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  1. #1

    How much staff do I need?

    Hello, I have been browsing this forums for some days now and I got an idea for starting a hosting company, its just a concept nothing serious for now but out of curiosity I would like to ask some questions about staff.

    So lets say I'm selling managed VPS and Dedicated servers along with standard shared, reseller, Non-managed VPS and non-managed Dedicated servers and I'm getting around 20-50 new clients per month how much staff do I need for running the managed services and the customer support?

    I'm talking about Server administrators and Live support staff.

  2. #2
    Or lets put it this way:

    1. How many servers can one Server Administrator manage, monitor etc.?

    and

    2. How many clients can one live chat agent support?

  3. #3
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    How long is a piece of string; it all depends on what service(s) you offer (ie. managed, semi-managed, unmanaged etc), and what type of clientele you would be gaining. In fact, there are so many factors, that it would be a fruitless task to list them.

    You are best by beginning with 24/7 coverage of at least 1x admin staff at all times + yourself (or an extra administrator if you are unable to fulfil such a role), and then expand the workforce as and when required - but ensure you have the ability to do so at short notice (so interviewing staff, and keeping those that impress on file, should they not be taken on immediately etc).

    The other way, would be to outsource, which will probably work out cheaper (to begin with) and more scaleable as and when you need it, in the short-medium term.

    If you see a flood of business, you will need more live chat agents and administration staff than if business is quiet; though on the flipside, you can have one or two "demanding" clientele, who often make up more with regards support needs, than 50 or more other clientele, so its the luck of the draw really.
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  4. #4
    Thank you for the reply.

    If I start this I will definitely hire local staff working in my own office where I can control them, I don't know why but I feel kind of paranoid about working with outsourcing company somewhere in India . Plus here we have very educated working force, working for 300-600$ PER MONTH.

    So conclusion to all of this should be 3 server administrators (covering 3 shifts) and 6 live support agents (x2 per shift)

    I'm not the tech guru I'm the guy with the budget so I will stick with management.

    Damn I think I can do this.

  5. #5
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    Quote Originally Posted by Leonards View Post
    Thank you for the reply.

    If I start this I will definitely hire local staff working in my own office where I can control them, I don't know why but I feel kind of paranoid about working with outsourcing company somewhere in India . Plus here we have very educated working force, working for 300-600$ PER MONTH.

    So conclusion to all of this should be 3 server administrators (covering 3 shifts) and 6 live support agents (x2 per shift)

    I'm not the tech guru I'm the guy with the budget so I will stick with management.

    Damn I think I can do this.
    $600 per month for a server admin??? Where is this?

    Really though, no matter what you're paying, it's a waste of money. If you're a startup, unless you're putting 100k into marketing, these people are going to have nothing to do. Especially the server admin work. You can get your servers managed by PSM (not in India, they're in New Jersey) for $30 a month.
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  6. #6
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    Quote Originally Posted by Leonards View Post
    Thank you for the reply.

    If I start this I will definitely hire local staff working in my own office where I can control them, I don't know why but I feel kind of paranoid about working with outsourcing company somewhere in India . Plus here we have very educated working force, working for 300-600$ PER MONTH.

    So conclusion to all of this should be 3 server administrators (covering 3 shifts) and 6 live support agents (x2 per shift)

    I'm not the tech guru I'm the guy with the budget so I will stick with management.

    Damn I think I can do this.
    If you wanna offer managed servers, keep watch mostly on that your admins define their system management policies and review them monthly. this will help with a fresh team and will ensure you have a stable environment.

    The better your policies are, the more easy the admins can stick to them. and the easier they can stick to them, the better shape the servers will be in. and if the servers are in good shape, you have the highest servers per admin ratio. just always keep a safety margin of around 15% manpower above what daily business needs in case you have a bigger disaster strike.

