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Thread: 4$ Yearly VPS

  1. #1
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    4$ Yearly VPS

    Hey,

    I just found this offer:
    https://vpsboard.com/topic/3277-you-...ns-and-kiwivm/
    http://list.lowendserv.net/ there is it also.

    What do you think about a 4$ VPS with Ipv4 (64MB)?
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  2. #2
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    I don't know about it... Paying $4 a year for a vps isn't going to end up being that much reliable... I just wouldnt do it at all even though it does seem like a good deal but what happens when you have a very important project on that node never backed up and poof one day it all goes down hill the server goes offline and all data is lost or what if the host just disappears over night one day and you never hear about them again you'll be a very mad camper believe me.
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  3. #3
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    Depends on what you're trying to do with it.

    Test box where data is unimportant and uptime is irrelevant?
    Go ahead!

    Production website where uptime is important?
    Please don't.

    I use two of these (not this provider, two different ones at similar price range), mirrored and round-robined to provide some form of redundancy.
    It was an interesting experiment (no-profit project that still values uptime), but I won't use it for anything that makes money.
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  4. #4
    $4/Year VPS where an IPv4 require to setup a VPS and IPv4 is actually expensive nowadays. 2 to 3 USD per Month for 1 IPv4 and you are getting for a VPS for $4/Year. That is actually really cheap. Are you sure you can trust that VPS for your Personal/Business website?
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  5. #5
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    I think it'd be hard to even cover the cost of the IP let alone everything else, definitely isn't something I'd go for and pretty impossible to use it for anything except file storage, you might struggle even at that.
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  6. #6
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    How in the world does somebody makes any money from $4 / year vps? ..
    Thats just bizarre and makes no sense from where i see it, even from the customers perspective it shouts unreliability in every aspect.
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  7. #7
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  8. #8
    I dont know how come the provider will give you reliable service for VPS. I mean even though its unmanaged if you count his cost for VPS is higher then the price he gave you
    $1 per IP for vps
    atleast it will cost $1 for his VPS panel
    and rest of $2 will be his 1 year income? what a joke.
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  9. #9
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    Too good a deal... better test with a non-crucial site first.
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  10. #10
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    My first thought....Pure Marketing.

    Do not take this as "what they are making from this price"
    Its like "investment in marketing the product/service".
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  11. #11
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    Those "marketing" practices are really spoiling the markets for a lot of customers which dont appreciate whats behind the curtains of a real stable environment.
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  12. #12
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    Quote Originally Posted by racknationcr View Post
    Those "marketing" practices are really spoiling the markets for a lot of customers which dont appreciate whats behind the curtains of a real stable environment.
    I agree
    Its also spoiling market for decent/low budget sellers.
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  13. #13
    i agree with racknationcr, these offers spoils market. its not a healthy competition. Instead of $4/year, they should just give it for free.
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  14. #14
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    it seems to me all plans at above mentioned provider come with 1 core:
    https://bandwagonhost.com/terms-of-service.php

    even on the top of range plan: 1 core + 50% of 2nd core, pointless to have 320GB of HDD, 8GB of RAM and 1.5CPU.
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  15. #15
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    Assuming you have decent card processing rates, let's say you lose 2.25% of that $4 in card fees. That leaves $3.91, which works out to 32.6 cents per month.

    Let's assume you've got really cheap colocation on nodes. One provider I can think of offers a full rack for $459 per month if paid by the year. Add $84 per month for a /24 (again, paid annually). That's a total of $543 per rack per month, or roughly $13 per unit per month. At a gross income of 32.6 cents per month, each 1U of server space would need to host a minimum of 40 VPSes just to break even. A 2U server would need to host at least 80, and so on.

    Keep in mind that's a profit on the level of $1.68 per rack per month. Not even enough to buy a decent cup of coffee!

    But there's still something we haven't mentioned: equipment cost. My example above assumes a full rack of decent servers just fell in your lap. If you actually have to purchase or lease equipment, you start having serious issues. Let's assume you go the cheapest possible route and build your own servers from scratch using decent equipment from Newegg. Without doing the math, a decent VPS node is going to cost you around $1500 - $2000. Heck, just for the sake of argument, let's say it costs you $1200 to build a decent, reliable, 1U VPS node. And let's say you depreciate that over 6 years -- a little longer than most hosts would, but let's give that price the benefit of the doubt. That's another $16.67 / month / 1U.

