tibberous Posted July 16, 2008 Share Posted July 16, 2008 I thought about starting a mid-range hosting company and going after local business. I was thinking of having a $24.99 package and a $34.99 package - I'd use the server I just bought, put it in a new case so I could take pictures of it, and colocate it locally. Think it would be worth my time? I figure I'd need to get like 30 clients, all paying $25, to really benefit from it - but if I just drove around and called local people, that might not be that hard? Do the prices sound good? Should I offer services and stuff too? Quote Link to comment Share on other sites More sharing options...
ober Posted July 17, 2008 Share Posted July 17, 2008 If you can find 30 idiots, go for it. Quote Link to comment Share on other sites More sharing options...
zq29 Posted July 17, 2008 Share Posted July 17, 2008 In my eyes, web hosting is not something that can easily be sold to companies as a product in itself by just cold calling. I think you'd struggle. Also, how much experience do you have with server administration? You need to stay on top of things! Quote Link to comment Share on other sites More sharing options...
proggR Posted July 17, 2008 Share Posted July 17, 2008 I'll stick with my $7 bluehost or my $5 hostmonster to be honest. What your clients would be paying for 5 months, I'd pay for 2 years. Try lowering the price and aiming for more people. That would be more work though. Its probably not really worth it. You'd also have to consider your data transfer speed and allocated monthly bandwidth so a residential internet service likely wouldn't cut it and you're not making enough to justify getting some sort of t-carrier service. Quote Link to comment Share on other sites More sharing options...
tibberous Posted July 17, 2008 Author Share Posted July 17, 2008 That's why I want to go after local businesses, because they might be willing to pay more. It just doesn't seem worth trying to sell someone, and offering tech support, for $7 a month. That's only $100 a year - and I'd need 4x as many people. Quote Link to comment Share on other sites More sharing options...
Daniel0 Posted July 17, 2008 Share Posted July 17, 2008 I'll stick with my $7 bluehost or my $5 hostmonster to be honest. Man... I need them to tell me where to get harddisks with infinite storage. I'd like one of those... Quote Link to comment Share on other sites More sharing options...
proggR Posted July 17, 2008 Share Posted July 17, 2008 Yah I don't understand how that works. It used to be 150TB of storage and 1.5TB of bandwidth a month, which is crazy enough for the price. Now its unlimited for both. I don't know how but I've heard good things so I'm going to try them out next pay I thinks. I just hope theres not something I'm missing Quote Link to comment Share on other sites More sharing options...
tibberous Posted July 17, 2008 Author Share Posted July 17, 2008 Yah I don't understand how that works. It used to be 150TB of storage and 1.5TB of bandwidth a month, which is crazy enough for the price. Now its unlimited for both. I don't know how but I've heard good things so I'm going to try them out next pay I thinks. I just hope theres not something I'm missing AOL gives you unlimited bandwidth too =) Bluehost is a good company, but the website I had with them was noticeably slower than a normal website. Quote Link to comment Share on other sites More sharing options...
Daniel0 Posted July 17, 2008 Share Posted July 17, 2008 I'll tell you how it's "possible": overselling Trust me, they wont be able to live up to what they promise (cf. this post for instance). I suggest you to write some small scripts that will keep on making big files and using bandwidth and see how well they're able to live up to "unlimited" bandwidth and disk space. Let me know what happens Quote Link to comment Share on other sites More sharing options...
proggR Posted July 17, 2008 Share Posted July 17, 2008 Haha. Will do. Except I don't think DoSing the server I use is a great idea lol. I don't really care about the disk space, which is the part that confuses me if its unlimited. I'm pretty happy that in the off chance that people actually look at my website I don't have to worry about being cut off or paying more due to going over quota though. Quote Link to comment Share on other sites More sharing options...
GingerRobot Posted July 17, 2008 Share Posted July 17, 2008 Just check the TOS. There'll be a fair usage policy (How you can get away with calling something unlimited on the one hand, but saying it's subject to fair usage terms on the other i really don't know). Sometimes, this can turn out to be very low. Quote Link to comment Share on other sites More sharing options...
Daniel0 Posted July 17, 2008 Share Posted July 17, 2008 Engaging in any activity that' date=' in Bluehost.com's sole and absolute discretion, disrupts, interferes with or is harmful to (or threatens to disrupt, interfere with, or be harmful to) the Services, Bluehost.com's business, operations, reputation, goodwill, customers and/or customer relations, or the ability of Bluehost.com's customers to effectively use the Services is prohibited.[/quote'] That might cover that. However, it's a bit ambiguous. Logically, if you have unlimited space then writing and execution a script that repeatedly takes up more and more space couldn't possibly be disruptive to the service seeing as it is per definition impossible to reach infinity (which is implied by using the term "unlimited"). n ≥ ∞ is not possible. If they consider said activity disruptive then they are admitting that they are scamming people seeing as they are not able to live up to the promised specifications. Same thing is applicable for the bandwidth matter as well. Seeing as it's a US based company I suppose you could sue them for that and earn big bucks (based on the fact that you can sue anyone for anything without having any real valid reason or without any apparent common sense whilst demanding astronomically high amounts of money). Quote Link to comment Share on other sites More sharing options...
