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Author Topic: How much to charge For hosting a Miner?  (Read 709 times)
takagari
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January 09, 2015, 06:25:38 PM
 #1

I have someone asking me to host their miner for them.
Thus far only a single Antminer S5

I've calculated power consumption to be $20 ish a month.

But it's taking up space, using my net etc.
So what do I charge them?
A percentage of the machines profit? A flat fee?

I don't want to over quote and insult, or under quote and screw myself out of profit Smiley
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jonnybravo0311
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January 09, 2015, 07:00:23 PM
 #2

I have someone asking me to host their miner for them.
Thus far only a single Antminer S5

I've calculated power consumption to be $20 ish a month.

But it's taking up space, using my net etc.
So what do I charge them?
A percentage of the machines profit? A flat fee?

I don't want to over quote and insult, or under quote and screw myself out of profit Smiley
It really depends upon what you're trying to achieve here.  The miner will take up space, generate heat, use electricity, make noise, use your bandwidth, etc.  This is in addition to you having to babysit the miner - configuring it, making changes at the owner's request if he wants to mine a different pool, and so on.

So... what's that worth to you?  Are you looking to make some money from this deal?  If yes, how are you anticipating being paid for your hosting services?  What do you do if/when the owner decides not to pay?

Lots of things to consider Smiley

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takagari
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January 09, 2015, 07:02:58 PM
 #3

Well, We plan to setup a Pi to give him remote control of the box. So I won't do any managing short of a hard power reset if needed.

If he decides not to pay,  I have his miner...
I plan to charge a flat fee for power consumption costs. That's a min at a cash value.
I was thinking of having him set his mining payout to coinsplit.io
And just take a percentage, I was thinking 10-15%???

jonnybravo0311
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January 09, 2015, 07:25:57 PM
 #4

Well, We plan to setup a Pi to give him remote control of the box. So I won't do any managing short of a hard power reset if needed.

If he decides not to pay,  I have his miner...
I plan to charge a flat fee for power consumption costs. That's a min at a cash value.
I was thinking of having him set his mining payout to coinsplit.io
And just take a percentage, I was thinking 10-15%???


Setting up a Pi for remote access is nice.  Takes a lot of the hassle off of you for everyday changes the owner might wish to make.  In terms of charging the flat fee, how are you planning to bill the guy for it?  Just send him an invoice for $20 every month for the electricity costs?  Put it this way - that S5 right now expects to earn 0.01429BTC a day, which at current BTC prices is $4 a day thereabouts.  At 30 days a month, your $20 is already about 16.67% of his mining profits.  Adding another 10% to it would mean you're asking him for 26.67% of his mining profits.  Again, this is right now.  That changes each difficulty change and also changes as BTC prices fluctuate.  That's the problem with charging fees in fiat - it results in different percentages of mined BTC being paid to you.

You can certainly simplify things and tell the guy, "look, as of right now, I will charge you a flat 25% of what you mine.  This rate will be reviewed weekly and changed as appropriate based upon current value of BTC in fiat and/or how much the miner currently makes based on network difficulty."

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takagari
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January 09, 2015, 08:41:25 PM
 #5

Well, We plan to setup a Pi to give him remote control of the box. So I won't do any managing short of a hard power reset if needed.

If he decides not to pay,  I have his miner...
I plan to charge a flat fee for power consumption costs. That's a min at a cash value.
I was thinking of having him set his mining payout to coinsplit.io
And just take a percentage, I was thinking 10-15%???


Setting up a Pi for remote access is nice.  Takes a lot of the hassle off of you for everyday changes the owner might wish to make.  In terms of charging the flat fee, how are you planning to bill the guy for it?  Just send him an invoice for $20 every month for the electricity costs?  Put it this way - that S5 right now expects to earn 0.01429BTC a day, which at current BTC prices is $4 a day thereabouts.  At 30 days a month, your $20 is already about 16.67% of his mining profits.  Adding another 10% to it would mean you're asking him for 26.67% of his mining profits.  Again, this is right now.  That changes each difficulty change and also changes as BTC prices fluctuate.  That's the problem with charging fees in fiat - it results in different percentages of mined BTC being paid to you.

You can certainly simplify things and tell the guy, "look, as of right now, I will charge you a flat 25% of what you mine.  This rate will be reviewed weekly and changed as appropriate based upon current value of BTC in fiat and/or how much the miner currently makes based on network difficulty."

The only amount I want as guaranteed is to cover operating. On top of that is just extra.
but he could met me his monthly, or send.it as an additional btc payment monthly
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January 09, 2015, 10:31:21 PM
 #6

Cost of running * 2 should be your fee, business 101, and you really want to get paid in flat, since I doubt your electric company accepts BTC.

xstr8guy
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January 10, 2015, 11:09:51 AM
 #7

Oh geez, is this really worth the hassle for $20... for you or him?

Silly.
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January 10, 2015, 10:03:17 PM
 #8

My recommendation: avoid it.

For the amount of money your talking about I'm assuming you don't have anything in the way of redundant internet, power generator backup, etc.

Should your power or internet ever go out suddenly he's going to end up feeling like he's getting jipped unless your willing to eat his losses (or worse yet, scammed by you if he has no way to verify your telling the truth)

*for the type of potential profit your talking about here it just doesn't seem worth the potential headaches to me.  Noise, heat, dust, etc.

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January 12, 2015, 09:14:55 PM
 #9

better don't do that. That would make more hussle for you than profit.

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January 12, 2015, 09:17:55 PM
 #10

I have free electricity and like to babysit miners. Maybe I should get into the business.
xstr8guy
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January 12, 2015, 10:32:20 PM
 #11

I have free electricity and like to babysit miners. Maybe I should get into the business.

You need a hobby! Lol.
picolo
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January 12, 2015, 10:35:18 PM
 #12

I have someone asking me to host their miner for them.
Thus far only a single Antminer S5

I've calculated power consumption to be $20 ish a month.

But it's taking up space, using my net etc.
So what do I charge them?
A percentage of the machines profit? A flat fee?

I don't want to over quote and insult, or under quote and screw myself out of profit Smiley

Ask a flat fee that seems fair, discuss possible problems and trouble shooting.

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