New idea for FileHosts. Looking for feedback

[tmcsharer]

Hey everyone.

First time poster here, but have been told WJunction is the place to be to get support and ideas for anything and everything hosting related. Particularily, file hosting!

Righty oh!, Let's get this out of the way!

I'm not a 'pirate' and not a host (yet), but I have to say, the idea of being a host is interesting to me and I'de like to give it a shot.

I don't want to be like every other file hosts, and I don't want to start up a scam site that will close down in few weeks/months ( though it is tempting ;] ). I'm looking to start somthing that is open, transparent and sustainable. And of course, profitable.

I've noticed there have been an increasing number of websites taking up CarrotPay payments, and an ever decreasing number of file hosts accepting Paypal.. So my idea is somewhat a hybrid of what others have already done. I'de love to hear your opinion!

Starting a new file host!

Reward schemes for uploaders

• Pay per download - Instead of a paying per thousand downloads, I think paying per GB transfered would be a good alternative. I have in mind, $0.04 per GB. If you translate this to per 1000 downloads, thats about $20 per 1000 downloads at 500MB per file.
• Pay per sale - Instead of selling permium accounts, download coupons (which essentially work out to be the same) would be sold instead. Resellers/Affiliates can earn a percentage on the coupon sale. Say, 40%.

Revenue streams for the host

• Advertising (banners, not popups)
  
• Individual download sales - Allow downloaders to buy one-off file downloads instead of becoming a member (buying coupons) at a rate of $0.20 per GB.
• Sales of download coupons (similar to memberships actually) - Downloaders will be able to buy download coupons with a set expiry date. For example, 75GB coupon sold for $10 that valid for 1 month. 900GB coupon sold for $90 valid for 1 year.

Free Downloads



Limit free downloads to 500MB per person per day. No waiting time, no captchas, no speed limit.


Of course the implementation of which is another story, but I think I have this covered. I hope to buy, or clone the software used by an already existent 'file host' and adapt my model to it.


Let me know you thoughts and opinions. I'de love to be able to refine my idea.


I'm not the most articulate of people so if my idea isnt clear, please ask and I'll clarify.

 

[Jamie Holle]

There's a lot of file hosts on here already and I would like to say that I believe there's only one or two legit hosts in the section. If your going to start up make your own scripts and not use the same one as everyone else because it won't get you anywhere.

I'm don't have much knowledge of File Hosts but I know enough to stay away from them because it's a waste of time and they scam you buy not paying out.

1. Use your own script
2. Get Bright Ideas to make it unique
3. Have enough money to be able to pay people if your doing "PPD"
4. Make sure you don't mess up

 

[ankurs]

make your own scripts and not use the same one as everyone else because it won't get you anywhere.

customize customize customize

the script isn't a issue, the business model is

1. Use your own script

yes, if you have 6-12months to launch

 

[tmcsharer]

There's a lot of file hosts on here already and I would like to say that I believe there's only one or two legit hosts in the section. If your going to start up make your own scripts and not use the same one as everyone else because it won't get you anywhere.

I'm don't have much knowledge of File Hosts but I know enough to stay away from them because it's a waste of time and they scam you buy not paying out.

1. Use your own script
2. Get Bright Ideas to make it unique
3. Have enough money to be able to pay people if your doing "PPD"
4. Make sure you don't mess up

Hi Jamie,

First, I have no intention to use the mainstream scripts out their. They don't fit my model/idea any way. I have been downloading quite a bit from FileShoppe and I like their pay per download (meaning, as a user I pay per file I download) system, but I want to modify it to suite my model.

So, I am trying to 'buy' their script off them. Failing that, I will code it myself. The only reason I would buy it from them instead of coding it myself is it would take longer to do. So if I can save time, great!

As for your other points.

2.) I think it is reasonably unique. Technically, I'm just taking two ideas, and slamming it together, but I don't think that's been done before so it's unique enough .

3.) Capping free downloads to 500MB per person would limit PPD costs to 2cents per person per day. That can certainly add up, but it should limit PPD costs getting out of control, at least I hope. The question then becomes, is 500MB too little/much? Is my idea of 4cent per GB payout too little/much? Need to find a balance!

4.) That's a given.

As I said, it is my intention to have a sustainable model. One that can be entirely open so that everyone can see that the most profitable course of action is to work together and cooperate. That means paying out the promised amounts, on time. While allowing the uploaders to see HOW we can acheive it.