    That way you can handle it professionally and get out of it alive

    But your team size looks awesome for a start... good luck!
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  7. #7
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    Quote Originally Posted by WirralNet Matt View Post
    You are best by beginning with 24/7 coverage of at least 1x admin staff at all times + yourself (or an extra administrator if you are unable to fulfil such a role),
    This 1x admin staff, would depend on length of shift and workplace
    You obviously need to work around breaks, holiday, etc., but lets assume 8 hour shift, that works out at 3 members of staff, with yourself covering their days off
    Therefore it is more likely 4 is the minimum to cover 24/7
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  8. #8
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    Quote Originally Posted by m8internet View Post
    This 1x admin staff, would depend on length of shift and workplace
    You obviously need to work around breaks, holiday, etc., but lets assume 8 hour shift, that works out at 3 members of staff, with yourself covering their days off
    Therefore it is more likely 4 is the minimum to cover 24/7
    Yeah but as a startup is this even worth it? Can you justify the costs of in house staff vs outsourcing for any less than say 200 servers? I seriously doubt it.
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  9. #9
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    Quote Originally Posted by SamBarrow View Post
    Yeah but as a startup is this even worth it? Can you justify the costs of in house staff vs outsourcing for any less than say 200 servers? I seriously doubt it.
    If the wages are really as low in his place, maybe yes
    200*$30=$6000

    $6000=8-10 Admins in his place.

    And his staff will learn and get better, so if they got any potential, he could probably use 6 admins to cover 200 boxes and save money.

    On the other hand they'll want a raise once they're any good

    edit: your point is still valid though. without marketing 1, and even 100 admins will be useless. maybe he has a plan that allows to make money from the start or maybe not.
    Last edited by wartungsfenster; 04-03-2011 at 07:04 AM. Reason: but you're right anyway!
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  10. #10
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    Quote Originally Posted by wartungsfenster View Post
    If the wages are really as low in his place, maybe yes
    200*$30=$6000

    $6000=8-10 Admins in his place.

    And his staff will learn and get better, so if they got any potential, he could probably use 6 admins to cover 200 boxes and save money.

    On the other hand they'll want a raise once they're any good
    Yeah, but $6000 is quite a bit of money for a startup. It takes time to build up a business that runs 200 servers.

    Not to mention that PSM is only $20 per server after the second server I believe, so 200 servers = $4010.
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  11. #11
    I still think that in office support can always offer better quality service then some outsourcing company that controls 1000 servers in same time. At the end of the day I do believe that quality service will take you up in such competitive industry as this.

    And yes in here you can hire a certified system administrator for around 600$ per month however you have to rely on his self thought skills since there are very few datacenters in here and they are kind of non public.

    So I believe if I get started I will go with 1 server administrator per 8 hours shift and expand from there on.

  12. #12
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    Quote Originally Posted by Leonards View Post
    I still think that in office support can always offer better quality service then some outsourcing company that controls 1000 servers in same time. At the end of the day I do believe that quality service will take you up in such competitive industry as this.

    And yes in here you can hire a certified system administrator for around 600$ per month however you have to rely on his self thought skills since there are very few datacenters in here and they are kind of non public.

    So I believe if I get started I will go with 1 server administrator per 8 hours shift and expand from there on.
    You can't provide a higher quality service with only 1 administrator covering an 8 hour shift. Two thirds of your problems will go unhandled until somebody comes on-site to take care of it. If you ask me higher quality would be having someone available 24x7, and the PSM guys will be just as qualified as any tech you can hire for $600 a month.

    In the long run, it is better to have your own stuff but in-house 24x7 server administration is not cheap, and you'll be throwing money down the drain because it takes quite a while to build up to 200 servers. In the meantime you're paying to have someone on-site doing nothing.
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  13. #13
    I meant to say 3 server administrators each one of them covering 8 hours shift, so I do believe that is 24x7.

    Yes, from financial perspective that should be around 3 months working in deficit but that is nothing in compare of the advertising investment. I think I have the budget to handle 5-6 months working in minus.

  14. #14
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    Quote Originally Posted by Leonards View Post
    I meant to say 3 server administrators each one of them covering 8 hours shift, so I do believe that is 24x7.

    Yes, from financial perspective that should be around 3 months working in deficit but that is nothing in compare of the advertising investment. I think I have the budget to handle 5-6 months working in minus.
    Oh okay, I misread, I thought you meant one admin during 1 normal day shift.

    To avoid friction when you do move to in-house administration would be nice in theory, but you need to have a very solid marketing plan and a very large advertising budget, enough to be sure you reach that volume soon enough to make it worth the initial spending. Any way you spin it, that money will be mostly wasted in the beginning since you won't have 100 servers the first day you hire these people.
    Last edited by Squidix - SamBarrow; 04-03-2011 at 08:16 AM. Reason: Typo
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  15. #15
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    Wink

    Quote Originally Posted by Leonards View Post
    Hello, I have been browsing this forums for some days now and I got an idea for starting a hosting company, its just a concept nothing serious for now but out of curiosity I would like to ask some questions about staff.