    So now your total 1U cost per server (remember, I've taken a lot of unlikely liberties to bring the cost way down here) is $29.67 / month. With VPS revenue of 32.6 cents per month per VPS, you'd need to host a minimum of 91 VPSes per node just to break even. If you double that count to 182 VPSes per 1U node (or 728 VPSes per 4U node!), you're looking at a profit of only $1200 per rack per month.

    But here's the catch: that profit assumes you hit the ground running at full capacity. If it takes you a year to fill up that rack, you're going to lose a tremendous amount of money that will take a long time to recover.

    And of course, none of that takes things like salary, customer acquisition, network hardware, bandwidth, power, costs of support, software licensing, abuse issues, and so on into consideration. All of those things will drive profit down even further. And we haven't even discussed CPU or I/O bottlenecks here.

    "But Lisa," I hear you say. "What if I just rent a server instead of paying for colo? Wouldn't that be cheaper?" No. Remember, these costs break down to around $30 per unit. Heck, let's just triple that and assume $90 per unit per month. Good luck renting a decent VPS node for less than $90 per month, let alone one that can handle 182 VPSes. You can find dedicated servers for that price, but nothing I'd want to carve up into customer-facing VPSes.

    So the short answer? You can sell a VPS for anything you like. Doing so sustainably is another matter entirely. I don't know what the company linked to is doing, but this post just gives you an idea of what's involved with offering service at that price.
    Last edited by FRH Lisa; 01-23-2014 at 09:42 AM.
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  16. #16
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    110% agree.

    I wouldn't want to be a customer on a node where people are paying $0.33 a month.

    Quote Originally Posted by racknationcr View Post
    Those "marketing" practices are really spoiling the markets for a lot of customers which dont appreciate whats behind the curtains of a real stable environment.
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  17. #17
    I think that its a good deal for testing purposes (ping test, speed test, linux training)
    Want cheap Facebook Likes or RDP(Remote Desktop 1Gbps)? PM
    or search for my threads in the Advertising Forums
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  18. #18
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    Serious question: How do these ultra-cheap providers mitigate spam? I would think VPSes this cheap would be a haven for spammers and malware pushers. Even if they get suspended after a few days, $4 is cheap. Then the provider has to go clean up the IP and hope it doesn't happen again.
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  19. #19
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    Quote Originally Posted by FRH Lisa View Post
    Serious question: How do these ultra-cheap providers mitigate spam? I would think VPSes this cheap would be a haven for spammers and malware pushers. Even if they get suspended after a few days, $4 is cheap. Then the provider has to go clean up the IP and hope it doesn't happen again.
    Exactly, i wouldnt like to be on their ip neighborhoods at all ... im pretty sure it gets ugly
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  20. #20
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    oh man. i never saw even a shared host that cheap with a dedicated ip.
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  21. #21
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    Quote Originally Posted by Criot View Post
    I think it'd be hard to even cover the cost of the IP let alone everything else, definitely isn't something I'd go for and pretty impossible to use it for anything except file storage, you might struggle even at that.
    I was thinking the same thing. I cannot see how the provider could even cover the cost of the IP address alone in this deal.
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  22. #22
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    You get Ipv4 /24 Subnets in US for 5$ (Incero) so in US it wouldnt be a problem.
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  23. #23
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    Quote Originally Posted by FRH Lisa View Post
    Serious question: How do these ultra-cheap providers mitigate spam? I would think VPSes this cheap would be a haven for spammers and malware pushers. Even if they get suspended after a few days, $4 is cheap. Then the provider has to go clean up the IP and hope it doesn't happen again.
    Since this topic is clearly about us, we are the same company that develops Nodewatch. Abuse is not an issue on our nodes.

    Speaking of sustainability, this year will be our 10th year in webhosting...
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  24. #24
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    $4 for a VPS, good luck using the VPS and for $4 you cannot complain really.
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  25. #25
    I agree that sounds out of place. I would recommend Digital Ocean
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  26. #26
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    Quote Originally Posted by FRH Lisa View Post
    Serious question: How do these ultra-cheap providers mitigate spam?
    They don't. These aren't real hosting offers. There is a terrible trend thats finally ending where people would just start any ole hosting for any price they could to have "a client". Do that for a few months then try to sell these few dozen or few hundred penny clients off to someone else before it implodes.

    Thankfully, these places usually implode too fast to be sold now.

