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Hosting reseller account
It's too much easy...
specter




msg:686433
 7:13 am on Apr 6, 2005 (gmt 0)

Hi,

I would get a Hosting Reseller account.
I made some calculations and something doesn't balance out.
I mean that:

I get the reseller account with 2Gb space for $30/month ,$360/year,,ok?
Assuming that I share equally this space allocating 5 Mb web space to everyone,I come up with 400 customer accounts,ok?
Assuming to apply to everyone a standard fee of $60/year that appears to be alligned with the current prices,I would get $60 x 400 = $24,000, and this only with a 2Gb account!

Of course it have to be deducted taxes and advertising costs but the gain would remain equally elevated...

It sounds to be too much easy...

What am I missing?

 

peewhy




msg:686434
 7:31 am on Apr 6, 2005 (gmt 0)

What am I missing?

Customers

Competitive prices

... it aint that easy

specter




msg:686435
 7:56 am on Apr 6, 2005 (gmt 0)

woul you say that making a large advertising campaign I don't get 400 customers in a month!?

incrediBILL




msg:686436
 7:59 am on Apr 6, 2005 (gmt 0)

What am I missing?

What do you expect customers to do with a paltry 5MB?

Do they get email? log files? etc. etc.?

Does this count against their/your space?

specter




msg:686437
 8:59 am on Apr 6, 2005 (gmt 0)

well,
this could be a valid objection,but I could get a bigger account for "only" $700,00/1,000 that allows to allocate also 50Mb for everyone, and the gain would be still elevated.
So what?

incrediBILL




msg:686438
 9:09 am on Apr 6, 2005 (gmt 0)

First off, I don't think you'll get 400 5MB accounts in 2GB just because of overhead, it will be a few less accounts.

You could try giving them 50MB with your current account - until you run it up the flagpoles and snag some customers I think you're just speculating. Many customers have smaller footprints and will barely tap 50MB, others will end up needing much more, it's the average usage that allows you (and every ISP on the planet) the ability to shove 1000s of users on a single 80GB box and still promising everyone a ton of space they'll never use.

I would try to load up 50 customers and see how it shakes out, assuming you can get 50 customers.

Good luck.

web_india




msg:686439
 9:11 am on Apr 6, 2005 (gmt 0)

Yes specter, it does seem easy - just give it a try :-)

specter




msg:686440
 9:26 am on Apr 6, 2005 (gmt 0)

First off, I don't think you'll get 400 5MB accounts in 2GB just because of overhead, it will be a few less accounts.

I know that.I'm talking by hypothesis.

Many customers have smaller footprints and will barely tap 50MB, others will end up needing much more, it's the average usage that allows you (and every ISP on the planet) the ability to shove 1000s of users on a single 80GB box and still promising everyone a ton of space they'll never use.

I have same difficult to follow you...

The average usage has to be esthabilished by the reseller,not by the customers: this is the space I provide you ;is at you to esthabilish if it is sufficient for your purpose.Or am I wrong?

I would try to load up 50 customers and see how it shakes out, assuming you can get 50 customers.

On a statistic base I think it would be highly possible to load up 50 customers on a number of 500 visits per day,isn't it?

George_hu




msg:686441
 9:57 am on Apr 6, 2005 (gmt 0)

Just think about...if you have 400 user...

-how many support request may occure?
(if you're a reseller, you can't push this
to your host)
-you may need more that one people to do this
and your 24000 is gone.

So this is not working this way at all.
Even peoples are not stupid and can search and find the same hosting possibilities.

peewhy




msg:686442
 10:54 am on Apr 6, 2005 (gmt 0)

Look at it this way.

You had an idea, bounced it off a few people and now you can make a commercial decision.

Don't instruct your builders on the new HQ yet.

specter




msg:686443
 11:27 am on Apr 6, 2005 (gmt 0)

>>Don't instruct your builders on the new HQ yet.

What do you mean?

peewhy




msg:686444
 11:31 am on Apr 6, 2005 (gmt 0)

Make your riches before developing your headquarters.

Get the business off the ground and develop it.

adamw




msg:686445
 3:07 pm on Apr 6, 2005 (gmt 0)

I agree, I think there's a lot more to it than it sounds otherwise everyone would be doing it.

One of the considerations is also whether your reseller host is reliable. There's nothing worse than having 50 customers screaming at you if their sites are down and when it's out of your control. (Yes I have been there!)

It is possible to make money but it will not be a 'quick win' as getting even up to 500 unique visitors a day could take months.

The only way to find out is to give it a go.

