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
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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
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 :)
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.
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.
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.
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.
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!
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.Quote:
Originally Posted by Mike Smith
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.Quote:
Originally Posted by ManXP
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.
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.
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.
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.
It's depend on package price and specs.. and advertising..
Even if you start small, you have to think big from the very beginning, if you want to succeed.Quote:
Originally Posted by HMarker
I have found that if you "think big" as stated before and spend some cash on advertising , and be very motivated to help your customers, go above and beyond, with any of there problems even help a little with there sites.
then you can make some cash, it just takes a while
building up trust and confidence from your customers takes time but it will come soon.
Your post has been modified, please do not advertise money making schemes on HostSearch.com. Read the forum rules.
I've often wondered about this, the age range of hosting providersQuote:
Originally Posted by ManXP
and can anyone with around 100 clients toss out a number $$ ?
I've wondered about this topic too..lol I can't say I've never looked into getting my own sever :D
Reselling business gets you a very good income, if your business direction is in a right way. If you just want to start up a reselling business, know how to make your clients happy. Make sure of the things which gets you in good deals,
1) How much support do you offer to your clients?
2) What type of system do you want to offer? Such as H-Sphere or Cpanel System...
3) Don't sell you self short! Make sure your plans are priced to afford a support team and system software
I would suggest you to view psoft.net for a complete private label system to resellers and the hosting companies that offers competitive reseller plans.
Good Luck!
Not reselling here, but have been full blown into the business for a little over 4 years now and the profit is a nice one.
Continuously re-investing.
Our resellers even make money.
Whether you resell or buy your own, the secret to success in the service industry is the same........Customer Service will win the day......Customer Service is "first and foremost" in this business.
Price is secondary only to Customer Service.........
Make sure you have a business plan before you jump into web hosting business.
I agree with the above mentioned point about customer service. Outstanding customer service is the key to success for a hosting business. Lot of clients look for a company which provides good service rather than low priced plans. If you do offer outstanding customer service to your clients, those clients will spread the good word for your company and recommend it to others looking for hosting.
One more thought on the money making end of this business is to be sure to keep your ip blocks/ranges clean.
Unruly clients can muck up the monitary waters for you by way of using mass mailing scripts, ketword stuffing scripts and so on.
Since parsing engines like MSN and Yahoo often equate a website with it's assigned ip address, allowing shady client practices may possibly get ip's banned by search engines.
This can be detrimental to anyone running a dedicated shared hosting environment.......if your clients can't be found and are not making money, then chances are good that they aren't going to be happy........
A good AUP or TOS is one of the first lines of defense for both you and your hosting clients in this business.
Make the rules, and stick by them.......follow through, and your clients will love you for it. If you get a potential client that takes issue with your AUP or TOS in the beginning, then chancees are very good that you are not going to want that client any way.
Keep it clean........potential clients are much more saavy these days, than they were only just 5 years ago, and many aren't interested in hosting in shady ip neighborhoods.........
One thing to look at is unless you own the bandwidth provider and data center then you're reselling something. Honesty, integrity, service, and support. In that order.
KGIII
With 100 customers. You can make good money. With reseller account you can set your own pricing. Thats the key advantage.
When looking to start reselling web hosting don’t just look for a cheap company to get your service from.
Find one that has good support (send them a support ticket and see how long it takes to get a response).
Look for or ask if they have any customer reviews.
Check for down time (your hosting company can not grow if your provider can’t keep the server running).
Look for a provider that offers extra programs, which the resellers can offer to their customers like a site builder, or auto installers, anything that will make it easier to sell your hosting.
Check out their control panel if it is to hard to use your customers will not like it.
I would say to focus on 3 things:
support
support
and support
All the rest is supposed to be there already.
I am doing reselling business with Goresellers.com for the past few years,and make a good decent amount.I make $450 per month.Since in reselling business it is the reseller who quotes the price it is upto you to fix and make a good turn over.Once you get hold of customers they will be a good asset for the business since they renew the service and become subscribers.Quote:
Originally Posted by Mike Smith
It is hard to make more money using reseller hosting. If you want to earn $100 or $200 , you can make. You will need targeted traffic for it. Web hosting industry is very competitive. Until and unless you will not have enough traffic to your website or blog, you can not make money using reseller hosting.
It depends on which types of hosting packages you are used from the host and which types packages are you going to sell I mean it depends on your cost, hard working, the amount of space and bandwidth and one most important thing is your quality of service that makes you different from the others.
the extract is simple business tactics have to put behind like produce it better that will sell it better
Quote:
Originally Posted by Mike Smith
I am doing Website reselling business from home.Through this business,I make some good amount of money.If you are interested in this business,You should become a reseller.If you need reseller account visit GoResellers.com It includes domain name registration,hosting,web building and design service,After that you can fix your own rate and make money online easily.I hope it will be very useful to who are interested to make money from home.
Thanks for the information sharing with us....Quote:
Originally Posted by anbinal