What if you could sell hosting for 1.00 per month?

I think you would burnout, close your doors because of the support you would have to do on it.

If you can do hosting with no support, then maybe worth it.

Lets say you get 1,000 customers and you need to hire a full time support guy, you cannot afford it unless you do it only by email outsourced. Then that takes half your profits + that assumes that only a handful of customers call at most.

I talk to my hosting company once a month for atleast 30 min to an hour.

Since I am on a rant (hope you dont mind me being honest), the clientelle you are attracting will be cheap clients, they will be the ones that will want something for nothing and waste more time.



Mukul

Looking for a way to make a million bucks, are we?

I don't think that would do it. You can open a free reseller account right now, and I don't think there are a million web hosting companies. It's a killer field to get into, ultra competitive.

I've seen a few that offer hosting $1/month, I think I've even seen a $0.50/month. I actually bought from a company called hostso for $12 a year. They had good hosting, but they're support was awful. I still use that hosting account for temporary testing and other knick knacks. I would never put trust in a company that is less than $4 a month.

I know HIGH QUALITY hosters which do exactly this. Yes, $1 month. I am not talking about some junk hosting, but very good one. I am with them for a long time already.

You could offer $1/month hosting with a $49.95 "set-up fee." This would make it seem as though they are getting $1/month hosting when really it comes out to $5.16/month when you figure in the $49.95 fee!

I think a lot of people would still go for it because of the perceived value of "$1/month hosting" -- you never know!

Then you would only need 16,142 customers to make a million bucks!

Best,
Shane

Here is one unusual approach of setting hosting with [ackages starting from 1$, build forum around your service and give support from forums only. 2xhost.com,hostwoot.com are doing this already. Also put ads like adsense, kontera, castle media on your forums so that most of the earning will be from those ads(as some of these ad networks pay a lot for impressions). At start offer 512disk1GB-BW plans these are good for starters and you'll be able to attract many users. Higher plans should be more than 8$ for disk/bw. Make sure your higher plans are affordable to existing customers as well.

First, merchant account fees are going to eat a big percentage of that dollar. Paypal is $.30 per transaction plus 1.9-2.9%. That's going to leave you less than $.70 per customer right off the bat.

Your idea isn't completely without merit, but you would certainly need to have your upsells and backend offers in place before you get in too deep. You should do a couple of limited promos initially to test those offers.

One thing you could consider is making the $1 per month price only available to those who pay for six months or a year at a time. That will help cut down the merchant account per transaction fees.

You could run your own banner ads on the sites hosted on the $1 per month hosting, and remove them for a higher subscription rate. Some upsells could be bandwidth, disk space, MySQL databases, site builders, fantastico, guest books, etc. Check out Bravenet (formerly BraveHost) for inspiration.

Bravenet Web Hosting and Domain Names

John