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How to make money with hosting?
| Posted by Hostmax-br, 10-09-2003, 08:40 AM |
| Hey again,
I would like to discuss how you make money with hosting when starting out...
I mean, not as easy as you pay $30/monthly and sell $3/customer you need 10 customers just to pay your bucks and everything else is your desirable money.
Not the "become rich in 24 hours selling host", but for the starters how to make their price since they are starting and need not only to pay their needs but improve their service and grow.
Think that for someone that is big or have 100s of clients is a little hard to figure out how a question like that "how to make money with hosting?" can be important but remember that lots are just starting out and maybe have no idea about the margins that they might look for.
Maybe the best strategy (taking the example above) isn´t to sell 10 account @ $3/each but have 30 accounts @ $2.50/each or just 5 accounts @ $10/each... so... what are your ideas? how to make a good strategy on margins?
Thanks again,
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| Posted by CrazyTech, 10-09-2003, 11:15 AM |
| Well, with any business venture, you're going to be in the red for a bit when starting out. It will always cost for you to get things going (IE: a good reseller account, server, etc.). The best way of starting out is the one that best fits the niche you're trying to fill.
There really is not set pattern on what type of plans that you should offer. I would, however, calculate all prices such as bandwidth, and set up and appropriate plan where you'll make profits.
For example, you may purchase a reseller account and it prices you $0.65/GB of Transfer. You can turn around and resell the bandwidth for $1.30/GB bringing in an income of $0.65/GB. This will allow you to make $6.50/10 GB of Transfer and so on. costs will of course vary, and the amounts of profit you want will, of course, be up to you.
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| Posted by Ronald_Craft, 10-09-2003, 12:58 PM |
| Also take in account everything you're going to need to do. If a customer wants you to setup some difficult script or otherwise needs you to do something that will take up a decent chunk of your time you should charge a fee for that as well unless of course you've got the funds and time to do it out of the kindness of your heart. People are used to everything costing something and if you do a good job for them, most don't mind paying a extra few bucks for something.
Of course, what exactly you charge and don't charge for is completely up to you. This is just my personal opinion so you may heed it or ignore it. It's up to you.
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| Posted by centrahost, 10-09-2003, 02:25 PM |
| A word of advice....
Get OUT of that market before you get in it. Sell your hosting to local small business for 12.95 or even 19.95 a month. Get them to pre pay for a discount and collect it by CHECK only. Beat the bricks, knock on doors. After you get some capitol, you can start to apply that in a few ad spots on the web and start to take credit acrd payments. Be careful where.
Get away from trying to sell bargain hosting. It's a losing game!
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| Posted by Hostmax-br, 10-10-2003, 09:55 AM |
| Thanks everyone that sent a response...
I figured out, maybe still figuring out, that its a hard market to start out and like CrazyTech said, work on red for some time... but fine... still growing a little...
Well...
Thanks again
|
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