GingerRobot Posted July 17, 2008 Share Posted July 17, 2008 based on the fact that you can sue anyone for anything without having any real valid reason or without any apparent common sense whilst demanding astronomically high amounts of money Reminded me of a news article i saw a couple weeks ago. Evidently i remembered incorrectly seeing as no-ones actually getting sued, but it's still rediculous: http://news.bbc.co.uk/1/hi/world/europe/7479758.stm Quote Link to comment Share on other sites More sharing options...
corbin Posted July 18, 2008 Share Posted July 18, 2008 I thought about starting a mid-range hosting company and going after local business. I was thinking of having a $24.99 package and a $34.99 package - I'd use the server I just bought, put it in a new case so I could take pictures of it, and colocate it locally. Think it would be worth my time? I figure I'd need to get like 30 clients, all paying $25, to really benefit from it - but if I just drove around and called local people, that might not be that hard? Do the prices sound good? Should I offer services and stuff too? $25? $35? I would never pay that much to be honest. I don't think you will be able to compete with the mega-companies x.x (well to start out with). As for taking up disk space, this would be a fun one: <?php $b = str_repeat("a", 1024*1024); $h = fopen(time(), 'w'); while(true) { fwrite($h, $b); } Quote Link to comment Share on other sites More sharing options...
tibberous Posted July 20, 2008 Author Share Posted July 20, 2008 Well, at work we charge between $25 and $40 a month for hosting, which comes with maintenance. Maybe I should try for a package type deal? I dunno - I want to at least break even on this server. Quote Link to comment Share on other sites More sharing options...
corbin Posted July 20, 2008 Share Posted July 20, 2008 If you're going in to break even, I wouldn't bother, as you'll probably tire of it, and be stuck with contracts with clients. x.x Quote Link to comment Share on other sites More sharing options...
tibberous Posted July 20, 2008 Author Share Posted July 20, 2008 Well, I need a server, and breaking even seems a lot more attractive than loosing $200 a month =P Quote Link to comment Share on other sites More sharing options...
unsider Posted July 20, 2008 Share Posted July 20, 2008 Well, I need a server, and breaking even seems a lot more attractive than loosing $200 a month =P I agree with corbin, for me, money modivates, maybe you're the same way, idk, but it would seem if you're hosting company is struggling to break even you're going to get tired of the hassle for little compensation. You either have to write out a better or business model, or attempt to make extra revenue on the side somehow. Regarding the prices, you'd have a hell of a time finding clients, and holding them, eventually people will either run out of money/ realize they can get a better deal/ feel like their money is not being well spent, etc... Your idea could work, but it needs more of a hook, maybe some type of innovative communication tool *shrug*, sounds like a quick dead-end if you ask me, unless you implement some other features. Good luck though. Quote Link to comment Share on other sites More sharing options...
corbin Posted July 20, 2008 Share Posted July 20, 2008 Well, I need a server, and breaking even seems a lot more attractive than loosing $200 a month =P What do you need a server for? Maybe you don't actually need a server. Quote Link to comment Share on other sites More sharing options...
proggR Posted July 21, 2008 Share Posted July 21, 2008 I was actually thinking that making a server would be a good idea (even though I was opposed to it in the OP). I wouldn't go about it right now because I really wouldn't know where to begin but I was thinking that somewhere in the future (after college) I could save up some money and buy a MacPro with 32GB of RAM. Then Have a RAID setup of about 4TB or so and could offer 30 VPS with about 125 GB (roughly less) of space for about $50 a month (which is cheaper than, but comparable to, other VPS options). If all 30 spots filled up then I'd have the hardware paid off in about a year and anything after that would be complete profit, at about $1500 a month. I could also offer managed packages for a higher cost since they'd be more hands on. And if that goes well and/or I had interest in high quality dedicated servers I could allow for fewer VMs on a separate MacPro that would allow customers to have more RAM and HD space. I'd have to look into the costs of actually connecting the servers to a network though, which could be the downfall. But it'd be decent money as a project, and could save people money too (for a similar service with 1GB of RAM, 1TB BW and 40GB HD it was $70 a month from vpslink). This may all just be newb talk. I dont know. But I'm glad I mentioned bluehost because I'm staying away from shared hosting after reading some stuff as a result of this thread. Thanks Quote Link to comment Share on other sites More sharing options...
