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Thread: Breakeven & review packages
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05-03-2012, 11:02 AM #1Newbie
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- Nov 2003
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- Paris
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Breakeven & review packages
Hi,
I bought a reseller package one month ago.
Since, I have spent a lot of time with Excel to check if my business plan sounds good.
With my reseller account, my unbranded WHMCS licence and Demowolf subscription, I plan to be breakeven with 7 customers (webhosting only, no domain names margin) on a monthly basis.
Do you think it's ok?
And could you review my packages please?
Basic
10 GB Storage
100 GB Bandwidth
10 Domains
10 MySQL Database
10 Email Accounts
Unlimited Subdomains
4,95€ (~$6.30)
Normal
25 GB Storage
250 GB Bandwidth
25 Domains
25 MySQL Database
25 Email Accounts
Unlimited Subdomains
9,95€ (~$12.64)
Super
60 GB Storage
600 GB Bandwidth
60 Domains
60 MySQL Database
60 Email Accounts
Unlimited Subdomains
19,95€ (~$25.34)
Extra
100 GB Storage
1.000 GB Bandwidth
Unlimited Domains
Unlimited MySQL Database
Unlimited Email Accounts
Unlimited Subdomains
29,95€ (~$38)
Thanks for your feedbackI'm french, sorry for my bad english
My Project : Teamspeak Hosting
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05-03-2012, 11:07 AM #2Web Hosting Master
- Join Date
- Feb 2003
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- NY
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Do we think it's okay? We aren't the one's that need to pay the bills and keep the lights on, you are. Are you okay with your break-even being 7 customers?
7 customers is also generic, is it 7 customers on plan "Basic" is it 7 customers on "Extra"? Most Break-even's are done at a dollar threshold, not necessarily a headcount because each client can pay for different things. Especially add-on features and other things that might come with additional cost or have different margins.Doug
Finance, Operations, and Business Executive
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05-03-2012, 11:17 AM #3Newbie
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- Nov 2003
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- Paris
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Ok, my question was probably too generic.
I can afford 0 customers for a lot of time, it's not my primary source of income. My calculation was on the basic plan, so you could see that I'm breakeven at $44 (on monthly basis).
I'm the guy who pay the bills, it's right
And what do you think on the packages?I'm french, sorry for my bad english
My Project : Teamspeak Hosting
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05-03-2012, 09:26 PM #4Newbie
- Join Date
- May 2012
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- 10
You will find it difficult to compete with other shared hosting providers on forums like WHT. Many well-known providers are offering unlimited everything. However, you may be very successful catering to the local market where consumers might be a little less savvy about the web hosting industry. Good luck with your venture!
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05-03-2012, 09:33 PM #5Web Hosting Master
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Doug
Finance, Operations, and Business Executive
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05-03-2012, 09:44 PM #6Web Hosting Master
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05-04-2012, 04:22 AM #7Newbie
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I will not compete with WHT members. I'm in the french market. There are some very well known hosting companies in France but I consider that it's less competitive than the UK/US market.
To OP:
You should bring a 1GB plan to action as well. Most sites wont go over 1GB storage.
Concerning unlimited packages, I don't like the idea. I think that it would bring to you a lot of customers abusing. With a reseller account, I can't afford a customer with 50% of my diskpace.I'm french, sorry for my bad english
My Project : Teamspeak Hosting
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05-04-2012, 10:37 AM #8Web Hosting Master
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05-06-2012, 05:02 AM #9Newbie
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- Dec 2002
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You are competing with WHT members no matter what, it being directly or indirectly. The fact that you run a web hosting company makes you by default a competitor in one shape or another.
Try US and Europe.
Also I looked over your hosting plans in your op and have to say you must be packing a lot of terabyte drives in your dedicated servers or over selling. Also on your price point to what you get seems to be too good. This is a bad thing. You do realize most websites don't need more than a 1GB of space right? With what you are offering will also have you run a huge risk for wares and other such content.
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05-04-2012, 03:38 PM #10Web Hosting Master
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05-03-2012, 09:37 PM #11WHT Addict
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- Apr 2012
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- 133
First,
I thought it was against the rules to offer Unlimited Plans? If i read the rules right, you cant even have unlimited on your web page? I guess i am wrong.
To OP:
You should bring a 1GB plan to action as well. Most sites wont go over 1GB storage.★ WebTonight.co
★Master Reseller|Reseller|cPanel Shared|Unlimited.
★Softaculous|Fantastico|RVSiteBuilder Pro|Free R1Soft Backups.
★Powered By CloudLinux servers|RAID10| 99.9% Network Uptime.
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05-04-2012, 10:35 AM #12Web Hosting Master
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05-04-2012, 02:58 PM #13Newbie
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05-04-2012, 04:44 PM #14Web Hosting Master
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I think you have a major flaw in your business plan and it needs to be addressed. Your work out that your break-even cost is the same as approx 7 customer signups, but are you counting in all the costs associated with your company?
- Your time (Are you going to support these people?)
- Electricity
- Insurance
- Advertising
- Rent
- Internet Connection
- Phone Calls
- Office Supplies
The above is a quick few I picked off the top of my head but every single one of them should be included in a properly drawn up business plan. Yes you may have the house and internet already but a business plan should detail what percent of each is going to be paid by the business, simply leaving rent out because you have a house already isn't how a properly drawn up business plan works.
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05-05-2012, 11:47 PM #15Web Hosting Master
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Doug
Finance, Operations, and Business Executive
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05-06-2012, 04:38 AM #16Web Hosting Master
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My reply wasn't specifically for the OP, it was more to show others in the future reading it that the costs associated with you breaking even include a lot more than a simple cheap reseller account. Too many people forget that their time is money and don't factor it in with their costs.
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