Hi friends
I am from Pakistan, here some companies selling hosting with domain for one year at $15 USD, could any one calculate that how they will survive with this cost, I saw some advertisement from them in magazine which is costly , I dont know how they are bearing this cost, one company also offering featuers of ASP and SQL in this cost, I cant understand this all story.

What do you think about it.

Thanks

Most companies start with a bit of play money. They will use it to advertise. Once that money is gone they slowly dwindle away if they offer cheap prices like that upfront. Really be careful choosing hosts that offer you the world at real cheap prices.

Lol, at first I thought that it said a domain for $15 per year, which is fine and even quite expensive to some... but then I noticed it said hosting aswell. Now including hosting with a domain for only $15/year is just too little, it's a business model, but a model that will fail in the future as they won't have enough profit to keep the company running, let alone to pay themselves a respectable salary.

It's not just in Pakistan that you get the low cost web hosting, it's everywhere, in the US and UK too. There's a high demand for newbies starting out on the web and so these hosts are prefect for them, but they all soon realise that they either get no or little support, or the server that their website is on goes down quite often, when they could simply have paid an extra few dollars a month to get better support and uptime.

Alan

I agree with you, but let suppose we dont have any employe, and we are not giving any salary to any person, then could you help me to calculate server cost with domain at $15 per year ?
I mean how many domains they will put on server to bear the cost of server and domains with any other salary or staff expense.

It depends on what kind of hosting they are offering with the domain, the amount of bandwidth and disk space and what features. If they are only selling the domain at $15/year and allowing the user to park the domain on their server then you can fit thousands of domains on one server as it'll only be using their DNS and other small server resources. A server can be as cheap as $99/month from Rackshack or Nocster (but these days, a lot of the other companies can do servers at $99/month too)... but you've also got to think about the number of customers you'll get, as you might get a lot in the first montha and then after none in the next few months.... that's the downside for charging on the yearly basis.

Hussain, from the sound of it, it seems that you want to setup a company that offers hosting and a domain for $15/year?

Alan

Originally posted by ho247


Hussain, from the sound of it, it seems that you want to setup a company that offers hosting and a domain for $15/year?

Alan


I did this post to get view of poeples, I saw here 3 companies doing this type of hosting with domain at very cheap, I got socked that how they are covering cost with this, and how they will pay salary to staff, I need here any good commerce person who can calculate that how they are profitable and will stay long, I am not planing to do this type of business because I think i cant go lower like this.

They can actually make a good profit from that package. I'm assuming they buy tons of domain name and each domain costs around $6-7 per year (if not less). That leaves $8 for hosting the client for a year. You have to keep in mind that people that buy a domain from a company like this probably doesn't have a website, or a very very small one that only he/she and his/her family visit once in a blue moon. A lot of them might even move to another web host after a month or two to get a fully features package. If we say they can put at least 1,000 domains on a server, then they're making $8,000 per server per year. Basically, a company like this has to sell, sell, sell to keep making profit. It's not like a normal web hosting company where they have a somewhat steady monthly/annually income from their clientbase.

Ah, okay. I would personally keep away from offering such low cost services. You can't just make a profit, you've got tomake enough profit to be able to keep you happy. If you've got to pay for all the costs and employee costs etc, and your net profit is only $20 (assuming that you don't get a salary as you're the owner of the company and the work you put in is what you own, which is the company), then that wouldn't be enough for you to live on and to motivate you enough to run the business.

As for the analysis on a hosting company that offers $15/year hosting and domain, I'll leave that for someone who has more time than myself to waste on calculating if a business such as that is profitable or not :).

Alan

Originally posted by (SH)Saeed
They can actually make a good profit from that package. I'm assuming they buy tons of domain name and each domain costs around $6-7 per year (if not less). That leaves $8 for hosting the client for a year. You have to keep in mind that people that buy a domain from a company like this probably doesn't have a website, or a very very small one that only he/she and his/her family visit once in a blue moon. A lot of them might even move to another web host after a month or two to get a fully features package. If we say they can put at least 1,000 domains on a server, then they're making $8,000 per server per year. Basically, a company like this has to sell, sell, sell to keep making profit. It's not like a normal web hosting company where they have a somewhat steady monthly/annually income from their clientbase.


Earning per month if they will get 1000 clients

8000 mean 666$ per month,

$99 server charges per month
$ ? control panel charges
$ ? bandwidth charges
$200 add charges in magazine which i saw here per month
$ ? for internet usage
$ ? for any other expese on server
$ ? for food & rent of office
$ ? for his own salary or staff salary

So where is profit ?

Originally posted by Hussain
Earning per month if they will get 1000 clients

8000 mean 666$ per month,

$99 server charges per month
$ ? control panel charges
$ ? bandwidth charges
$200 add charges in magazine which i saw here per month
$ ? for internet usage
$ ? for any other expese on server
$ ? for food & rent of office
$ ? for his own salary or staff salary

So where is profit ?

A cheap server for $99-$150/mo comes with 300GB+ bandwidth and unlimited Ensim control panel. So, after your server costs you will have about $500 profit per month per server. If he advertises for $200, I'm sure he will get a lot of new customers and will make up for that.

If this guy has 10 servers filled, then he's making a profit of $5,000 per month. I hardly think they offer much support, maybe they have 1-2 people from India or somewhere around there working for $2/h 2-3 hours per day.

I might have missed it but you guys never even mentioned TAX....... OMG........ $15 per year...... Good luck.. out of business before the next financial year..... I guarantee it 100% SLA LOL