How do Filehosts make money? What are the costs?

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So i've been shopping around and I was offered this

Single Quad Core E5504 or E5606
8GB Memory
8x 2TB SATA2 Enterprise Grade 7.2K RPM Drives
NO RAID
CentOS 64Bit
Client Managed Solution
100 Mbps Unmetered Bandwidth
/29 IP Space, 4 Usable IPs

299/month


I'm not very technically savvy so what do you guys think of this deal and will this one server alone be able to handle 60 users downloading from it?
 
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So i've been shopping around and I was offered this

Single Quad Core E5504 or E5606
8GB Memory
8x 2TB SATA2 Enterprise Grade 7.2K RPM Drives
NO RAID
CentOS 64Bit
Client Managed Solution
100 Mbps Unmetered Bandwidth
/29 IP Space, 4 Usable IPs

299/month


I'm very technically savvy so what do you guys think of this deal and will this one server alone be able to handle 60 users downloading from it?
100MB ? u need multiple Gigabit Ports
 
Once again, if you buy these servers from "any" company, and the DC becomes unhappy that you are a file host, your whole project is gone, and all your money is gone. When you ask for their assistance in migrating, you'll be told to get fucked.

If you are using this file host, as you said, for your own websites only, and it appears in any way shape or form that your websites and the file host are connected, you will open yourself up to a serious charge. (a user here named To0 hosted files on his own servers, while operating a warez website [different servers] and has just been released from Federal prison)

Be very careful about what you plan to do here. It's too easy to lose every cent invested, or open yourself up to a world of legal issues, unless you know exactly what you are doing.

You will need a dedicated 1Gbit line, and from the appropriate file host friendly company, this is going to cost you ~$800+ per month aside from the server. Quad Core, 8GB RAM, 16x 1.5TB HDD's, and a 1GBit port (at the right place) is about $2,000 per month.
 
If you would like to make money like how these file hosts do.

1. Find the best script (when your a file host people will be brute forceing for premiums & trying to hack in to your script to make money)

2. Become a ad partner (first or else you will make no money)

3. 5tb hdd space is good to start but they really need to be good hdd's that can with stand alot of activity.. A normal hdd will either overhead the disk and burn out or will die instantly from to much activity..

4. Downloading is a and uploading is a cpu whore and ram whore.. So multiple servers with replication & off loading switching (switch servers every download) is needed to keep the load off.. You need very good servers like UltimA said.

5. A gbit dedicated will do good for a few 300-400 downloads a second.. But then you will need to upgrade to the 10gbit lines or else your network will be unresponsive... & no OVH wont be helpful they will kill your server so fast its not even funny..

6. You have to be a hell of a system admin to monitor your server 24/7 so you will need to pay for a team.

7. Your terms & rules need to clearly state that files will be deleted on request & illegal files are not allowed (this is needed to cover 30% of your ass)

8. Affiliates on start will need atleast 1000$ on start to help the first 6 months to pay out...

Truthfully you need to have steady income coming in before you can start a file host and become rich.. Its gonna either take 10000$ on start or steady imcome paying it check by check...

Remember a measly 20$/1000 downloads wont attract shit.. You will need to start with atleast 50-60$ then start going lower or fluctuating your plans to earn you more with ads..
 
Loony is wrong about the pay/downloads. You can easily get away with $20/1000 downloads given all the poor kids looking for places to make money since others are closing and cutting off their rewards programs. But, in a few months when the top ones come back under a new name, you'll need to put it up for all those whores.
 
Yes Jesse you are right and thanks for supporting us whores with your IMGKeep which is full of copyright pics please inslut us more.Thanks.
 
Loony is wrong about the pay/downloads. You can easily get away with $20/1000 downloads given all the poor kids looking for places to make money since others are closing and cutting off their rewards programs. But, in a few months when the top ones come back under a new name, you'll need to put it up for all those whores.


Im one of those whore who if im going to upload i need more then 20$ xD
 
I asked before and no one really answered the question-if it's possible to run a file hosting service that pays uploaders and no copywrited files allowed.

Filesonic is apparently going to come back with a system to check every uploaded file and delete it if it's a pirated file. Don't know if they will pay uploaders or not.
 
rexo - that won't be profitable business...for sure uploader ain't gonna upload home video..even if they do..how many ppl gonna search or would like to download ?..there are some file host which invites dj,software publisher to host their stuff but they doesn't get enough popularity...Uploader can upload freeware stuff but do you think it will get massive download when it is already available on various website.

OP @ you need raid 10 HDD to protect your user contents & require a Server management team.
 
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Thank you all for your input, I read every single post and it was helpful!

I plan on making a private filehost to just host files for my websites, I assume there will be at least 30-100 users who will buy my services at the beginning and a potential of more than 7000-8000 users. Ultima brought up a good point about legal issues, that I'm now concerned about. I'll look into this further for preventative measures I can take, if anyone has any ideas please do share.

I also noticed many of you recommended server specs, and how much money it will cost, but does anyone know any reliable hosting sites that will agree to what I'm doing? I tried signing up to OVH but it seems they only accept UK residents. :(

Thanks again!
 
Just an update and clarification of how much it really costs to start a small filehost site. Hopefully this information will help you guys. I've been running my filehost site for 4months now and it cost approximately 1000-1200USD to start up and it currently costs 600USD for server costs per month.
 
i do know that business like this are for a long term in order to get profit... really big if i tell you. but it also came with risk, look for an example to what happened to kim dotcom. he's a billionare, but the law still got to him.

what im trying to say is, learn more about it first and be careful after you run your business. and i hope you don't ended up becoming a second RickyFS

best regard, and good luck!
 
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