Brad Fitzpatrick (bradfitz) wrote in news,
Brad Fitzpatrick

lots and lots of money.

i live and breathe livejournal lately. working on getting ads up on non-paid and non-early user's journals. i made a spreadsheet to see how much it would cost initially and monthly to move to internap with some new kick-ass servers. looks like $17,000 initial cost, then $1,600 more per month than I pay right now at virtualis. although it's more, if i were to get the same hardware ($10,000 of the $17,000) at virtualis, my monthly fee would be incredible high (because Virtualis charges a lot per increment in machine specs... and you don't own the machines and can't upgrade them easily (without paying a lot for it)). whereas with internap, i can keep adding machines at will and not pay anything extra per month until my cabinet is full (which would take awhile). i did the math and without any ad revenue, i'd need 63.56 paid accounts per month, or 2.09 per day. given 200 new accounts per day, that means I need a 1.05% conversion rate from new users to paid users. given that less in 1 and 200 people click banner ads (0.50%), expecting 1.05% of people to send in $25 is unlikely. thus, i've been working on getting ads up on non-paid and non-early-adopter users' journals.... ad revenue will bring down the number of paid accounts per month I have to get to break even. i'm interested to see how much it'll bring in.

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