This is a question for people in the web hosting business.

How much profit do you look for in a server each month? I am speaking about server profit and not business profit. Server profit would be the cost of the server, advertising expenses, payment processing fees and hosting income.

Do a search for threads along this line. It gets asked on a regular basis. That being said you probably wont be able to garner alot of infomration form the answers. Some hosts dont truly know what goes into the cost of hosting so their answers are worthless. Others view it as proprietary information so you wont get an accurate answer there. The final group that does accurately answer will more than likely have a wildly different setup than you and there answer wont be of much use anyway.

Justin

We try for about 400-500% profit per server. Then we factor in support costs and marketing and such. It comes down to about 200% profit per server.

Hi,

It all depends on how you are setting up account, if you have only shared account you may get more. If you have resllers accounts you may get less.

I would say you can make 40%.


Thanks
david

Originally posted by softstor
This is a question for people in the web hosting business.

How much profit do you look for in a server each month? I am speaking about server profit and not business profit. Server profit would be the cost of the server, advertising expenses, payment processing fees and hosting income.

Wouldn't advertising expenses and payment processing fees be considered business expenses?

While we don't operate a hosting company, we work with many of them. The actual server costs are pretty small compared to all of the other expenses they have, ranging from support to advertising, taxes, etc. etc.

Boris

Originally posted by webhostingchat
I would say you can make 40%.

I have no idea where you pulled that from, unless you're referring to a $10/year host.

With proper pricing, server profit should range from 300% and up, it all depends on pricing and server costs. If you're paying $300/month for server, it should be bringing $1000+ before "business" expenses that aren't server specific.

I price my servers to profit about $800 after server related expenses. Is this too high?

But when you look at the really low prices that some of these hosting companies are charging, it looks like many of these are no profiting more than $200 per server. Can a company survive with these low profit margins?

Originally posted by softstor
I price my servers to profit about $800 after server related expenses. Is this too high?

But when you look at the really low prices that some of these hosting companies are charging, it looks like many of these are no profiting more than $200 per server. Can a company survive with these low profit margins?

Not too high!

Originally posted by softstor
I price my servers to profit about $800 after server related expenses. Is this too high?

That's about perfect after expenses.

I would think you need to average support costs into this equation or the numbers are pretty much useless. $800 profit on a server with 500 clients is bad. $800 profit on a server with 50 clients would be better. $800 profit on a server with 20 clients is even better. $800 profit on a server with two clients would be great.

Originally posted by mpalamar
$800 profit on a server with 500 clients is bad

I pity any host foolish enough to do that. My guidelines are based on 100-150 per server tops.

Originally posted by Amdac
My guidelines are based on 100-150 per server tops.

I second that.

Originally posted by Amdac
I pity any host foolish enough to do that. My guidelines are based on 100-150 per server tops.

The $800 after server related expenses for a 100-150 per server is attainable :)