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Old 10-20-2004, 11:05 PM  
davidd
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Join Date: Jul 2003
Posts: 1,076
Quote:
Originally posted by detoxed
LOL my example was an example. I think getting 10,000 customers paying between $5.95 and $29.95 is a great business model. Its very little work that I would have to do, a few techs, customer service, automate almost everything. And with revenues and a customer base bigger hosting companies might try to buy it.
I posted in this thread to bring some reality into this discussion. I am one of the few people in this world who can say they have built hosting companies from scratch - up to the point of generating revenue in excess of $10mil a year. Hosting made me a lot of money, and I can say that my efforts benefitted a lot of people - from investors/owners, employees, and most importantly - the customers.

As to your above post, getting 10,000 customers is close to impossible. It should also not be the goal of any hosting company. 10000 customers is a support and technical nightmare. On a foundation side it is great, as your company would be composed of 10000 paying customers and would be close to impossible to hurt financially. Getting those 10000 customers would translate into a massive amount of marketing, etc and could not be maintained by 'a few techs'. No matter how much automation you have, hosting requires raw man power/hours that can not be marginalized by your comments.

Again, hosting is NOT an industry people should see as easy and a cash machine. Mindsets like this produce the scores of hosting companies that have appeared, failed, and caused major pain to unknowing customers along the way. The thing that none of these flash in the pan hosting companies ever cared about was the customers.

-dd
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