I was discussing the bandwith usage of a dedicated server that was going to be used for hosting with a salesman from alabanza. He said that each server package comes with 50gigs per month bandwith. With the price they are charging for the server it equals $8 per gig.
I did some number crunching and found that if people were using most of the bandwith I allowed them to have I would be loosing my but off.
I asked him how jumpline.com was offering the following packages (they use alabanza):
$14.95 with 3gigs/mth
$24.95 with 5gigs/mth
$34.95 with 7gigs/mth
At that rate thery are selling the initial package at $5 per gig. Now if most of the clients used nowhere near their limits then you could make a profit. They said this is usually the case but I have my doughts.
My question is how much can I expect my clients to use of their allowed bandwith on average?