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  1. #1
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    Rent to Own Option

    Doing some market research and wanted to see if people are willing to rent to own servers?

    Would you be willing to pay an extra price per month and at the end of 12 months, you can either continue with the dedicated server option or switch to colocation. The other option being, when you signup for a dedicated server, you pay a one time fee and at the end, you can continue as a dedicated server or switch to colocation.

    What are your thoughts on this? What would you be willing to pay either as a one time fee or as an extra fee added to your monthly bill?

    Any suggestions/input on this would be greatly appreciated!

  2. #2
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    Jun 2004
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    WHT Wiki is your friend
    http://www.webhostingtalk.com/wiki/D...ting_Providers

    Lists all the providers that offer Lease to Own in the column: LTO*
    Swiftway.net Your Business deserves our Quality - Experts on Hand since 2005. Europe & US locations, we operate our own network AS35017
    Unbeatable dedicated bandwidth deals for Dedicated servers ! Support response time <15 minutes 24/7

  3. #3
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    I am not looking for such providers as we are going to do this ourselves. We just need community input on this to see if there are such interest along with what people expect/are willing to pay.

  4. #4
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    Quote Originally Posted by Ringo64 View Post
    I am not looking for such providers as we are going to do this ourselves. We just need community input on this to see if there are such interest along with what people expect/are willing to pay.
    Lets hope you get some responses.

    Looking forward for them.

  5. #5
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    The hard selling point of leasing to own is that at the end of the lease, the server is aged. I think it is well worth owning a stable server that is configured to your liking and serving you well, but when someone has the option of renting a brand new server, lots of people always like to go with what is new and not with what has served them well.
    - Donovan K
    Want to monitor and manage your customers Windows systems by Client software, web portal, or mobile phone?
    Automated scripts, patching, and remote access too? Ask me how!


  6. #6
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    It's not very popular from what I have seen, also that WHT article isn't exactly 100% accurate. WebNX doesn't do LTO's.

  7. #7
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    Quote Originally Posted by Jacob Wall View Post
    It's not very popular from what I have seen, also that WHT article isn't exactly 100% accurate. WebNX doesn't do LTO's.
    Yes it does? They have a thread about it in one of the offers sections

  8. #8
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    Quote Originally Posted by JSCL View Post
    Yes it does? They have a thread about it in one of the offers sections
    I contacted WebNX two times and both times they said they don't do LTO's. They used to, but not anymore, unless they just recently started offering it again.

  9. #9
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    I've seen it on offer. The term is always going to be long and I encourage you to ask yourself if you're going to need more powerful hardware in the near future.

    Something to consider.
    ServeByte Limited The most competitive VPS in Dublin, Ireland.
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  10. #10
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    Quote Originally Posted by Jacob Wall View Post
    It's not very popular from what I have seen, also that WHT article isn't exactly 100% accurate. WebNX doesn't do LTO's.
    You should really double check with us before saying something like that. We do offer RTO when we have extra hardware we are looking to get rid of.

  11. #11
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    Quote Originally Posted by Chris_M View Post
    You should really double check with us before saying something like that. We do offer RTO when we have extra hardware we are looking to get rid of.
    I contacted your company twice and both times was told you do not offer LTO's. Maybe because I said LTO they said no, because your company offers RTO's.

  12. #12
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    Quote Originally Posted by Jacob Wall View Post
    I contacted your company twice and both times was told you do not offer LTO's. Maybe because I said LTO they said no, because your company offers RTO's.
    We may not have had any hardware for sale at that time, so that would be why you were told no.

  13. #13
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    Quote Originally Posted by Chris_M View Post
    We may not have had any hardware for sale at that time, so that would be why you were told no.
    Ah. Thanks for clearing that up Chris. Enjoy your afternoon

  14. #14
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    I have looked into this before but as said above its just easier to go to another provider with a clean server rather than having to pay colo bills and then having to replace hardware on the server when it is no longer supported by the company it was from.
    I suppose if my hosting site ever did get off the ground I would have looked to rent to own as at the end the rental would be cheaper and I wouldn;t want to inconvenience customers by continually moving servers after the contract is up on a standard rental server.
    Kind Regards
    Christopher Smith

  15. #15
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    Interesting, thanks for the feedback from those of you that didn't go off subject. Any ideas on pricing? What would you the end-customer expect as a onetime fee/monthly add on if any, or even just the ability buy at fair market value and colocate it from there?

    I know a lot of people don't want older machines which is understandable but some people hate moving and if after a year they can own the machine and just colocate it, it becomes much cheaper.

  16. #16
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    Quote Originally Posted by Ringo64 View Post
    Interesting, thanks for the feedback from those of you that didn't go off subject. Any ideas on pricing? What would you the end-customer expect as a onetime fee/monthly add on if any, or even just the ability buy at fair market value and colocate it from there?

    I know a lot of people don't want older machines which is understandable but some people hate moving and if after a year they can own the machine and just colocate it, it becomes much cheaper.
    RTO includes b/w like a dedicated server(Flat rate, amount transfer, non-95th)
    LTO doesn't include b/w and you have to add the colocation cost + Per/mbps.

    That's from what I have seen, you need to chose which one is best. RTO's are usually 150% more expensive than renting so if the server were $100 to rent, it'd be $150 to RTO over 12 or 24 months.

    The opposite apply's for LTO, it's usually cheaper for LTO(But when you add Colocation costs + bandwidth it's just as much, if not more than RTO).

    -Jacob

  17. #17
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    Personally I quite like to RTO, especially if I'm RTOing a decent spec. server that I don't have the funds for upfront.

    Like everything, make sure you understand the colo provider since once you start a RTO your locked in for the period of the lease

  18. #18
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    Thanks Jacob for the insight! I was thinking about just a flat rate added on to the monthly cost but percentage wise makes a lot more sense simply since plans range in price. 50% seems kind of high, do you know if that is the standard among RTOs? I was thinking more along the lines of 10-25%.

  19. #19
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    Quote Originally Posted by Ringo64 View Post
    Thanks Jacob for the insight! I was thinking about just a flat rate added on to the monthly cost but percentage wise makes a lot more sense simply since plans range in price. 50% seems kind of high, do you know if that is the standard among RTOs? I was thinking more along the lines of 10-25%.
    Everyones version of RTO is different. I have not seen any type of standard offers between providers. It would probably be best to contact different providers and see what they offer.

  20. #20
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    Quote Originally Posted by Chris_M View Post
    Everyones version of RTO is different. I have not seen any type of standard offers between providers. It would probably be best to contact different providers and see what they offer.
    In other words, there really isn't a standard/formula for figuring what to charge. Still would like to hear from clients that have done RTO/LTO with other hosts to see what their thoughts are on the subject, what they paid and if they were satisfied with the outcome.

    I don't want to just jump into this without getting a decent amount of feedback. Thanks to everyone who has responded so far, you have given me a lot of good information to work off of.

    I think it's good concept for certain customers and if implemented properly, but can also see why others would prefer just to upgrade after a set amount of time as well.

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