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05-03-2005, 08:42 AM #1Temporarily Suspended
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Why do you guys want more competition ??
Let me tell you a little story... There was a small book printing company. They made a book and printed it like a couple of thousand times. One day the owner of the company died and now the company was sitting on like 10 tons of books. My dad figured it would be a good way to make some cash so he bought around 2 tons of the books at $2 each. Then he sold them for $40 each. He was making a good deal of money but he made a mistake: He told his friend about the books. And soon enough 4 other guys bought the other 8 tons of books and sold them at the same market. It ended up with my father not beeing able to sell the books anymore as they started selling them for like $2. Now whenever I visit my dad I am laughing about 1 ton of books in his living room... Looks really funny especially considering that when I visit him in 20 years he will still be sitting on 1 ton of these ****ing books.
Now what I am seeing here is that whenever someone asks if it pays off to open up a new hosting company you guys are like: "Sure, why don`t you just offer the same as me but 20% cheaper ?? I definitely need some more competition because it is so boring if it is so easy to make all the cash with just 5 million competitors around". Ok guys, believe me: YOU ARE DOING A MISTAKE !!!! If someone asks you whether it pays off you should say "HELL NO !!" and whenever someone asks you whether they should advertise on Adwords you tell them "HELL NO !!". I mean do you hate money ? Do you want to go bankrupt or what is your problem ? Although this market is oversaturated like hell you still get some customers. Ok, that is right. But if you continue to tell people: "Hey, why not open another shop right next to mine" you are gonna **** this thing up for yourself and others !! I mean for real - think about it: If you advise someone to get your competition what do you gain from it ?? NOTHING !! What do you lose ?? THOUSANDS OF POTENTIAL CUSTOMERS !! Doesn`t it make extremely much sense not to motivate other guys to get into the hosting biz ?? So I'd really appreciate if in the future you guys would act a little bit more intelligent in regards to this, ok ? It is just for your own good.
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05-03-2005, 08:48 AM #2Web Hosting Master
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Because if you offer reseller accounts your probably going to make money out of these people who ask if the industry is profitable.
They start up, buy reseller space from you for 6 months and then disappear.
Its better than saying "no the industry has no room for you" and not taking any of their moneyMatt Wallis
United Communications Limited
High Performance Shared & Reseller | Managed VPS Cloud | Managed Dedicated
UK www.unitedhosting.co.uk | US www.unitedhosting.com | Since 1998.
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05-03-2005, 08:52 AM #3Temporarily Suspended
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But what if they will grow big ? One big competitor can harm you more than 100 reseller accounts will make you in 6 months.
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05-03-2005, 08:52 AM #4Junior Guru
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you gain self worth and the satisfaction of helping people. Not everyone is a greedy ******* you know...
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05-03-2005, 08:53 AM #5Temporarily Suspended
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I do not understand why people offer reseller accounts or dedicated servers (unless you own a DC, of course) in the first place. It simply doesn`t pay off. You make 20 bucks instead of 5 you are making from a normal customer but then this reseller is gonne take away 20 of the customers who would have paid you $5 each.
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05-03-2005, 08:55 AM #6Junior Guru
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the reseller could be selling to a different market, and is getting costumer's that probably never would have found you. Your post count doesn't represent your intelligence about web hosting.
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05-03-2005, 08:55 AM #7Web Hosting Master
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Originally posted by thomas.smith
But what if they will grow big ? One big competitor can harm you more than 100 reseller accounts will make you in 6 months.
- Reseller startup's
- Established / Medium hosts
- Big hosts
Are all on different terms and appealing to different customers. I dont feel threatened by small newbie's just as I dont feel threatened by big players such as oneandone.
You have to think logically and not be worried by hosts in totally different levels of the game.
Many factors determine why a customer shops with which level fo host, and there is plenty for all.Matt Wallis
United Communications Limited
High Performance Shared & Reseller | Managed VPS Cloud | Managed Dedicated
UK www.unitedhosting.co.uk | US www.unitedhosting.com | Since 1998.
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05-03-2005, 08:56 AM #8Temporarily Suspended
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>you gain self worth and the satisfaction of helping people. Not
>everyone is a greedy ******* you know...
Great...what does that buy me ?
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05-03-2005, 08:57 AM #9Web Hosting Master
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ne big competitor can harm you more than 100 reseller accounts will make you in 6 months.
Reason?
I concentrate on my own business and own customer base more than I look and worry about the competition.
