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  Post #1 (permalink)   12-17-2008, 10:37 AM
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Do you think Offering cheap 1 usd accounts should work!?
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  Post #2 (permalink)   12-17-2008, 11:48 AM
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That might depend on how you want to sell the service. What exactly are you thinking of doing for a 1USD type of setup?
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  Post #3 (permalink)   12-17-2008, 12:08 PM
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$1.00 accounts are usually perfect for spammers and people wanting to use space as a storage location. $1.00 doesn't cover expenses. Even 20 people demanding your time and support wouldn't cover your operational costs. I honestly don't think $1.00/month packages are a smart idea myself.
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  Post #4 (permalink)   12-17-2008, 01:18 PM
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mmm... I see...


So, what could be the minimum price for hosting service?
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  Post #5 (permalink)   12-17-2008, 04:20 PM
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How long is a piece of string?


Seriously. This question comes up all the time and no one can answer it for you.
What is your overhead? How much do you pay staff? What are your server costs? What is your business plan? What is your intended profit margin? What is your plan for the future of your company?

Answer those questions and more and then you can make your own determinations as to what the minimum price for your services will be.
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  Post #6 (permalink)   12-17-2008, 04:50 PM
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I am right behind Blue on this one.
There are a lot of aspects that need to consider when pricing your plans.
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  Post #7 (permalink)   12-17-2008, 05:38 PM
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Ok. Thanks.
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  Post #8 (permalink)   12-17-2008, 06:37 PM
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Yeah no I don't think it is a good idea at all. It wouldn't even be worth it to offer it. It might be good to bring in business for you but in the long run it isn't the brightest idea as many have already pointed out.
 
 
 


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  Post #9 (permalink)   12-22-2008, 07:14 PM
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There are hosts that have survived while having such packages. At $1, it makes sense to charge yearly, and that's usually how it's done.

Some hosts actually use such a cheap package as a loss leader. If it misses some features (SSL etc), the customer may need an upgrade later on, and the company can really turn some profti then.
 
 
 


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  Post #10 (permalink)   12-22-2008, 08:03 PM
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It's conceivable that your $1 plan could attract very value-conscious (but legitimate) customers...but for this, you'd probably need to identify specific market niches and work to penetrate them.
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  Post #11 (permalink)   12-23-2008, 12:09 AM
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Yeah, this would be a huge red flag in fact, because of the risks. There are potentials for this by really limiting the services that you offer and charging for everything under the sun beyond that. Just use is as an enticement.
 
 
 


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  Post #12 (permalink)   12-23-2008, 11:59 AM
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Where do you plan on making money? At a $1, in this tough economy hard to see this working out in the long run.

As others have noted, you need to pay staff (including yourself), pay for hardware, support your customers, etc.

Not saying this can't be done, but there must be some other way to recoup such a low dollar amount should you want a business that can be there the following year.
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  Post #13 (permalink)   12-24-2008, 03:50 AM
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This question Is a bit tricky,see,actually people Love economic things,but you might be bringing negativity to your business by giving away space so cheaply,well,theres something called the bandwagon effect in Economics,Its basically means If someone Liked a service hes going to come back,and when he comes back hes going to lower tens of other guys over a period of time,well this can be applicable to your business as well,but the only hinderance I see Is maby people will be sceptical in purchasing,as the charges are very low.
But this can also be a good thing,It depends on a series of Other factors a well,Like marketing,design,customer relations and Good will of the firm(this is particularly Important to unleash the Bandwagon effect)
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  Post #14 (permalink)   12-26-2008, 02:43 PM
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well, do you think offering hosting at $1/mth could allow you to cover your operating costs?
 
 
 


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  Post #15 (permalink)   12-26-2008, 06:06 PM
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There is a chance this could be a side project, and your main project could end up supporting both of them (with the overhead) that might need to be taking into consideration.
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