What do you charge monthly for your packages?

say if u had a 10MB, 1GB bandwidth p/m, PHP, CGI, etc. what price would u sell it at?

monthly or yearly?

i dont see how some of the hosts i have seen can charge £25 a YEAR and still make profit!

The plan you describe represents a fairly insignificant drain on most hosts resources, even those that are reselling. Assuming you sold in quantity, you could make money doing that (it equates to about $38 a year).

it was meant to be just an example...packages would vary. im just trying to find out how can they do it? most (*most*)of the reseller packages i have seen do not allow for a large amount of total income when charging at a low yearly rate.

i am planning to resell then once stable move to ded. hosting...is this wise?

Originally posted by digitalb
i am planning to resell then once stable move to ded. hosting...is this wise?

Very wise :)

I think its best to start with a reseller then move to dedicated server when you run out of resources with your reseller account.

We have a dedicated server in one state, with another backup server in another state which is backed up to the UK account we have on a daily basis. It is quite expensive for the upkeep, but the monthly paying clients we picked up whilst on the reseller account pays off the monthly outgoings and leaves new signups as profit.

digitalb,

You have to target a market. Just by looking at this board, you will find hosts offering 35GB for $5/mo to host offering 5GB for $30 or more. There are so many factors you have to consider. For example, what datacenter do you want to be in? How much your server(s) or reseller package(s) cost? How much space and bandwidth do you get per month?

You can offer 1GB space and 20GB bandwidth for $10 and make profit, but a site using 20GB profit will use a lot of CPU power as well. You can’t put too many sites like that on one server if you want the performance to be top notch. Maybe with a pricing like this you’ll get 100 customers in the first few months. Now you probably need a 2nd server, so now you have 2 servers to pay for and manage. You’ll most likely also need another tech to help you provide support if you want to take care of your customers, that will cost. So your support request is high, your costs are high and profit not that high. But you will probably keep selling and selling and selling.

You could also offer 200MB space with 4 GB bandwidth for $10. You’ll probably only get 20 or so customers in the first few months, but your profit per customer is a lot higher (4 times higher). You only pay for and have to manage one server, you don’t have to pay for extra help so whatever you make, most of it you can keep.

These are just two examples to show you a couple of different markets you can target and ways you can go. You have to make a business plan. The most important thing when you start out is to reach the point where you break even. After that, it’s all good ;)