You should do the same as your obviously extremely worried by anyone considering entry to the market?Matt Wallis
United Communications Limited
High Performance Shared & Reseller | Managed VPS Cloud | Managed Dedicated
UK www.unitedhosting.co.uk | US www.unitedhosting.com | Since 1998.
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05-03-2005, 08:58 AM #10Temporarily Suspended
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Originally posted by UH-Matt
Again, I disagree.
- Reseller startup's
- Established / Medium hosts
- Big hosts
Are all on different terms and appealing to different customers. I dont feel threatened by small newbie's just as I dont feel threatened by big players such as oneandone.
You have to think logically and not be worried by hosts in totally different levels of the game.
Many factors determine why a customer shops with which level fo host, and there is plenty for all.
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05-03-2005, 09:03 AM #11Temporarily Suspended
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>P.S. 100 reseller accounts for 6 months is big money.
Well, maybe 10 to 15k. But what does a large hosting company cost you ?? Maybe multiple times that much.
>I concentrate on my own business and own customer base
>more than I look and worry about the competition.
You are making a mistake here...believe me. I know you got a lot of customers and it doesn`t come from nothing but times change... Believe me. There are two things to determine how successful you are:
1. Your own strength
2. Your competitors strength
The better you are and the worse your compeition is the more money you will make in the end so that are the two things to focus on in business: Making yourself strong and keeping the competition weak. Look at Bill Gates: He realized that keeping the competition down is even more important than fixing your own bugs and he has tons of cash. Sounds extremely ****ed up but it is the truth.
>You should do the same as your obviously extremely worried by
>anyone considering entry to the market?
I am extremely worried about absolutely everything that could turn into a problem once and that is the right way to do business. In the end it is going to pay off for me.
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05-03-2005, 09:16 AM #12Disabled
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So I'd really appreciate if in the future you guys would act a little bit more intelligent in regards to this, ok ? It is just for your own good.
Anyhow, negative energy is the last thing any company should have on their mind. I'm not sure if you are aware of the saying "Greed Turns Out To Be Bad Business ".
Open your mind a little and relax, you'll live longer.
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05-03-2005, 09:20 AM #13Temporarily Suspended
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The thing that people find disgusting about what I say is that it is real you know. There is nothing more disgusting and disturbing than the truth... But you either have to live with it or lose.
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05-03-2005, 09:29 AM #14Disabled
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The thing that people find disgusting about what I say is that it is real you know. There is nothing more disgusting and disturbing than the truth... But you either have to live with it or lose.
I feel sorry for you and for whoever has to marry you. You will be one awful husband to have. If I were your wife, i'd be horrified to sleep beside you at night. Who knows what you'll try to get my insurance money. I think you should take some of that 10K you make a month and seek some mental help. I'm not sure if the others see what I see in your Character.
I'm not trying to come off as rude or offensive, however, the sooner you realize your problem the better for you.
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05-03-2005, 09:31 AM #15Web Hosting Master
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Re: Why do you guys want more competition ??
Originally posted by thomas.smith
. . . So I'd really appreciate if in the future you guys would act a little bit more intelligent in regards to this, ok ? It is just for your own good.
But the market is huge and vast that I'm not effected by that. Someone has to start those hosts off, and it may as well have been me.• WLVPN.com • NetProtect owned White Label VPN provider •
• Increase your hosting profits by adding VPN to your product line up •
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05-03-2005, 09:37 AM #16Temporarily Suspended
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>I feel sorry for you and for whoever has to marry you. You will
>be one awful husband to have.
I'm not asking you to marry me !! I am asking you all to stop destroying the little piece of the cake in this business that is left for us to share.
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05-03-2005, 09:40 AM #17Temporarily Suspended
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Re: Re: Why do you guys want more competition ??
Originally posted by Aussie Bob
It's a funny biz we're in. I know with HTTPme, I started off hosts who now have 10+ servers. So in essence, I was breeding my own competition. I keep in touch with a few of them, and trade tips etc. There's no feeling of competition there at all.
But the market is huge and vast that I'm not effected by that. Someone has to start those hosts off, and it may as well have been me.
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05-03-2005, 09:41 AM #18Web Hosting Master
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Originally posted by thomas.smith
. . . I'm not asking you to marry me !! I am asking you all to stop destroying the little piece of the cake in this business that is left for us to share.
