Hi Jason.
The service provider with whom im currently paying 170$/Mo for a dual cpu/raid1-80gb/2gbram/500gb traffic/Mo has quoted to me a 1.2 TB RIAD5 Setup upgrade with additional 2000GB traffic @ 400$/Mo which means that in case im up with that i pay 5700$/Annum for a 1.2TB RAID5 and 2500GB Traffic/Mo. (pay for 5 months and get 1 month free)
With this as basis and presuming that there is no overselling, each GB costs ~4.75$/Annum
With above cost per GB in mind:
- Add up some subdomain hosting user.domain.com and offer ab 30 MB space there and provide access to subdomain using filemanager of GM (Courtsey Charlie's Mod)
- Build up a directory service and charge some "small amount"/Annum there. (geocities charges 60$/Annum for a 25 MB account as an indicator)
- Tie up Google Ad Sense to your directory.
- Give Away Google's 1GB on your site too (not many would ever reach to use that level of space and only the most "Unorganized" user would ever reach that level of space utilization)
- Put up a "Strict" anti spam compliance so that users do not invite SPAM to their account just for the heck of testing your commitment wrt your offer of 1GB MailBox space.
- Reject SPAM at MTA level by integrating with RBL's. Few legit mails may be lost but not your fault.
Ad sense should get you enough to take care of the 4.75$/Annum of operating cost wrt "space and bandwidth".
The above is just a projection on the actual Adsense revenue that i could get (though check awaited) on a small userbase that i have at the moment. BTW, 4.75$/Annum of costs includes a fully managed support with support staff available 24/7 online on ICQ/AIM/Yahoo and i have not yet found a single day where i had to repent for switching over to present service providers. The only time I really needed their support was for kernel security upgrade which they did in less than an hour after being contacted (i honestly cannot do a kernel upgrade). Similar offer elsewhere could cost you 47.5$/Annum which would drive the whole business model out of existence.
Down the line if Google Stops Ad Sense, by that time you would have enough subscribers and had proven your credibility to your subscriber base so that if you ask for 5$/Annum more, they wouldn't mind paying that.
Just sharing my thoughts on which im currently pursuing my model.
Thanks
Anup