Results 1 to 11 of 11
  1. #1
    Join Date
    Sep 2001
    Posts
    45

    Unhappy Dedicated Hosting Cost = Ad Revenue

    As a publisher, my dedicated hosting cost and bandwidth is getting closer and closer to my ad revenue. Just out of curiosity, has anyone noticed that hosting companies refuse to lower their prices respective to the advertising climate we are in? It seems as though I am working 12 hours a day for less than minimum wage.

  2. #2
    Join Date
    Apr 2000
    Location
    Brisbane, Australia
    Posts
    2,602
    hey there

    i know how ya feel.. just did started on my tax return and i'm breaking even this year.. just

    btw, did you ever get mod_gzip installed?
    : CentminMod.com Nginx Installer Nginx 1.25, PHP-FPM, MariaDB 10 CentOS (AlmaLinux/Rocky testing)
    : Centmin Mod Latest Beta Nginx HTTP/2 HTTPS & HTTP/3 QUIC HTTPS supports TLS 1.3 via OpenSSL 1.1.1/3.0/3.1 or BoringSSL or QuicTLS OpenSSL
    : Nginx & PHP-FPM Benchmarks: Centmin Mod vs EasyEngine vs Webinoly vs VestaCP vs OneInStack

  3. #3
    Join Date
    Sep 2001
    Posts
    45

    Post

    Oh Hi! Unfortunately I was not able to get it to compile properly. I don't know what I am doing wrong... Been pulling out my hair all night.

    Breaking even? Oh my gosh that's terrible. I think my days are numbered.

  4. #4
    Join Date
    Apr 2000
    Location
    Brisbane, Australia
    Posts
    2,602
    Originally posted by a1022
    Oh Hi! Unfortunately I was not able to get it to compile properly. I don't know what I am doing wrong... Been pulling out my hair all night.
    try mod_gzip from cpanel.net then

    http://web.cpanel.net/

    http://layer1.cpanel.net/mod_gzip.tar.gz
    : CentminMod.com Nginx Installer Nginx 1.25, PHP-FPM, MariaDB 10 CentOS (AlmaLinux/Rocky testing)
    : Centmin Mod Latest Beta Nginx HTTP/2 HTTPS & HTTP/3 QUIC HTTPS supports TLS 1.3 via OpenSSL 1.1.1/3.0/3.1 or BoringSSL or QuicTLS OpenSSL
    : Nginx & PHP-FPM Benchmarks: Centmin Mod vs EasyEngine vs Webinoly vs VestaCP vs OneInStack

  5. #5
    Join Date
    Sep 2001
    Posts
    45
    Okay thanks! I'll give it a try. Did you think I screwed up anything during that apxs thing?

    BTW, how are you keeping up your spirits if you are breaking even?

  6. #6
    Join Date
    Apr 2000
    Location
    Brisbane, Australia
    Posts
    2,602
    Originally posted by a1022
    Okay thanks! I'll give it a try. Did you think I screwed up anything during that apxs thing?

    BTW, how are you keeping up your spirits if you are breaking even?
    nah you should be fine

    as to my spirits .. i'm a optimist
    : CentminMod.com Nginx Installer Nginx 1.25, PHP-FPM, MariaDB 10 CentOS (AlmaLinux/Rocky testing)
    : Centmin Mod Latest Beta Nginx HTTP/2 HTTPS & HTTP/3 QUIC HTTPS supports TLS 1.3 via OpenSSL 1.1.1/3.0/3.1 or BoringSSL or QuicTLS OpenSSL
    : Nginx & PHP-FPM Benchmarks: Centmin Mod vs EasyEngine vs Webinoly vs VestaCP vs OneInStack

  7. #7
    It is quite the competitive numbers game out there. Advertising prices are pretty low....


    Maybe we should all get together and form a strike... No longer selling any advertising anywhere.... Then we could drive the price back up... lol

    I am just kidding, but if you would like to do that, send your clients my way

    I think things are going to take a turn down the road... The market got flooded, and many people are dropping out... after the half a**es get out of the way, us real guys can take over there clients, and the demand will increase again. It may take a while though. Thats just what I think.

    I mean, everybody has heard about the website failures all over the place... I think less people are building commercial websites, and more people are closing their's down. After this filters out, and the people that really don't know what their doing at all have left, then there should be more room for us.... Hopefully...

    Good Luck to you anyways.

  8. #8
    Join Date
    Apr 2000
    Location
    Nevada, US
    Posts
    5,550
    Unfortunately bandwidth costs have dropped at the same pace that online advertising prices have. So as your ad sales revenue may have decreased dramatically, the price that we as data centers/hosts pay for our bandwidth has not gone down all that much...so we cannot afford to lower prices at the same pace...

    Sean R.
    BurstNET
    SmartHost™ - Intelligent Hosting! - Multiple Locations - US/EU! - Ultra-Fast NVME SSD VPS!
    http://www.smarthost.net - sales@smarthost.net - Resale/Affiliate Programs
    Cloud Hosting - VPS Hosting - Dedicated Servers - Colocation - Flux Capacitors

  9. #9
    Join Date
    Aug 2001
    Location
    Houston, Texas
    Posts
    695
    IMHO, you're kidding, right?

    I can look to our contracts from ALL of our bandwidth providers and we have seen descreases across the board over the last 12 months. In EVERY case, we have renegotiated solid, long term contracts to substantially lower our transport costs AND passed those savings onto our customers via increased transfer allowances.

    It is common knowledge in the industry that bandwidth prices have taken a substantial hit in the last year. Take that down to the last 4 to 5 months and you could call the pricing "Let's make a deal" and name your own price.

    Some companies may not have been as agressive with their providers and existing contracts. Some may have been losing money and needed the savings to get right. Some may have kept the savings to increase their net income. I can't speak for every situation. BUT, on average, we're paying 60% less per MB than we were just a year ago.

    PLUS, hardware costs continue to drop. The market for core routers is very soft with lost of like-new hardware on the used market or at auction. We've bought tons of stuff at dovebid.com auctions. They are auctioning the remaining stuff from Webvan coming up October 31.

    Even the cost for 1u servers has dropped a LOT. It's a bad time for high flying dot coms but it's a great time for the real Internet Entreprenuers (so I can;t spell) to pick up the slack and go to town.

    I agree, the ad market is in the tank, but, unlike hosting prices, will rebound in the second quarter.

    Robert Marsh
    Last edited by headsurfer; 10-26-2001 at 04:50 AM.

  10. #10
    Join Date
    Aug 2001
    Location
    Matrix
    Posts
    2,469
    bandwidth is not the only cost web hosters (noc)'s pay there are many cost involve which doesn't allow the drop in bandwidth price because there is not propotinate use of bandwidth. they need money to run data centers and pay employees for 24 x 7.

    so now only real people will only stay in business
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  11. #11
    Join Date
    Mar 2001
    Location
    NY
    Posts
    741
    Advertising Perspective

    Haven't we learned that a website cannot be supported by only advertising revenue unless you have millions of dollars to gamble? Why have many dotcom's died? Why have all the major search engines, besides Yahoo! (the first, if not, one of the first) had major, major losses? If you site gets under 1,000,000 impressions a month, is it worth it if you are totally supported by ad revenue? Bandwidth prices haven't decreased as much as the volatile market of advertising online. It isn't stable to be support by only advertising, and many companies are learning this the hard way.

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