Start up costs and cash flow
* Basic Equipment This includes at least one computer and desk for yourself. A good computer from IBM or Dell costs around $900. A desk may cost anywhere from $50 to $150.
* Incorporation cost The incorporation process may take about two weeks to one month. The cost of incorporation is very nominal around $100 to $200.
* Domain Name registration Domain name registration for a single domain extension costs around $25 a year. The most popular domain extension is .com.
* Software This is the biggest investment you would make towards setting up your website. Make a list of all software you require. Some of them may even be free while some may cost thousands of dollars. Research is essential. Please note that you should never opt for sub standard software, especially in the case of subscription websites. These software are instrumental in the success of your website.
* Encryption and security certificates - A secure socket layer certificate costs around $300 from VeriSign.
* Logo and Website design You may design your website as well as logo yourself if you are proficient in these skills. This way you can save some money. However, it is recommended that you opt for professionals as they dont cost a lot. Website and logo design may cost anywhere from $150 to $500.
Ongoing Costs
* Web hosting Your Web hosting company plays a major role in the working of your website. For small and medium websites, hosting companies charge from $30 to $150 a month.
* Merchant and getaway accounts - Banks and gateways charge monthly support fees and a discount fee on each credit card transaction your site processes. These costs usually run less than $50 a month, and increase only a small amount as your subscription base grows.
Operating Costs
Operating costs include your monthly salary and salary of your staff, if any. You could always start alone and slowly build up. Operating costs also include monthly payoffs on any loan you may have taken to buy equipment.
Success Stories
Paid content subscription websites have enjoyed a lot of success in the last few years. This model emerged after the bloodbath of the dot com era. This only means that there were a large number of failures before the success stories started to stand out. The idea of presenting success stories is to provide you role models and to strengthen the premise, that if your idea is unique and properly executed, you will find it rewarding.
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