Charging for data
Charging for data stored on your storage provider network is an essential aspect of running a sustainable business. While block rewards from the network can provide a source of income, they are highly dependent on the volatility of the price of FIL, and cannot be relied on as the sole revenue stream.
To build a successful business, it is crucial to develop a pricing strategy that is competitive, yet profitable. This will help you attract and retain customers, as well as ensure that your business succeeds in the long term. While some programs may require storage providers to accept deals for free, or bid in auctions to get a deal, it is generally advisable to charge customers for most client deals.
When developing your pricing strategy, it is important to consider the cost of sales associated with acquiring new customers. This cost consideration should include expenses related to business development, marketing, and sales, which you should incorporate into your business’ return-on-investment (ROI) calculation.
In addition to sales costs, other factors contribute to your business’ total cost of ownership. These include expenses related to backups of your setup and data, providing an access layer to ingest data and for retrievals, preparing the data when necessary, and more. Investigating these costs is essential to ensure your pricing is competitive, yet profitable.
By charging for data stored on your network, you can create a sustainable business model that allows you to invest in hardware and FIL as collateral, as well as grow your business over time. This requires skilled people capable of running a business at scale and interacting with investors, venture capitalists, and banks to secure the necessary funding for growth.
Next to the sales cost, there are other things that contribute to the total cost of ownership of your storage provider business. Think of backups of your setup and the data, providing an access layer to ingest data and for retrievals, preparing the data (if not done already), and more.