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  1. #26
    Join Date
    Jun 2008
    Location
    Philippines, Manila
    Posts
    69
    Thank you for such a nice plans design model, i will work more on it. Very interesting

  2. #27
    Great tutorial.
    Learned a lot.

  3. #28
    Yash, this is a priceless info for startups like me!

    I joined this forum for info like this, hoping to be one of the great hosting companies in Nigeria with high quality service (for now).

    I hope to be there one day to give back, in form of guidance to others, wot I have earned from this forum. Long live WHT, long live contributors like Yash.

    Thank you.

  4. #29
    Join Date
    Jun 2009
    Location
    Toronto, Ontario
    Posts
    125
    some great info here

  5. #30
    Join Date
    Oct 2009
    Posts
    352
    Quote Originally Posted by Yash-JH View Post
    Another reason is you would want your highest shared plans to be competitive with your lower reseller plans. Often a shared client would move to a reseller plan just to gain extra resources...
    Very true, it happened to me as a customer. I needed more space/bandwidth, but I didn't need to resell anything. My hoster did not provide enough space/bandwidth on shared plans, so I had to move to his reseller plan wasting my time learning WHM.

    Quote Originally Posted by Yash-JH View Post
    ...And typically, a reseller plan with more overheads is more expensive to offer customers. Hence, it is to a host’s advantage to have higher-end shared clients stay on a shared package.
    Can someone explain why he says: "a reseller plan with more overheads is more expensive to offer customers"
    What's the "overhead" that makes the plan more expensive to offer to customers?

  6. #31
    Join Date
    Feb 2007
    Location
    Isle Of Anglesey, UK
    Posts
    1,468
    Quote Originally Posted by WebMaister View Post
    Can someone explain why he says: "a reseller plan with more overheads is more expensive to offer customers"
    What's the "overhead" that makes the plan more expensive to offer to customers?
    Usually support costs.

    1 shared hosting client is unlikely to contact the host requiring support as often as a reseller with many shared hosting clients.
    Last edited by HostOrca Gareth; 08-16-2011 at 07:24 AM. Reason: typo

  7. #32
    Join Date
    Feb 2007
    Location
    Isle Of Anglesey, UK
    Posts
    1,468
    Ooops Double Post
    Last edited by HostOrca Gareth; 08-16-2011 at 07:52 AM. Reason: Double Post

  8. #33
    Join Date
    Oct 2009
    Posts
    352
    Quote Originally Posted by HostOrca View Post
    Usually support costs.

    1 shared hosting client is unlikely to contact the host requiring support as often as a reseller with many shared hosting clients.
    So it's not talking about server overhead.
    I mean hosting a cPanel account takes the same server overhead of hosting a WHM account that has only one cPanel account, doesn't it?!

  9. #34
    Thanks for that post, very informative. I think a common mistake of new web hosts is to engage in price wars for example offering (at the extreme) $0.5 unlimited hosting plans. It is not good business to engage in a race to the bottom especially as a new start up. It is more efficient in my view to have 100 clients generating a $10 each than having to attract 1,000 clients generating $1 each. Those 1,000 clients will generally use up more resources and more support. Low prices are best attempted when you are a large company and can scale things. To attract customers at high prices however you need to provide extra quality somewhere.

  10. #35
    Join Date
    Sep 2007
    Location
    In ur heart
    Posts
    113
    Quote Originally Posted by InvictaWebs View Post
    Thanks for that post, very informative. I think a common mistake of new web hosts is to engage in price wars for example offering (at the extreme) $0.5 unlimited hosting plans. It is not good business to engage in a race to the bottom especially as a new start up. It is more efficient in my view to have 100 clients generating a $10 each than having to attract 1,000 clients generating $1 each. Those 1,000 clients will generally use up more resources and more support. Low prices are best attempted when you are a large company and can scale things. To attract customers at high prices however you need to provide extra quality somewhere.
    Yes, $0.5 price can make only quantity but it will downgrade the quality of sever as well as service provider support staff due to load of higher tickets/chats/server monitoring therefore its always better to manage quality .... quality service take time to join new clients and profit but it will be stable...

