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View Full Version : A web host earns . . .

DoorKeeper
19-09-2002, 17:04
How much do you think a SINGAPORE web host earns after all expenses and costs ? Let us not talk about the big boys who have complicated accounting and can show millions of dollars in their books. Say a one-man-two-man show. $5000 ? $10,000 ? monthly.
Heng Chai
19-09-2002, 21:21
5k/month one man show? Simple calculation.

Taking 1 server, monthly co-location cost + hardware costs (hardware depreciation) : $300/month.

Based on 100 accounts, each $10. $1000/month
Profit = $700 - other costs. Finally you'll get about $500+.

$5k? You need 1000 accounts, and where are you going to get that kind of quantity?
royong
19-09-2002, 22:52
Heng Chai must be speaking from experience ....

hence I don't really doubt help.... unless you do a great job at marketing and are able to sign up a lot more customers ...
Heng Chai
19-09-2002, 23:21
1000? I don't think even webvisions has that many. As almost everyone knows, webvisions relies on premium price and service to make their big bucks.
Junpei
19-09-2002, 23:47
treat your customer as firend and let them know you care about them thats is how to do bussiness
chin
19-09-2002, 23:58
Not all web host earns much, especially those starting web host ... like .....
Junpei
20-09-2002, 00:04
Originally posted by chin
Not all web host earns much, especially those starting web host ... like .....

yap starting web host is like that must have large capital and also when time goes by everyone will know that website if it care customer and do things fast in 2-3hrs
Heng Chai
20-09-2002, 00:11
Originally posted by Junpei
treat your customer as firend and let them know you care about them thats is how to do bussiness

Yes, that's important for service.

But remember, service means time. And time means you need to pay yourself. Do you think you can justify the time spent on a customer when he's only paying $5/month? You need to charge reasonably also, not forgetting your own time spent.

Maintaining service standards is just as important. Customers want support whenever they need it. Don't think your customer is not important anymore because he's irritating, think that if he's satisfied, he'll be renewing his account and that means a long term partnership.
Heng Chai
20-09-2002, 00:13
Originally posted by Junpei
yap starting web host is like that must have large capital and also when time goes by everyone will know that website if it care customer and do things fast in 2-3hrs

Starting capital? It doesn't cost you more than $1000 (1U OEM) for startup (based on setup fee only), and $200/month (coloc) for one server. Its pretty reasonable if you asked me. 10 domains at $20/month would do just nicely. Rest is profit. :)
DoorKeeper
20-09-2002, 18:00
Sorry to hear that. I thought some here are making a really good living out of this sector. But then, I won't be surprised if a handful of you are really doing very well with a few generous customers, among others. You are just quietly happy and do not want the world to know.
icelava
23-09-2002, 15:55
With a Unix server's stability and efficiency you can squeeze in 200-300 user accounts per machine. I always believe as a virtual hosting customer you shouldn't expect great speed outa your site unless you have a service guarantee that the machine you're on does not exceed a certain number of accounts.

But that means a premium price to use such a machine. And all it ever takes is one customer's nasty code to break the bus down.
chin
23-09-2002, 17:41
Yes, we had to pay premium price to get premium services, there is no trade off.
fred
23-09-2002, 17:56
Yup, however ppl always over estimate their requirement, keep looking for large space, excellent speed, high bandwidth, etc etc. In fact they are getting too much than what they really can consume.
icelava
23-09-2002, 18:34
Originally posted by fred
Yup, however ppl always over estimate their requirement, keep looking for large space, excellent speed, high bandwidth, etc etc. In fact they are getting too much than what they really can consume.

I beg to differ. We had too many customers who think they bought a fighter jet when they subscribed for virtual services.
royong
23-09-2002, 22:09
Originally posted by icelava
I beg to differ. We had too many customers who think they bought a fighter jet when they subscribed for virtual services.

Good one... same to my customers who thinks that a P4 2Ghz will make their Word / Excel load on the "FLY" ...

Anyway to add my worth in this discussion, honestly, there is good margin to be made. It depends on your business strategy. Do you want to compete on price ? On service ? On quality ? Which is it ? ... carry out a little planning .. do a SWOT anaylsis on your current web hosting business and lets see where you should go....

To be honest, I would go the WebVision's way anytime. Concentrate on providing good quality service. Don't worry too much about the price war ... there will be people whom are willing to pay for premium service ..........
Heng Chai
23-09-2002, 22:51
Premium service? Yes. The market for such service is still there, but you really gotta kind your stuff. They don't think "err... I'll read up on it and let you know" as service.

Business strategy there are too many, each to his own I guess.
seowbin
07-10-2002, 22:14
must study business liao... to under wat customer thinks..