price?(how much space and bandwidth can you get for that price?)
     
    edasvangen, Oct 30, 2008 IP
  7. MrHarper

    MrHarper Guest

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    #7
    From a friend who owns a small hosting company - he owns & manages servers himself, not a reseller. He gave me a massive discount for just under 10TB of space and what is pretty much unlimited bandwidth. More space is available at any time, I just have to click 'Buy it Now' and wait a few hours for him to process it. :D
     
    MrHarper, Oct 30, 2008 IP
  8. allout

    allout Prominent Member

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    #8

    Here is a post I wrote about a web hosting review site. That site offers all kinds of reviews of different packages. Compare those and come up with something reasonable but that will not cause you long term problems.
     
    allout, Oct 30, 2008 IP
  9. MrHarper

    MrHarper Guest

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    #9
    Ok allout, thanks. I'll take a look.
     
    MrHarper, Oct 30, 2008 IP