Economic analysis of server situation

[TCO]

I could see how having the same user just click a lot is worth less than having different users click a little. Is that what you mean?

In that case, they oughta welcome some new blood on site.

When they talk about cpm are they talking after or before server costs. (i.e. from the Mark/Dan perspective or the GS perspecrtive.)

What would you estimate that GS gets paid by UGO per cpm?

[Alexander's Horse]

There are lots of threads about UGO if you do a search.

This one is interesting - it would hard to estimate what this site gets because presumably their cut is filtered through Gamestats.

http://www.geekvillage.com/forums/showthread.php?threadid=13199&highlight=UGO

[TCO]

Darn it!! Is it my communication or is it that webmasters can't think about the other guy?

I'M ASKING WHAT GS GETS PER CPM FROM UGO. NOT WHAT MARK OR DAN GET.

[TCO]

Nice link AH. Looks like the rate for UGO is between .1-1 dollars per CPM form that thread.

The question I have is can any content site survive. (From a GS perspective.)

Let's say Mark and Dan are happy with nothing in payment, the posters, and Mark and Dan do all the content work. And all you have to do is provide a server. Can GS make money on that click stream?

WILL AD REVENUE PAY FOR COSTS OF SERVER AND COMMS?

If it pays for itself at all, you'd think it wpould be m ore economical the bigger the site gets. Since cost economies of scale should exist and since a bigger site should have a little more horsepower to negotiate on advertising.

[Alexander's Horse]

I can't answer the specifics of your question obviously, Mark or Dan will have to do that But from what I've observed, payments to sites seemed to have stabilised but on a much much lower base over recent months. If you went to that site say 6 months ago you'd see nothing but complaints about non payment from advertisers. Now they mainly complain about the low, low rates.

Bottom line seems to be the big sites survived - but mainly off affiliate programs etc., not CPM.

Its interesting to look at the sites of some of the posters there. I think it tends to confimr this site is not profit oriented - otherwise you'd se ads and links everywhere.

[TCO]

AH...the site you sent me to is quite interesting.

I agree that Dan and Mark don't seem to run a for profit site. (But I would assume GS is for-profit.)

[rev]

GP,

You're right on two points:

1., yes, we should prod GS to think harder. My personal position is that buying a new server isn't quite it at the moment, especially if an upgrade would work better.

2. Yes, I am thinking from the GS standpoint, partially because I'm hosted by them, too. My site (not currently up, as I'm having troubles getting the DNS changed, ugh) and my network are now hosted by GS. This, of course, means that I don't want to see any financial issues passed along to us by a move as large as this, but nor do I want my sites to have to deal with slow CPU issues because of that thing y'all are calling "Civ3". What the hell is that, anyway?

[spartak]

AH, have you considered running PROT for profit?

[Alexander's Horse]

No

[MarkG]

Originally posted by Alexander's Horse
this site is not profit oriented

you realised this now?!?

[Alexander's Horse]

I knew that

Although you and Dan did raise doubts by never playing civ with us

If I had a site I'd probably do game reviews - but I'd be happy if I just got free copies of games out of it

[TCO]

If you can fill a server to capacity, you must be able to make money off off that, or there's no reason to keep the doors open at all.

[MarkG]

Originally posted by GP
or there's no reason to keep the doors open at all.

ok, everyone, i would like to make announcement:
Apolyton closes down tomorrow

[TCO]

NOOO!!!!

Be a good little Eurocom and keep our bread and circuses around.

(Actually, Mark, I'm talking about from the GS point of view. They should make business decisions. The thing is to look at each situation individually. Just because other parts of the business have problems is no reason to turn away from a potential profit somewhere else. If you understand their incentives and can make them a business case for how something is in their interest, than you can get them to do things for you. (maybe). I know you don't care about money. And this is a labor of love for you. The thing is to put yourself in the GS shoes.)

[Alexander's Horse]

*meanwhile the server, a 486 in a corner of Dan's parent's garage, whirrs away*