MageCDN Margin Threshold

MageCDN's pricing model charges only for storage, with unlimited bandwidth and transformations included. This flips the typical agency cost structure: instead of paying per transformation or per gigabyte of delivery, agencies pay a flat monthly fee based on storage tier. The Margin Threshold framework helps agencies decide which client projects justify a MageCDN retainer. For example, a client with a 10GB image library on the Lite plan costs $9/month. If the agency bundles MageCDN into a $200/month website care retainer, the margin is 95%. But a client needing 100GB storage on the Pro plan at $27/month still leaves healthy margin if the retainer is $500. The threshold is crossed when storage costs exceed 10% of the client's monthly retainer. Below that, MageCDN is a profitable add-on; above it, agencies should either raise the retainer or pass through the cost. This framework prevents margin erosion on high-storage clients while keeping the offer simple for low-storage ones.