Portal Home > Knowledgebase > Articles Database > 3GB of space and 50GB of bandwidth
3GB of space and 50GB of bandwidth
| Posted by Hoppy, 04-06-2007, 06:21 AM |
| How much would you pay a month for 3GB of space and 50GB of bandwidth. I was wondering because I want to start a reseller company and I was wondering if people would actually buy my hosting.
I was think about £3.99 a month for this? What do you think?
Thanks,
Hoppy
|
| Posted by linux1213, 04-06-2007, 06:33 AM |
| That sounds about right depending on where you go.
|
| Posted by Hoppy, 04-06-2007, 06:35 AM |
| Thanks. I had a look at some of the big companies and compared several that cost £3.99 a month. These specs beat the other companies by a few gigs.
|
| Posted by rv_irl, 04-06-2007, 07:29 AM |
| A common misconception is that webspace and bandwidth are the only resource limitations you will face..
Usually, large companies advertising high webspace/bandwidth will put strict restrictions on CPU/RAM making it extremely difficult to actually max your account.
As for £3.99 a month.. I don't know what MServers has been smoking, but that is ridiculously low budget for those specs..
Remember, you get what you pay for.
|
| Posted by Nnyan, 04-06-2007, 12:29 PM |
| If you're talking about selling shared hosting the costs vary so much for various amounts of resources its anyone's guess. There are tons of hosts out there that promise the world for next to nothing and can't deliver it.
Best thing to do is to educate yourself about the industry, see what real prices for servers/bandwidth/etc are and then view some of these offers with an educated eye. That will also help you educate your potential customers.
|
| Posted by Martie, 04-06-2007, 12:32 PM |
| Good advice Nnyan.
|
| Posted by Hoppy, 04-06-2007, 12:35 PM |
| Thanks. I will bare that in mind!
|
| Posted by cartika-andrew, 04-06-2007, 03:37 PM |
| Honestly, that is wayyyyy to cheap - and I think your problem is this:
IMHO - if you want to build a sustainable and successful reseller hosting business, you should not be trying to compete on price.
I think for the specs listed, we charge $40-$50/month
|
| Posted by Suffolk Designs, 04-06-2007, 04:09 PM |
| We sell about 60gb of space on a server (allocated not used)
so on that basis I would have $80 of revenue per server per month, not exactly a lot is it......
I'm with CartikaHosting on this one, about $50 per month would be right if you don't want to get into daft overselling.
|
| Posted by chamelion, 04-07-2007, 06:47 AM |
| how do you have a "sustainable and successful" business model; considering for that amount you can get a very decent 512mb VPS with at LEAST 20gb storage (e.g. look at futurehosting).
|
| Posted by w00ts!te, 04-07-2007, 09:35 AM |
| Good truth. Most decent smaller companies don't limit on things you don't see.
|
| Posted by cartika-andrew, 04-07-2007, 02:19 PM |
| LOL - "sustainable and successful" - love how you put that in quotes. Well, we have been in business for over 5 years. Are growing as quickly as we wish to and have no issue competing with $3 reseller accounts or those $40-$50 VPS solutions.
let me explain all of the problems with your statement:
1) all you are speaking is RAM and Disk Space - they have pretty much nothing to do with the cost of a hosting service
2) VPS, except for a very few, require management, backups, etc - all of those add to your total cost of ownership
3) a VPS does not have nearly the horsepower of a good cluster - even a shared cluster - as long as the cluster isnt oversold/overloaded
4) a VPS is 1 platform - while from our reseller for example you can allocate on linux, freebsd, windows, coldfusion and exchange servers
You can compete with anyone - however, you must have a value statement. The problem with the original poster in this thread and many others in this industry - is there inability to compete on anything other then price - and what you see happening is exactly whats outlined in this thread. A new person joins the industry - really doesnt understand what makes up pricing - and says well - I am going to charge $x for a package - and that matches up well with these companies and even gives the clients a few more GB of transfer...
This type of thinking will lead you nowhere but out of business...
|
| Posted by efarmer, 04-07-2007, 02:27 PM |
| Well said Andrew
|
| Posted by IHSL, 04-07-2007, 05:05 PM |
| First, you need to get it out of your head that VPS is a step up from reseller hosting. It's not. VPS is massively overhyped, to the extent that it's main feature is exactly that: hype. Comparing VPS with H-Sphere reseller hosting is always going to leave VPS trailing behind; H-Sphere wins hands down.
It's an unfair comparison, though, H-Sphere is a highly sophisticated system with the ability to cluster services over a wide range of machines eliminating the single point of failure problem. A H-Sphere reseller environment has so many advantages over a VPS environment it's almost unfair.
Andrew has sensible costs. His company, like many tried and tested providers, don't get drawn in to silly competitions over pricing. When a company concentrates on features and service, as opposed to trying to always bottom their costs out, you're dealing with a company that is built to succeed not built merely to exist.
Simon
|
| Posted by The Rover, 04-09-2007, 05:47 PM |
| I'd have to agree with IHSL. A VPS is a good solution for a few scenarios, but not nearly as beneficial as the hype portrays. People quickly forget that a VPS can be very problematic, even with reliable providers.
|
Add to Favourites 
Print this Article
Also Read
Shared Hosting
Shared Hosting