    OP: Do yourself a favor and just don't put any data there. Don't waste your four bucks.
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  27. #27
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    I take it no one actually read my post? Anyone interested in a discussion at all or this is a strictly bashing/rant kind of topic?
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  28. #28
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    Quote Originally Posted by FRH Lisa View Post
    Serious question: How do these ultra-cheap providers mitigate spam?
    It's not very difficult to prevent this . . .
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  29. #29
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    If I were to provide VPS $4.00 a year, I would prefer to offer them free. LOL
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  30. #30
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    Quote Originally Posted by Jag View Post
    They don't. These aren't real hosting offers. There is a terrible trend thats finally ending where people would just start any ole hosting for any price they could to have "a client". Do that for a few months then try to sell these few dozen or few hundred penny clients off to someone else before it implodes.

    Thankfully, these places usually implode too fast to be sold now.

    OP: Do yourself a favor and just don't put any data there. Don't waste your four bucks.
    I'm going to have to disagree with you (I'm a current Bandwagon Host client and a former JaguarPC client). While many low cost providers are a disaster and quickly go out of business, low cost does not necessarily indicate low quality and there are low cost providers who have been in business many years. In fact the low cost VPS's I've used from low cost providers like Bandwagon, Prometeus, Ram Node, Iniz etc have been much more stable and reliable than the higher cost VPS I rented from your company JaguarPC a few years ago (canceled Jan '12) and the support I've received from these companies has been much better (and much faster to respond to tickets) too so sometimes you actually do get more than you paid for....and sometimes you get far less, you just need to do your research before buying any hosting service.
    Last edited by domainbop; 01-26-2014 at 02:58 AM.
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  31. #31
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    I think that its a good deal for testing purposes (ping test, speed test, linux training)
    I never really got this meme. If learning Linux and you want a lab then you've got VirtualBox etc... and all the freedom you desire. Also I wouldnt say any performance testing on such a high density node would give meaningful results.
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  32. #32
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    I like them $4/yr VPS's. Theyre good for suspending.
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  33. #33
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    Quote Originally Posted by domainbop View Post
    I'm going to have to disagree with you (I'm a current Bandwagon Host client and a former JaguarPC client). While many low cost providers are a disaster and quickly go out of business, low cost does not necessarily indicate low quality and there are low cost providers who have been in business many years. In fact the low cost VPS's I've used from low cost providers like Bandwagon, Prometeus, Ram Node, Iniz etc have been much more stable and reliable than the higher cost VPS I rented from your company JaguarPC a few years ago (canceled Jan '12) and the support I've received from these companies has been much better (and much faster to respond to tickets) too so sometimes you actually do get more than you paid for....and sometimes you get far less, you just need to do your research before buying any hosting service.
    Stability and support are easy when you have a small client base. A couple hundred, maybe couple thousand $3.00 VPS no big deal. You get a 5 - 10 support tickets a day if your lucky. You have one person manage the whole system. Client starts using to much resources you simply terminate them because they are only worth $3.00. Then you get to a size that churn beats out new clients with free advertising and you have to hire a real support staff. That's when the system blows up.

    When you are providing $30.00/month VPSes you cannot simply terminate customers for high usage. You have to work with them. They have that expectation you are going to work with them. Unfortunately, that sometimes can affect stability. If the shoe was on the other foot, I'm sure you'd have wanted us to help you too instead of leaving your site suspended and leaving you wonder what in the world are you suppose to do to fix it. Plus, since 2012 we have nearly cut the number of users in half (we weren't even overselling before), doubled ram and increased CPU power by 133%.

    I think most of our clients would agree that comparing 2012 or early 2013 is a completely different experience then late 2013 and beyond.
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  34. #34
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    Quote Originally Posted by Zachary McClung View Post
    Client starts using to much resources you simply terminate them because they are only worth $3.00. Then you get to a size that churn beats out new clients with free advertising and you have to hire a real support staff. That's when the system blows up.

    When you are providing $30.00/month VPSes you cannot simply terminate customers for high usage. You have to work with them.
    True, most higher priced providers are more likely to work with their clients (who tend to be businesses running production sites) when high resource usage problems occur.
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  35. #35
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    Quote Originally Posted by MattF View Post
    I never really got this meme. If learning Linux and you want a lab then you've got VirtualBox etc... and all the freedom you desire. Also I wouldnt say any performance testing on such a high density node would give meaningful results.
    Not everyone would have the necessary skills to set up a virtualized instance, though I agree it's getting easier with pre-built images.

    I think the far stronger argument for these boxes is for non-profit, personal projects that have no uptime importance. I'd see these boxes as a starting point - and if the project ever turns profitable or popular, migration to a more reliable provider would be in order.
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  36. #36
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    May I ask people to stop implying we are "less reliable" or "less reputable" in any way? Unless, of course, you have any proof at all that our uptime is worse compared to any other provider.