    So lets say I'm selling managed VPS and Dedicated servers along with standard shared, reseller, Non-managed VPS and non-managed Dedicated servers and I'm getting around 20-50 new clients per month how much staff do I need for running the managed services and the customer support?

    I'm talking about Server administrators and Live support staff.
    First you need to establish your business then hire a staff.

    In starting you need only one staff..
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  16. #16
    Quote Originally Posted by DewlanceHosting View Post
    First you need to establish your business then hire a staff.

    In starting you need only one staff..
    I know that first I need to start the business first, however planning the expenses its crucial on the start.

  17. #17
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    For level 1/2 support, I would say one per every 1000 customers. If your customers are more of the beginner type (ie likely to open tickets such as "how do I create a database in cPanel" or "how do I update my email password") then a single admin should cover much less.

    For level 3 support you probably won't need more than one at the beginning so it is definitely more cost-efficient to outsource this to a server management company, and open tickets with them when that support is needed.

    If you are planning to offer managed services however (VPS, dedicated etc.) then it is a completely different ball game. Also reseller accounts are likely to require more support.
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  18. #18
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    Well if you can find a friend that would be the best way. Someone that will work for free hosting till you get up and going. You need to make your site look active, live chat is the best way!
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  19. #19
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    Quote Originally Posted by Leonards View Post
    So conclusion to all of this should be 3 server administrators (covering 3 shifts) and 6 live support agents (x2 per shift)
    Vacations, Sickness, weekends - you will need at least 5 server admins to cover 3 shifts 24/7 and i would actually count 5.5 to be absolutely sure.
    If you add 50+ dedicated server clients / month you will also need sales, sales support staff, technical support staff, billing staff, implementation coordinators, supervisors, manager(s) - etc etc.
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  20. #20
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    Would you be planning to provide 24/7 sales? I'd be focusing on offering 24/7 support in order to stay on a competitive level.

    Most companies have sales working 9am - 5pm.


  21. #21

    *

    Quote Originally Posted by Leonards View Post
    Yes, from financial perspective that should be around 3 months working in deficit but that is nothing in compare of the advertising investment. I think I have the budget to handle 5-6 months working in minus.
    Hello Leonards, how are you?
    That's nice to hear you're willing to start up at this niche, as much to be part on this community...
    Despite this is my first post, I've been visiting WHT every now and then.

    All our friends said are true. I'm sure you already did great work reading many of these pages, and the more you know about something, the greater are your chances to win and grow. So, if you have the time, my first advice would be: Read a bit more this session, where we are right now "Running a Web Hosting Business". Then, do a search here for "complaints", "problems", for customers' fury - You'll be in right path to succeed! Surely, at your new company, you'll avoid committing the mistakes you're about to discover.

    As I can see, you're doing the "homework" thinking about delivering high quality service & support; and when you finish your financial assessment, review it once more.


    Quote Originally Posted by Leonards View Post
    I meant to say 3 server administrators each one of them covering 8 hours shift, so I do believe that is 24x7.
    Regarding to an operational view, you are a lucky person - I'm sure all these friends can help you to start it up with the quality you are willing to service.

    Anyway, get to know what will be your needs for the first month, for the second one, and so on. Studying & Planning are some of the keys!

    As you're foreseeing you can survive for 5/6 months, keep the expenses at a lower level without sacrificing the quality. Work on a solid marketing plan and start sharing this niche, as there will always someone who needs to host something.

    And again, it is a pleasure to be here!
    Last edited by HSGroup Brazil; 04-05-2011 at 07:40 PM.

  22. #22

    Smile

    Just removing the duplicate post...

    Thanks,

  23. #23
    Quote Originally Posted by HSGroup Brazil View Post
    Just removing the duplicate post...

    Thanks,
    Thanks for the reply, I must say I'm not newbie to the hosting world, I know how most of the things go. I have selected suppliers/datacenters from where I will rent the servers, I have the budget, I have online business experience but I don't have inner experience in running hosting company.

    The things that most concern me is how much staff per servers/customers and
    How many clients per server (with reasonable overselling)

    I guess it will be best to find a server administrator with experience in running hosting company so he can administer the servers and also help me establish the company.

