Lasso Hosting Pricing

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Lasso Hosting Pricing

Brad Lindsay-2
Examining the Hosting Partner plan.
 (http://www.lassosoft.com/Become-a-Lasso-Hosting-Partner-Schedule)

Assumptions I'm making:
  - You want to make money

  - Assume that base price for hosting is the same as competitors who don't have Lasso, but only "free" software.

  - Assume that you will pass on all the additional cost to licensing lasso to your users, which means you're making about the same amount as your competitors.


The Question:
  How much extra will your Customers have to pay a month to use Lasso in the new Host Partner License plan?


Small Hosting company with only 40 clients:
  Your Lasso Cost: $399/month
     Clients Cost:  $10/month

Medium Hosting company with 400 clients:
  Your Lasso Cost: $1449.00/month
     Clients Cost:    $3.63/month

Large Hosting company with 4000 clients:
  Your Lasso Cost: $8,949.00/month
     Clients Cost:     $2.25/month


Granted, if you're a new company trying to "break-in" to the Lasso hosting world, you might have a harder time at first, but that's true if you're starting a company in any business. (http://en.wikipedia.org/wiki/Barriers_to_entry)

If hosting companies are worried about competing with other companies that only offer "free" software, the additional cost to users who want to use Lasso appear to be minimal / quite reasonable.

On top of that, if I understand things correctly, Hosting providers under this new plan don't really need to keep track of separate licenses, but can use the same license on multiple machines for unlimited number of instances and are just billed each month based on the number of instances they are using. So it's even easier to manage! Hell, if I had the time / capital, I'd start a Lasso Hosting business right now.

Brad
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Re: Lasso Hosting Pricing

Adam de Zoete-2
You left off the membership fees!

Small Hosting company with only 40 clients:
        Membership:   $199.00/month
   Your Lasso Cost:      $399/month
      Clients Cost:    $14.95/month

Medium Hosting company with 400 clients:
        Membership:  $499.00/month
   Your Lasso Cost: $1449.00/month
      Clients Cost:    $4.87/month

Large Hosting company with 4000 clients:
        Membership:  $949.00/month
   Your Lasso Cost: $8,949.00/month
      Clients Cost:     $2.47/month

Incredible volume discounts, but barrier to entry is very high!


On 18/03/2011 17:38, Brad Lindsay wrote:

> Small Hosting company with only 40 clients:
>    Your Lasso Cost: $399/month
>       Clients Cost:  $10/month
>
> Medium Hosting company with 400 clients:
>    Your Lasso Cost: $1449.00/month
>       Clients Cost:    $3.63/month
>
> Large Hosting company with 4000 clients:
>    Your Lasso Cost: $8,949.00/month
>       Clients Cost:     $2.25/month


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Re: Lasso Hosting Pricing

Brad Lindsay-2
No I didn't. My original pricing *included* the membership fees.

So, for example, a membership fee of $199 plus 40 instances at $5 each comes out to $399, just like I said. You've added the membership fee in *twice*.

Again, LassoSoft has a great schedule for this here:
  http://www.lassosoft.com/Become-a-Lasso-Hosting-Partner-Schedule

And it *does* include the membership fee as well as the per-instance fee.

Brad

On Mar 18, 2011, at 2:13 PM, Adam de Zoete wrote:

> You left off the membership fees!
>
> Small Hosting company with only 40 clients:
>       Membership:   $199.00/month
>  Your Lasso Cost:      $399/month
>     Clients Cost:    $14.95/month
>
> Medium Hosting company with 400 clients:
>       Membership:  $499.00/month
>  Your Lasso Cost: $1449.00/month
>     Clients Cost:    $4.87/month
>
> Large Hosting company with 4000 clients:
>       Membership:  $949.00/month
>  Your Lasso Cost: $8,949.00/month
>     Clients Cost:     $2.47/month
>
> Incredible volume discounts, but barrier to entry is very high!
>
>
> On 18/03/2011 17:38, Brad Lindsay wrote:
>
>> Small Hosting company with only 40 clients:
>>   Your Lasso Cost: $399/month
>>      Clients Cost:  $10/month
>>
>> Medium Hosting company with 400 clients:
>>   Your Lasso Cost: $1449.00/month
>>      Clients Cost:    $3.63/month
>>
>> Large Hosting company with 4000 clients:
>>   Your Lasso Cost: $8,949.00/month
>>      Clients Cost:     $2.25/month
>
>
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Re: Lasso Hosting Pricing

