How do filesharing sites host files for so cheap?

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o hai guyz

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Jan 15, 2010
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I was signing up for a Mediafire business plan earlier and started wondering how these filesharing sites host files for so cheap. For example, I got the $25/month plan and it gives me 1000gb of storage and 4000gb of bandwidth/month. I've never seen a decent webhost that offers plans even remotely close to these prices, and that's even without factoring in Mediafire's cut (ie. they must be paying about $20/month to their host for that storage/bandwidth).

Just curious if these sites host all their content on ultra-shitty offshore servers or if I've been overpaying for hosting all my life.
 


o hai guyz said:
I got the $25/month plan and it gives me 1000gb of storage and 4000gb of bandwidth/month.
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emp said:
It is a cutthroat business. As far as I know some of them have gone as far as building their own servers
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+
Most of the users never actually hit the 1000Gb nor even 500GB mark a month. Cause even if you pay them again next month it's not recurring GB monthly.. So most users delete their files or clean the storage for future use. and Those extra unused GB will be allocated do other users that will upload right this moment.. so it's really a cutthroat business...

If all Mediafire users used 1000GB at the same time, I am assuming that their servers would go down this very moment..
 
This is called a mixed calculation in German (no idea of the correct translation).

Same goes for hosting or telephone flatrates, etc..

Basically, you calculate a percentage of people not using the full extent or nothing at all, thereby supporting the power users.

The easiest example for this is a gym.

Simply put, if all the members you need to get profitable would actually use the gym, you could fill it three times over at any given time.

So there is nothing better for a gym owner than someone who signs up because of new years resolutions and never appears again.

There is nothing worse than getting a group of twenty fitness nuts to sign up who come every day and train for hours.

::emp::
 
emp said:
This is called a mixed calculation in German (no idea of the correct translation).

Same goes for hosting or telephone flatrates, etc..

Basically, you calculate a percentage of people not using the full extent or nothing at all, thereby supporting the power users.

The easiest example for this is a gym.

Simply put, if all the members you need to get profitable would actually use the gym, you could fill it three times over at any given time.

So there is nothing better for a gym owner than someone who signs up because of new years resolutions and never appears again.

There is nothing worse than getting a group of twenty fitness nuts to sign up who come every day and train for hours.

::emp::
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That is a splendid analogy.
 
paperboy said:
+
Most of the users never actually hit the 1000Gb nor even 500GB mark a month. Cause even if you pay them again next month it's not recurring GB monthly.. So most users delete their files or clean the storage for future use. and Those extra unused GB will be allocated do other users that will upload right this moment.. so it's really a cutthroat business...

If all Mediafire users used 1000GB at the same time, I am assuming that their servers would go down this very moment..
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thats just liek with banks and their loans and deposits.
and banks are allright ;)
 
Thanks for the info, I definitely see what you're saying. I was toying with the idea of starting a cloud-hosting site but it sounds like a full-time thing that wouldn't work if I'm trying to run it simultaneously with all my other projects.
 
o hai guyz said:
Thanks for the info, I definitely see what you're saying. I was toying with the idea of starting a cloud-hosting site but it sounds like a full-time thing that wouldn't work if I'm trying to run it simultaneously with all my other projects.
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Yes, If you cannot fully Outsource the Current project then don't go on another road just yet.. Try to outsource everything first where you can get money just by giving it 1 day weekly, before getting into another project... Multiple Income sources is the best way for everyone online as you never know when 1 will go down.. So that if one will fail you got more than enough to recover the lost one. But first outsource the first project so you can fully focus on the 2nd or 3rd project at hand.
 
They have their own ways to run business, if they are not getting profit then why would they do?
 
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