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View Full Version : Starting A Reseller Business


obviousl
03-05-2003, 06:22 PM
Hi All Resellers,

I am going to write a bit of a "how to" journal on becoming a successful reseller, and the tools you need, how to go about things and just over all business ideas. Please note not everything you may agree with, and please respond with your comments. I will edit this post each time I have more to add.

05/03/02 (AUS Date Format)

Hosting, this is a daunting task. Most people will jump at the first offer they see, and can end up with really poor service. What you need to do is shop around, think about how much space you need to start your company, look at the extras the account comes with. Are these the features you wish to offer your clients, can you make a profit from reselling this space. Remember, you also need room to grow, so look at how the pricing of the plans above the one you are looking at. Do these look reasonable? For hosts search on www.webhostingtalk.com or try www.google.com

Next is the layout of the company. What you need to do is sit down by yourself (or with partners) and think about the services you want to offer. How much will you charge for a service, what will attract people to get this offer and not someone else’s? Good place to check out for comparison of pricing is www.webhostingtalk.com -> they have ads being posted every day on pricing for different services. REMEMBER DO NOT SELL YOURSELF SHORT. Do not offer the world if you can't provide it, over selling is not a good thing because it will in the end bring more charges than money.

Once you have thought of your plans, you need to think of how you will plan out your site. What areas do you need, how will you communicate with your clients, what methods of support will you use, how will billing work?

For Billing you need to get a merchant account of some sort, unless you wish to provide your services thru PAYPAL or via postal cheque or money order. For a starter solution look at www.paypal.com , www.2checkout.com , www.paysystems.com . There are many more just search on www.google.com for one.

Next you need to get a script that will use your merchant account, thus allowing you to take orders from the site. www.phpmanager.com , www.nixt.org , www.modernbill.com , http://www.whnbilling.com , www.perlbill.com . Once again there are plenty more out there, try www.google.com to find more.

Once you have your billing system setup, you need to think of support. To create a successful company, support is the 2nd top factor. There are numerous ways to provide this, via email, web based, and even chat (IM,IRC,ICQ,MSN) . Some of the suggested billing systems above have built in support systems, if you want a separate solution try: www.perldesk.com , www.hotscripts.com , www.totalscripts.com . Or search www.google.com for more.

So now you have a working billing system + merchant account, a support ticket system in place. Next you need to think about domain registrations. Will you want your clients to be able to register domains via your company? Or will you require clients to already have a domain? If you wish to provide this service, you will need to look into reselling domains. This way you can also make some extra money by offering this service. Remember that due to security, make sure that this registry process is offered via a SSL connection by either having your own SSL connection or using the domain registry SSL connection. www.enom.com is very popular to use, try their registry rocket program. If you can not get a good deal from them, have a look at www.webhostingtalk.com as in their forums they have many different service providers making offers all the time. Or search www.google.com .

Next you need to think of how you are going to layout your site, do you want any sort of customer interaction?

Customer Interaction is a great way to build a community between clients and potential clients. Forums are usually the best method of doing this, although some hosts provide an IRC channel (or even a whole server) for their clients to interact.

The look of your site is very important as this is what you are going to market. This is how you are going to sell your services, you want to take time and pride in this and to come up with something you are 100% satisfied with. Purchasing a layout from a design firm is one way of doing it, as long as you are buying FULL RIGHTS to the layout (so they can not resell it to other customers). Or try your hand at it, you know what you want it to look like, have a go at it. Once again try www.webhostingtalk.com for offers on layouts if you wish to purchase one. Or search www.google.com .

So now you have Billing System, Merchant Account, Domain registration, Support Centre, Customer Interaction, Site Layout.

What you now need is content. Remember to always have an AUP (Acceptable Usage Policy) , TOS (Terms Of Service) . This will save you trouble trying to explain to users that certain content is just not allowed. Also they will save you later with legal issues that may arise.

----> I have written too much, I will add more soon.

All rights reserved.. No unauthorized posting of the above text. Copyright 2003

ghost
03-05-2003, 06:35 PM
that's really good obviousl, why don't you start an e-zine or e-newsletter. :)

obviousl
03-05-2003, 06:36 PM
I am a lazy person in regards to writing.
But I enjoy sharing my experiences and knowledge. :D

PingVPS
03-05-2003, 08:13 PM
I agree quite a useful little post.

But you should also add, offer SSL for all payment and input information pages.

Especially as you do not have this on your domain registration page via enom.

W.

obviousl
03-05-2003, 08:38 PM
Thanks for the feed back.
Great point, the reason why we do not have it, is because we cloak the enom registry process so it looks as if it's part of our domain :P

But thanks again, and I will add that onto the posting above. :D

Originally posted by WipeMeDry
I agree quite a useful little post.

But you should also add, offer SSL for all payment and input information pages.

Especially as you do not have this on your domain registration page via enom.

W.

nelson
03-05-2003, 08:59 PM
You should really have your domain on a secure page, if you choose to buy a domain, you then ask for personal info and credit card info on a page that has a VeriSign Secure Site logo, with no Security. Not a safe idea.

obviousl
03-05-2003, 09:12 PM
Point taken, I will talk to sales about it. :D
But let's try to keep this topic on track, we are here to help resellers start out. So if you have any ideas about what else to add to the artical above or feel something needs to be edited drop a reply.. Questions from newbies are welcomed as well.

