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$4/GB too low for Minecraft Hosting?

$4/GB too low for Minecraft Hosting?

mnpeepmnpeep Member
edited December 2012 in General

Thoughts?

http://www.maxshosting.com/
Unofficial community troll. AMA!

«1

Comments

  • RAM?

  • what exacly $4/GB? it's RAM?

  • Yes

    ~ Jimmy VortexUnit. Who likes poptart.cats?
  • concerto49concerto49 Member
    edited December 2012

    If RAM, Yes. Even the raw VPS is more than $4/GB in most cases.

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  • @David_P said: RAM?

    @arieonline said: what exacly $4/GB? it's RAM?

    Yes, it is by RAM.

    http://www.maxshosting.com/
    Unofficial community troll. AMA!

  • @concerto49 said: If RAM, Yes. Even the raw VPS is more than $4/GB in most cases.

    Please explain.

    http://www.maxshosting.com/
    Unofficial community troll. AMA!

  • @mnpeep said: Please explain.

    Just look at the number of $4/GB VPS out there. Even if you don't want profit it is very hard to do. Let alone sell minecraft on top for the same price.

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  • @concerto49 said: Just look at the number of $4/GB VPS out there. Even if you don't want profit it is very hard to do. Let alone sell minecraft on top for the same price.

    The thing is, minecraft hosting does not need separate IPs for each server, and uses very little disk space.

    SimpleNode | Minecraft and VPS Hosting | KVM and OpenVZ | Dallas, TX and Phoenix, AZ | PayPal and BitCoins accepted

  • @Nick_A will probably want to explode at you, @mnpeep

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  • concerto49concerto49 Member
    edited December 2012

    @SimpleNode said: The thing is, minecraft hosting does not need separate IPs for each server, and uses very little disk space.

    The IP cost is but a minor part of the equation. Whatever that works for you guys. There are also 2GB VPS for $30/year. Who knows.

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  • Artificial price reduction does not help the economy. If you aren't selling enough at your current price point, then lower your prices. However, I'm sure that's not the case. $10/GB is a good price these days.

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  • @concerto49 said: Just look at the number of $4/GB VPS out there. Even if you don't want profit it is very hard to do. Let alone sell minecraft on top for the same price.

    We're surprisingly profiting quite a bit from this, you just need to find a host with a good price.

    @SimpleNode said: @Nick_A will probably want to explode at you, @mnpeep

    image

    http://www.maxshosting.com/
    Unofficial community troll. AMA!

  • @Nick_A said: Artificial price reduction does not help the economy. If you aren't selling enough at your current price point, then lower your prices. However, I'm sure that's not the case. $10/GB is a good price these days.

    It isn't a price reduction, it's a different product.

    http://www.maxshosting.com/
    Unofficial community troll. AMA!

  • @ShardHost said: Too low

    Please do elaborate.

    http://www.maxshosting.com/
    Unofficial community troll. AMA!

  • HalfEatenPieHalfEatenPie Member
    edited December 2012

    @mnpeep said: Please do elaborate.

    Personally, I would consider it a business risk.

    Lets break it down shall we?

    Why is it considered a risk? - Statistically speaking, Minecraft (and other game servers generally) are honeypot of DDoS. If this is a VPS service, then it has the potential to knock out the entire server. Not good when there are multiple clients on one server. - If you pay for inbound traffic, then suddenly you have to pay a LARGE bandwidth bill

    Many minecraft hosts may have a higher premium, but that's due to the amount of additional risk they also take with it.

    This is simple risk assessment here, and while lowering your prices to 4 dollars per GB may yield profits in the short term, it'll open you up for a bigger can of worms later on (possibly) especially with the quality of customers that sometimes lurks in the LowEnd-Market.

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  • mnpeepmnpeep Member
    edited December 2012

    @HalfEatenPie said: If you pay for inbound traffic, then suddenly you have to pay a LARGE bandwidth bill

    Do you mean outbound? Minecraft doesn't take more than a couple of MBits inbound (2-6, if ~500 people are connected)

    http://www.maxshosting.com/
    Unofficial community troll. AMA!

  • concerto49concerto49 Member
    edited December 2012

    @mnpeep said: Do you mean outbound? Minecraft doesn't take more than a couple of MBits inbound (2-6, if ~500 people are connected)

    The bill for the DDoS attack. Also what do you call profit? The sale price minus payment gateway fees minus cost of the VPS? If that's the business model then ok. People define profit differently. Maybe that's the issue here.