trq Posted July 21, 2008 Share Posted July 21, 2008 I'd have to look into the costs of actually connecting the servers to a network though I think your also forgetting the cost of support and maintainence. These things don't run themselves. Quote Link to comment Share on other sites More sharing options...
proggR Posted July 21, 2008 Share Posted July 21, 2008 I understand that. Obviously it wouldn't be a throw together and let it go kinda job. I'd likely script a lot of the maintenance though to run through a self check of each VM. And I'd be with the machine daily as well. I still think it could be done, just not right now (be me). Quote Link to comment Share on other sites More sharing options...
corbin Posted July 21, 2008 Share Posted July 21, 2008 Think of all the money you would lose before you would find (and keep) 30 clients. I bet you would've paid for the machine out of pocket before you found a steady stream of clients. (Unless you designed sites, and pushed them towards your server or something.) Quote Link to comment Share on other sites More sharing options...
proggR Posted July 21, 2008 Share Posted July 21, 2008 As long as you're offering a comparable or better service for cheaper than the competition I see no reason why you wouldn't keep the clients. And filling 30 spots would not really be incredibly hard as long as you advertise in the right area. How many new web admins have searched for a decent host. And how many of them has paid MORE than I proposed because they had to. And the site design I could do, though I don't like designing the look of sites, just how they function. And I could offer discounts in that area. But I was thinking more along the lines of people that have a site and want it hosted for cheap. $50 a month for 100GB HD and 1GB RAM is a great deal in comparison with other services. And thats a good chunk of money for me. The first year would pay for the costs and each year after I would get 18000 per machine I have setup like this. I probably wouldn't take on more than 1 or 2 (especially if I were offering managed packages) but even the money from just the one machine, as well as the learning experience, would be a nice bonus on top of my other income. It'd let me put into practice all the stuff I'll learn at college. I tend to learn better when I'm emersed in the actual project. Obviously it'd be work but it'd be work I enjoy and a good income once its started considering once I've paid for the machine my overhead would only be network fees, power, maintenance, upgrades and time (I'm probably missing things but I'm typing quick). It may just be wishful thinking or talking out of complete ignorance but it would be fun more than anything. And I'd more than break even in the end. And even if I only do break even and cover the cost of the machine, I'd have a kickass desktop/server and would have learned a lot out of sheer necessity. We'll see. Maybe the cost of other VPS's will be cheaper by the time I'm out of college and can comforably buy the machine and it wouldn't be worth it at all. Quote Link to comment Share on other sites More sharing options...
The Little Guy Posted July 21, 2008 Share Posted July 21, 2008 For $40/month, I hope site themes comes with that, unlimited databases, domains/sub-domains, SSH (so I can add my own software, make my own PHP, set my own ini info, such as max file upload, etc.), unlimited email accounts, a free domain at sign up, custom DNS, Full CGI Access, Ruby On Rails, Server Side Includes (SSI), Data Backup, Statistics, 24 hour Technical Support (E-Mail), 97-day money-back guarantee. If you didn't support all that (plus more), then I guess I would have to say I'm sticking with my current host (http://dreamhost.com/hosting.html). They have all that, and it is only $6/month, and I am currently 100% satisfied! Other things that they have is: - A Wiki - A Forum - A Chat Room - A Status Page Of All Their Server Issues. Unlike Blue host where people have said it has slow connections, I have not had that problem. Your servers will need to be in top notch condition, if you want to compete at $40/month. If you are going to have it at $40/month, then you will need to offer something that the person can benefit from, basically something that no other host currently provides. $40/month is a steep payment for hosting from a person/company that is new to the business, and doesn't offer too much. If you cant offer much then I would start your pricing low. So if you were to do these (Reasonable amount of space(2GB+)/bandwidth(5GB+)): Includes php - $5/year With MySQL - $8/year With Email - $10 - $12/year Unlimited Domains/Sub-domains - $14/year That is just a small list (Prices may be a little high). I probably wouldn't place these companies on a Private Server either at that price, I would probably do Shared Servers. Now if they wanted their own Private Servers, I would probably start them at $15/month for a lower end server, then include the price of everything else (listed above). If you want to start off with this, I would recommend finding a good web host, one that fits all your needs, and one that has a reseller account, and sell the space and bandwidth that they give you. If you find success in this, then get your own servers, and build your own network. http://www.hostgator.com/resellers.shtml - Reseller http://www.resellerspanel.com/ - Reseller http://www.2mhost.com/web-hosting-reseller-program.html - Reseller http://www.google.com/search?q=reseller+hosting - More Quote Link to comment Share on other sites More sharing options...
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