Marc Pope-2
In reply to this post by Adam de Zoete-2
Starting off, I am going to lose money until I get several people on the program, at least 20 or so. At the rate people are adopting Lasso 8.6 / Lasso 9, I think its going to be awhile of losing money.

I am really considering the Hosting Program an advertising expense.

-Marc


On Mar 18, 2011, at 2:13 PM, Adam de Zoete wrote:

> You left off the membership fees!
>
> Small Hosting company with only 40 clients:
>       Membership:   $199.00/month
>  Your Lasso Cost:      $399/month
>     Clients Cost:    $14.95/month
>
> Medium Hosting company with 400 clients:
>       Membership:  $499.00/month
>  Your Lasso Cost: $1449.00/month
>     Clients Cost:    $4.87/month
>
> Large Hosting company with 4000 clients:
>       Membership:  $949.00/month
>  Your Lasso Cost: $8,949.00/month
>     Clients Cost:     $2.47/month
>
> Incredible volume discounts, but barrier to entry is very high!
>
>
> On 18/03/2011 17:38, Brad Lindsay wrote:
>
>> Small Hosting company with only 40 clients:
>>   Your Lasso Cost: $399/month
>>      Clients Cost:  $10/month
>>
>> Medium Hosting company with 400 clients:
>>   Your Lasso Cost: $1449.00/month
>>      Clients Cost:    $3.63/month
>>
>> Large Hosting company with 4000 clients:
>>   Your Lasso Cost: $8,949.00/month
>>      Clients Cost:     $2.25/month
>
>
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Re: Lasso Hosting Pricing

Marc Pope-2
In reply to this post by Brad Lindsay-2
On Mar 18, 2011, at 1:38 PM, Brad Lindsay wrote:

> The Question:
>  How much extra will your Customers have to pay a month to use Lasso in the new Host Partner License plan?
>


Brad, you actually brought up a good point.

Just started to think about this, what **new** hosting company is going to join the Hosting Program and want to lose money right from the start? They will have to have at least 10 customers before they start to generate any revenue.

Let's say Rackspace wants to offer Lasso Hosting, because a customer asks for it. They have now, 1 customer and don't know if they ever will get another... they join the Hosting Program, pay $99/month + $10 for one instance. You think that customer is going to want to pay $109 for their 1 instance when they can buy 5 from LassoSoft at $49 ? Nope.

A company is going to have to acquire and start off selling at least 10 instances before even making it reasonable to purchase, and with zero profit, yet all risk.

The pricing that the Hosting Program starts off with will only attract Hosting Companies with established Lasso Customers. It will attract NO new hosting companies and it will probably scare off some existing ones at the same time.

Good for me, but bad for Lasso, IMO. Since I'm heavily invested in the Language, I don't have a problem supporting it, but other companies with no interest other than profit will never bite.

Sincerely,

Marc Pope
Falcon Internet
www.falconinternet.net
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Re: Lasso Hosting Pricing

jasonhuck
> Let's say Rackspace wants to offer Lasso Hosting

Hah! Good one.


- jason

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Re: Lasso Hosting Pricing

Brad Lindsay-2
In reply to this post by Marc Pope-2

On Mar 18, 2011, at 3:47 PM, Marc Pope wrote:

> On Mar 18, 2011, at 1:38 PM, Brad Lindsay wrote:
>
>> The Question:
>> How much extra will your Customers have to pay a month to use Lasso in the new Host Partner License plan?
>>
>
>
> Brad, you actually brought up a good point.
>
> A company is going to have to acquire and start off selling at least 10 instances before even making it reasonable to purchase, and with zero profit, yet all risk.
>
> The pricing that the Hosting Program starts off with will only attract Hosting Companies with established Lasso Customers. It will attract NO new hosting companies and it will probably scare off some existing ones at the same time.