  24. #24

    Thumbs up

    Quote Originally Posted by Leonards View Post
    I guess it will be best to find a server administrator with experience in running hosting company so he can administer the servers and also help me establish the company.
    That's a wise thing to do Leonards.
    Since you have the background, you'll get the things quickly.
    After that, you may choose to keep this administrator with you, if he provides the team with good resoults. There is nothing better than someone who knows the "why", "how", "where", "when"...

    If possible, try to find someone business-centered, but, with a strong tech background in this field, so as you've said, he can administer the servers also.

    I have no idea what it will cost, since I don't know where are you from. But certainly it'd be a wise choice.

    Have you got a marketing plan?
    Do you know exactly where are you going to apply your efforts to gather customers?
    Did you think about where and why you could also invest gathering the valued customers?
    Do you have a plan that differentiates you from other hosting companies?
    Can you think about something that would make your company unique?


    Quote Originally Posted by Leonards View Post
    The things that most concern me is how much staff per servers/customers and
    How many clients per server (with reasonable overselling)
    Maybe someone else could help clarifying a bit more regarding to these topics...

  25. #25
    Quote Originally Posted by HSGroup Brazil View Post
    Have you got a marketing plan?
    Do you know exactly where are you going to apply your efforts to gather customers?
    Did you think about where and why you could also invest gathering the valued customers?
    Do you have a plan that differentiates you from other hosting companies?
    Can you think about something that would make your company unique?
    1. Well in the past few days I was mainly analyzing competition and making estimates on the budget needed to get the company up and going I haven't yet reached the stage of making the marketing plan, I have good experience with CPA networks also I believe that interactive advertising in targeted online communities such as this can be effective.

    2. I have a very unique idea about truly white label affiliate program and I believe if it is produced and marketed right it can be the main source of new customers. (I suppose I shouldn't brag to much about it)

    3. As I said above I have very solid and unique idea, also in the past few days I have been browsing trough hundreds of hosts and I must say that the design's on most of them were simply terrible very unattractive on first sight I will make a design that will really rock.

    4. I will be aiming on making a service that will be easy enough for everyday customers and powerful enough for tech "gurus" and business, 90% of the hosts I have seen require certain tech knowledge to understand what you need to buy, I believe that drives away a good number of customers that are not familiar with this service to those crappy builder services such as webs.com for example I will tend to make a very easy to understand solution for beginners and a powerful solution for advanced customers and businesses.


    So that is my plan. In short paragraphs

  26. #26
    First, that's nice to see you have a vision, a business vision. Here is where the creativity takes part, and you become able to differentiate, become unique. That's great - I Really like it as you may bring to the market a great company, offering great packages, aggregating value under new standards! Yes, that's all possible...


    Quote Originally Posted by Leonards View Post
    1. Well in the past few days I was mainly analyzing competition and making estimates on the budget needed to get the company up and going I haven't yet reached the stage of making the marketing plan, I have good experience with CPA networks also I believe that interactive advertising in targeted online communities such as this can be effective
    When visiting their websites, have a look on what may work for you, and make it better. Finish the study on what you'll need in terms of infrastructure, and get someone of your trust to reassess it, remembering that you may not need to rent a large structure, for hundreds of clients at the beginning, as you can always buy/rent something later. When it comes to the market, don't underestimate it because here is where your clients are - Do it right, and not only considering what you already know as CPA, interactive advertising, communities, etc.


    Quote Originally Posted by Leonards View Post
    2. I have a very unique idea about truly white label affiliate program and I believe if it is produced and marketed right it can be the main source of new customers. (I suppose I shouldn't brag to much about it)
    Every single second you spend on planning, designing the right plan, it's like a grain that'll grow and produce something, as you certainly know it. An unique idea is a valued grain - Have someone you can trust and count on to envision what this grain can produce. An external view can be of great help. And by the way, never allow any pessimism to beat you, but consider everyone's point of view.


