I’m quite confused about Dedicated Servers. I keep reading that if you have more than X customers, that you should get a dedicated server. I do the math and it doesn’t make much sense. Using the example that I only sell (1) plan:
Reselling Virtual Plan “Budget”
100MB disk space
6gig bandwidth
Reseller price = $4.95
Retail price = $9.95
Profit = $5.00
I sell 250 of these accounts = $1,250 Monthly profit.
Dedicated Server:
100MB disk space
6gig bandwidth
Retail price = $9.95
Assuming that clients will only use 25% of allotted bandwidth:
1.5gig bandwidth X 250 = 375gig bandwidth needed.
Using “JPC2009” dedicated server,
40GB hard drive
25gig bandwidth
To put (250) accounts on server, I will need to purchase another additional (350)gig of bandwidth at $3.00 per gig = 350 X 3.00 = $1,050.00
So, my cost would be:
Server = $ 205.00
Additional bandwidth = $1,050.00
Total Monthly Cost = $ 1,255.00
Monthly Revenue of $ 2,487.50 – Monthly Cost of $ 1,255.00 = Net of $ 1,232.50
Plus I will have additional expenses with dedicated server that will Lower the net amount. WHAT am I missing?????


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