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-   -   What's a healthy bandwidth consumption to revenue ratio? (https://gfy.com/showthread.php?t=143571)

Drake 06-15-2003 12:21 PM

What's a healthy bandwidth consumption to revenue ratio?
 
Curious as to how much % you guys pay for hosting (primarily bandwidth costs) to how much revenue you generate from those sites.

Does it take %50+ of the revenue you generate, more or less? As far as 'overhead' goes, bandwidth is our industries overhead. With restaurants the average is %75 goes back into costs of running the business. Is this ratio as high for most of you in adult or much less?

detoxed 06-15-2003 12:22 PM

hah hopefully a lot less

funkmaster 06-15-2003 12:22 PM

I reach break even after 8h of the beginning of each month ... I love it !!

Drake 06-15-2003 12:28 PM

Yeah, that's what I figured. You should be able to clear bandwidth cost within the first 3 days or so. Wow, 8 hrs....now that I know it can be done, I'll strive for it.:thumbsup

I suppose it also depends upon the type of marketing you do. Galleries can cost you.....still if galleries are expensive for you and you make say %50, it's still better to make %50 of 100k (for arguments sake) that it is to make 99% of 10k.

Drake 06-15-2003 12:30 PM

Clearly, TGP's owners don't have to worry much about bandwidth, so this question was directed mostly to paysite owners, gallery makers etc.

besterman 06-15-2003 12:42 PM

think of it like this.

Say your estimated bandwidth is $6 per 1000 uniques and since it is NOT a tgp, let's say conversion rate is a respectable 1:250. Then that's 4 members per 1000. Say you get ~ $12 on a partnership, that's $48. So bandwidth is 13% of revenue.
Everything depends upon the crucial conversion rate IMHO.


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