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Thread: WOW! is this possible????
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10-11-2002, 11:17 PM #26Aspiring Evangelist
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possible = yes
viable = no
major overselling = yes0
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10-11-2002, 11:31 PM #27Web Hosting Guru
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Not too sure if it is possible, Asher said somewhere earlier that bandwidth cost $30/mbit - though not sure if that applies to them. So cost per user is $30/mbit if we only consider bandwidth - so that is $19 profit IF we assume all users use up all the alloted bandwidth. Also other factors to take into consideration, but with a good business plan (hopefully they have it), it is still do-able.
possible = yes
viable = maybe if there is a sound business plan
major overselling = well they can afford it since bandwidth cost is lower than what customers are paying, that is assuming there are no other costs, which isn't true.0
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10-11-2002, 11:35 PM #28Web Hosting Master
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Cogent costs $30 a mbit, but I can't believe the facility they are in is selling it to them at cost. (though I guess the facility could have a high commit rate and thus a lower price per mbit)Otherwise, best worry about the facility's stability! lol
Last edited by Andrew; 10-12-2002 at 12:21 AM.
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10-12-2002, 12:07 AM #29Junior Guru Wannabe
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an awful lot of 'assumptions' in this thread
Trevor MacGill
www.hostcharge.com
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10-12-2002, 12:23 AM #30Web Hosting Guru
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if anybody can factually state any the following
- how much we pay for our servers (wholesale)
- how much we pay for our bandwidth
- how our business plan works
- wether we are currently profitable or not
then please lets keep this topic going, anything else is pure speculation on which most of you (seemingly all of you) have absolutely no factual basis whatsoever, unless you somehow got ahold of our accounting books or business plan
i'll gladly answer any real questions about our company, but wont dignify any wild speculation on behalf of..... competitors...... with an answer
thanks ;-)0
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10-12-2002, 12:23 AM #31Web Hosting Guru
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Would be great if we could get it straighten out - for those doubting the sustainability
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10-12-2002, 01:16 AM #32Web Hosting Master
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Originally posted by TrevorM
an awful lot of 'assumptions' in this thread
Cogent costs $30 a mbit,0
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10-12-2002, 01:41 AM #33Web Hosting Master
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Trevor, I don't see you post unless you know something about a thread.
How bout ya PM me with the scoop =PdotGig
<:<: [Fruit eating linux administrator]0
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10-12-2002, 02:06 AM #34Junior Guru
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Originally posted by ClarkH
- how much we pay for our bandwidth
Brian0
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10-12-2002, 02:51 AM #35Junior Guru Wannabe
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Originally posted by UmBillyCord
Why don't you clarify those assumptions. I thionk a lot of what is assumed is right on. Of course you can clear it up. Thanks.
This thread is completely built upon assumptions if you look at it, people assuming they know how much @webhost pays for bandwidth, assuming that its a one man company, assuming it has no sound business plan, assuming it doesnt even own their own servers, i could go on.
It'd be nice if people were a little more informed before jumping aboard, thats all.Trevor MacGill
www.hostcharge.com
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10-12-2002, 02:52 AM #36Junior Guru Wannabe
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Originally posted by Samuel
Trevor, I don't see you post unless you know something about a thread.Trevor MacGill
www.hostcharge.com
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10-12-2002, 02:53 AM #37Web Hosting Master
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And isn't it nice how the host punished those dirty birdy's by not clarifying anything.
dotGig
<:<: [Fruit eating linux administrator]0
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10-12-2002, 02:54 AM #38Web Hosting Master
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Originally posted by TrevorM
Thats better than posting in threads which i know nothing about isnt it?
The support group really is helping isn't it, here, take a hugdotGig
<:<: [Fruit eating linux administrator]0
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10-12-2002, 03:25 AM #39Webhosting Professional
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Just to clarify one thing, we have no intentions of raising our prices -period-. We will ofcourse eventually offer limited stock but we will -not- increase our prices.
Asher.[[ Reyox Communications / USA based cloud servers & support / 9 years of hosting websites ]]
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10-12-2002, 11:39 AM #40Webhosting Professional
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10-12-2002, 11:43 AM #41Webhosting Professional
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Originally posted by Richard Ward
You must have vast capital to sustain a loss like that. Your prices will shy away the real long-term users who know the market's infrastructure and what is feasible. I could offer web hosting for $1.00, and a year from now; I'll be looking at bankruptcy. That doesn't mean I cannot offer it at those prices, I just can't sustain it. I think in the next 6 months, your company will be looking for a new business model. If these prices were logical, we'd see a trend and not a wildcard. Basing your prices on Cogent's unbelievable bandwidth fees is not a good idea when Cogent is losing an estimated $30M a quarter last I checked. Where will your customers go when you find out that "real" providers like Sprintlink, Qwest, etc. don't offer 1mbps for 50 cents? (sarcasm)
And I really like the way you are assuming that we are making a loss. Have you looked at our books?
