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  1. #1
    Join Date
    Feb 2008
    Location
    Huntington Beach, Ca
    Posts
    60

    Time:Reward Ratio

    I am trying to see how long it has taken people to be able to live off the income ($2k-$3k) from hosting alone. And during that period how much time did you dedicate? Also how much money did you start with?

    An example would be..
    1 year at ~40 hours a week and started with $2,000.

    Thank you all for your input,

    Jack

  2. #2
    Join Date
    Sep 2006
    Location
    The Not So Deep South
    Posts
    929
    When I started in 1995 I did it full time, borrowed $250,000 and was profitable after 9 months. Loans were fully paid off in 5 years. This was a dialup ISP with web hosting

    This time I did things way different, web hosting, vps, and dedicated servers, started with a $600 server and did a monthly lease for 1 copy of cPanel and plowed everything back in. After about a year I had the profit to be self sufficient, but chose to continue to plow all profits back in and now I can sustain the growth while paying cash for new servers and all the related, while drawing enough cash to live. I still have my day job only because I love it, but certainly don't need it. I've been profitable enough to be 100% independent for about a year. I probably only put about 30-40 hours a week into my hosting business and that is intermixed with my day job much of the time. I do put alot more into it at times when I'm trying to invent my next mouse trap, but I rarely follow through with those ideas.
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  3. #3
    Join Date
    Feb 2008
    Location
    Huntington Beach, Ca
    Posts
    60
    Are you co-locating your servers? Would you say the $250,000 was necessary or how did the extra cash help you?

    Thanks,
    Jack

  4. #4
    Join Date
    Sep 2006
    Location
    The Not So Deep South
    Posts
    929
    Quote Originally Posted by JackSkelton View Post
    Are you co-locating your servers? Would you say the $250,000 was necessary or how did the extra cash help you?
    I had done my research on opening a dialup ISP and felt I could do it for about $10k on a small pay as you grow basis. At that time, the 1st gold rush of the internet, I was wise to have had that cash, we were adding hundreds of customers a month, back then it costs $300 to add 1 phone line, which would accommodate 10 users give or take, so growth was averaging 30 new lines a month. I could have never funded my own growth through sales like I am able to do today. But today there is competition, so I can control how fast or slow the company grows without upsetting anyone or turning folks away. It was truly a different game back then, if someone used too much support, you could just decide they failed their application and pick from the 3,000 other people waiting in line to give you money. That is not so today, today you have to really pour on the service after the sale if you wish to retain your customers, and controlling manageable levels of growth to insure you retain that high level of customer satisfaction is just as important as anything else you might come across for your business. You can never hire someone who will take care of your customer as well as you will, so figure out your limits.

    [Edit]
    Sorry, forgot to answer your 1st question, yes I have colo space in St Louis and also in the Charlotte area.
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  5. #5
    Join Date
    Feb 2008
    Location
    Huntington Beach, Ca
    Posts
    60
    Thank you for the response. That a cool story. That would be so crazy growth for a company. Definitely would be difficult to prepare for something like that with little cash.

    Thank you for your input,

    Jack

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