Hi,
I guess I will go ahead and just start with a reseller plan to gain clients but my only question is compared to all the other host providers on the market in order to be competitive I would have to over sell.

For example:
If I go with hostgator reseller plan.
24gb diskspace
240gb bandwith

If I only have that much available then I would really have to over sell in order to make anything because every body else offers that in a starter plan. Can somebody give me a good idea how my plans should be?

Thanks,
James

I know this may not be the answer you want, but why even attempt to enter a market that's already oversaturated by oversellers. Why would someone buy from you when they could buy from hostgator directly? What distinguishes your services from ever other Bob on the market? There are plenty of companies doing exactly the same thing, so unless you already have clients, or you plan to make yourself different from everyone else, it may not even be worth your effort.

Yeah I understand what you are saying. Really there isn't nothing else I can offer different the all the competitors. So really what I see is spending money and just advertise as much as possible. But I really don't know how to set up my plans if I am going to over sell. I really don't know what the average person uses. So that is kind of what I need to find out.

I think you're going about this wrong.

You need to start with a business plan. You need to figure out who you are going to market to, how are you going to do it, what are your costs (both fixed and variable) and use that information to determine your plans and price points.

If you don't do the backwork you're just shooting in the dark.

Well that is what I am going to do is use a reseller plan but I don't want to over shoot and go out of business all the sudden because people used all the resources. So when you say business plan are you refering to a reseller plan?

Well that is what I am going to do is use a reseller plan but I don't want to over shoot and go out of business all the sudden because people used all the resources. So when you say business plan are you refering to a reseller plan?

What he's trying to explain to you is that you need to step back.
If you have nothing -special- to offer your clients your business is likely going to fail.

I suggest researching business plans and writing one up (completely!) before even looking at reseller plans.


http://en.wikipedia.org/wiki/Business_plan

Good luck.

Google is your friend. Definition of a business plan (http://www.google.com/search?client=safari&rls=en-us&q=define:Business+plan&ie=UTF-8&oe=UTF-8), but it seems if you don't know what one is, your not serious about hosting. As someone else on this forum said, you need enough funding to cover your expenses for two years to get to a break even point.

but it seems if you don't know what one is, your not serious about hosting.
I wouldn't accuse the OP of not being serious about starting his business. I'm sure he's very serious and sincere.

I think the advice presented here is very sage. Businesses make money because they're doing something that others are not, or doing something better then others. By offering the same thing, you'll not be able to differentiate your service.

Advertise all that you want but if the message is the same, it may not have the impact you'll be hoping for. Don't forget, others are advertising like crazy as well.

Finally how much capital are you willing to invest in this, you'll need a fair amount to start up the business and keep it going before you gain enough customers to turn a profit. Most small businesses fail because of a lack of capital.

HostGator has overselling disabled.

for any issue google is the best advisor

One thing to keep in mind. You shouldn't oversell from within a reseller account because your provider is already overselling to fill the server.

The only way to get anywhere is with your own server and then you do oversell.

And then, as everyone else has said, you need a very concrete reason why someone should use you instead of the 10,000 other people reselling hosting for $2/month or less. If you can't answer that question well, how are your customers going to be able to answer it.

Think about why you're going with a biggish company like hostgator instead of one of the little players.

Hi,
I guess I will go ahead and just start with a reseller plan


As others have stated here, begin with a business plan before you jump into this. Everyone seems to come into this thinking it is easy money. It is not anymore, it is a tough business with a lot of cut throat players.

A business plan is basically; what in general terms am I going to sell, what is it going to cost me (total), how much profit do I need to make to make it worthwhile, what am I going to sell specifically (packages), how many must I sell to get to my revenue goal, how much is each going to cost me (variable), how much am I going to spend whether I sell anything or not (fixed), ow fast do I think I can sell. Put it on a calendar month to month - sales - fixed cost - variable cost - profit or loss ----then, can I survive (do I have enough money) to last until this thing breaks even.

Until you have a firm hold on that. You are destined to lose. "To Fail to Plan; Is to Plan to Fail."