    I have a feeling that I am being completely ignored, yet, the topic is about the company I represent.
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  37. #37
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    I seen reputed company selling vps normally as started fom 20 to 30$/m

    But this is too much critical to sell vps start $4/m. But i am confuse there services ill be not reliable.I think you ill be going to wrong way for buy them vps

    Thanks
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  38. #38
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    Quote Originally Posted by Zachary McClung View Post
    Stability and support are easy when you have a small client base. A couple hundred, maybe couple thousand $3.00 VPS no big deal. You get a 5 - 10 support tickets a day if your lucky. You have one person manage the whole system. Client starts using to much resources you simply terminate them because they are only worth $3.00. Then you get to a size that churn beats out new clients with free advertising and you have to hire a real support staff. That's when the system blows up.
    Keep in mind that this thread is about a $4/YEAR VPS, not a $3 or $4 per month VPS. Even a cheap $3/month VPS would bring in $36 per year. A $3/month VPS solution will likely buckle under the growing pains of scaling out the staff, but at least $3/month might work as long as customer expectations were low enough. The problem with a $4/YEAR VPS is that the expenses exceed the revenues regardless of the number of customers. With a $4/YEAR VPS, it does not matter how many customers the company has, because it will cash flow negative no matter what.
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  39. #39
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    Quote Originally Posted by dcdan View Post
    May I ask people to stop implying we are "less reliable" or "less reputable" in any way? Unless, of course, you have any proof at all that our uptime is worse compared to any other provider.

    I have a feeling that I am being completely ignored, yet, the topic is about the company I represent.
    I have not made any comments about your reliability. I have never used your service, so I personally have no idea if it is reliable or not. And being a budget service does not necessarily mean less reliability. There are reliable and unreliable hosts at every price point in the market.

    What I am questioning is how you can even afford to sell IPv4 addresses for $4/YEAR, much less include a VPS with the IP address. The cost of IPv4 address space creates an artificial pricing floor throughout the VPS industry. How cheap are you getting IPv4 addresses? How many did you manage to get at that price?

    FRH-Lisa penciled out some possible numbers for why $4/YEAR won't cash flow on the first page of this thread. I am inclined to agree with her that $4/YEAR VPS hosting won't work. In fact, I'd say she was giving you the benefit of the doubt on most of the numbers. For example, she estimated you could get $3.91 of the $4 after payment processing expenses. In fact, PayPal would take $0.30 per transaction plus 2.9%, so PayPal would only leave you with $3.58 of the original $4/Year. Here is a link to PayPal's fee page:
    https://www.paypal.com/webapps/mpp/merchant-fees

    With $3.58/YEAR after payment processing fees, you get less than 30 cents per VPS per month. Yet that has to cover the cost of that IPv4 address that comes with the VPS plus the cost of providing the VPS itself. If you have any fraudulent signups and get hit with any chargebacks, then you are upside down on this. Even if you can somehow pin the fraud down to zero, you still have more costs than revenue. Explain how you even break even on a $4/YEAR VPS.
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  40. #40
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    Quote Originally Posted by NoSupportLinuxHostin View Post
    Keep in mind that this thread is about a $4/YEAR VPS, not a $3 or $4 per month VPS. Even a cheap $3/month VPS would bring in $36 per year. A $3/month VPS solution will likely buckle under the growing pains of scaling out the staff, but at least $3/month might work as long as customer expectations were low enough. The problem with a $4/YEAR VPS is that the expenses exceed the revenues regardless of the number of customers. With a $4/YEAR VPS, it does not matter how many customers the company has, because it will cash flow negative no matter what.
    My bad - Looking at this after sleeping, they just pulled one of the best marketing stunts ever. You get someone talking about $4.00/yr that has 64 MB of ram and you cannot upgrade the space on it (which what can you really run on a 64 MB VPS with 1.5 GB of space). Now everyone is talking about it and since clients cannot upgrade on that plan, they are forced to move to one of the bigger plans when they outgrow it.

    If there was no support, sales or marketing along with this being a one man shop. I actually can see this working out. You get a Xen VPS node with 96 GB (98,304 MB) of ram. You can place ~1,536 VPSes on it. You are looking at a cool $6k/yr for a server you can get at some places for $200 - 300 per month. Someone starts abusing terminate them and fill the spot again. Your looking at $200 - 300 per month in profit. You fill several of those and you have a nice summer earnings which you can then dump on a company for several thousand dollars once you jump off the bandwagon.

    As cute as their marketing ploy is, I still wouldn't put my data on it or trust a company that says a $4/year VPS.
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