Results 1 to 25 of 39
-
11-16-2002, 11:43 PM #1Retired Moderator
- Join Date
- Oct 2002
- Location
- EU - east side
- Posts
- 21,920
Questions for hosting businesses with more than 5000 clients.
Hi.
I would like to know:
1. How long it took you to build a 5000+ hosting business.
2. What's the average profit per hosting account for hosting businesses with 5000+ clients.
Thank you very much for taking time to answer my question.
-
11-16-2002, 11:45 PM #2Web Hosting Master
- Join Date
- Oct 2001
- Location
- Ohio
- Posts
- 8,535
Seems like this question is asked every two weeks...
-
11-16-2002, 11:50 PM #3Retired Moderator
- Join Date
- Oct 2002
- Location
- EU - east side
- Posts
- 21,920
Sorry... I just didn't find the answer so... I thought I'd better ask...
-
11-16-2002, 11:52 PM #4Web Hosting Master
- Join Date
- Aug 2002
- Posts
- 2,631
I think only hostingplex can answer your question.
Else, if you have a business plan it's quite easy to analyse a rough profit rate from 5000+ customers.YourCheapHost.com - Low cost multi domain hosting solutions. [Legal adult content friendly]
Reliable web site hosting is our motto. We have Alertra stats to back that up.
Proven provider of high quality shared and reseller accounts since 2002.
-
11-17-2002, 02:05 AM #5Web Host :)
- Join Date
- Jan 2002
- Location
- Boston
- Posts
- 5,014
-
11-17-2002, 02:06 AM #6Web Hosting Master
- Join Date
- Nov 2001
- Posts
- 5,383
Clustered Hosting With Continuous Data Protection (CDP)
http://www.solidinternet.com
8 Years of hosting excellence!
-
11-17-2002, 06:42 AM #7Web Hosting Master
- Join Date
- Feb 2002
- Location
- Australia
- Posts
- 24,027
Originally posted by net-trend
I think only hostingplex can answer your question.• WLVPN.com • NetProtect owned White Label VPN provider •
• Increase your hosting profits by adding VPN to your product line up •
-
11-17-2002, 08:24 AM #8Web Hosting Master
- Join Date
- Sep 2002
- Posts
- 1,585
Well wheres hostingplex?
-
11-17-2002, 10:07 AM #9Web Hosting Master
- Join Date
- Jan 2002
- Posts
- 3,126
Well wheres hostingplex?
-
11-17-2002, 10:11 AM #10Web Hosting Master
- Join Date
- Feb 2002
- Location
- UK
- Posts
- 3,098
-
11-17-2002, 10:26 AM #11Web Hosting Master
- Join Date
- Aug 2002
- Posts
- 2,631
Originally posted by Aussie Bob
That's my line, damnit!!!YourCheapHost.com - Low cost multi domain hosting solutions. [Legal adult content friendly]
Reliable web site hosting is our motto. We have Alertra stats to back that up.
Proven provider of high quality shared and reseller accounts since 2002.
-
11-17-2002, 12:00 PM #12Web Hosting Master
- Join Date
- Mar 2001
- Posts
- 1,446
Re: Questions for hosting businesses with more than 5000 clients.
Originally posted by ldcdc
1. How long it took you to build a 5000+ hosting business.
2. What's the average profit per hosting account for hosting businesses with 5000+ clients.
It takes years to build a larger client base (> 1000) with decent profit margins. 6+ years here
- John C.
-
11-17-2002, 12:09 PM #13Disabled
- Join Date
- Nov 2002
- Location
- New York
- Posts
- 5
Our company is in business for about a year and we got 800 clients in that time.
Last edited by Chicken; 11-17-2002 at 12:54 PM.
-
11-17-2002, 02:15 PM #14Web Hosting Master
- Join Date
- Oct 2002
- Location
- MO, USA
- Posts
- 1,104
Seems like this question is asked every two weeks...
-
11-17-2002, 02:20 PM #15Web Hosting Guru
- Join Date
- May 2002
- Location
- Georgia, USA
- Posts
- 259
Hosting is the next "get rich quick" scheme... it's the Amway of the future!
CDHost - Managed Business Hosting
http://www.cdhost.com - info@cdhost.com
Proud Host of PhotoshopForums.com!
-
11-17-2002, 02:45 PM #16Web Hosting Master
- Join Date
- Nov 2001
- Location
- The South
- Posts
- 5,408
Actually we don't have 5000 clients but we do host over 6500 web sites.
So heck I'll chime in anyway
It took a year, I started Oct 24th 2001.
Profit margin is good, I don't have an exact figure but rough estimate is it costs about 60% of our intake to cover the costs. Per account is misleading, I have $19.95 per year customers, and then I have resellers paying $150 a month for their service. So there's not figure for "per customer profit".
I can say, if I had 5000 $19.95 a year customers and nothing else I'd quit the business and go to Domino's and deliver pizzas. The profit in a $19.95 per year account isn't nothing to crow about, if you had 5000 of them and nothing else you could if you were very careful maybe make a living, but I can make a living delivering pizzas and I won't have the stress of 5000 customers greying my hair prematurelyGary Harris - the artist formerly known as Dixiesys
resident grumpy redneck
-
11-17-2002, 09:50 PM #17Web Hosting Master
- Join Date
- Mar 2001
- Posts
- 1,446
congrats Gary! Seems you're on the right track.
