The curve of site running costs has been pretty crazy over the last 25 years. It started out relatively cheap, around $50 a month. By 2001, it was often as much as $800 per month, at which point I had a T-1 connection installed at my house for $1,230 a month. That had a remarkable speed of 1.5 mbps (you likely get more than 100 mbps downloads at home now), and I had to buy my own server and software. Eventually it settled into a rhythm of around $120 per month for a great many years. The performance wasn't great, but it more or less worked. When that server finally had to be retired, I was spending around $180 per month. That had its issues too, when I had a server die on me once, a fire at the data center cut it out another time, and I had a hard drive die once too. No redundancy. In 2014-ish, I moved everything to the cloud, specifically Azure.
In these days where ad revenue has become, for lack of a better word, dire, I thought it would be good to talk through my spend now. I spend a little more, but the performance is extraordinary and redundancy is included. Here's the run down:
So my cloud spend is around $230 a month.
Those are the monthly hard costs. I also spend $30 per month on an Adobe subscription, though I don't use it all that much. I also have domain name fees that are a few hundred bucks a year, an annual fee to Florida for the honor of having an LLC, accountant fees to do taxes, postage to mail membership cards (until I run out of them) and credit card fees.
The traffic between the two sites tends to be between 5,000 and 20,000+ page views a day, with the low end happening during the holidays, and the high in the middle of summer or when there's a big news event. The traffic trends have been pretty steady the last five years, still seasonal, still concentrated during the work day. To break even on hosting alone, I need to make about $10 in ad revenue daily, because half of the PointBuzz ad revenue goes to Walt. So on the low end of the traffic spectrum, I need to make $2 per thousand page views, and on the high end, $0.50 per thousand page views. Even with traffic picking up as we head toward spring, I'm not making that minimum, so I'm paying out of pocket.
The other problem is that club membership revenue is way down since you don't need a membership for most of the big coaster events. There was a time when that alone would cover my costs. Between that change, and the Google-Facebook ad duopoly that has destroyed competition among ad sellers and devalued independent publishers, there ain't a lot to go around. And while traffic is steady, it's not what it was during the pre-Facebook days, when I could pay my mortgage on ad revenue.
For now, I guess I'll roll with it, because it's hard to stop doing something you've been doing for 25 years, and I can afford it. But I kind of hate what the web has become. It's all walled gardens on platforms in exchange for a reduction in privacy, and consumers don't care. I could add more ads to the sites, but they're the worst kind that you see on your local TV station's news sites, with link bait nonsense selling crap. I'm not going to subject my visitors to that.
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