Asher[[ Reyox Communications / USA based cloud servers & support / 9 years of hosting websites ]]
[[ Affordable ASP.NET4, ColdFusion, PHP & MS-SQL, MySQL, cPanel/WHM & Windows Reseller Hosting + Virtual Private Servers ]]
(www.reyox.com) - Mention WHT and get a discount on your first month!0
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10-12-2002, 11:44 AM #42Disabled
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10-12-2002, 01:59 PM #43Web Hosting Master
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Hmm...could someone tell me if these semi-dedicated servers are like VDS's, in which you have full root access?
Matt De Leon
GreekComm - http://www.greekcomm.com/
Online Community for Greek Fraternities and Sororities.0
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10-12-2002, 02:02 PM #44Web Hosting Master
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Not to get off topic, but how did Mr. Ward's thread come after mine if I posted mine after him!? Just a little confused....
Matt De Leon
GreekComm - http://www.greekcomm.com/
Online Community for Greek Fraternities and Sororities.0
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10-12-2002, 02:07 PM #45Web Hosting Master
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Originally posted by smidwap
Not to get off topic, but how did Mr. Ward's thread come after mine if I posted mine after him!? Just a little confused....0
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10-12-2002, 02:48 PM #46Web Hosting Master
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Originally posted by TrevorM
First off, i want to clarify that i do not work for the company in question.
This thread is completely built upon assumptions if you look at it, people assuming they know how much @webhost pays for bandwidth, assuming that its a one man company, assuming it has no sound business plan, assuming it doesnt even own their own servers, i could go on.
It'd be nice if people were a little more informed before jumping aboard, thats all.
<removed>
#3 - Please go on since you offered. I want to see all these wrong assumptions. Especially from someone who deosn't work there but seems to know a lot.
Cogent is not out of business yet and it certainly wont be anytime very soon and when it is... we have backup plans as well. So thanks for your concern.
Hmm...could someone tell me if these semi-dedicated servers are like VDS's, in which you have full root access?
Another young host (older and wiser now) did this same pricing. Remember Alwayswebhosting? 60 GBs per account. They found out the hard way, it isn't possible to offer high bandwidth accounts below cost.Last edited by Chicken; 10-13-2002 at 12:36 PM.
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10-12-2002, 02:57 PM #47Web Hosting Master
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Richard, I don't want to turn this thread about homenetweb.com, but you offer
Unlimited Storage Space
Unlimited Traffic
for $10, that's not possible either.
Another young host (older and wiser now) did this same pricing. Remember Alwayswebhosting? 60 GBs per account. They found out the hard way, it isn't possible to offer high bandwidth accounts below cost.█ Shared Web Hosting - Reseller Hosting - Semi-Dedicated Servers - SolusVM/XEN VPS
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10-12-2002, 03:17 PM #48Web Hosting Guru
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You must have vast capital to sustain a loss like that. Your prices will shy away the real long-term users who know the market's infrastructure and what is feasible. I could offer web hosting for $1.00, and a year from now; I'll be looking at bankruptcy. That doesn't mean I cannot offer it at those prices, I just can't sustain it. I think in the next 6 months, your company will be looking for a new business model. If these prices were logical, we'd see a trend and not a wildcard. Basing your prices on Cogent's unbelievable bandwidth fees is not a good idea when Cogent is losing an estimated $30M a quarter last I checked. Where will your customers go when you find out that "real" providers like Sprintlink, Qwest, etc. don't offer 1mbps for 50 cents? (sarcasm)
Richard Ward
1 NET LANE, LLC.
http://www.1NL.net
The low cost data center.0
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10-12-2002, 04:18 PM #49Web Hosting Master
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If the only hold back is the bandwidth issue, pehaps they're banking on most folks never reaching maximum target?
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10-12-2002, 06:36 PM #50Web Hosting Master
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Of course they are! In fact, all web hosts that oversell (which many do, though not as extreme as some others) are counting on their clients not reaching their maximum space and/or bandwith. Then again, someone (I forgot who mentioned it) brought up some good points about the overselling not being to bad. Might want to look at that.
Matt De Leon
GreekComm - http://www.greekcomm.com/
Online Community for Greek Fraternities and Sororities.0