    Quote Originally Posted by Leonards View Post
    3. As I said above I have very solid and unique idea, also in the past few days I have been browsing trough hundreds of hosts and I must say that the design's on most of them were simply terrible very unattractive on first sight I will make a design that will really rock.
    An external point of view would be incredibly great here. I actually believe you should get some external help on these points so you could "enter the client's mind". Design, usability, that's all important and it should aimed at on an expansion model - Something easy to change and grow, considering global markets - As you've stated, always remembering the clients: they'll use it, not you, your team and no one else. Again, it's quite important to remember the past advice: do a search for complaints, have look at those topics where the clients are VERY ANGRY with the companies, and you'll get great ideas that could be as important as the system that makes your business run.

    Even if a client is completely wrong, do everything you can to understand him, and make him to feel as he is right. Reconquer him.


    Quote Originally Posted by Leonards View Post
    4. I will be aiming on making a service that will be easy enough for everyday customers and powerful enough for tech "gurus" and business, 90% of the hosts I have seen require certain tech knowledge to understand what you need to buy, I believe that drives away a good number of customers that are not familiar with this service to those crappy builder services such as webs.com for example I will tend to make a very easy to understand solution for beginners and a powerful solution for advanced customers and businesses.
    That's right. If someone don't find what he's/she's looking for within 30 seconds, a minute, you have great chances to loose this prospect as they'll have several other options at a large variety of plans and prices - And most of them knows it.

    A little bit out of this specific topic, there is something a "newbie" really hates: To discover at a later stage, that there exist a TOS/AUP/NOP telling him, he can't do something he have paid for because a system is configured to block it - A "bottleneck" set up on something.

    There is something a "tech guy" hates as well: "Hello world, we offer you this damn great package, and as you already know we have a TOS/AUP/NOP with a lot of (written but) hidden threats - Buy them right now with this coupon code - Act now! It's only valid for this month!"

    There is something every single client already hates, or will hate a later stage: "That's wonderful to have you in our family - You are a valued client - How may we help you?" ... "When signed up for this plan, it didn't mention I'd be completely blocked by 50 e-mails per hour, 15 concurrent mySQL connections, impossibility to back up my lightly heavy site due to a damn script blocking CPanel to do it, and so forth". ... The clients hates those companies that don't clearly states their limitations on theirs TOS/AUP/NOP/ETC.

    Don't do it. Be as clear as possible, and whenever your client need something else to make his/her "plan run better", assess him/her proposal and justifications and if possible, provides him/her with what they are asking you to do; believe me: they'll be happy to bring you new customers.


    If you have questions or want to post comments on something, just let us know it... I hope you to have your business running as soon as you're ready and, that it grows as quick as you can imagine it.

    By the way, where are you from?

    Thanks,
    Last edited by HSGroup Brazil; 04-06-2011 at 09:41 AM. Reason: Correcting some text...

  27. #27
    Quote Originally Posted by HSGroup Brazil View Post
    First, that's nice to see you have a vision, a business vision. Here is where the creativity takes part, and you become able to differentiate, become unique.....

    By the way, where are you from?

    Thanks,
    Thank you for the valuable tips, I will consider the points that you have made.

    Anyway I'm from a country in the Balkans, Europe

  28. #28

    Exclamation

    Southeastern Europe.
    Are you aiming to provide services to the Americas?

    There are some routes from Europe to here that are really painful to work with, making to not possible to buy or keep an account with a service provider even if they provides high quality support.

    And yes, considering you'll keep all your structure in Europe.
    I don't exactly know which these routes are.
    Last edited by HSGroup Brazil; 04-06-2011 at 11:14 AM. Reason: Complementing

  29. #29
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    It may be cost-effective to outsource before hiring your own staff directly
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  30. #30
    Quote Originally Posted by XeHSean View Post
    It may be cost-effective to outsource before hiring your own staff directly
    I agree, but how productive will it be, I have seen dozen of server-management outsourcing companies offering server management for 30-50$ per month, but the main concern about this services is the human factor, if I buy such a service will I only get a routine monitoring, upgrading only? Because that sounds to me like I have some management machine bought. I need someone who will be available to chat with me for eg. custom configuration, optimization, some random tweeks to the server now and then.

    Anyway if you have some experience with such a company please share it with me.

    Heh funny thing is what I saw today on the rollover advertisement of this site was a outsourcing company that billed 15$ per hour if you sign up on monthly bases.

    15$ per hour hahah if those guys make profit with such prices I might even change my idea and instead of making hosting company I will make outsourcing company With all the bright fellas in my country working for very low prices compared to the western countries I can offer the same service for 1/4 of the price that company does

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