Hello,

Just after other views on how much profit do you target towards making per server?

Say for instance you have a server costing $300 per month. How much profit would you or do you make per server?

Just curious :)

Chris

I don't think you will find many hosts willing to give you that information... common sense really :) That being said when you do business it's to make a profit, now at what degree depends on the host.

A host could have a low profit margin but sell more accounts than an other with higher profit margin.

True said. You should specify your own profit margin and work to achieve it. Achieving it is success in the word meaning.

It all depends on your overheads, do you for example run your own office (rent + rates), have your own full-time techs, etc?

It all adds up and eats out of your 'per server' profit.

You should be looking at the load the users cause on your server though rather than your profit, some servers make more money than others.... look at the big picture instead ;)

I'm usually making 10 times as much profit as the server is costing me ($200 -> $2200 = $2000 profit)... Of course you also have to add other expenses like advertising and support costs...

whoa, 700+ accounts on a server...

Originally posted by RambOrc
whoa, 700+ accounts on a server...

You mean me ? I am having a maximum of 500 accounts on a server. 300 on most servers. The average load is around 0.5 and almost never higher than 1.5. Hard drives are 50% empty and I am using less then 20% of my assigned bandwidth.

thats a good profit for a small amount of server load and bandwidth usage

As Valve Ben said it depends on your overheads etc. As a general rule of thumb though, I dont think it would be worth your while if youre making less than 400% on each server. So if you are paying $200 for the server, it would make sense to make sure you are at least making $800 off it.

It all depends on where the servers are, what you're charging and if its selling! Every web host will have its different numbers!

Say for instance you have a server costing $300 per month. How much profit would you or do you make per server?
You cannot judge how much profit you should make on a server just at how much the server costs. You have to take into account other things such as advertising, support, management, and everything else that comes into running a business - It'd be rather silly just trying to work out how much profit to make on a server costing $300 per month.

Let's say you have two servers each costing $300 per month and one you offer the clients 24/7 support while on the other you offer them none at all. You're not going to make the same amount of profit on each server are you? It's just common sense.

It is important to note though, that when you set yourself a profit target, do not try to achieve it at the expense of bad service, slow support or overselling - As if you do so, then you'll only wish you hadn't in the long run. Set yourself a reasonable amount of profit to achieve - You should take into account server cost, the amount of support you offer, how much you pay staff, advertising, management, how much your time is worth, etc. - and then try to work out a reasonable amount of profit to achieve without server deteriorating.

Hope this helps. :)

Thnaks guys for all the responses, just great to see how people think about it.

Chris

One server outlay total: $540.00\mo
One server clear profit: $350.00\mo

This is what I know from my friend who run wh biz.