Thread: Seedbox Company Profitability

This is too hard to answer as this really varies way too much from company to company.

Most "providers" start with 2-4 servers, throw a few ads on forums and then grow from their. In the beginning they see huge profits because they have almost no costs, this then becomes ALOT of work due to support and trouble shooting, after 2-3 weeks of 5-10+ tickets a day, many people get tired of it and then the service dies... even a few of the "established" providers have become horrible at customer service.

The popup providers are the guys who don't know what they are doing so they stick 20-30 people on a server for dirt cheap rates. Of course they grow faster then they should because they promise the world at next to nothing, they explode with customers looking for a deal and realize the work isn't worth it.

A seedbox business is.. a business. It needs ALOT of work, usually at very minimal rates for the first few years. You need to pay for advertising, licencing fee's, server costs, and of course you need to make enough to make it worth while.

One of my biggest pet peeves is the misconception of how much providers actually do make. I get 10+ emails a week asking for deals because "you make so much on your servers i'm sure you can give me a deal" These people take the simple "Price - Cost = Profit" formula, unfortunately anyone who knows business knows that its never that simple and there are a lot more costs associated with business then most people know.

Are customers unrealistic with their expectations of what they get for what price? Or do you just find that most go for the lowest priced item, regardless of whether it suits them or the operator is reputable?

All I can say here is, you really do "get what you pay for".



There was a spreadsheet comparison of all the providers last year, it was hosted on Google docs and was a pretty good resource but is now pretty outdated and honestly just misleads people now... starting a spreadsheet like this would be a good idea but it would honestly need to be maintained or it too fall to the same fate as the last one.