[NTLUG:Discuss] setting up a web-hosting company

Chris Cox cjcox at acm.org
Sun Apr 22 16:06:01 CDT 2001


cbbrowne at hex.net wrote:
> 
> On Sun, 22 Apr 2001 14:39:28 CDT, the world broke into rejoicing as
> David Neeley <dbneeley at yahoo.com>  said:
..snip.. 
> One thing Chris Cox mentioned in discussions yesterday is that credit
> card acceptance is problematic unless you've already got a
> well-established business.  It may be a whole lot easier to deal with
> something like PayPal...
> 

Let me clarify.  Certain types of accounts are considered high-risk.
Apart from the obvious ones (you probably can guess)... a computer
hardware business is now considered high-risk.  This was due to the
dot-bomb movement which just happened.  Basically a whole lot of
order were placed and then it was all charged-back (this is your
CONSUMER protection which allows you to shaft a company as long as
6 months after you make a purchase).  Obvisously, this gave much
grief to the merchant banks and credit services who had to deal
with a whole lot of complaining on both sides of the fence (really
only one side since the dot-bomb companies basically disintegrated).

> > Later, as your service grows, you can consider co-location of your
> > own machine. With the low-profile rack mount systems out there, rack
> > space can be pretty cheap.
> 

Co-location runs at least $300.00/mo.  and then, I'm not sure I'd
call those very reputable companies.  If you go with one of the
cheap co-locs ($100-$200)... well, I figure you get what you pay for.

One with a good rep is http://www.rackspace.com.  Good speed and pretty
good prices.  Just remember that's $300.00/mo.!  Better be prepared
to have the business to sustain that cost.

Regards,
Chris



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