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Hosting reseller account
It's too much easy...
specter




msg:686433
 7:13 am on Apr 6, 2005 (gmt 0)

Hi,

I would get a Hosting Reseller account.
I made some calculations and something doesn't balance out.
I mean that:

I get the reseller account with 2Gb space for $30/month ,$360/year,,ok?
Assuming that I share equally this space allocating 5 Mb web space to everyone,I come up with 400 customer accounts,ok?
Assuming to apply to everyone a standard fee of $60/year that appears to be alligned with the current prices,I would get $60 x 400 = $24,000, and this only with a 2Gb account!

Of course it have to be deducted taxes and advertising costs but the gain would remain equally elevated...

It sounds to be too much easy...

What am I missing?

 

Edwin




msg:686463
 10:54 pm on Apr 18, 2005 (gmt 0)

As regard of PPC ad campaign, I considered that for a massive "manoeuvre" hi costs are needed but I also considered on a statistic base,that to load up 400/500 customers could take not more than a month,assuming for example 400/500 unique visitors per day and a conversion rate of 3% that seems to be realistic.

Assume a 3% conversion rate (that sounds pretty high but let's go with it for a minute). That means you need to bring 33.3 visitors (call it 33) to the site to make one sale.

PPC bids on hosting-related terms are some of the highest in the industry. Assume you can optimize for some fairly obscure search terms and you end up paying just $1 per click. That's $33 in marketing costs per client.

Now take a step back and think "What happens if I only get 1% conversion rate? What happens if each click costs me $2? etc."

The math is NOT in your favour...

specter




msg:686464
 6:50 pm on Apr 19, 2005 (gmt 0)

Assume a 3% conversion rate (that sounds pretty high but let's go with it for a minute). That means you need to bring 33.3 visitors (call it 33) to the site to make one sale.

Excuse me but I'm afraid that maths is not an opinion;
3% conversion rate means that I need 100 visitors to get 3 sales;it's different,and it's fairly realistic ,I guess.

PPC bids on hosting-related terms are some of the highest in the industry.

This,instead ,is a valid objection I didn't think about.Altough considering $1 per click gain remains still elevated...

(maths hasn't been created by me...) ;-)

gamb




msg:686465
 4:46 pm on Apr 21, 2005 (gmt 0)

FYI Specter,

there is a company out there that has a 1gb package for $55 per year. They also have an affiliate program that pays $60 per sale. If you are halfway smart you can get your hosting for the first year free.

the good news for you is the upside of the 2nd, 3rd year etc.

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