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  • HalfEatenPieHalfEatenPie Member
    edited December 2012

    @mnpeep said: Do you mean outbound? Minecraft doesn't take more than a couple of MBits inbound (2-6, if ~500 people are connected)

    I mean inbound because that's what a DDoS usually tries to use up (read about it).

    Also I'm sure @mnpeep, you want to make a profit (in terms of actually get a return on your time invested). How do you want to get that return?

    Scenario: INCOME = EXPENSES PROFIT: $0.00 Benefit: Possibly continue to grow your company? This is a gamble due to the fact that you have NO money to expand and buy another server without going back into the negatives (as in every time you buy a server you have to invest your own money into it) and this also assumes you have a specific market you can target that will basically guarantee this working. This also assumes you want $0.00 for your time spent)

    Scenario: INCOME > EXPENSES PROFIT: $$$ Benefit: This is what everyone else does (if they're not a summer host). You have money to purchase another server. You have money to expand. You're getting paid for your time. This also increases the rate at which your company grows (leading to increased rate of future profits).

    Scenario: INCOME < EXPENSES PROFIT: --- Benefit: You learn a valuable lesson about basic economics (assuming you actually think about it)

    @concerto49 said: People define profit differently.

    I define profit in terms of Income > Expenses (In dollar sense) then continually reinvesting that into the company in order to have it grow.

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  • @HalfEatenPie said: I define profit in terms of Income > Expenses (In dollar sense) then continually reinvesting that into the company in order to have it grow.

    Great! It's not what I've mostly heard here. I've heard a lot of Profit = Income - payment gateway - cost of Hardware. So many other expenses are neglected.

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  • @concerto49 said: So many other expenses are neglected.

    Especially when we get into licensing.

    Standard/Basic Costs?

    WHMCS License, SolusVM License, cost of the domain name (unless your trying to sell through an IP), etc.

    @RobertJFClarke said: Anyone else need some popcorn?

    He obviously hasn't thought it through. That's where the problem lies.

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  • Most providers aim for $10/GB

    https://budgetno.de - BudgetNode KVM VPS

  • I would say that the difference would be wanting happy customers, or just having a lot of customers. Then again, I don't have a lot of experience with Minecraft hosting (as @Spencer can attest), so maybe clients don't care about quality when it comes to Minecraft hosting?

    I am no longer affiliated with IPXcore.
  • Thanks @Damian, I would stay away from $4 per GB, hell $6 per GB gives me nightmares. Im sorry client please tell me how your $3 a month MC server is of the upmost importance to use right now as we handle much bigger situations. But in all honestly $6 per GB is lowest I would do.

  • DamianDamian Member
    edited December 2012

    @Spencer said: $6 per GB gives me nightmares.

    @Spencer said: But in all honestly $6 per GB is lowest I would do.

    Additionally, you tell me that you sell out at $6/gb. Why would anyone want to sell for less, just to make less profit faster?

    I am no longer affiliated with IPXcore.
  • @Damian said: Additionally, you tell me that you sell out at $6/gb. Why would anyone want to sell for less, just to sell out faster?

    Yup because MC a lot of the people go for the cheapest host possible, it is a terrible market to be in.

  • @HalfEatenPie said: Also I'm sure @mnpeep, you want to make a profit (in terms of actually get a return on your time invested). How do you want to get that return?

    My margins are about 50% with $4/GB, so 2/3 of the server can be full and Income = expenses.

    http://www.maxshosting.com/
    Unofficial community troll. AMA!

  • @Damian said: Why would anyone want to sell for less, just to make less profit faster?

    That is my point exactly... Artificial price reduction. It's not like demand is bad at ~$10/GB, but some of these Minecraft hosts are only concerned with how little they can charge. Many of them are not doing this as a "real" job, or at least not to pay their independent living expenses. Thus, they couldn't care less whether they maximize profit or not. They just want to be able to make threads like this and taunt anyone with a bit of economic common sense.

    You can make more money at high demand with "normal" pricing. But saying that to them is a waste of time; they all have their own fixed ideas on how great it is to run the bargain bin. As you can seen, @mnpeep's signature proves that this thread is just a publicity stunt. He knew before posting it that he would be doing $4/GB--just wanted to get us talking about it.

    @mnpeep said: My margins are about 50% with $4/GB

    After how long of an ROI?

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    Atlanta - Seattle - Netherlands - IPv6 - DDoS Protection - AS3842
  • edited December 2012

    @mnpeep said: My margins are about 50% with $4/GB, so 2/3 of the server can be full and Income = expenses.

