Here is a snapshot for you..
I have a T-1 line that KSU Fans uses and since I started up the website in January 2006. The cost to operate the T-1 since then has been over $14,000.
There have been two servers that I have built to host KSU Fans on. The first server cost me $1400 to build, the second one $1800 (includes server operating system.) The Backup software to protect the database runs $900.00. KSU Fans runs on a server that has two other websites on it. The database software that contains the scoreboard and other functions costs $500.00. MySQL, PHP, SMF Forum, and Joomla Software that you see for the site is free.
I could not put KSU Fans on a server that had multiple websites because the CPU demand is too high and would affect my other customers.
If you consider that I spend about 10 hours a week on here to do administrative function such as answering e-mail, maintenance on the site, maintenance on the server, replacing backup discs, and general operations, and at the rate I charge my normal customers, that works to $850.00 a week.
If you count the hours I've spent working configuring the software, making graphics, doing the look and feel, setting up the scoreboards and addressing specific issues with users that have problems with the site, then I can add another 63 hours or $5355 of time spent.
The attempt to do KSU Fans Premium raised a little over $750.00 for the website and was intended to provide a stream of revenue to help offset the costs I was incurring just running the site. Remember, it didn't generate any money for a year and a half and was more of a hobby, but there is still the cost involved of just running it. At the time, I had set up with an individual who said he had inside info and we worked out a handshake deal to get him to provide that info. However, that failed and therefore the value of the premium was no longer there, despite me having to provide most of the info since then.
I paid $450 of the funds raised to get coolers made for the premium members and when the company that made them messed them up (made the KSU Fans logo turquoise) they refused to fix their error so I'm in court trying to recoup my money (which I spent another $600 on attorney's fees and court costs, so far.) None of that money has gone to help pay the costs of operating the website.
I received letters from attorneys on several occasions threatening lawsuits for libel and slander against members and it cost me about $500 in legal fees to respond to those.
The Google Ads have, on average, generated about $100.00 month in ad revenue since June 2007.
The website has generated approximately $1800 in total revenue from Premium and Advertising.
Now, during that time, I've had offers to place ads on KSUFANS from other sources, but each time, they have chosen not to because the website has "issues" in regards to the message boards. You guys talking about getting sponsors have to understand that people would be more than willing to advertise on the site, until they read the message board. Then they run away like flies. I don't think I have to explain why.
So here is your breakdown of costs since January 2006:
T-1 (internet circuit) - $14,000.00
Servers: $3600.00
Support Software: $1400.00
Time spent developing website functions/etc: $5355.00
Legal Costs associated with website: $1100.00
Promotional Expenses (coolers) $450.00
I am not counting the maintenance time as I don't normally charge for that. It comes with the service of hosting websites.
Grand total: $25,905.00
Now, to be fair, since KSU Fans is not entirely responsible for some of those costs. I have offered web hosting to my customers and built websites for them and when I started the current KSUFANS in 2006, I was able to make enough money to support having it and not worry about the costs.
However, if you consider how much I charge my customers to host and maintain a website on my servers, at $50.00 a month, then here is what the costs would be if KSUFANS were a customer of mine:
From January 2006-April 2008
Hosting Fees: $1,500.00
Website Setup Fee: $3,000 (on average)
Backup Services: $1,000.00
Legal Expenses: $1,100.00
Promotional Expenses (coolers) $450.00
So if I were to set up the site and operate it as a business, the site right now has expenses of $7050.00 and revenues during that time of $1800, leaving a loss of $5,250.00. Again, I wasn't looking to make money, only wanted the site to be self sufficient.
When KSUFans.com was purchased, SeanK got well over $10,000 for the site by the Insiders. I was out almost $3K for that deal when I was hosting it before. I got nothing from the sale and neither did SPC as it was him who did most of the work to get it where it was.
I realize that some of you are acting like business advisors, when I'm sure most of you have never run a business in your life. I piggy backed the operation of the website from my own resources. With the changing economy and business on a serious downturn, I've had to make financial decisions that is going to impact the site. The revenue I've lost cannot be compensated by KSU Fans and even if I were to move it to a hosting service, there are issues that I don't have time to deal with right now.
I was originally not interested in selling it, I was going to kill the site and just end it. However, there is value in the site. A lot of value. Someone else starting a site would have to go through the same pains I or anyone else did, and have to deal with all the issues of building a community and the cost would be substantially greater in terms of time and money spent. I am giving them an opportunity to have something already in place and working with a reasonable value to it.
If you want to start a new site, then I'll kill this one now and just end it. It's not a big deal to me, but I figured that someone here really would like to have what's built and the amount I'm asking for in terms of time and money spent is very reasonable. It already has a strong and vibrant community and it continues to grow. In it's current state, it has enough going for it that it can be self sustaining meaning advertising and occasional donations will keep it going and the individuals buying into it will recoup their investments in no time.
There it is for you to look at.