( better update your About Us page )
- John C.
-
11-17-2002, 09:52 PM #18Disabled
- Join Date
- Nov 2002
- Posts
- 214
Originally posted by CDHost
Hosting is the next "get rich quick" scheme... it's the Amway of the future!
-
11-17-2002, 10:08 PM #19Web Hosting Master
- Join Date
- Nov 2000
- Location
- San Diego
- Posts
- 3,407
Re: Re: Questions for hosting businesses with more than 5000 clients.
Originally posted by JohnCrowley
If you price your accounts at $1.99/month, it'll take much less time than if you price your accounts ar $19.99/month. 5000+ customers is not hard to do if you have rock bottom prices, but then you have very little profit, which equals poor support and planning many times.
It takes years to build a larger client base (> 1000) with decent profit margins. 6+ years here
- John C.
What impresses me is host who get to 5000 buy actually running the business like a business. By offering quality services for actual prices that will allow you to grow your business long-term.
-
11-17-2002, 10:20 PM #20Web Hosting Master
- Join Date
- Sep 2001
- Location
- Texas
- Posts
- 878
Hosting is the next "get rich quick" scheme... it's the Amway of the future!Going out of business in our 10th year.
-
11-18-2002, 02:00 AM #21Web Hosting Master
- Join Date
- Feb 2002
- Location
- Australia
- Posts
- 24,027
Re: Questions for hosting businesses with more than 5000 clients.
Originally posted by ldcdc
1. How long it took you to build a 5000+ hosting business.
How long a host takes to build a client base like that is dependant on many factors. Maybe you've got a few million in VC $$$ and you've set some targets through your customer acquisition programs. You could easily acquire 5000 clients by purchasing smaller hosts or using any one of 100 marketing strategies. So you could hit the 5000 mark in a matter of weeks. Hope you've got all your systems inplace and ready to go etc.
2. What's the average profit per hosting account for hosting businesses with 5000+ clients.
That depends on what you mean by profit. Nett profit or gross profit etc. That also depends on your cost structure and plan structure. I guess sit down with your spreadsheet and try to forecast some numbers. According to my spreadsheet, I make 32.86% profit. That's before tax and after all expenses etc. Many, many variables to take into consideration here with your question.
If you're putting together a business plan for VC funding, then you'll need to go into great detail etc. If you're just wanting to just get started in the industry, then get a reseller plan and work your way forward etc. You'll then get a feel for your plan pricing, your marketing, costs etc. Just depends on how you want to attack this. There are so many things that you'll learn from running your business, that can't be written into a business plan.
Thank you very much for taking time to answer my question.Last edited by Aussie Bob; 11-18-2002 at 02:06 AM.
• WLVPN.com • NetProtect owned White Label VPN provider •
• Increase your hosting profits by adding VPN to your product line up •
-
11-18-2002, 04:02 AM #22Web Hosting Master
- Join Date
- Dec 2001
- Location
- Toronto, Ontario, Canada
- Posts
- 6,896
you dont need any business plan to get into hosting nowdays, get some $300 of capital, and you've got enough for a $20/mo reseller for say 6 months, a merchant, domain, and ssl and you're basically in business (crude as it may be), unfortunatly getting past that is another matter, i've seen some resellers grow from like 2 accounts, to 20 accounts, to 200 accounts (in that order, in 3 months).
Good thing about building up a relatively large client base is recognition, and if you hike your prices later (within reason) you'll have a sturdier client base for new signups, then starting up with no reputation and $20/mo accounts (which is nearly impossible). Lets just remember, sell stuff below profit, and the 3 ghosts of cyberwings will come and get you when you sleep! .Myles Loosley-Millman - admin@prioritycolo.com
Priority Colo Inc. - Affordable Colocation & Dedicated Servers.
Two Canadian facilities serving Toronto & Markham, Ontario
http://www.prioritycolo.com
-
11-18-2002, 04:13 AM #23Web Hosting Master
- Join Date
- Oct 2002
- Posts
- 1,611
I can say, if I had 5000 $19.95 a year customers and nothing else I'd quit the business and go to Domino's and deliver pizzas.
Bloody hell - if Domino's are offering that much for pizza delivery, then count me in!
-
11-18-2002, 04:21 AM #24Web Hosting Master
- Join Date
- Dec 2001
- Location
- Toronto, Ontario, Canada
- Posts
- 6,896
Originally posted by I, Brian
$19.95 x 5000 = $99,750 per year
Bloody hell - if Domino's are offering that much for pizza delivery, then count me in!
Myles Loosley-Millman - admin@prioritycolo.com
Priority Colo Inc. - Affordable Colocation & Dedicated Servers.
Two Canadian facilities serving Toronto & Markham, Ontario
http://www.prioritycolo.com
-
11-18-2002, 04:27 AM #25Eternal Member
- Join Date
- Nov 2000
- Location
- Tasmania, Australia.
- Posts
- 3,590
Originally posted by porcupine
i mean they do want webhosting right?
Gary