I am still new to this bussiness. But let say if I have 200 clients, they generally use 3-15 gb each. Would it be ideally to move away from reseller programs to my own dedicated server? If so Whats the advantage of doing this? From cost point of view, I find reselling program offers much better deal as most of them cost less than $1/gb for preset reseller account.


Look at ventureonline for example, they offer $8.50 /10gb , 9.95/15gb etc. Then If you look at their dedicated server its generally cost more than $3/gb.
Even if you compare to burst.net. Those reseller programs still look more appeallings. So Why would resellers want to move to dedicated ?


Any comment would be appreciated.

Probably because you have a lot greater control and flexibility when running a dedicated server than being a reseller on your host's system. You can install custom software, and react faster to customer support requests (since you have the ability to fix most problems, now that you have root access).

Also, in the long run it can be more profitable, as you don't have to pay a large percentage to whatever host you use.

Brian

Brian pretty much summed it up. I'm going to add one more thing.

If you have 200 accounts and pay about $10 on average for each account, then you'd be paying about $2,000 in reseller fees for those accounts. You could get a dedicated server for about $500 and put those same 200 accounts on there and so you'd have an extra $1,500 in profits... Most people never use their alotted bandwidth, so that may or may not be a factor.

The reason people may not go to dedicated is because you need to know more when you have a dedicated server then when you are just reselling.

I'm trying to plan a startup using a reseller account, but I'm spending so long every day here at WHT and planning that rather disturbingly I'm starting to dream of dedicated servers! Next I'll be dreaming of my own NOC........:D :D :D

Originally posted by Dogma
The reason people may not go to dedicated is because you need to know more when you have a dedicated server then when you are just reselling.

then managed dedicated server may still be an option and may still be more profitable :)

cheers,
:beer:

And where could you get one of those.....

I guess that most NOC's offers that service for the right amount of money :D

Besides from that I think that Brian gave a good point for going with a dedicated. My reason, besides from that, was to get more in control of what I can run, services to my clients etc. Call it flexibility if you like, however it comes with a cost and more work.

Nordic

Some, but not all. Might be a good business to get into, I personally have been thinking about it for a long time. Putting together semi-dedicated server solutions, we'll c

For me, it is not and has never really has been about the money, although it is how I make my money.

It is an unexplainable passion. I just enjoy the heck out of it.

If I had more money, I would use it to have my own NOC. That would be a slice of heaven. :)