I actually don't think this is a problem. According to you, a business needs to get at least 10 clients before it has a reasonable pricing structure and can make money. That seems like a very *low* barrier to entry for a company (http://en.wikipedia.org/wiki/Barriers_to_entry). Put another way, if I could start a restaurant that would make money, or just break even if I just had 10 regular clients, I would do it in a heart beat. That's why I said if I had the time and capital right now, I would start a Lasso hosting company.

Brad
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Re: Lasso Hosting Pricing

Alex Pilson-2
In reply to this post by Marc Pope-2
On Mar 18, 2011, at 3:47 PM, Marc Pope wrote:

> On Mar 18, 2011, at 1:38 PM, Brad Lindsay wrote:
>
>> The Question:
>> How much extra will your Customers have to pay a month to use Lasso  
>> in the new Host Partner License plan?
>>
>
>
> Brad, you actually brought up a good point.
>
> Just started to think about this, what **new** hosting company is  
> going to join the Hosting Program and want to lose money right from  
> the start? They will have to have at least 10 customers before they  
> start to generate any revenue.

Ding ding ding. Guys I have been saying this all along!

>
> Let's say Rackspace wants to offer Lasso Hosting, because a customer  
> asks for it. They have now, 1 customer and don't know if they ever  
> will get another... they join the Hosting Program, pay $99/month +  
> $10 for one instance. You think that customer is going to want to  
> pay $109 for their 1 instance when they can buy 5 from LassoSoft at  
> $49 ? Nope.
>
> A company is going to have to acquire and start off selling at least  
> 10 instances before even making it reasonable to purchase, and with  
> zero profit, yet all risk.
>
> The pricing that the Hosting Program starts off with will only  
> attract Hosting Companies with established Lasso Customers. It will  
> attract NO new hosting companies and it will probably scare off some  
> existing ones at the same time.
>
> Good for me, but bad for Lasso, IMO. Since I'm heavily invested in  
> the Language, I don't have a problem supporting it, but other  
> companies with no interest other than profit will never bite.

I will say it again, if LassoSoft's intention is to grow the adoption  
and usage of Lasso, old and new hosting companies need to be nurtured  
not raped, right now they are being raped! Sorry, but that is the fact.

Alex


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Re: Lasso Hosting Pricing

Alex Pilson-2
In reply to this post by Brad Lindsay-2
Brad, your thinking is not 100% real world. Barrier to entry is one  
thing, but putting energy and resources into a new product that has no  
proven track record to garner a large customer base for profit is loss  
leader for any serious hosting company currently hosting to take on  
that risk. There has to be a value proposition, right now there is none.

On Mar 18, 2011, at 3:55 PM, Brad Lindsay wrote:

>
> On Mar 18, 2011, at 3:47 PM, Marc Pope wrote:
>
>> On Mar 18, 2011, at 1:38 PM, Brad Lindsay wrote:
>>
>>> The Question:
>>> How much extra will your Customers have to pay a month to use  
>>> Lasso in the new Host Partner License plan?
>>>
>>
>>
>> Brad, you actually brought up a good point.
>>
>> A company is going to have to acquire and start off selling at  
>> least 10 instances before even making it reasonable to purchase,  
>> and with zero profit, yet all risk.
>>
>> The pricing that the Hosting Program starts off with will only  
>> attract Hosting Companies with established Lasso Customers. It will  
>> attract NO new hosting companies and it will probably scare off  
>> some existing ones at the same time.
>
> I actually don't think this is a problem. According to you, a  
> business needs to get at least 10 clients before it has a reasonable  
> pricing structure and can make money. That seems like a very *low*  
> barrier to entry for a company (http://en.wikipedia.org/wiki/Barriers_to_entry 
> ). Put another way, if I could start a restaurant that would make  
> money, or just break even if I just had 10 regular clients, I would  
> do it in a heart beat. That's why I said if I had the time and  
> capital right now, I would start a Lasso hosting company.
>
> Brad


