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Comments
Quantity. Few cents each x 10000.
Those businesses probably won't last long
@william.. with the number of growing small vps companies, getting even 100 new users a month would be a challenge without good marketing budget. So I don't see a point.
I think many are hemorrhaging because in the majority of times there are too many people in the supply chain each taking a markup.
Probably overselling to be honest, or just cutting the margins right down.
Keeps Costs low and sell and compromise on quality. Lots of new providers are doing so.
Unrealistic offers attracts many. Such as brands like GVH.
Mos providers also have a normal job and thus can afford loss for some time (or even permanently). Small companies also get tax incentives (mainly in Europe).
overselling !!! and are many , but many webpage with no company in backround (fisical person ) wich is not trustly and many clients is looking most for cheap no for quality ,,,,,, (i know many webpages wich is fisical person and when the host desapared ..... ups what i do ??)
hm? You can MORE EASILY sue a private person than a limited liability company. Your complain makes no sense.
+1
FTFY
with hard dedicated work mostly, with lots of sacrifice, with such commitment which can be comparable to army, only that way, sleepless nights are included by default.
Times when you where able to get xxyyyzzz digits from 5 nodes are gone. Prepare deep pocket and just wait. Maybe you will get lucky
Yes, I barely make any profit with my $10 a year cPanel hosting - only from bigger local clients, however I have a full time monday to friday job to keep the lights on.
Overly inflate the selling price when you go sell your summerhost on WHT
To put it bluntly, low cost providers sell at a loss and you benefit simply because they need advertisement. Probably justified as advertising expenses.
Reviews will turn negative if they oversell too much for profit, and cheap or otherwise, clients expect good products & services.
@century1stop is rich!
no, century1stop is stoopid
but I will refrain from stating why
Offer incoming?
Still need more? I see at least 1 each day.....
No, I do not need more, personally. My point was that this post appears to be someone looking to enter the market.
This gif describes every lowend offer I see:
from my end, time spent here is when clients are not throwing in tickets.......
not like we do not need sales but focus is on budget, not low end
no offense
what kind of offer would you like to see, may I ask?
@cloudvps
"Making money" is a very loose term.
There are many that are happy enough with covering the cost of the server, but are unlikely to last too long because there is no incentive. especially when issues roll in, tickets take up too much time or people don't write positive things.
For others LET/LEB is a fast way into the general marketplace to get reviews and people just generally talking about your product. However the offers here are limited and not their real target audience.
Don't get me wrong I have seen offers come into the offers section here on LET and sell 100-150 plans within a few hours, others sell next to nothing in days. It's of course all about resource and price, the
betterlower the price and the higher the resource and it will sell well but margins are either going to be very low or loss generating.There is an appeal for providers to come here with a cheap offer and get several or many clients to get started compared to say advertising your plans at the "normal" price on WHT and getting 0 or 1 client.
If you do it right though and get the reputation then people will not wait for the next promo and pay that bit more because they are confident in getting a reliable product and service.
Whilst product and service is important, marketing trumps them both. You may have seen how the shitiest of services can pull in customers with ease whilst other more better ones struggle in comparison.
The offer will most certainly entice, but the image of the provider will draw people in.
You appear to be getting into the market. The question you need to ask is what "making money" means to you and how you could achieve it.
None taken, as I have no clue what you're going on about.
neither do I :P
@W1V_Lee Thanks for the clearing the air. I agree with you. We sure need to have a right vision with a long term goal to sustain in this market.
We are just entering the market. Our product has been in beta and hasnt been marketed yet. Our model is to offer a semi managed service at a affordable fee with good quality network/hardware. We are just finalizing our marketing plans.
As you correctly stated, a good offer might bring in clients however unless we are ready to handle those signups with the resources, it may not serve right for long term.
Since we are supported by a large parent company, we can afford to go without profits for a while however any offers we may needs to remain viable. That's what we are going to figure out. Would love to hear some feedback from providers who have been successful in this market.
Good questions.
LEB stuff is not a profit generating item for my company, it is what is known as a loss leader. To protect my investment, like most of the successful guys you see here, you cut out as many of the resellers and cut straight to the guys who own the Datacenters. Take a look at webhostingtalk, in their colocation section. Once you have complete control of the situation, power, network, hardware, you can start to make deals of your own that make sense.
I am not trying to run to the bottom either, simply put, your looking at running yourself as a person into the ground trying to make any money off the idea, if your renting an online.net Server speced as:
2x 160GB SSD
128GB RAM
150 Euro
at $7.00 Per month, for a 6GB VPS, You'd squeeze 21 clients, only 5GB disk or less and make $147??? Overselling is a necessary evil in any business, that is how you drive demand. Look at nearly any product that has become popular due to it's rarity. The only difference is that as a VPS provider, with OpenVZ, you can take product that you are selling away if it is unused, and give it to those that are needing it right now.
It would be like waking up one day to find half your cereal was gone, because someone else you didn't even know was hungry. It's annoying, but you at least have enough for your breakfast. If you really had to feed a bunch of people, and you cursed the cereal gods, they would give you all the cereal that you were expecting to have. If they are bad cereal gods, you'll go hungry, and your people will starve, because they really don't have enough to give you.
The only way that I can maintain my business, my investment, and continue to grow, is to maintain realistic pricing and packages that suit the type of network, hardware, and support a client of mine is supposed to expect. If I were to relent and sell 2GB KVM VPS's on the west coast for $15 a year, I would have alot of proverbial shit to deal with, for a little bit of money for my investment of time. Not to mention the abuse...
I still offer free services, I've offfered alot more in the past. There is just not enough time in the day to manage the abuse complaints that come from a free webhosting server that isn't setup correctly.
I make ROI on the services that I offer because they are sustainably priced. Not offering gobs of bandwidth keeps off the TOR nodes, and Torrenters. That cuts my time responding to abuse to nearly nothing, and I have people that are more that happy to keep their more critical applications running on a network free of the less scrupulous activity.
As far as being profitable over the long term? Noone selling massive expectations for little cost has lasted long, either they end up collapsing, or just disappearing.
Isn't the point of OpenVZ to oversell? I mean if I wanted something that is not oversold I would get KVM... right?
False. Every virtualization technology can be oversold. Even VMware and Citrix.