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View Full Version : Profit Per Server?


Eleven2 Hosting
09-26-2004, 02:48 PM
What is the average profit per server, let say you are paying $300 a month of a dual xeon server, what should I be making?

Cyndaquil7
09-26-2004, 03:24 PM
Its depends on how much your plans are, how many people are on a server, if your overselling, etc.

dasp
09-26-2004, 03:27 PM
You should be able to calculate that yourself. Estimate how many customers you can support on that box and estimate how they will be distributed among the plans. Estimate on the conservative side.

Other host's business focus is different so there isn't a good answer for your question.

WebMate
09-26-2004, 04:15 PM
A very very rough figure would be a minimum of $600 per server, which would be $300 after the cost of your server. You should still allow for additional costs, etc.

Jojja
09-26-2004, 04:28 PM
It also depends alot on the type of hosting you are offering and if you are offering really low pricing and overselling like crazy (which seems to be the current trend for a lot of hosts that appear to be wanting to stay in business for only 3 - 4 months).

Generally shared servers generate more revenue than reseller servers.

Example, if you have 200 shared clients each paying $5 per month you will generate $1000 revenue.

Whilst if you have 30 resellers each paying $20 per month you will only get $600 revenue.

Intersabre
09-26-2004, 06:21 PM
Don't forget that costs will vary as well. Supporting 200 clients will cost more than supporting 30.

netpet
09-26-2004, 09:30 PM
I would say the average per server would be about $1000 as long as your plans aren't too cheap, but it also depends if you outsource support etc...

JHServers
09-26-2004, 09:57 PM
Can't base this kind of question on actual revenue. Need to base it on a percentage of revenue. Generally a nice amount is to make about 300% per server. But it varies depending on your business model.

Amdac
09-26-2004, 10:13 PM
Originally posted by WebMate
A very very rough figure would be a minimum of $600 per server, which would be $300 after the cost of your server. You should still allow for additional costs, etc.

If you're gaining $300 per server, you're doing something wrong. With a proper business setup, total income per decent server can easily reach $2000/month with only 150 clients. After server expenses you should be pulling $1500+. Then again, this is assuming you're not selling $3 hosting.