There's still enough cake out there with these nasty hosts selling reseller accounts and dedicated servers.• WLVPN.com • NetProtect owned White Label VPN provider •
• Increase your hosting profits by adding VPN to your product line up •
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05-03-2005, 09:51 AM #19Junior Guru Wannabe
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Thomas, it is definitely time for a vacation.
I find it hilarious that 90% of your posts here are requesting advice on how to run your company or deal with your customers, then you turn around and badmouth everyone giving you free advice. I'm curious where you would be without WHT.
The hosting market is enormous. If another 1,000 hosts spring up tonight, it's not going to affect my business or yours one bit. Why? Because there are millions of sites out there that need hosting and far less web hosts. My customers aren't going to jump ship when they find another host 20% cheaper than me. They would have done that a long time ago if price was the deciding factor, but it's not.
You're completely wrong about reseller accounts. Hardware costs nothing. You can get 200GB hard drives for around $100. That's 100 2GB reseller accounts. SUPPORT is what costs time/money. On a $35/month reseller account, I am supporting one customer. On $35 worth of shared hosting, I have to support 7 customers. The reseller may get an extra 250MB over the 7 shared accounts, but my cost is way way WAY lower. I'll take the reseller any day, thanks.
This industry is not a little piece of cake. It's a cake the size of Texas and there is plenty for everyone. It's ok to share your cake.
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05-03-2005, 09:54 AM #20Disabled
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It's ok Thomas. Deep breaths now. Breathe in . . . hold one two. . . and breathe out . . . .
If your claiming to make $10K a month that's $120,000 a year which is some really good money considering you are to greedy to hire someone to help you out. So, you are pocketing $120K a year, stop whining. This should be moer then enough to pay the rent.
Anyways, it doesn't seem like you have any goals or plans on making this money for your future children. Wouldn't you want to give your children a better life then what you had/have. I think you just want to have those 25 Ferraris and 10 girls in bikini's serving you food all day However, it should be evident that you have no intentions on having children with such greed.
Money does not bring happiness, satisfaction or peace at mind. It may make you happy for awhile. Nevertheless, in the end when your sitting in your hot tub you will realize you have no one to share your wealth with, everything will seem pointless. Big deal, you'll die with $10million in your bank Hurray!
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05-03-2005, 09:55 AM #21Web Hosting Master
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Re: Re: Why do you guys want more competition ??
Originally posted by Aussie Bob
It's a funny biz we're in. I know with HTTPme, I started off hosts who now have 10+ servers. So in essence, I was breeding my own competition. I keep in touch with a few of them, and trade tips etc. There's no feeling of competition there at all.
But the market is huge and vast that I'm not effected by that. Someone has to start those hosts off, and it may as well have been me.
There are hosts that started off with me as resellers that now have over 10 servers of their own, but their 10 + servers they have are leased from me.
Someday they will be ready for colo and when that time comes I intend to be there waiting to supply them with that also.
Instead of worrying about competitors learn to leverage it for your own growth, lots of oppertunity out there if you supply a product that is needed.
It is only a problem if you limit your yourself, if your dad had of seen the demand he could sold the books wholesale to the guys that he told about it and still made a mint. Instead he got greedy and always wanted to make $40.00 one book at a time.
Besides I get a kick out of seeing a someone start from ground up and grow something.
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05-03-2005, 10:00 AM #22Disabled
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Instead he got greedy and always wanted to make $40.00 one book at a time.
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05-03-2005, 10:09 AM #23Temporarily Suspended
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First of all I am not pocketing 120k a year. That is revenue. Not profit and I am spending most of the money on advertising. I will need to outsource the support now as I can`t handle it anymore. However, even if I made 120k a year: What if the business breaks down in two years ? I would not have enough money for the rest of my live.
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05-03-2005, 10:16 AM #24Web Hosting Master
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Originally posted by thomas.smith
First of all I am not pocketing 120k a year. That is revenue. Not profit and I am spending most of the money on advertising. I will need to outsource the support now as I can`t handle it anymore. However, even if I made 120k a year: What if the business breaks down in two years ? I would not have enough money for the rest of my live.
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05-03-2005, 10:21 AM #25Web Hosting Master
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With all due respect I think you need to go lie down thomas. Your not making any sense and with views like your's your probably best of not in the hosting industry, for your own sake.
Matt Wallis
United Communications Limited
High Performance Shared & Reseller | Managed VPS Cloud | Managed Dedicated
UK www.unitedhosting.co.uk | US www.unitedhosting.com | Since 1998.