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Re: Lasso Hosting Pricing

John May-2
In reply to this post by Brad Lindsay-2
On 3/18/11 3:55 PM, Brad Lindsay wrote:

>
> On Mar 18, 2011, at 3:47 PM, Marc Pope wrote:
>
>> On Mar 18, 2011, at 1:38 PM, Brad Lindsay wrote:
>>
>>> The Question: How much extra will your Customers have to pay a
>>> month to use Lasso in the new Host Partner License plan?
>>>
>>
>>
>> Brad, you actually brought up a good point.
>>
>> A company is going to have to acquire and start off selling at
>> least 10 instances before even making it reasonable to purchase,
>> and with zero profit, yet all risk.
>>
>> The pricing that the Hosting Program starts off with will only
>> attract Hosting Companies with established Lasso Customers. It will
>> attract NO new hosting companies and it will probably scare off
>> some existing ones at the same time.
>
> I actually don't think this is a problem. According to you, a
> business needs to get at least 10 clients before it has a reasonable
> pricing structure and can make money. That seems like a very *low*
> barrier to entry for a company
> (http://en.wikipedia.org/wiki/Barriers_to_entry). Put another way, if
> I could start a restaurant that would make money, or just break even
> if I just had 10 regular clients, I would do it in a heart beat.
> That's why I said if I had the time and capital right now, I would
> start a Lasso hosting company.
>
> Brad


Good luck with that.  All I've heard so far is hosting companies
planning to ditch Lasso, or seriously minimize its usage.

        - John
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Re: Lasso Hosting Pricing

Michael Maloney-2
In reply to this post by Brad Lindsay-2
Three facts on which, I believe, we can all agree.

1) There are some very clever people commenting on this thread.
2) Of the 6.5 billion people on the planet, they represent the (roughly) .0000000003% of mankind who are the most favourably inclined towards Lasso.
3) Even they can't seem to work out how much a simple upgrade from Lasso 8.5 to Lasso 8.6 will cost.

QED the pricing model is too complicated.

Michael
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Re: Lasso Hosting Pricing

Clive Bruton
In reply to this post by Marc Pope-2

On 18 Mar 2011, at 19:47, Marc Pope wrote:

> Let's say Rackspace wants to offer Lasso Hosting, because a  
> customer asks for it...

I think Rackspace isn't going to care one way or the other about $100/
month of additional overhead. They'll just make a decision to do it,  
or not. For everyone else it'll just be a promotional expense (as  
Marc indicates), or not.


-- Clive


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Re: Lasso Hosting Pricing

decorior
I have a distinct feeling that if Rackspace called Sean and said we want to install LAML, and charge $X per customer for the package, he would not point them to the pricing page...

:-)
On Mar 18, 2011, at 4:34 PM, Clive Bruton wrote:

>> Let's say Rackspace wants to offer Lasso Hosting, because a customer asks for it...
>
> I think Rackspace isn't going to care one way or the other about $100/month of additional overhead. They'll just make a decision to do it, or not. For everyone else it'll just be a promotional expense (as Marc indicates), or not.

Deco Rior
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Re: Lasso Hosting Pricing

Clive Bruton

On 18 Mar 2011, at 22:47, Deco Rior wrote:

> I have a distinct feeling that if Rackspace called Sean and said we  
> want to install LAML, and charge $X per customer for the package,  
> he would not point them to the pricing page...

Quite possibly true.


-- Clive

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Re: Lasso Hosting Pricing

Marc Pope-2
I was just impying any ordinary hosting company not necessarily a big one

On Mar 18, 2011, at 6:51 PM, Clive Bruton <[hidden email]> wrote:

>
> On 18 Mar 2011, at 22:47, Deco Rior wrote:
>
>> I have a distinct feeling that if Rackspace called Sean and said we want to install LAML, and charge $X per customer for the package, he would not point them to the pricing page...
>
> Quite possibly true.
>
>
> -- Clive
>
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