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How do you actually make a successful VPS hosting company?
Hello everyone!
I'm interested in making a budget VPS host but I would like too know how do I actually make it profitable?
First thing, what host should I use? I know most people use OVH but they're expensive and low spec.
A server from OVH costs about $120 a month for 32GB ram so that's $3.75 per GB. Of course you can over sell so we can get that down too $2.50/GB. Not including IP addresses I would need 48 customers just to break even! If I add the cost of IP addresses that's an additional up front cost of $144. I see people selling OVH VPSs for $3/m.. are they just loosing money from the fun of it? Or are they taking a leap of faith and buying so much server resources that they can get the costs down?
I looked at other providers but they either have stupid limitations like I can only have so may IP addresses or they're expensive or just shady.
Next dealing with abuse, How do you guys stop people from abusing your services? What software could I use to limit emails, stop port scanning, stop malware & other illegal activities. Don't you also fear your root host from taking your server down because of something stupid a client did?
Most importantly adverting, where do you advertise your host? Google ads seems like a waste and so does Facebook. Do you guys 100% rely on SEO and ads on LEB?
I would like to make my own host and have a starting budget of 5k but I would like to have a business plan first and research everything. I have some experience with hosting but only worked on my own web projects and servers for clients that are willing to spend $800+/m for servers not $5. I'm also a software dev so I would just make my own billing system, I basically have for a client anyways.
You're suggestions and feedback will be helpful! Writing this at 4 am after a couple of beers so please excuse me!
Comments
Don't forget customer service, that should be one of the most important things to get right, without customers, you have no business.
First you need to narrow down your clientele. Is it low end or medium or even high end. Second, you try to upsell your services with VAS (value added services). Think about it. Prepare to exist on pure loss for first 2 or 3 years.
P.S. Forget about steam games.
+1. If you just do the exact same thing as other VPS hosts, people won't really have a reason to choose you over any other host. You really need to provide extra value of some sort, whether that be awesome support (maybe fully hands-on like a managed host, or maybe something like phone support), web design/development services whatever.
@Daniel15 nice projects you have there mate. And those 1 letter domains! Noice!
Interested. Might hetzner will help more than ovh
Joined 7:13AM
no, they just don't buy a 32Gb RAM server for $120/m.
You can find a lot better for that amount
Value Added Services would be profitable alone.
Someone has been buying $6 unmanaged VPS and selling them as $7 managed VPS. You can start parttime with virtually no risk, and grow from there.
(My visa status doesn't allow me, otherwise I would be doing that already)
https://www.lowendtalk.com/discussion/comment/3169967/#Comment_3169967
If you dip your first toe in the water by competing on KVM pricing on LEB/T promos you've already lost. A lot of hosting companies are relying on one big client and a high volume of barely profitable sales to try to reinforce the foundation in case that big client moves.
Find your angle. If you can't think of one, don't enter the market. Sample every single provider here until you can say "I know what they all lack and I can be the one to fix it."
For me it was transparency. Trust issues were all over the place. Faceless brands with stock photos of a woman wearing a headset represented the staff of damn near every one of these hosting companies. That was my angle: I'm real, you know where I live, and I'm not going to hide behind a brand name, stock photos, and press releases full of buzzwords and empty of details. What's your thing going to be?
vs.
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lame, I can't find you, Jar.
Sign up on his website and enter location "Arkansas, China". You'll get dick pics.
How about Beijing, UK ?
Share the picture here once you receive.
LowEndDating
After I installed that adblock thing all the other singles stopped asking me for a good time