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How much do average VPS hosting businesses make?
I'm looking to start a small-scale white-labeled HyperVM business online.
I know it depends on business strategy & marketing etc.
But you can give out figures based on your own past experience, if you have any.
(Considering the best-case & worst-case scenarios)
Thanks for your clues!
Only honest opinions please.
Comments
many many monies and strokes.
That's not how it works here.
7 dollars
I still hope some genuine business owners do me some favor.
Starting from sub $100/mo to about $4000/mo (That was the max I've ever seen in a low end modal)
Thanks for your inputs friend. I'm ready for all figures & scenarios.
It depends what average. The mode is probably around $0 due to the number of kiddie hosts. The mean is probably in the $xx,xxx's per year spreading Amazon et al's profits over every hosting company.
Income-costs=profit.
Your question is to broad to answer.
It all depends on what does your servers costs, licenses, support hours, how many paying customers, what packages are they on and what do they pay for it.
You wont get any numbers from a provider here unless the numbers already are public.
i read today that the best money making business is in the game publishers... some have a 6'numbers income... really one should consider the future now.
It should be profitable enough for you to buy enough idle boxes from your competition.
This artificially inflates most providers profit since they while they do buy each others product, they do not count it as cost, but rather as a leisure expense
$0, any company using HyperVM in 2017 needs to rethink their business plan.
Especially a "white label" assuming your customers will be resellers.
Do you mean game development?
yes
$100 per month includes one dedicated server and whmcs software for startup.
I think so.
Setup a simple spreadsheet of costs and revenue. Factor in what your time is worth for managing and supporting customers.
There are hundreds of summer hosts who have shut down because individuals get burned out at the reality that running a host is a considerable amount of work and they are now on call 24/7. Now factor in vacations, deaths in the family, other life events and such.
Having a team of founders is critical, in my opinion, to keeping sane. But now your revenue is split over your costs, and two folks.
How many $5 HyperVM's do you need to sell to generate value for the founders, what's the cost for the infrastructure to support those HyperVM's, and how many customers does that require?
Use this assumptions sheet to decide how you run your business.
Is your target market LET / Low End crowd? Honestly, there isn't much money in low end. Mostly it's break even rates, if that!
Hosting can be profitable if you can get the volume, but margins are generally slim, and you will typically need a lot of capital investment before you can make any serious money, unless you have some added value service. For example... if your USP is a fantastic personal touch customer service experience, then you may be able to squeeze larger margins, but it doesnt always scale well since you will typically need to spend more time hand holding clients, and you will eventually need to hire staff.
To make a small amount of money is fairly easy, and to make a living for 1 person is not too difficult either. But growing out of a 1 man job operation can be tricky.
Lots of 1 man job operations can probably make a $2 - $4k /month, which sounds not bad, but how do you grow from there? You gotta reinvest in new equipment, networks.. maybe staff? So that $4k /month looks pretty small once you consider those things.
Even if you're a re-seller with no capital costs, your margins will be thin on resale and you'll need quite a few servers before you an afford decent help. And then if you have a bad month.. lots of cancellations, all your staff will become potential money pits for you.
Is this just a hobby you plan to run or an actual business?
Only a fool would expect an honest answer here.
Hum...
LE market is only a small part of the revenue, but, based on the costs with that and revenues, i would say about 1-2 K profit at max we get from it if we do not consider the hardware which is either common with the other projects or recycled from them. I am counting here all LE plans meaning under 7 $ a month across the board.
Counting HW and overhead it barely breaks even, but, Italy is not cheap and a tier 4 DC is very expensive, so, if you run the operation in LE DCs and you live in India/central asia/africa etc, where the cost of living is rather low compared to Italy, for example, you can make 1-2 K a month if you are good at marketing (AND FILTERING OUT ABUSERS!) and that might be a lot of money for the region.
People are right, though, software development, especially for mobile platforms, is way more profitable and you can hire local talent on the cheap if you live in those areas, everyone happy.
Seems early for a Christmas host.
26 hours/day
Once you remove the hosts that last less than a year, somewhere between not enough and a living wage.
There's probably quite a few hosts here that have public accounts. That's where to get the answers to your question.
The biggest mistake as ever is asking what others make.
The first question you need to ask is how much do you need to earn out of it to make it worth your while?
Once you know that you can cost server rental or colo, software costs, money up front for x months before you decide it's not working, amount of time spent running it to make it worth your while and the list goes on.
Don't follow, lead.
1 Bitcoin a day makes body healthy.
HyperVM - that brought back memories.
Wow, HyperVM. You need to rethink that part for sure. Even Proxmox would be much better.
Brings back 2011-2012 memories
$7.
Stop stealing my bits man. Get yer own jokes to go with yer Impalas.
I don't think they earn much. I am wanting to get hired by one at 10-15 EUR / day and it is hard to find a job. Current state of industry is bad.
Thanks!