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  1. #1
    Join Date
    Sep 2003
    Posts
    63

    Web Hosting Profit Margin - What's in your wallet :)

    Whats your profit margin on, say a single webhosting plan

    and something like overall!

    I did a search and i couldnt find much on this topic, so id thought id ask!

    Id say mine will be around 50%, at the second year. First year near around 10%

    How has your profit margin changed over the past years, you have been selling hosting?

    Thanks!

  2. #2
    Join Date
    Feb 2002
    Location
    New York, NY
    Posts
    4,612
    Profit?
    Scott Burns, President
    BQ Internet Corporation
    Remote Rsync and FTP backup solutions
    *** http://www.bqbackup.com/ ***

  3. #3
    this year it is 100%
    Cheap Web Hosting: www.supersweethosting.com
    Website Design - Scripting: www.adrenalinepcs.com

  4. #4
    Join Date
    Apr 2003
    Location
    Ottawa
    Posts
    959
    My profit margin varies from 50% on accounts I sell on the local market to somewhere around 5% on accounts that I sell on-line

  5. #5
    Join Date
    Mar 2004
    Posts
    1,301
    Whats in my wallet?

    Lots of credit cards and cash! lol
    "Web Hosting is not just about selling space, it is about facilitating customers needs with your plans and supporting the customer for a long lasting mutually beneficial relationship."- Yaser

  6. #6
    Join Date
    Feb 2004
    Posts
    362
    Originally posted by Yaser
    Whats in my wallet?

    Lots of credit cards and cash! lol
    Your going to get robbed one of these days and your going to be one, sad little man...
    Cory Pippen
    San Diego Direct Web, LLC
    1-866-611-3604

  7. #7
    Join Date
    Mar 2004
    Posts
    1,301
    CPQIS Evan thank you very much for your suggestion! i was being sarcastic anyhow i enjoyed it
    "Web Hosting is not just about selling space, it is about facilitating customers needs with your plans and supporting the customer for a long lasting mutually beneficial relationship."- Yaser

  8. #8
    Join Date
    Feb 2002
    Posts
    1,137
    Originally posted by CPQIS Evan
    Your going to get robbed one of these days and your going to be one, sad little man...
    lighten up a little, he's only joking

  9. #9
    Join Date
    Feb 2002
    Location
    New York, NY
    Posts
    4,612
    Well, you see, if I get a dedicated server for $100 with 1000GB, and I sell 1000 accounts at 1GB each, I make a $990 profit! Right, right?

    Scott Burns, President
    BQ Internet Corporation
    Remote Rsync and FTP backup solutions
    *** http://www.bqbackup.com/ ***

  10. #10
    Join Date
    Jul 2003
    Location
    Saint Louis, MO
    Posts
    85
    Originally posted by bqinternet
    Well, you see, if I get a dedicated server for $100 with 1000GB, and I sell 1000 accounts at 1GB each, I make a $990 profit! Right, right?


    haha yeh exactly.

  11. #11
    Join Date
    Aug 2003
    Location
    USA
    Posts
    1,030
    Originally posted by bqinternet
    Well, you see, if I get a dedicated server for $100 with 1000GB, and I sell 1000 accounts at 1GB each, I make a $990 profit! Right, right?

    If only is was that easy...
    CybexHost.com - Shared and Reseller Hosting Solutions on cPanel/WHM Linux Servers
    ModernTweak.com - Discount ModernBill Licenses, Hosted Installations, and Professional Services
    :: Pay for your discount ModernBill license with PayPal
    :: admin[at]cybexhost.com :: AIM: CybexH

  12. #12
    Join Date
    Feb 2002
    Location
    Australia
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    24,009
    Originally posted by bqinternet
    Well, you see, if I get a dedicated server for $100 with 1000GB, and I sell 1000 accounts at 1GB each, I make a $990 profit! Right, right?

    Ahhhh no. I take it you have other expenses besides your server lease payments?

    Forgive me if you're just being sarcastic with your post.
    AussieHost.com Aussie Bob, host since 2001
    Host Multiple Domains on Fast Australian Servers!!

  13. #13
    Join Date
    Nov 2002
    Location
    Canada
    Posts
    1,544

  14. #14
    Join Date
    Jun 2004
    Location
    Texas
    Posts
    30
    [QUOTE]Originally posted by bqinternet
    [B]Well, you see, if I get a dedicated server for $100 with 1000GB, and I sell 1000 accounts at 1GB each, I make a $990 profit! Right, right?


    Well...goodness....your server load would be pitching way up there past the roof.

  15. #15
    With some of the 'bigger' hosts, it seems the profit on new orders has probably decreased over time, but they've worked out the value of their customers long-term. HostRocket, ****** and LunarPages all pay $60 to $80 per sale on $7.95 type hosting plans -- they require minimum terms and setup fees and such, but it still comes out to cost more to acquire new customers through their affiliate programs (most definitely their #1 source I would think) than they pay up front, and the commissions keep going up.
    Dan Grossman - dan @ awio.com
    My Blog | Affiliate Program for Web Hosts

  16. #16
    Originally posted by Aussie Bob
    Ahhhh no. I take it you have other expenses besides your server lease payments?

    Forgive me if you're just being sarcastic with your post.
    course not... I handle all support myself when I'm not at school or at MCDonalds.

  17. #17
    Join Date
    Feb 2002
    Location
    Australia
    Posts
    24,009
    Originally posted by jezzomaster
    course not... I handle all support myself when I'm not at school or at MCDonalds.
    God bless capitalism!

    AussieHost.com Aussie Bob, host since 2001
    Host Multiple Domains on Fast Australian Servers!!

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