---------- Post added at 12:28 PM ---------- Previous post was at 12:27 PM ----------

customize customize customize

the script isn't a issue, the business model is


yes, if you have 6-12months to launch

Is there an issue with my business model? Please share

 

[FShoppe]

Since you had asked us for our software, I take it you want to employ our payment security measures? It's not difficult to do, and you can actually build a simple clone version of our software reasonably quickly. Our working prototype only took 3 - 4 days to get going, so if you're planning on adopting our method of accepting/processing payments, you should be able to get going pretty quick.

How do you plan to limit people's downloads to 500MB per day?

Will you pay on partial downloads or only full downloads?

What kind of server do you have (or will you have) for this?

From what I understand, your model looks like it could be sustainable if your 'conversion' rate is good. I'de say you need around 50% of your traffic to be paid for to ensure profitability for yourself, and pay your up loaders, assuming of course you pay out on 100% of your traffic.

How will you handle payments? We use CarrotPay's split payment service, so there is no need for us to do any accounting at all. Will you do accounting? Security an issue?

 

[tmcsharer]

How do you plan to limit people's downloads to 500MB per day?

I had two ideas in mind. 1) limit by IP, or 2) Issue coupons like you do for free. I know you have to worry about the price of files, but I won't do that so I could just issue like a 10 cent coupon and at 20 cents per gb, thats 500MB ).

Will you pay on partial downloads or only full downloads?

I guess it depends how I handle the 'free' downloads. I could just redeem the coupons for cash right?

What kind of server do you have (or will you have) for this?

Nothing yet. I'm thinking of a Swiss or Russian server.

How will you handle payments? We use CarrotPay's split payment service, so there is no need for us to do any accounting at all. Will you do accounting? Security an issue?

Yeh i like carrotpay too. I never thought about the accounting... what's this split payment stuff? Can you explain?

 

[DJboutit]

Here is what I recommend for free users

250gb to 500gb storage
1gb or 2gb max download upload
files stored 90 days
200k to 250k download
image code for images

 

[fabiofilho]

My Sugestions:

- 700 MB (734003200 bytes) downloadable filesize limit for guests and free users(other hosts offers 500 MB or less). 1 GB (1073741824 bytes / 1024 MB) would be perfect.
- 60 days for deleting inactive files (others offers 30 or less).
- 500 GB of storage for free users.
- Use paypal ONLY to pay uploaders. Do not sell premium accounts through paypal, or your account will be limited.
- Use a short and good domain name.
- Use a professional looking design.

If you bring us a filehost this way, then you will immediately gain the support from uploaders.

 

[FShoppe]

I had two ideas in mind. 1) limit by IP, or 2) Issue coupons like you do for free. I know you have to worry about the price of files, but I won't do that so I could just issue like a 10 cent coupon and at 20 cents per gb, thats 500MB .

Actually that would work very well. You can completely avoid the hassle of counting downloads by doing this. They are called site coins, not coupons. But I guess they work in the same way.

I guess it depends how I handle the 'free' downloads. I could just redeem the coupons for cash right?

Go for site coins and redeem them from your up loaders. It will be hard for your up loaders to scam you out of more than 2c per day.

Yeh i like carrotpay too. I never thought about the accounting... what's this split payment stuff? Can you explain?

CarrotPay offer somthing called 'split payments'. Basicly, from a single transaction can result in multiple parties receiving the funds. For example, at FileShoppe, there are typically 2 parties who recieve funds when a file is purchased. We (FileShoppe), and the content provider (uploader). a $1 transaction may be split $0.90 : $0.10. The buyer will make a single payment of $1 but the respective parties each receive their share of the payment at the time of transaction. It is for this reason we need not offer any accounting, and allows us to offer complete transparency with payments, so our users know they CANNOT be defrauded.

I would suggest you do something similar. It really makes things easier for us. If you issue sitecoins (coupons), these get split to. It will then be up to you to redeem them so your uploaders don't get left with a bunch of worthless coupons. Although they could technically sell them on

 

[tmcsharer]

250GB free storage sounds reasonable. Not too little, and enough for free users I suppose.

1gb or 2gb max download upload

Do you mean max file size? Also agree. Why does a file need to be so big any way. They should split it otherwise .

files stored 90 days

60 days for deleting inactive files (others offers 30 or less).

