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Just curious....

Do you make any money if everybody is paying a $1.50 a month? especially when you deduct the CC costs?

I'm curious... did you come up with this idea yourself? I rather like it (but I suppose I would... after all, I like the idea of efficient economic systems, and the whole fixed plan deal is quite inefficient from an economic point of view).

I believe there are already several players like this. Don't remember all the names, hostonfly is one.

it charges $2.15 per gb transfer, but there are a lot of cpu time, and some other terms involved.

Originally posted by KUBlawyer
Just curious....

Do you make any money if everybody is paying a $1.50 a month? especially when you deduct the CC costs?

I never run a CC charge of $1.50. I'd be giving the whole thing to the processor. I wait patiently until the charge gets up to around $10.00. I also let the customer know in advance on the site that this is how it will work (no monthly charge). And I still double my money as far as profit. If you do the math anything over about 2gb per month transfer (33,000 60kb page views), serving files, or a large disc usage site moves you out of a cost effective zone for this type of plan.
High bandwidth websites would do better to look elsewhere, as I'm sure they do. We are catering to a niche. But a pretty big niche.

Originally posted by cperciva
I'm curious... did you come up with this idea yourself? I rather like it (but I suppose I would... after all, I like the idea of efficient economic systems, and the whole fixed plan deal is quite inefficient from an economic point of view).

http://www.easily.co.uk came up with this idea quite some time ago...

Originally posted by cperciva
I'm curious... did you come up with this idea yourself? I rather like it (but I suppose I would... after all, I like the idea of efficient economic systems, and the whole fixed plan deal is quite inefficient from an economic point of view).

I definitely didn't come up with the idea! I've got some old computer magazines from as far back as 1997 with companies advertising this type of plan. It's a lot easier to do these days though. RAM, storage and processing power is a heck of a lot cheaper and easier to come by than it was in 1997. Software automation is better as well.

Jim,

Do you atract the "low" bandwith users with this program? and what do you do if they start using more, terminate their account?

Also, we believe that most people have no idea of what they would be using for bandwith (or even what it is) but like to be sure they would not have to pay more if they do. How do you handle these questions/fears?

There is an automatic 1GB/MO cap, and we try to explain on the site how bandwidth converts to number of page views. At signup we also allow the customer to choose whatever bandwidth cap they would like per month before we contact them if they want something other than the 1GB cap. It's not perfect but to date there hasn't been a problem. None of our customers have hit their cap. 90% don't even come close. We check usage of all acounts daily.
So I guess the answer to your first question is yes, we do attract low bandwidth customers.

Originally posted by ebird
I believe there are already several players like this. Don't remember all the names, hostonfly is one.

it charges $2.15 per gb transfer, but there are a lot of cpu time, and some other terms involved.

HostOnFly charges an amount per gigabyte based on the total number of gigabytes of transfer you've already used with their service. I think it starts at $2.75 and bottoms out at $1.65 (IIRC).

www.bsdwebhosting.net is another similar one of these.

Dont you just love it when ppl ruin your advertisements with a bunch of other company names? :rolleyes:

Oh, it will keep the Thread going, so more it brings more attention to it. :wavey:

Originally posted by Stars
Dont you just love it when ppl ruin your advertisements with a bunch of other company names? :rolleyes:

;) LOL, That got me thinking, it's like trying to sell ice to eskimos anyway. There's about 300 views of this thread and looking at my server logs there's 5 referrers from this page, and I think two of those are me! :)

Yeah, this is not the best place to sell stuff :emlaugh: