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12-09-2003, 02:04 AM #1Disabled
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Average Amount of Profit on Server
About how much is the average amount of *profit* on a server. yes, i did say average, not 100$ or 10,000$..
I am looking for the average amount of profit on a server.
Thanks,
steve
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12-09-2003, 02:10 AM #2Web Hosting Master
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This has been asked a million times. Some companies earn less then $100 (on average) some earn $5000. It depends a lot on the TYPE of customer... Unmanaged Dedicated, Managed Dedicated, Colocation, Shared Hosting, Reseller Hosting etc.
A well-reasoned assumption is very close to fact.
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12-09-2003, 02:12 AM #3Disabled
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ok, the type of customer is customers on the interent
reseller and shared hosting
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12-09-2003, 03:32 AM #4The E-Commerce Answer Guy
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Since it is hard to give specifics since there are seemingly a million possible combinations... I'll at least post some food for thought on what will determine your profit.
First - before you can figure out your profit, you need to have a handle on your costs. Your primary costs on a server-specific bases will be the Equipment, Network and HR (human resources).
The most cost effective platform will be to own your own equipment and co-locate. Thus, after a one-time investment in the hardware (as well as any necessary standby equipment & spares)... your only ongoing cost will be Network & HR.
On the Network side - this will basically be your cost in terms of bandwidth. This cost may be small or large depending on the nature of the customers you are hosting on each server.
Your HR costs will be largely determined by how much skill, experience and time you will have to devote to maintaining and supporting the server. This is a cost that you really need to think hard about since as your customer base increases, you are going to continue to need increase support help.
So... at minimum, those are the costs that will apply.
The next step is to figure out what kind of revenue the server can produce. This is where things get trickier. Here is one thing to keep in mind though... whether you have 200 accounts at a price of $3.95 or just 50 accounts at a $14.95/month hosting price - you'll make the same amount of revenue.
The big difference is that if you had 200 accounts - that would be 4X the amount of support requests and server resources... for the very same revenue.
I'm not saying that it doesn't make sense to offer a budget hosting plan. I'm just pointing out that it is important to really look at it from all angles to determine what business model you want to go after. (i.e. pursuing a smaller # of premium accounts or going after a higher number of budget accounts)
There are companies that have implemented both approaches very successfully and very profitably.
Anyways, the last step is to subtract the costs from the revenue and there you have your monthly server profit. I'm not sure if this really 100% answers your question but I think if you ask 100 people this same question, you'll get 100 different answers.CDGcommerce.com - Trusted Merchant Account Solutions since 1998
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12-09-2003, 04:51 AM #5Disabled
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Average is $1000/server. This is after staff costs, VAT (uk), network and servers.
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12-09-2003, 10:39 AM #6Junior Guru Wannabe
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My average is around £450 per server
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12-09-2003, 12:56 PM #7Web Hosting Master
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JGBuckle and BWS, what do you charge per customer and how many sites per server do you actually host?
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12-09-2003, 01:04 PM #8Disabled
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Hi,
From £35/year and arround 500 domains per server. We are working on increasing our server numbers now to get arround 300 domains per server.
The domains are 95% home users. Mostly html.
Windows 2003 web servers.
Thanks
JBuckle
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12-09-2003, 07:23 PM #9Disabled
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Thanks for the details... I am still looking for some people who want to share how much profit they make.
Thanks,
steve
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12-09-2003, 07:33 PM #10Junior Guru
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This was already covered several times. Try this thread:
http://www.webhostingtalk.com/showth...15pagenumber=4
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12-09-2003, 08:11 PM #11Disabled
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ok, on that forum.. UH-Matt said this "Hardly worth the effort." if you are making 350$/dedicated box....
Well, how much profit is considered worth the effort?
-steve
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12-09-2003, 08:16 PM #12Web Hosting Master
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Originally posted by steveTobb
ok, on that forum.. UH-Matt said this "Hardly worth the effort." if you are making 350$/dedicated box....
Well, how much profit is considered worth the effort?
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12-09-2003, 08:19 PM #13Junior Guru
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That all depends on your costs and the effort you have to put in... if it takes 18 hours a day and you're expecting to put bread on the table then it's not worth the effort (IMO) but some people might say it is worth the effort...
I see your point Steve but you'll never get an answer to such a question - there's just too many variables!
HTH
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12-09-2003, 08:25 PM #14Disabled
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Ok, let me set definitions to the variables
1) this is side job (6 hours/day)
2) Server pays for itself right now (about 120$)
3) server is 2.4ghz, 512mb ram, redhat 9.0 cpanel/whm 8.5.4 and Pentium Intel.
4) Server is about 1/4 to 1/3 full
5) Get about 5 support/week
6) Spends most profit to buy scripts to better the service and hire staff.
Now, I have set these variables. This is about where xeoHosting is currently located. Is this good? Should we raise prices?
We are interested in going full time into this with office space as stated here in "Office Space Topic"... http://www.webhostingtalk.com/showth...postid=1620317
So in order for the top people in company to go into it full time, what is about profit we should get?
Now dont worry about living expenses as ALL
Thanks,
steve
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12-09-2003, 08:34 PM #15Predatory Poster
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Server paying for itself is a good thing and if your only 1/3 or a 1/4 full theres plenty of room for additional revenue.
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12-09-2003, 08:39 PM #16Disabled
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ok, well my basic question is, about how much would be good profit on one server? Like, for right now....
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12-09-2003, 09:38 PM #17Junior Guru
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Originally posted by steveTobb
So in order for the top people in company to go into it full time, what is about profit we should get?
Thanks,
steve
As for a per-server #, that really is for you to decide..."dood, that is cogent. This is the #1 internet provider in the world, with the most advanced and fasted internet architecture." - Killer Angel