I am new in this forum and would like to know your advice regarding average cost per domain ($X.xx/domain) for hosting only very small, static (no dynamic content), brochure type of sites with having very small traffic per month.
How can I calculate my costs and breakeven point?
Any advice will be greatly appreciated.
Thanks in advance.
Last edited by sparkr; 09-01-2006 at 03:42 PM.
'm thinking you could work a special deal with a small host if you just explain the extremely low traffic and disc space requirements. I'm sure they'd reduce it and not charge you full accounts for say 10 domains that have less than a total of 50mb of space, no databases, etc.
I apologize for not clarifying enough my question. What I would like to know is average cost per account (having only 1 domain) if I would like to host such sites on my servers?
For example In one server I can have say 1000 such accounts, so my hardware cost per account will be 1/1000 of what I pay for that server, but I would like to know all other costs involved hosting x number sites with very small traffic, no dynamic content (ASP, PHP, JSP, CGI) and say only maximum 100Mb per account.
Ok so you host 1000 sites which is reasonable (although they better be really small sites with no databases or anything) considering they are small static sites. You pay $200 for a managed server and that's it. It costs you 20 cents per account per month. If you do your own support directly to your clients that doesn't cost you anything. Is that what you wanted to know? I'm sure you can get a managed server for less money nowadays, but $200 is a decent managed server. Support is what really costs money to your clients, but if you handle that yourself it's only your time that is being used.
qualityeye, what about other costs like bandwidth, email, customer service?
For an established hosting company, how much it costs (everything included) to have such small accounts? I understand that it is quite different to serve 1000 customers paying each $5 month or 10 customers paying $80 a month. Which type of expenditures grow with number of customers the most (customer service?) is it linear, less then linear or exponential? Also any substantial difference (cost-wise) whether the customer service offered by email only or phone and email?
Bandwidth and email are all included in your server. An example is $200 for a managed dedicated server, it includes 1000GB of bandwidth (maybe more depending on your server provider). Email is included since usually when you rent a server you are getting some kind of control panel and it's part of the whole system. The only costs that do grow with customers is support (customer service), and possibly the fact that you might have to upgrade or add more servers to what you already have. 20 cents per customer was the easy answer of course, but there are a lot of things that have to be added in which I didn't do because you gave a general question so I gave a general answer. You also have taxes let's say you are taxed 25% of all of the income you make with hosting, of course you can deduct expenses and everything else. If you outsource support that is also a deduction as a cost of doing business. So if we recalculate everything without really getting into numbers with a 800 number, a help desk, outsourced support your costs might be closer to $1.50 to $2 per account including taxes you'd have to pay. This is for regular shared hosting not reseller accounts or VPSs and doing things on a small scale, the more customers you get the lower your costs can be. You might not even pay this much, I'm giving a high estimate.
The more customers you have the more you generally have to spend for support is the general answer to your above question.