90 days seems quite long. 30 days too short. I think 60 sounds right. I might make it longer. I guess it depends how full the server gets with crap no one is downloading.

Use paypal ONLY to pay uploaders. Do not sell premium accounts through paypal, or your account will be limited.

I figured as much. I will definitly use CarrotPay. That looks like gold to me <3. But I'll need to have alternative payment methods. Any suggestions?

- Use a short and good domain name.
- Use a professional looking design.

I have a name in mind . Design, will need to hire someone. I'm not much of a designer.

200k to 250k download

I don't really want to cap the speed for free downloads since I will be capping their capacity. And I want them to experience full throtle so they are enticed to buy! That being said, what about a speed cap for everyone? Somthing like 25Mbit? 50Mbit? Just to ensure quality of speed?

image code for images

What do you mean?

700 MB (734003200 bytes) downloadable filesize limit for guests and free users(other hosts offers 500 MB or less). 1 GB (1073741824 bytes / 1024 MB) would be perfect.

I think if I'm limiting free users to 500MB / day, I don't need to worry about file size limits specifically for free users.

Someone said that 500MB is too little. But I really dont see how the numbers add up if it is much higher unless I cut the uploader rewards. Perhaps I could up the free limit to 750MB without too much worry. I guess it depends on how much ad revenue can be generated.

CarrotPay offer somthing called 'split payments'. Basicly, from a single transaction can result in multiple parties receiving the funds. For example, at FileShoppe, there are typically 2 parties who recieve funds when a file is purchased. We (FileShoppe), and the content provider (uploader). a $1 transaction may be split $0.90 : $0.10. The buyer will make a single payment of $1 but the respective parties each receive their share of the payment at the time of transaction. It is for this reason we need not offer any accounting, and allows us to offer complete transparency with payments, so our users know they CANNOT be defrauded.

I would suggest you do something similar. It really makes things easier for us. If you issue sitecoins (coupons), these get split to. It will then be up to you to redeem them so your uploaders don't get left with a bunch of worthless coupons. Although they could technically sell them on

That sounds good, and easier to do than accounting. It sounds like it should be perfect for uploaders too since they will know exactly what they will be earning with complete transparency. Any uploaders willing to be paid in this way? Any opinions?

Thanks everyone for the feedback!

 

[fabiofilho]

About payment method, many of the uploaders like to receive through paypal. I will join your future host if have this option.

About filesize, if you could set it to 750 would be great!

60 days for deleting is perfect!

Good luck!

 

[tmcsharer]

About payment method, many of the uploaders like to receive through paypal. I will join your future host if have this option.

How about this. They sign up for the CarrotPay service to recieve the coupons when users make payment. They coupons could then be given back to me when they have collected enough (say $20) and exchange for real cash which may include Paypal. Would that be okay?

About filesize, if you could set it to 750 would be great!

When you say file size, do you mean download limit for free users? If so, 750 seems possible. We will see how it goes.

60 days for deleting is perfect!

Yeah 60 sounds like a nice number. Will start with 60 and maybe increase if possible.

 

[FShoppe]

The problem with 'redeeming' these coupons, particularly at face value, is you need to be able to identify whether or not these coupons have been spent or not.

Let us suppose a genuine user buys a $15 coupon (for $10). Under your model you would have liabilities of some $3 in PPD and you would have to share that $10 60/40 with the referrer. Which means of the $10, you should have $3 gross profit (excluding any overheads and bw costs etc). In such a case, that $2 received by the uploaders would be straight into their 'wallets' and they would have to come back to you in order to redeem said funds.

But if all they need is your coupons, they could just buy the $15 coupon for $10, and get $15 back when they try and redeem them.

Unless you can check if a coupon has been spent, you need to do the accounting to avoid opening up yourself to such fraud attacks.

 

[tmcsharer]

Thanks for the info FShoppe.

So how about this.

At first launch, do not offer PPD reward program. Instead offer higher share PPS? This would eliminate the need for accounting (at first) and limit the risk from high number of downloads.

In such a case, the PPS scheme could be more rewarding, say 75% (possibly more). Would uploaders be good with that?

 

[FShoppe]

Yeah that's a good idea. We are very much against the whole idea of PPD (and PPS for that matter), but it sounds like your PPS plan without PPD would def limit your exposure to losses.

Also, would be nice if you gave us some credit for helping you :P