Questions regarding hosting companies

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Arbiter

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Hey,
I'm curious about how hosting companies are set up and how they turn a profit. If anyone is knowledgeable about MC hosting companies and other game server companies please message me on discord: willmorrison#6131. Thanks!
 
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Spenser

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I'm not a 100% sure, but I believe they buy a large server machine (dedicated) and then sell each GB of ram for more than what they actually pay. Some hosting companies do $2 pr gb of ram (idk havent been in the mc community for a while) while paying $100 a month for 64gb

idk
its recommended to own the server, pay colocation costs. Since its usually cheaper monthly BUT requires more $ up front.
 

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Are you looking to start a hosting company?
I don't think I'm looking to start one due to how many there are and the small chance of actually succeeding. I just want to know more about the margins and all that.
 

Andy Willis

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I don't think I'm looking to start one due to how many there are and the small chance of actually succeeding. I just want to know more about the margins and all that.

With MC hosting the margins are slim to be brutally honest. You'll profit if you buy your own server and colo it not to mention the server needs to be an up to date one DDR4 ram etc, so you need to have some cash saved up. Most host are selling ram for $1/GB and the price of DDR4 is ^^. Anyhow good luck remember most of these providers are not only in the MC market because of this reason.
 

Spenser

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I don't think I'm looking to start one due to how many there are and the small chance of actually succeeding. I just want to know more about the margins and all that.
Margins for hosting non MC are much higher, we host enterprise / business grade customers and are able to hold higher profit than .80/gb$ / 1$/gb based on the RAM we offer.
 

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Margins for hosting non MC are much higher, we host enterprise / business grade customers and are able to hold higher profit than .80/gb$ / 1$/gb based on the RAM we offer.
Do you own the servers or rent?
 

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no, there are already things that can do that without having to pay an arm and a leg.
Mind walking through the process of starting a host? Just stuff related to the servers themselves, not web hosting and stuff
 

AlexTheGreat

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I ran a small hosting company. It helps to have friends who host servers from you to fall back on and get out through word of mouth. Basically, the only things I needed to do were:
1) Set up a website (WHMCS)
2) Buy a server/VPS
3) Install Multicraft
4) Sell Servers
It is not hard, basic linux skills are required and maybe $50/month. Profiting is hard and you should have a set of clients that you can rely on. Due to the ease, the market is deeply saturated and it is incredibly difficult to make a profit. Even when you do make a profit, the margins are razor thin.
 

D0ublek1ll

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Any real hosting company will own the servers they're hosting their services on. And for a larger minecraft sever is most cases its even profitable to buy some hardware. People who rent 32gb ram servers for example from ovh or so you start are wat better off getting some hardware together and bringing it to a datacenter. They get their server costs back in a few months.. colocation costs barely anything compared to server rental.

I did the above for my mc server, when it stopped.. I had a bunch of hardware to either sell or do something what with.
 
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