I have a few points I wish to point out:

1) In reviewing just a few posts I have noticed that the term oversaturated is used frequently in a negative term. Perhaps I am coming on too strong here but it sounds more like an excuse for failure. The positive side, is that if an industry is what some may call oversaturated we can think in the terms of being in the right business because there is a need for the services in which we provide. I have yet to see anyone on the boards discuss the fact of "churn" (cancellations) and how this can positively impact a new starting hosting company. For example, I will use the wireless phone industry. The average cancellation percentage is 2% per month, with some companies being higher and some being lower. If a company has 9 million wireless customers that is 180,000 people cancelling phone service in which is safe to assume a majority of them will be using a different provider. The fact is that many times hosting clients cancel and go to a different provider. If we think about the giants in the hosting industry, imagine what there cancellation percentages might be and the possibilities. Let's assume a 250,000 customer count with 1% churn. This equals 2,500 new prospective clients for us to gain business from and this is just using one large hosting company. Think about those with higher churn percentages, hosting resellers, etc. Oversaturated is actually a fairly good thing and it should keep you on your toes in delivering the best possible customer experience.

2) It seems that often times many get involved in a business with no business plan and no niche market. In our industry the goal is to get as many hosting clients as possible. I can appreciate it, but the goal should really be something more like to gain 100 new hosting clients in the next 6 months from car dealerships through out the state of Texas. With a goal such as this, you have an attainable number, a specific niche market to target and keep focused on, and opportunity to establish a repore with your client base that the other hosting companies can't provide. You can learn more about the auto industry and make presentations on how hosting with you can actually increase there sales through your free recommendations, search engine optimization, live chat software, etc. Niche market is the best way to start off on your new business.

3) Delivering a positive customer experience should be your main goal not only when starting your company but at all times. When was the last time you telephone one of your hosting clients to simply introduce yourself and thank them for being a valued client? Do you email your clients every so often to check up on them and make sure they don't have questions? When was the last time you sent a personalized email to a new customer? While yes these things will take time away from an already busy day, these clients are what helps make us successful. By going above and beyond in the area of customer service you are able to substain a customer loyality unparlell to your competition, reduce churn, build referral clientele, and build name brand recognition.


I hope my post provides some insight not often times discussed and provides strength to the very foundation that supports the core of your organization.

Michael Orta
AvekHost.com

Get a bussiness plan together and get poeple to review it.

use a different host with master reseller plans.

its too limited with Hostgator.

also prepare to face lots of problems with things if you are new to hosting business,

i myself have had lots of problems, but patience is needed the most.

If you have enough time and patience then i suggest you go for it.

use a different host with master reseller plans.How's that going to be the solution exactly? Are reseller hosting packages that much easier to sell? :confused:

you seems to be joking, yes its easier to manage it and sell, you don't exactly have to have your own dedicated or VPS for the first time, its just a waste if you dont really know how to handle it.

I am just suggesting him to try out small and then tackle bigger issues as he grows in his maturity about hosting business.

How do you succeed? One step at a time.

Thanks, ;)

I am a win server admin and planning to start hosting or to support someone who needs.. in a friendly manner...but the road is too heavily crowded with competetion...so planning and staring with patience will yield better results... better and friendly support will be added advant..

When someone is new in hosting and knows nothing abt server administration and opts for VPS he will be thrown in sea with no help..yeah..VPS setup and running with your site with no ones help will take 10 - 15 days atleast and you will end up breaking heads if u r not technically strong...

best option is "Reseller Account with good support and good server uptime.."

Avekhost has given the best advice so far, and its about what everyone else has stated here too - business plan and finding a niche. It will be hard, but with hard work and dedication you'll be fine.

'You need to start with a business plan' - i see this all to much, you don’t need a business plan at all, business plans are for banks and investors what you need is a clear head and research your market and develop a clear understanding a believe inside your mind that you can and know what you are going to do to make your business a success and work very very hard

That's what a business plan is. It doesn't have to be a formal, legalized document, but planning before you start is only smart business.

You need to know who your target client is, what you're competitors are doing, how are you going to differentiate, how are you going to market, what are your costs, what can you afford to charge to make the profit you're looking for, how long until profitability, etc. All of these things are the hw that has to be done prior to opening up shop. Does it have to be a detailed, formalized plan, no. But it still has to be done.

That's what a business plan is. It doesn't have to be a formal, legalized document, but planning before you start is only smart business.

You need to know who your target client is, what you're competitors are doing, how are you going to differentiate, how are you going to market, what are your costs, what can you afford to charge to make the profit you're looking for, how long until profitability, etc. All of these things are the hw that has to be done prior to opening up shop. Does it have to be a detailed, formalized plan, no. But it still has to be done.

Well.. i never did one and my providers turn just over 8 million $usd per year and i have never done one, so it does not HAVE to be done at all :) but planning is smart business but you dont have to do a full blown business plan unless your trying to get financing, saything that, i doubt many of you have seen a 400 page full blown business plan before