Web Hosting Talk







View Full Version : Structuring a Reseller Program??


JoeB
10-04-2000, 01:05 PM
I am thinking about using one of two structures for a reseller program.

1) Price Tier - (i.e. olm.net)
You sell one account type. Additional options are avalible to create new packages. As you add accounts your price per account drops.

or

2) Percentage - (i.e. burlee.com)
Packages are based on the host providers packages. Discounts are given on each account sold. Discount increases as you add accounts.

Which type is more intresting for the reseller?
Which is better for the host?
Is there another way i am not seeing?

MikeA
10-04-2000, 02:30 PM
Go here for the different types of resellers.

http://www.resellerinfo.com/types.html

JoeB
10-04-2000, 02:42 PM
Thanks!!

Amplify_girl
10-04-2000, 04:51 PM
Well, if you want a reseller's oppinion about the two structures that you posted:
I believe a *Percentage* type would be better for both resellers and the main host..

1. Resellers who want more than one package would be satisfied.. and those who want only one could choose from the packages to find the one they most like...
2. The more packages they offer, the more customers will be interested in the plans.. - example: those who need 10Mb-type plans, those who need 100Mb+MySQL, etc..
3. You and your staff will know the packages very well, because they're just like your regular packages.. I think this would make support much easier..
4. The possibility that a current customer will want to start reselling is higher.. they would just need to order more accounts after the one that they already have... no high-cost to start..

Worth to mention: Resellers *hate* setup fees... on everything.. we *don't* want to have a huge billing in our credit card just to start as a small hosting company, or we would be looking for a dedicated server or virtual server instead of a reseller program... just my advice..

That's why I don't recommend *bulk* reselling also..(looking at the ones described at Resellerinfo.com)
I mean, if you do it like MikeA, who have *both* individual *and* bulk reselling at his Hosting service, than it's worth it, because it must be the most profting option for the hosts....(resellers pay for a bunch of accounts in advance).. but I don't think this is a good option for the resellers...