Do you really make money?

[Mike Smith]

I have looked into the reselling business and I can't figure out the maths. Do you really make money? How much could a reseller with 100 customers hope to make.

I really am intrigued because I can't figure it!

Mike

[NS-Icon]

Hi Mike,

Well that really depends, you see, its down to how much it costs you for your reseller hosting plan, and then how much you sell your own hosting packages for.

At the end of the day though, when you reach around a 100 customers you may be asked to move to a dedicated or VPS solution especially if your clients are using too much resources for a shared hosting environment.

But there is money to be made if you have good hosting plans, good service / support and have a lot of commitment / dedication

[peter phillips]

I think it all depends upon the reseller what amount of space and bandwidth he is purchasing from the host and accordingly what kind of packages he is going to sell. Making money from reselling depends on the pricing of the reseller packages and operating plan set by the reseller.

[Senad]

IT all depends on the dedication that the company wishes to make. Some companies will just open up shop and just wait for clients to "find them" on the net. A host has to be very active with sales and marketing and in the end you will gain profit if you have planned correctly.

[peter phillips]

Most of the hosting companies are tiny fish swimming away with the current of water of mainstream, this depends upon how much bigger is your dream and the efforts you're going to take backed with sound financial capacity.

[IceBlueHost]

I agree with Peter, it all depends on how big you see things.
The first thing you need to do before you start is to carefully think ahead and what you wish to accomplish, draw out some kind of plan on how you would intend your business to grow. And then set your prices accordingly. Pricing is very delicate. Set your prices too high and you will not attract any customers. But set them too low and people will get suspicious about your services. So you'll need to find a nice balance between those two. And on top of that make sure that you can offer your customers all the things you promise, including support.

And another thing, be patient! Don't expect to be overwhelmed with customers from the start, it takes time before people gain your trust. But as long as you work hard and maintain your promises, you have a good base to build up your business.

So yes, there is money to be made in this area, but you need to work hard for it.

[ASP-Hosting.ca]

First, getting 100 customers is not as easy as it seems. Well you might be able to get 100 customers quickly if you offer $0.99/month hosting, but I'm sure you can calculate how much your profit will be from this venture .

Good luck!

[ManXP]

I have looked into the reselling business and I can't figure out the maths. Do you really make money? How much could a reseller with 100 customers hope to make.

I really am intrigued because I can't figure it!

Mike

Well, if you want to make real money, it will be hard... But most hosts make some money. Why? because about 80% is done by kids, who oversell and offer "great" prices. So, at the end of month, they make some profit to buy a few candies.

it's still not bad, I think

[ASP-Hosting.ca]

Well, if you want to make real money, it will be hard... But most hosts make some money. Why? because about 80% is done by kids, who oversell and offer "great" prices. So, at the end of month, they make some profit to buy a few candies.

it's still not bad, I think

It depends if you treat it as a business or it's just a side income. Those who treat it as a business do make money.

[peter phillips]

True, making money also depends on the amount of hard work and dedication you put in your business. But then money is also to be made by overselling. Not all clients utilize their alloted resources fully. So the unused resources instead of being wasted are then sold by resellers to other clients but the old client will pay for the full resources and the reseller will get more profits by selling old client's unused resources to others.

[ASP-Hosting.ca]

If you are starting a hosting company no, you don't have much choice and you have to oversell if you want to remain competitive.

[dhAndrew]

You need to start out small and work your way up, establish yourself as a great company from day one. As you get more and more clients they will recommend their friends to you if you maintain your services.

[HMarker]

as dhAndrew specified, starting out small is pretty important in keeping your costs low and keeping your business under control. As long as you keep your costs at minimum you may make money if you put a reasonable amount of profit margin on your services.

Key point is to attract customer with your custom solutions for their hosting needs. Sometimes you need to contact them personally to find what they actually look for.

[RackSlash]

It's depend on package price and specs.. and advertising..

[ASP-Hosting.ca]

as dhAndrew specified, starting out small is pretty important in keeping your costs low and keeping your business under control. As long as you keep your costs at minimum you may make money if you put a reasonable amount of profit margin on your services.

Key point is to attract customer with your custom solutions for their hosting needs. Sometimes you need to contact them personally to find what they actually look for.

Even if you start small, you have to think big from the very beginning, if you want to succeed.