Total Posts: 463
For Go you are limited to business solutions, that is the cost of SaaS. For CE & EE, you need better hosting with top-tier, all other solutions basically do not work as they have tradeoffs.
Solutions such as
- Full Page Cache: no page ranking benefits and user checkout issues as non-cached, only usefull if non-cached is below 3s
- Code Solutions: same as above, but you also have code to maintain and usually does not play nicely with other solutions
- Reduce product counts: will not provide the quality of site that Google and visitors will like (except very niche sites)
- Reduce number of stores: as above and not international friendly where all the growth is
- Hosting: the only correct way to do it, the higher the quality the better your page ranking and visitor conversions
Use one of the following methods, if you want to generate $250,000 revenue (not profits), then you need $200/mth of hosting ($250,000 * 5% * 20% / 12).
Revenue Based: Hosting is 20% of IT spend and IT spend is 5% of yearly revenue / 12mths for monthly hosting budget
Visitor Based:$0.0139 x number of visitors per month for monthly hosting budget
Order Based:$0.50 x number of orders per month for monthly hosting budget
Your complete IT budget should be 5% of yearly revenue, that includes consulting, extensions, hosting, development, integration. If you try and shortcut these figures, in about 6-12mths you will find out it did not work and your site is not producing the targeted revenue. If you want to only be in the bottom 50% then you can reduce your hosting by 50%, but your revenue will drop by more than 50%, the lower you go down the scale the more pronouced the revenue drop, it is not linear. So for $50/mth hosting your best will be $60,000/yr revenue (not profit).
We will keep providing the figures, we know short-term everyone will ignore them, however they come from large enterprise consultants who developed solutions for the largest sites (Magento included such as millions of products and 100s stores). It will be a useful reference point in the coming months to years (medium to long term) when people look back trying to understand why their site was in the 95% that did not produce any revenue.