  11. #36
    Join Date
    Sep 2011
    Location
    Cairo, Egypt
    Posts
    47
    Good information but this is topic is from too many times is there are any one have a new strategy ?

  12. #37
    I haven't a knew a new strategy , but I just want to say that it's a cool tutorial. Thanks for such a good topic.

  13. #38
    This was a good read, thanks!

  14. #39
    Thanks for the post, great information provided.

  15. #40
    Just wondering members thoughts on pricing levels which are up to date as i notice that the earlier posts and tips are several yrs old now.

    I'm just setting up my own hosting site and am curious for opinion on pricing.
    I want to be competitive like everybody else, but not under price the market to such an extent as to appear cheap and suspicious if you know what i mean.

  16. #41
    Join Date
    Jun 2012
    Location
    Orlando, FL, USA
    Posts
    42
    Best Package/Plan Strategy with better Pricing but nowadays the prices go down and resources go up.
    Information is great for new web hosting business owners with better idea for shared and Reseller package creation and managing.

  17. #42
    Join Date
    Oct 2013
    Posts
    55
    Any updates/tips for this in 2014?

    Great article but is limiting other resources still a way to do it? Or is the service/attention level now a best way to differentiate (meaning the more personal service the higher price you can get and resource amount don't matter pretty much).

  18. #43
    Join Date
    May 2014
    Location
    Brisbane, QLD, Australia
    Posts
    7
    Good post. Will use some of the information in this. It does seem like offering the world is a common entry level host's biggest mistake, forgetting that down the track their going to encounter support cost's and larger requirement for bigger servers dropping their monthly profit, potentially enough to price out themselves.

  19. #44
    Quote Originally Posted by RCKG View Post
    Any updates/tips for this in 2014?

    Great article but is limiting other resources still a way to do it? Or is the service/attention level now a best way to differentiate (meaning the more personal service the higher price you can get and resource amount don't matter pretty much).
    Hi RCKG.

    The information in this post still has some viability, however, the questions you asked are more appropriate to date.

    1. Resource Limiting:

    Resource limiting is a marketing strategy which allows you to provide increased costs on larger packages, as a potential or current client will be more inclined to purchase it, as they believe, and which it is, a better benefit to them.

    For example, let us go with three hosting packages. Basic, intermediate, and advanced. The basic package comes with 2 gigabytes of space, unmetered bandwidth, but only 10 of each resource (MySQL, Domains, Email, and so on). The intermediate package comes with 10 gigabytes of space, unemetered bandwidth, and unmetered resources. The advanced package comes with 50 gigabytes of space, unmetered bandwidth, and unmetered resources. The three packages are evenly priced at $2 per month, $4 per month, and $6 per month.

    The limit on the basic package will look appealing to a client who may not understand too much about the web hosting industry and how web hosting works, but the intermediate package will be your high hit, as the price is in the middle, the space given is quite reasonable, and the resources are much more.

    2. Customer Service:

    Whether you are a small name in the industry or a large name in the industry, customer service will always allow you to increase pricing while keeping resources at a minimal or reasonable.

    Anyone, whether inexperienced or experienced with web hosting, wants their service to run smoothly, effectively, and how it is expected. If something were to go wrong, for instance a brief shutdown, a DDoS attack, a service failure, and so on, that person will want immediate action taken. The level of service can make or break your business.

    Let's go back above to the three package examples, and give three scenarios.

    Scenario 1: provider has limited ways of contact but excellent support.

    Scenario 2: provider has abundant ways of contact but poort support.

    Scenario 3: provider has a good mix of both.

    In scenario 1, a client will most likely be satisfied with the intermediate or advanced package since they are given excellent support when needed.

    In scenario 2, a client will most likely only go with the basic package as they are not being supported enough for the other two.

    In scenario 3, a client will mostly likely be satisified with either of the three packages.

    I will plan on posting a new thread in here with some updated information on pricing points, plan creation, and ongoing maintenance.
    Morgan Klaif
    Business Manager / System Administrator / IT
    MorganKlaif28 [at] comcast [dot] net

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