Thread: Pricing Hosting Plans

Pricing Hosting Plans

Proper pricing of your hosting plans could eventually make or break your business. If you price low, you have to oversell to cover expenses and make profit;which obviously would lower the service quality and clients might leave you. If you price too high you will have hard time attracting new clients. You have to find a sweet spot that you think would get you best chance for your business.

First step of pricing is finding out what costs might be associated running the business(a basic scenario):

• cost of server per month (rent or whatever)
• cost of control panel per month (if purchased, you can assume a monthly cost for this)
• cost per month for the time you are putting in.
• cost of anything else.

Now that you have the cost as x amount per month, you can make a strategy how many accounts you need to put on the server at what pricing to cover the expenses. This might need a few trial and errors before you can settle on.

For example lets say your monthly expense is $1000. If you want to allow a maximum of 100 accounts on the server at the rate of $10, you will break even. Of course you wont have 100 clients when you start, it will be a while before you get that first 100 clients. You will need to have the money to cover the expenses for at least a year ore more.

Thanks for sharing this interesting info.

Thanks Manik for sharing this nice statistics on web hosting. Well, doing a web hosting business is very frustrating because in nowadays competition is very high in this business so it is quite obvious that we must have to be different from others for sustaining in the industry. Apart from this there are many web hosting provider who provides hosting at very lower price so in this situation we must have to create some plans on pricing of web hosting.

Really nice information...Thanks for Sharing

interesting but i imagine that setting up a server is the hard bit...

rent daily base ya monthly base and quartely and years base ur pay the money

its a good one for me.

I would take my formula like this "Company A offer PLAN XYZ, Company B offer PLAN XYZ but Company A is much more expensive than Company B because of the backend server, 24x7x365 support from Voice, Lives chat, Helpdesk, Walk-in and product quality"

No hard feeling, I mean, honestly what do these people have in their heads? do they honestly expect providers to lose money or give their services away for free? To all of you whom looking for services, please consider this. Hardware is not free. it is a great devaluation per year, almost 50% and i'm sure you all want the best gear not a pentium 4 server.

If you think the server lives on air alone, you are also wrong. it costs power in datacenter, not mention space.
And yes bandwidth is not free either. And some people even wants a windows licence for free with it as a bonus not to mention someone picking the phone 24x7. I ask all of you, in what world do you live? do you go to a restaurant and ask a meal for $1? do you go to travel agency and expect them to have a vacation package for $100 all over the world?

Hey, It seems to be very useful information. Pricing definitely makes or breaks the business. It is all about price and service.

Nice this is fantastic to give me information

Billing software is a normal web host cost also. Along with script installers and merchant accounts to accept credit cards.

Nice sharing please share do more with us. My friend also like this post thanks for sharing.

I found your sharing really helpful...Nice Sharing

Starting a hosting company may not be a smart move for a newbie. Keep in mind your competitors will have millions if not billions of dollars.

yes u r right.....
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