All the best,
Adam.

dvduval




msg:686446
 3:37 pm on Apr 6, 2005 (gmt 0)

I think if you want to take this seriously, you might want to consider a dedicated server for around $200-300 range with 120 GB space and bandwidth galore.

Maybe you can sell 60 2 GB accounts for $30 each! :)

peewhy




msg:686447
 3:43 pm on Apr 6, 2005 (gmt 0)

I have a reseller acount for 50.00 per month it allows inlimited domains, pop3 emails etc. If I wanted indivudual domains in Linux for example, I pay more, if I wanted one domain with ASP suppport it is about 1 per month more.

I have a few clients that pay 100 per year and a lot that pay 10 per month.

It doesn't make me rich but allows me to offer SEO to clients and give them free hosting.

specter




msg:686448
 4:19 pm on Apr 6, 2005 (gmt 0)

OK.

Let's make a back step.

I haven't any account yet,ok?

Simply I would get one and I'm "enjoyed" making some calculations from wich came up these unprobable figures,that make me very suspiciuos.

I don't want to support their validity,I'm the first to be sceptic.

But I have to admit that at a purely hypothetic level,this could be possible,altough I don't know hosting resellers that have became rich.

Some objections/considerations are well-founded but however confutables.
Examples:

I've counted to assign 400 x 5 Mb accounts on a total space of 2Gb.
Someone objected that 5Mb x 400 account would represent a paltry offer;I've came across a lot of hosting sellers that offer the same space or even less and customers are happy;personally I've a valid web site with images hosted in a 3Mb account and I manage it without difficulty,and it is not certainly a blog!

Someone other objected that assuming possible to have 400 customers comes up a support problem that makes necessary to assume a second person,but also this problem could be solved by implementing an on line support fully automatized.

Someone other again objected that it's difficult to load up customers,but with a large pay per click campaign ,solved also this one.

The fact that really make me perplexed is the assumed paltry cost of the reseller account comparison to the possibilities that it offers.

To provide web space is not a problem:
5Mb are few? OK I set up a bigger account or a dedicated server,and I offer 100Mb to everyone:it's enough?
But my costs remain low. I pay "only" $1,000/yer for this and I could gain x10!?

I have over the necessary to assume a "helper".

Have I to set up 1,000 accounts : I set up a large pay per click advertising campaign!How much could I pay?
$2/3/4,000 maybe?
But my gain remains still elevated.

So I'm gone back to the scratch: So,What?

peewhy




msg:686449
 7:43 pm on Apr 6, 2005 (gmt 0)

Look around, shop around. A little market research will reveal what the going rate is for hosting.

Do the same again for hosting resellers and sharpen your pencil.

nativenewyorker




msg:686450
 10:16 pm on Apr 6, 2005 (gmt 0)

specter,

I think you are greatly underestimating the difficulty of establishing yourself as a web host provider and greatly overestimating the amount of money that you can earn.

You have been using 5MB data storage and $60/year as an example. Just to put it in perspective, the largest and oldest domain registrar is known for charging exorbitant domain registration fees. They tend to take advantage of naive people who just don't know any better. Yet they offer web hosting with 1GB of data storage at $120/year. Just in terms of pricing for storage, they are charging 1/100th of what you are contemplating.

You also believe that it will be easy to drive traffic to your site with a PPC campaign. According to Overture, a top PPC position would cost you $10+. Even a less aggressive PPC campaign with a position at the bottom of the page will cost you $1+.

My recommendation to you, is that you seriously reconsider pursuing this venture, as it can be a quick road to the poor house. Your original statement of "It sounds to be too much easy..." is much more realistic.

peewhy




msg:686451
 10:36 pm on Apr 6, 2005 (gmt 0)

You could always ask yourself if prospective competitors here might suggest you forget the idea ...LOL

specter




msg:686452
 6:44 am on Apr 7, 2005 (gmt 0)

Hi guys,

Thanks for participating!

You could always ask yourself if prospective competitors here might suggest you forget the idea ...LOL

huh?

Peewhy: are you playing the part of the "Devil lawyer"!?

jokes apart.

I'm seeing good objections:

I think you are greatly underestimating the difficulty of establishing yourself as a web host provider and greatly overestimating the amount of money that you can earn.

I think that in the current market ,considering the number of involved companies, the only thing that allows you to esthabilish yourself as a web host provider comparison to the others ,is a good advertising campaign.
The best ad campaign makes the difference...

You have been using 5MB data storage and $60/year as an example

As I said ,it's only an example; I could allocate much more space; I could provide 50/100 Mb for each account without increasing much the costs,and without speculate or to take advantage from the customers.

