Quote:
Originally posted by MrJackMeHoff
hehe yeah thers other on here for sure everytime I see em offer 300 gigs for $20 per month I know they full of shit.
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I realize that $20 is cheap for 300 gigs but is not an unreasonably low amount. Any company with decent commitment levels from (good) providers can buy bandwidth at $40-$45/mbit. Your average customer uses less than half of their plan so this would work out to a marginal profit over-all. This business model would be like Rackshack/ev1servers -- acquire thousands of customers and make small margins off huge volume.
Probably not the most practical business model for a one or two man operation that doesn't have marketing dollars to acquire customers but still doable for some..