Quote:
Originally posted by Logicool
Please,
Do you think we are all stupid? DNS registration costs $35 for a two year submittal (@Netsolve). A robust server like a Compaq Proliant Series runs $3,900, depreciated as a capital asset over 36 months like any good businees is a net cost of just over $100 a month.
A SDSL business account from almost any provider is only $49 a month, giving GameBanshee a broadband bandwidth stream of 3-8mbps (3-8 T1s).
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I really wish it was that easy. To get the amount of bandwidth GameBanshee needs is far more expensive than $49, at least in the area of the country that I live. It is because of this that I finally went with a dedicated server through Verio, rather than try to run the server myself.
If you look at
this page, you'll see Verio's exact prices. $395 startup, plus $395/month is the
cheapest server they even offer. After I upgraded the server (about a year ago) and bumped it up to 512 MB of RAM, I can assure you it is much more than that. And keep in mind that these prices are for 50 GB of bandwidth per month, which we exceed easily.
Additionally, I've had to purchase licenses for Ultimate Bulletin Board, vBulletin, Webdata Pro, and other web programs that we use. All of these programs cost hundreds of dollars *each* and cost more money if you want continued support after the first year. Don't believe me? Check out Webdata Pro's $599 price tag right
here.
Quote:
Originally posted by Logicool
This would make GameBanshee profitable by establishing a few links to premier game sites rather than selling out to Internet capitalization. |
Profitable by establishing a few links to other game sites? I'm sorry, but that just isn't the case. I have spent a great deal of time working with the internet ad market for the past several years (since my GameZNet days), so I'm going to give you some information on exactly how ad revenue works.
Revenue from banner ads, tower ads, popups, etc is calculated in three different ways: CPA (Cost Per Action), CPC (Cost Per Click), and CPM (Cost Per Mille). Cost Per Action advertisements require the viewer to click on the ad and make some sort of action at the other website - sign up for something, buy something, etc. If the viewer doesn't perform the required action, you are paid nothing for displaying the ad. Cost Per Click is just that - a certain amount (usually 5-10 cents) is paid to the site every time a viewer clicks on the ad. These types of ads are very rare and are almost completely extinct, at least from general ad agencies. Cost Per Mille means that the site gets paid a certain amount for every 1000 ad impressions, regardless of how many times the visitor clicked on the ad, etc.
Years ago, most gaming sites went with UGO (Underground Online) to do their ad serving. Back when rates were good, sites were paid $2 CPM. If your site served five million ads a month, you were paid $10,000. Needless to say, people made a lot of money. GameBanshee was not around during these rates, however.
Somewhere in the middle of 2000, the banner ad market crashed and continues to go downhill to this day. For example, before we joined Flashlink, I was running two popups, 468x60 banners, 120x600 banners, button ads, and selling games through Chips & Bits. To maximize revenue, I used the best of each ad from a multitude of different agencies - UGO, Gorilla Nation, Adtegrity, Advertising.com, etc. We served several million ads every month and revenue ranged from $200-$400
total. Compare that to the many costs I told you about above, and I think you can see how the site continually lost money.
Quote:
Originally posted by Logicool
Personally, I like the site, but I won't be back. And I will be telling several people and local game shops that the site has commercialized and sold out. |
I have spent several hours a day and a lot of money to keep this site running for two years. For the site to continue, something had to change. If joining Flashlink to ensure the survival of GameBanshee for years to come is "selling out", then I guess I'm guilty.