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Originally Posted by mrkris
If Tear2 pays $1500 for IP's, and I bring them 4 dedicated servers for 1 year, at $100 a month, thats what, $4,800? This is mainly because of their IP promo. Looks like they turned quite a profit. Now how is that bad business? Please explain.
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Wow. I had no idea the company could get away with only paying for the IPs. Holy cow, we are really getting ripped off.
So... what about the price of the servers? And bandwidth? And replacement parts? What about the data center lease fees? What about new and better equipment, like routers? What about office space? What about having competent techs, billing personnel, sales personnel, advertising, and all other employees needed? What about taxes? Insurance? How about office computers and printers?
Like I mentioned earlier in this thread... a $100 monthly server gives a very limited profit. The expenses clients never see are unreal. Companies offer $100 dedicated servers for several reasons, a major reason being its a great way to get you in the door and they hope you grow into a $500 package. Thats when they see profit. Until then, you may be paying for the owners McDonald's cheeseburger once a month.
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