Monthly Archives: November 2011

How does group deal web site damage your business? Part 1

Business Owners who want to promote their business by offering some discount deal to attract more customers. Most of them will use the popular group deals web sites, for example : groupgo.com.au, groupon.com.au, scoopon.com.au, livingsocial.com.au, deals.com.au, Spreets.com.au, etc.

There are thousands of daily deals web sites nowadays, however, NONE of them will help your business. Why I would make a comment like this??

I have friends who run different sort of businesses around Sydney and engaged the above group deals web sites to promote their businesses. The business types include beauty salons, nail make up, hair salons, restaurants, products, etc.

Your business need to qualify to be advertised on their platforms, most of them request you to provide AT LEAST 50% discount. Secondly, your business need to be interested to their audients. If the number of purchase is less than 100 in the first hour after they listed the deals, your deal will be cancelled. Thirdly, the deals web site often ask for commission up to 50% of the deal.

Let us do a calculation here. If you have a service or product which normally sells for $40, when you list this on those deals web sites, you have to sell it at $20 and up to $10 need to pay as a commission to the web site owner. As a result, a normal $40 service, you only get $10 back. In a normal business operation, business owner will mark up the price for a profit, now you have to ask yourself, in my example can $10 cover your cost for a $40 service/product.

In other words, there is a chance for each deal purchase, you are losing money. The winner will be the web site owners because they do nothing but just sitting there making money from their referrals.

I still haven’t answered my own question how does that damage your business…. Will be continue in Part 2.

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Moving Server From Physical Server to Virtual Machine

My physical server was hosted in a private data-center at Baulkham Hill, Sydney. It was connected with 3 different ISPs and using BGP to peer with those 3 ISPs for failover. My Server was there since 2008 and throughout the last 3 years there was only 2 downtimes. One was caused by fire in the car park and the other one was caused by an extended powre outage by Energy Australia.

With a physical server, I have built some services on this server and try to generate income to cover the colocation costs. Unfortunately, I have never reached the amount to cover the cost of hosting a physical server. As a result, I am pulling off my physical server off the data center and to move all my web site to a virtual server.

I signed up Crazydomains VPS last months and have everything moved to that VPS including my blogs and other web sites. Unfortunately, ever since I moved to their VPS, I have been continously receiving complaint about slow speed and slow respond from the server. One of the online shopping cart took nearly 5 minutes to load a full page. One of my clients used to upload images all the time, and he claimed that it took 10 times more! It used to be a 10 minuts job with the VPS in Crazydomains, it took him 1.5 hours to upload the images.

As a result, I have to look for another VPS provider. Two days ago, I signed up a VPS with iiNet. iiNet is a well known ISP and I believe they can provide something better. I will see if there is any complaint. I hope this move will be final and all the clients using my server will be happy with this VPS from iiNet.

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