Hello,

I'm looking into starting my own hosting company, and while looking for the best reseller option, I thougth that it could be a good idea to hire two (or more, depending on my volume) resellers, and put some of my clients in one and others in the other.

This would have the advantage that if one company starts giving bad service (or runs out of business o who knows), I could move all my clients to the other. This way the risk would be lower.

What do you think? any opinions??

Luis Alonso Ramos

I think your idea is sound. I'd advise you to do your research and choose a few hosting companies with sound reputations. Having more than one provider is a good idea.

Start with one good company. No need to increase your overhead until you get more customers.

My opinion only, but you should at the very least have your company website, forum, and etc. offsite from your regular clients so that in the event of a problem with your main reseller account, your clients can still keep in touch.

It definately can be a good idea to spread your 'eggs between multiple baskets'.

I would choose a reliable, proven provider as your provider of choice. Choose someone that can accommodate your growth and serve your businesses needs as you expand. Choose another provider of similar calibre as a backup for this provider for the worst case scenario and you should be fairly safe.

Originally posted by luisalonsoramos
I'm looking into starting my own hosting company, and while looking for the best reseller option, I thougth that it could be a good idea to hire two (or more, depending on my volume) resellers, and put some of my clients in one and others in the other.

This would have the advantage that if one company starts giving bad service (or runs out of business o who knows), I could move all my clients to the other. This way the risk would be lower.

What do you think? any opinions??

I think you are a smart businessman. :) There are A LOT of advantages to this setup. I won't give any details, but take this route and you won't regret it. :D

Originally posted by pixel_fenix
Start with one good company. No need to increase your overhead until you get more customers. I would tend to agree with this. Keep things simple, do your research, find a good reliable recommended reseller and go with them alone. For peace of mind and good business, have a documented disaster recovery plan ready to implement in the unhappy event that something does go wrong with your chosen provider.

As others have said, it would also be wise to have your support/status pages on a different network to maintain communication with customers during any 'hiccups'.

So it's not that bad, huh? :)

My idea is to get a small plan in some provider that supports overselling, and once I get 10 or 20 customers (enough to fill that account to a respectable level), insted of getting a better plan, I would hire another provider (also with overselling.)

At the end I would have 3 or 4 different providers, and regular backups of everybody's sites. If one of my providers fails, I just take all the sites and move them to the other providers. This way my customers won't notice.

I know it may be a little more expensive, but I think it is well worth the reduced risk.

As for having my own company site on its own provider, it doesn't sound that bad. But at the beginning I think I will put it with my only provider, since I don't want more fixed costs than I can afford.

Luis Alonso Ramos

The advantages are clear so your idea makes a lot of sense. You can go for it if you have the financial backup.

Yes, I will hire one, and when I start growing, I'll get another. This 'diversification' principle applies everywhere.

Luis Alonso Ramos

Originally posted by voxtreme-matt
It definately can be a good idea to spread your 'eggs between multiple baskets'.

I totally agree with u, that's how I have been running my busiiness.
Always be prepared for the worse.