As regard of PPC ad campaign, I considered that for a massive "manoeuvre" hi costs are needed but I also considered on a statistic base,that to load up 400/500 customers could take not more than a month,assuming for example 400/500 unique visitors per day and a conversion rate of 3% that seems to be realistic.

My recommendation to you, is that you seriously reconsider pursuing this venture, as it can be a quick road to the poor house. Your original statement of "It sounds to be too much easy..." is much more realistic.

I think you're correct.But really I'm not getting a reseller account.
I'm just playing my part of the "Devil lawyer".
I'm curious to verify if someone,somewhere could make a big speculation with web services,you see?
If this possibility really exists.

peewhy




msg:686453
 7:53 am on Apr 8, 2005 (gmt 0)

I am playing the devil's lawyer ... it puts a different perspective on things.

One man's necture is another man's poison so whilst someone has a negative view with a business proposition it could be that he is sitting on a goldmine and wants to deter you.

I'm not saying that this is the case in any way.

Almost everyone needs hosting, there's budget hosting and bells and whistles. The latter requires 100% reliability and customer support ....would you be able to provide this because service over-rides cost and you can make money.

Budget is fine for non e-commerce sites, offer a cheap email support, you'll work much harder for your money but get enough buyers and you will make money.

It's a numbers game.

buttrflai




msg:686454
 8:21 am on Apr 8, 2005 (gmt 0)

my company may be creating 100 of our own domains... is there a way that we get money to resell to OURSELVES?

specter




msg:686455
 8:33 am on Apr 8, 2005 (gmt 0)

Hi Peewhy,

I thank you very much for your opinions/suggetsions.
I consider them very reliables.

I am playing the devil's lawyer ... it puts a different perspective on things.

That's right.In fact it's very constructive to get counter-current opinions.They open you to different scenarios and allows to make more realistic hypos.

One man's necture is another man's poison so whilst someone has a negative view with a business proposition it could be that he is sitting on a goldmine and wants to deter you.
I'm not saying that this is the case in any way.

I considered this since I've open this thread.So I take with care the expressed opinions ,also if as you say I think that the ones expressed here are over any suspect.

Almost everyone needs hosting, there's budget hosting and bells and whistles...

Budget is fine for non e-commerce sites, offer a cheap email support, you'll work much harder for your money but get enough buyers and you will make money.

I agree.I found very reliable your opinion as you run a reseller host as I see.
I have hypothized these different possibilities and really I would be worried only about the budget hosting class that has as main competitors free hosting services.Versus a zero cost ,there is no way to "win"...
So if I have a non e-commerce site for wich reason I should get a 60/70$/year account,when I can get the same for free?
This is the first real "auto-objection" I found.

It's a numbers game.

Totally agree.All my hypos are exclusively based upon numbers.
Since,mathematics is not an opinion...


specter




msg:686456
 8:37 am on Apr 8, 2005 (gmt 0)

my company may be creating 100 of our own domains... is there a way that we get money to resell to OURSELVES?

huh?

Explain me this...

buttrflai




msg:686457
 9:53 am on Apr 8, 2005 (gmt 0)

what i meant was... my company's planning to become a hosting reseller. is there a way for us to get money if we resell to my company's 'sister' companies?

peewhy




msg:686458
 9:56 am on Apr 8, 2005 (gmt 0)

This is what is sounds like, you have registered 100 domains and you want to set up a reseller account. You want to know if you can make money buy reselling your hosting services to each of your own 100 domains and make money.

Is that right?

buttrflai




msg:686459
 10:24 am on Apr 8, 2005 (gmt 0)

yes, that's right :) is it possible?

Leosghost




msg:686460
 10:45 am on Apr 8, 2005 (gmt 0)

Whatever dream anyone is having ..it's not the hosting space you have to watch for it's the bandwidth ...and the drain on CPU

peewhy




msg:686461
 10:52 am on Apr 8, 2005 (gmt 0)

I don't think anyone is dreaming.

The original post was a request for opinions and advice on starting a reseller hosting business.

Resellers are as only as successful the the main host and their equipment.

There is a big difference between trying to sell a hosting service from a CPU in your shed or operating a franchise from a reliable reputable hosting company.

specter




msg:686462
 11:04 am on Apr 8, 2005 (gmt 0)

The original post was a request for opinions and advice on starting a reseller hosting business.

I would add (as I'm the thread starter) that it was also a sort of provocation about the possibilty to speculate on web hosts...

No one is dreaming.

This 33 message thread spans 2 pages: 33 ( [1] 2 > >
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