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10 dollars/mo website services

Tamal Anwar

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Hi folks, I am in the research phase.

Currently I am offering web design services to my clients. A few of them subscribed to a monthly plan of $10-$15/mo for hosting and usual maintenance.

Now my concern is, can I really advertise it and make it into a real service?

Like, pay me $10 a month and I'll build and run your website. Do you think this is good for autopilot income and for scale to 1,000 clients?

Thanks,
 
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BUFFALOBT

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Hi folks, I am in the research phase.

Currently I am offering web design services to my clients. A few of them subscribed to a monthly plan of $10-$15/mo for hosting and usual maintenance.

Now my concern is, can I really advertise it and make it into a real service?

Like, pay me $10 a month and I'll build and run your website. Do you think this is good for autopilot income and for scale to 1,000 clients?

Thanks,
I've always been a huge fan of offering something of value at a low price point to small businesses...$10/month hits the bullseye in my opinion.

If you truly add value each month, you'll earn your $10 and be able to build a nice residual income from there.

I'm actually doing the same thing with an SAAS for businesses @ $10/month.

Good luck!
 

Tamal Anwar

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Only if you're hosting on your own servers. If you're reselling someone else's space, you're going to have problems.
Hi, yes I am going to resell server space. If I get to a lot of customers, then maybe I will have to look into getting my own server?
 
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jmusic

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Rolling your own server isn't too hard actually, but for many reasons (mostly related to reliability) you'll want your server to be colocated at a datacenter which is expensive. Sandy Bridge era server gear is actually pretty cheap nowadays.

I also frequent the forum at servethehome.com, it's a good resource for that sort of thing...


@jon.a, why so against reselling? There are many white label services that are designed for this exact thing (I think Bluehost gets some mentions around here).
 

jon.a

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Rolling your own server isn't too hard actually, but for many reasons (mostly related to reliability) you'll want your server to be colocated at a datacenter which is expensive. Sandy Bridge era server gear is actually pretty cheap nowadays.

I also frequent the forum at servethehome.com, it's a good resource for that sort of thing...


@jon.a, why so against reselling? There are many white label services that are designed for this exact thing (I think Bluehost gets some mentions around here).
control
 

c4n

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can I really advertise it and make it into a real service?

To answer this question you need to figure out what your customer acquisition cost is.

First calculate what your net lifetime customer value is. In other words: how much do you profit from an average customer. Then see if you can spend less than that to acquire new customers.

If you can, great. If you can't, you need to:
  1. Lower your customer acquisition cost. Adjust bids, improve ads, improve landing pages, improve your offer.

    and/or

  2. Increase the net lifetime value. Increase pricing, up-sell and cross-sell premium services, see why customers are leaving you and try to fix that.

A simple example:
  • you charge $10/month for your service
  • you have an average $4/month expense (don't forget taxes!)
  • the average customer stays with you for 36 months
($10 - $4) * 36 = $216 <== your net customer lifetime value

This means that, theoretically, if you can spend less than $216 on advertising for every new customer you acquire, you are in profit. In real life you need to have enough margin to make it worth it though, for example 30% of your profit goes into advertising.

$216 * 0.3 = $64.80

Now let's say you do pay per click advertising. Of each 100 visitors that come through PPC only 1 converts/signs up for your service.

This means you can afford to spend $64.80 for every 100 paid visitors ==> $64.80 / 100 = $0.64 = your target pay per click bid
 
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