    Im not sure what costs are you working with here; however the cost of running a successful Minecraft host are not small. We operate a reasonably large Minecraft brand (4000 active servers) and have not joined the race to the bottom.

  • BrandonBrandon Member
    edited December 2012

    $4 / GB? That's way too high. I'm thinking $1 a GB is reasonable but throw in a few 50% promotions here and there just so you can stay competitive.

  • @Brandon Really? $1/GB? Good luck making any profit off of that.

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  • @zachfedora said: @Brandon Really? $1/GB? Good luck making any profit off of that.

    I think he was being sarcastic.

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  • @Brandon said: $4 / GB? That's way to high. I'm thinking $1 a GB is reasonable but throw in a few 50% promotions here and there just so you can stay competitive.

    Why charge? Get paid to join and use our minecraft servers™

  • @NHRoel Why haven't minecraft providers thought of this? This is a great way to attract business!

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  • @SimpleNode said: Why haven't minecraft providers thought of this?

    Lack of innovation ;)

  • @NHRoel said: Get paid to join and use our minecraft servers™

    Quoting from Futurama.

    Leela: Remember Fry's idea to offer free delivery?
    Fry: It got us a lot of customers! 
    Leela: We're a delivery company!
    
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  • Lol @HalfEatenPie . I recon seeing that on reddit before though.

  • @NHRoel: haha, I watched it a while ago on this episode: http://en.wikipedia.org/wiki/Neutopia_(Futurama)

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  • @Nick_A said: @mnpeep's signature proves that this thread is just a publicity stunt. image

    @Nick_A said: After how long of an ROI?

    A week, maybe two?

    @NHRoel said: Why charge? Get paid to join and use our minecraft servers™

    Minecrafted already does this, they give out free 256MB servers, only a $1 setup fee.

    http://www.maxshosting.com/
    Unofficial community troll. AMA!

  • @mnpeep said: A week, maybe two?

    Do you know what ROI is?

  • @mnpeep said: A week, maybe two?

    ROI means return on investment.

    I am no longer affiliated with IPXcore.
  • TazTaz Disabled

    Two week ROI? That is some high profit investment. Investment option available?Publicly trading?

    Time is good and also bad. Life is short and that is sad. Dont worry be happy thats my style. No matter what happens i won't lose my smile!

  • RobertClarkeRobertClarke Member
    edited December 2012

    The only thing I'll say, is that you're just throwing money away from current paying clients, as they'll want the new pricing.

  • @Taz said: Two week ROI? That is some high profit investment. Investment option available?Publicly trading?

    Anyone ever heard of leased servers?

    @RobertJFClarke said: The only thing I'll say, is that you're just throwing money away from current paying clients, as they'll want the new pricing.

    Not true, since the quality comes down with the price, as it should be.

    http://www.maxshosting.com/
    Unofficial community troll. AMA!

  • @mnpeep said: Not true, since the quality comes down with the price, as it should be.

    So you are going to sell really shitty mc servers in hopes to make money? I wish you the best of luck

    image

  • lele0108lele0108 Member
    edited December 2012

    @Spencer said: So you are going to sell really shitty mc servers in hopes to make money? I wish you the best of luck

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  • @mnpeep said: Anyone ever heard of leased servers?

    http://gyazo.com/db187583eed0ae61c9c98e6080454ae4

    Thus, the questions regarding ROI, etc.

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  • @mnpeep said: Anyone ever heard of leased servers?

    $4/GB. Assume 32GB for simplicity. 4x32 = 128. It's either heavily oversold, doesn't include wages, insurance and a pile of other costs that are the real expense of running a business. Not to mention profits = a need to pay tax.

    Sigh. Doesn't understand. Leased or not.

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  • @Nick_A said: http://gyazo.com/db187583eed0ae61c9c98e6080454ae4

    Thus, the questions regarding ROI, etc.

    Only the HDD ($7.6/GB) and SSD($10/GB) server plans run on company owned hardware. The Cheap Server Plans do not.

    @concerto49 said: $4/GB. Assume 32GB for simplicity. 4x32 = 128. It's either heavily oversold, doesn't include wages, insurance and a pile of other costs that are the real expense of running a business. Not to mention profits = a need to pay tax.

    Sigh. Doesn't understand. Leased or not.

    What if I told you this isn't the only product that I sell. You are also forgetting about add-ons, etc.

    http://www.maxshosting.com/
    Unofficial community troll. AMA!

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