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  1. #1
    Administrator
    Join Date
    Nov 2003
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    55

    Trend of reseller hosting

    I think in the past 2 years the reseller hosting was quite popular especially after the economy went bad in 2001. People got out off the job and starting their own businesses. But now, not quite sure. It seemed like more people know how to run the servers and they tend to rent a dedicated server to start off the business.

    What do you think? What's the trend of reseller?

  2. #2
    1PlanHost
    Guest
    While there has been major growth in the cheap dedicated server market over the past 3 years I would not attest this to more people knowing how to run servers. In fact, we at 1PlanHost.com very often get resellers signing up from some of the major discount dedicated server providers because they have no earthly idea how to set up and manage a web server securely and efficiently. They come to us saying "please help, I don't know how to run a server on my own" and of course we sell them our managed reseller program which meets their needs.

    The cost of these unmanaged dedicated servers has gone down significantly which has opened up possibilities for many web developers and entreprenuers to run their own web servers. However, keep in mind that many of the top providers of discount dedicated servers do not provide managed services for them. An uneducated person can very quickly misconfigure a server and make it very vulnerable to hackers, degragation of server performance and unreliability. I am not saying that all are run this way but you would be surprised at the actual numbers!

    I envision that in the coming year (as it has been this past year), many resellers who are relying on unreliable cheap servers or are reselling for unreliable companies will continue to seek out reliability and stability for their customers even if the profit margins are not as great as they had before. The old cliche of "You get what you pay for" holds true.

    Best Wishes for a .Net Success!

  3. #3
    Junior Member
    Join Date
    Sep 2004
    Posts
    13
    I would attest it to the fact that, in general, the average web hosting customer is more web savvy than they were 5 years ago. I have been in this biz for over 5 years now (ya, a lifetime in internet years), and the average customer thesedays is much more savvy on DNS, domain names, transfers, etc.

    As far as running their on servers, most are still not knowledgeable enough to do so.
    www.earthstarhosting.com
    Hosting You Can Count On

  4. #4
    1PlanHost
    Guest
    You hit the nail on the head EarthStar, "As far as running their on servers, most are still not knowledgeable enough to do so."

    It takes skill and experience to manage web servers effectively. Do it wrong at the risk of your company and customers! I have seen so many fallouts and refugees transfer over to us from poorly managed dedicated servers and feel for them.

    Best Wishes for a .Net Success!

  5. #5
    Junior Member
    Join Date
    Sep 2004
    Posts
    13
    Yeah, sad but true, and regardless of whether you are running Linux or Windows, as a server admin you have to understand how to manage your servers at the command prompt level. It doesn't matter how good your server admin software is, none of them do it all. And if you don't know how to do it, you have to wait in the support ticket line just like everyone else.
    www.earthstarhosting.com
    Hosting You Can Count On

  6. #6
    Junior Member
    Join Date
    Sep 2004
    Location
    UK
    Posts
    28
    There has been a huge increase of resellers - mostly down to the ease and low cost of looking like "your own host".
    Now customers have been stung by many resellers who didnt have the good luck to choose a good provider.
    The market for resellers looking to progress (for us) is now swinging to fully managed VPS - the step below a dedicated. This gives resellers the ability to have "root" and learn DNS, creating reseller accounts, handling ip's, installing software etc - but knowing that if they break anything we are on hand to fix it or give advice.
    Becuase you can break down VPS into quite small chunks - I think there will be a drop in traditional reseller packages for people trying to building a hosting business.
    wisehosting.co.uk . . hassle free server and VPS Solutions

  7. #7
    1PlanHost
    Guest
    There is no doubt that the VPS market is making some headway but I don't see it as coming close to replacing the traditional reseller shared hosting market just yet. Perhaps with time that like anything in our business will change but currently traditional shared accounts are still strong.

    Professional resellers are seeking reliability and stability more than ever before due to poor performance by many hosts seeking to capitalize on the reseller market without providing quality.

    Best Wishes for a .Net Success!

  8. #8
    Junior Member
    Join Date
    Sep 2004
    Posts
    14
    There is a very steep learning curve for people jumping from reseller to Dedicated. Proper firewalling, anti-virus, Brute Force Detection, Mail server bugs, etc. etc. etc. I think the problem for most people seeking reseller hosting is finding a company that doesn't have horribly over-sold servers, and a company competent enough to do custom server configs for people.....all at a decent price. When jumping into my first dedicated, I knew I had a lot to learn, but now that I have, I would never go back to the old way!
    Oliver Nielsen
    Nielsen Web Solutions

  9. #9
    Registered User
    Join Date
    Sep 2004
    Location
    UK
    Posts
    3
    Hi,

    Reselling is still a popular way to house multiple accounts for developers and as a sideline for existing bricks-and-mortar companies, I'm keeping a keen eye on VPS solutions, but with the price of a dedicated and a reseller account gradually getting closer together it makes you wonder whether there will be any middle ground for the VPS solution to sit in soon!

    Regards,
    Keiron

  10. #10
    1PlanHost
    Guest
    Originally posted by oanielsen
    There is a very steep learning curve for people jumping from reseller to Dedicated. Proper firewalling, anti-virus, Brute Force Detection, Mail server bugs, etc. etc. etc.
    Yes, very much so! That I believe is the reason why the reseller market will remain strong. Keep in mind that most of the people who post on this board are already either running their own servers or reselling hosting so we are not seeing reality when it comes to the standard new reseller. Many in my experience have a difficult time learning how to set up their own hosting plans and would not have any idea on where to start with running their own server. We get plenty of refugees from the cheap dedicated server providers that join our reseller program for that very reason.

    Best Wishes for a .Net Success!

  11. #11
    Junior Member
    Join Date
    Sep 2004
    Posts
    14
    I have always had the ability to set up reseller plans, but I decided that I don't want to mess with the headache of not "knowing" the people or the websites that will be hosted. Too much of a maintenance headache. I have only hosted my web design clients and have really enjoyed the SLA I can offer for them knowing that I have complete control of who are on my boxes. I can also limit a box to 20-50 sites, keep them performing at an optimum level and still keep the box profitable.
    Oliver Nielsen
    Nielsen Web Solutions

  12. #12
    Junior Member
    Join Date
    Oct 2004
    Location
    London, United Kingdom
    Posts
    12
    It is much cost saving to resell hosting than start your own. Currently, there are many competitions out there being service providers and I believe that 80% of them are resellers.
    "Dare 2 b Different!"
    www.hostonfire.com

  13. #13

  14. #14
    Junior Member
    Join Date
    Aug 2004
    Posts
    12
    how can you find all of those sites??

  15. #15
    NS-Icon
    Guest

    Talking

    Lol Khun,

    That is quite amusing, how did you manage to find all of those sites with the same templates?

    Is it some form of turnkey reseller hosting service? Or do you just go out on a regular basis hunting for hosting companies with the same templates

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