Paul Moran
03-06-2003, 07:52 AM
hi mate,

i have just PM'd you ...i checked out your profile and you are in sydney!! :) if you dont mind...id like to phone you for a chat for advice...if its cool...can you email me your phone number here: vfxtalk@vfxtalk.com

cheers

paul

ebigroup
03-09-2003, 02:53 PM
Hi obviousl: definitely all very good information for the new reseller. If I would add anything, it would be some advice to encourage resellers to identify their target customers as specifically as possible. Too many resellers seem to start out with the idea that, "I'm going to resell Web hosting services and build a good business," but don't clarify who they'll resell hosting services to.

The answer, "Anyone who needs Web hosting," isn't enough, because it doesn't help the new reseller market his/her services in the most effective manner possible. By nailing down a target audience in more detail ("local businesses in my community," "college students," "work-at-home moms," "gamers," etc.), a reseller can get a much better sense of where to focus marketing efforts and get the best bang for the buck.

Knowing one's target audience will also help a reseller with the last topic you addressed: content. By having a specific type of customer in mind, a reseller can offer helpful online content that his/her competitors might not have, which can help provide a much-needed marketing edge in a very competitive business.

pattox
03-10-2003, 06:21 AM
Webhostingtalk.com is not a good place to check for pricing, There are NO resellers that will be able to offer the kind of BS deals currently being offered on WHT.

Aussie Bob
03-10-2003, 10:21 AM
Originally posted by ebigroup
. . .If I would add anything, it would be some advice to encourage resellers to identify their target customers as specifically as possible. . .
Tap into your local market. I'd bet that within a 5 miles of most folks, there are hundreds of people wanting to be served in the area of hosting. Local markets are cost effective to reach. Also you'll find that there's probably zip-zero competition too.

UH-Matt
03-10-2003, 10:55 AM
Customers from local area's seem so much more plesant also :)

obviousl
03-10-2003, 04:18 PM
Looks like I have more to write.. :)
I will add more when I get the chance..

mioi
03-10-2003, 08:15 PM
What about information about how to obtain a business license after all the planning? Actually, I'm interested in becoming a reseller. Thanks for the article. I would become a reseller if I knew how to start a legit business (i.e. with a business license). That's probably the one thing holding me back.

Southernman
03-10-2003, 09:49 PM
mioi, licensing/incorporating procedures vary so much (depending on your local city/county laws) it's hard (IMO) to write a FAQ that would cover the whole enchilada.

Your best options are to first:

Contact your City Hall (unless you live in a rural area)... if so then contact your County Court House. You should be able to handle getting an ordinary Business License from one of the above.

If your actually looking to Incorporate, start at the bottom (as stated above) but your most likely going to have to file the papers with your State's Dept of Commerce (Secretary of State -- usually).

That's a nutshell summary. Maybe it's enough to get you on the right track though.

Sorry for continuing off-topic -- mioi made me do it though... :D hehe

mioi
03-10-2003, 10:01 PM
that's not completely off-topic, is it? thanks for the info. you're right, it does vary. would you by any chance know the procedures for daly city, calif.? hehe. well anyway, i doubt i'm going to get into the business. the only reason i want to start my own business is because i'm having no luck getting any kind of employment. i figure my last resort is to start my own biz. now, *this* was completely off-topic! sorry.

skelley1
03-11-2003, 12:28 AM
http://www.ci.daly-city.ca.us/business/bizlicrq.htm will be a good start in getting a business license for you mioi.

One thing that is possibly the most important if you want to have a successful business is a business plan. Without that, you're just shooting in the dark. If you don't know enough about a business to make a business plan, you don't know enough about the business. All the other features of the business would be included in this plan, but it would ensure that you've covered the traditional avenues of SWOT analysis, goals, breakeven analysis, etc. so that you could at least have a plan on what you want to do, how to do it, and what you'll have to compensate for.

Southernman
03-11-2003, 03:35 AM
Originally posted by mioi
that's not completely off-topic, is it? thanks for the info. you're right, it does vary. would you by any chance know the procedures for daly city, calif.? hehe. well anyway, i doubt i'm going to get into the business. the only reason i want to start my own business is because i'm having no luck getting any kind of employment. i figure my last resort is to start my own biz. now, *this* was completely off-topic! sorry. ummm... I was just messing around guy by saying you made me go off-topic. Typical dry humor it was. ;)

I only know about Orange County, in California (with some certainty) a business license is just a matter of filing a form, and paying your $75.00 bucks.

Where I am its only $35.00 for a typical business license, but $500+ to incorporate

Good Luck...
Steve

supportadmin
03-12-2003, 06:10 PM
This might not exactly be related but
But is there rough estimate on Server sales and Reseller sales?
If someone can provide any rough(realistic figures) that might be a good starting point for someone to get into this biz.

Sincerely

Support Admin

greg5
04-07-2003, 03:02 PM
Speaking about legalities as a web hosting reseller.

Is anyone aware of the liability issues related to hosting webs, e-mail, ISP services, etc?

In a lawsuit happy world, how can I best protect myself and assets in case data or connections are lost and the client decides to come after me or the company for claimed lost revenues?

What contractual solutions exist that limit my exposure, without having to shutter the company in case of a lawsuit?

What insurance companies offer affordable protection against loss of data or revenue claims?

Taylor
04-07-2003, 07:20 PM
I know this will seem a bit biased :) , but maybe mention about outsourcing support? :P