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  1. #1

    Setting up hosting plans

    Hello,

    Can you give me an example of what you think is not Overselling and what are good prices for diskspace and bandwidth?For those who like Small and Big websites.Is it possible for a company to be Affordable & Reliable & NOT oversell?

    Give me examples of how you would set your plans up.

  2. #2
    Join Date
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    Salt Lake City, UT
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    At this point the market has been tainted, now it's almost impossible to do it without overselling. Not saying you can't, because you can. I just don't know of any 200+ employee hosts that don't oversell, do you?

    You have to look at your target and find out what they want. Then offer that.
    | | i write code

  3. #3
    Join Date
    Mar 2005
    Location
    Derbyshire, UK
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    Quote Originally Posted by Ecko
    Hello,

    Can you give me an example of what you think is not Overselling and what are good prices for diskspace and bandwidth?For those who like Small and Big websites.Is it possible for a company to be Affordable & Reliable & NOT oversell?

    Give me examples of how you would set your plans up.
    It certainly is possible to not oversell and be profitable and sucessful whilst still remaining affordable, heres an example:

    Ill use a mid-level server from layeredtech for example:

    =========================

    Base System Configuration:

    * AMD Single CPU Dual Core Opteron 275
    * 2 x 250GB Hard Drive
    * 1024MB ECC RAM
    * Bandwidth: 2000GB
    * IP Addresses: 8 (5 usable)
    * Private VLAN
    * Basic Resource Monitoring
    * FreeBSD, OpenBSD, Linux, Windows*
    * 100% Self Managed and Dedicated

    Monthly Fee Options:

    $209 | $99 Setup

    ============================

    say you split the server into 20 accounts, each with the following:

    25GB Webspace
    100GB Bandwidth

    Charge $10.50 a month for this plan and your breaking even

    Charge $15.00 a month and thats a profit of $91 per month

    Charge $20 a month and thats a profit of $191 per month

    (see where im going?)

    Now of course you also need to take into account the support and software your going to offer but with the above you certainly wouldnt be overselling the server and is ample enough for the majority of websites.

  4. #4
    Join Date
    Feb 2001
    Location
    West Michigan, USA
    Posts
    9,687
    Quote Originally Posted by Jortex
    It certainly is possible to not oversell and be profitable and sucessful whilst still remaining affordable, heres an example:

    Ill use a mid-level server from layeredtech for example:

    =========================

    Base System Configuration:

    * AMD Single CPU Dual Core Opteron 275
    * 2 x 250GB Hard Drive
    * 1024MB ECC RAM
    * Bandwidth: 2000GB
    * IP Addresses: 8 (5 usable)
    * Private VLAN
    * Basic Resource Monitoring
    * FreeBSD, OpenBSD, Linux, Windows*
    * 100% Self Managed and Dedicated

    Monthly Fee Options:

    $209 | $99 Setup

    ============================

    say you split the server into 20 accounts, each with the following:

    25GB Webspace
    100GB Bandwidth

    Charge $10.50 a month for this plan and your breaking even

    Charge $15.00 a month and thats a profit of $91 per month

    Charge $20 a month and thats a profit of $191 per month

    (see where im going?)

    Now of course you also need to take into account the support and software your going to offer but with the above you certainly wouldnt be overselling the server and is ample enough for the majority of websites.

    That is not enough profit to survive on long-term. On the $20 per month plan, you're at $44 per week revenue with 20 clients. You have to pay taxes (figure 20%), software, support staff, etc. out of that $44 per week...not to mention pay yourself. As you add more servers, your costs will increase accordingly.

    --Tina
    ||| 99.999% Uptime SLA!!!
    Plenty of space and bandwidth to fit your needs!
    www.AEIandYou.com - - (WP Friendly - Premium Reseller Hosting and Cheap Dedicated Servers)

  5. #5
    Join Date
    Aug 2001
    Posts
    4,028
    Quote Originally Posted by AH-Tina
    That is not enough profit to survive on long-term. On the $20 per month plan, you're at $44 per week revenue with 20 clients. You have to pay taxes (figure 20%), software, support staff, etc. out of that $44 per week...not to mention pay yourself. As you add more servers, your costs will increase accordingly.

    --Tina
    lol, that plan got me through College

  6. #6
    Join Date
    Feb 2001
    Location
    West Michigan, USA
    Posts
    9,687
    Quote Originally Posted by Mekhu
    lol, that plan got me through College

    I was speaking in terms of viable long-term growth and financial stability, with the ability to hire competent staff when needed and still earn a decent profit. $191 "profit" (not really profit) per server is doable when you're a one-man show and can wear all the hats...eventually something has to give.

    --Tina
    ||| 99.999% Uptime SLA!!!
    Plenty of space and bandwidth to fit your needs!
    www.AEIandYou.com - - (WP Friendly - Premium Reseller Hosting and Cheap Dedicated Servers)

  7. #7
    Join Date
    Mar 2005
    Location
    Derbyshire, UK
    Posts
    242
    Quote Originally Posted by AH-Tina
    That is not enough profit to survive on long-term. On the $20 per month plan, you're at $44 per week revenue with 20 clients. You have to pay taxes (figure 20%), software, support staff, etc. out of that $44 per week...not to mention pay yourself. As you add more servers, your costs will increase accordingly.

    --Tina
    Oh, i agree, dont get me wrong.

    But as long as all users are able to use all theyve been allocated and all theyve paid for, the server itself isnt being oversold.

    Services? thats a different matter.

  8. #8
    Join Date
    Sep 2003
    Posts
    3,857
    Quote Originally Posted by AH-Tina
    On the $20 per month plan, you're at $44 per week revenue with 20 clients. You have to pay taxes (figure 20%), software, support staff, etc. out of that $44 per week...not to mention pay yourself. As you add more servers, your costs will increase accordingly.
    He already said that?

    Quote Originally Posted by Jortex
    Now of course you also need to take into account the support and software your going to offer but with the above you certainly wouldnt be overselling the server and is ample enough for the majority of websites.
    Jortex makes a good point. But you need to consider it is not just staff, licensing etc and resources is not just webspace/bandwidth.

    You need to make sure you don't oversell on the CPU, RAM & I/O. Just because you can put a certain amount of accounts onto a server, it doesn't necessarily mean you should..

    Back to the matter at hand.. I have seen hosts offer low specs but high prices with what appears to be good success

  9. #9
    Join Date
    Mar 2005
    Location
    Derbyshire, UK
    Posts
    242
    Quote Originally Posted by stealthdevil
    He already said that?



    Jortex makes a good point. But you need to consider it is not just staff, licensing etc and resources is not just webspace/bandwidth.

    You need to make sure you don't oversell on the CPU, RAM & I/O. Just because you can put a certain amount of accounts onto a server, it doesn't necessarily mean you should..

    Back to the matter at hand.. I have seen hosts offer low specs but high prices with what appears to be good success
    The problem with overselling CPU etc..... is that you wont know until it happens.

    Take for example WHT, you think a single Celeron 2.0Ghz server could handle it?

    No, of course it couldnt, but the same server could easily handle a static html based site.

    Of course you can predict these things by researching etc.. but sites do have unexpected growth, sometimes overnight.

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