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  1. #1
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    Is HostGator reseller acceptable?

    Hello,

    Everything is in the title... I would like to start my hosting company, should I start with a reseller package from HostGator or a Vps directly?

  2. #2
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    Start with a reseller account and slowly work your way up.

    It'll allow you keep costs down, and you'll be on a secure server that's monitored. When you begin to outgrow the reseller account then make the move to a VPS Last thing you want is to be paying out $60+ for a VPS when your not making enough to cover the costs.
    Adam Hoban.
    ManobanWeb Group
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  3. #3
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    I've been using them for my smaller clients for over 8 years. Rock solid with great support and uptime.
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  4. #4
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    It really depends on what you plan to offer, if you are happy offering the current services HG is offering to their clients, then yes, go with a regular reseller account. However if you were looking to customize your web hosting service (installing your own software), then a VPS will be your best bet.

    Personally, if I were you and if I were not comfortable managing my own server (which it sounds like to me, you are not). I would start off with a regular reseller plan. Either way, best of luck!
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  5. #5
    Quote Originally Posted by lewis2005 View Post
    a reseller package from HostGator
    HG doesn't allow overselling which means you can create 10 accounts with 5GB disk space each on the starter plan.
    Good thing: quality should be guarantee because of limit on resource allocation.
    Bad thing: depends on your business model you may not be able to make much profit.

    With overselling enabled, you can create more hosting accounts. Reseller quota is actual usage.
    One problem is you need to choose a reseller plan that looks reasonable from a host knowing how to manage their servers.
    PremiumReseller.com Hyper-V SSD VPS USA London Singapore
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  6. #6
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    What's your budget? HostGator reseller plan IS acceptable, but there are much better out there. I can recommend and refer you to many places that would love to help you get started, or if you wish to go the dedicated server route I know a very well known provider that can definitely give you a server to start off for a VERY low price.

    I hear a lot of people talking about k-disk, but i've never had any experience with them before
    Patrick Nett | E-mail: Patrick.Nett[at]Gmail.com

  7. #7
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    What is much better? Budget is not important, I just want to start right!
    Thnaks

  8. #8
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    If you have a high budget go with a dedicated server. two if you can

    If you have a medium sized budget i'd find a good VPS to use for now

    If you have a small sized budget a reseller will have to do

    Don't forget to save money for support staff - slow support will result in your customers only staying with you for a couple months. TOPS.
    Patrick Nett | E-mail: Patrick.Nett[at]Gmail.com

  9. #9
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    Ok. Is there a difference for the clients (in terms of speed...)between a dedicated/Vps, Vps/Reseller, Dedicated/Reseller?
    Thanks for your help

  10. #10
    Quote Originally Posted by PatrickN View Post
    If you have a high budget go with a dedicated server. two if you can

    If you have a medium sized budget i'd find a good VPS to use for now

    If you have a small sized budget a reseller will have to do

    Don't forget to save money for support staff - slow support will result in your customers only staying with you for a couple months. TOPS.
    What would you recommend if you're on a ~400 USD budget?

  11. #11
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    Thumbs up

    Quote Originally Posted by JohnMoberg View Post
    What would you recommend if you're on a ~400 USD budget?
    Hello,

    If I am in your place, I will go for a Dedicated Server ! 400 $ means a lot if you uses it wisely.
    " Your work is to discover your work and then with all your heart to give yourself to it. "

    That's the mark of a true professional !

  12. #12
    Quote Originally Posted by cptechie View Post
    Hello,

    If I am in your place, I will go for a Dedicated Server ! 400 $ means a lot if you uses it wisely.
    Yeah, I thought so too. I'm considering a dedicated server from Hetzner, however the costs are hefty. 212 USD setup cost, 70 USD per month for server and 39 USD per month for cPanel. That means that I can only afford running for one month unless I get a massive amount of customers.

  13. #13
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    Quote Originally Posted by lewis2005 View Post
    Ok. Is there a difference for the clients (in terms of speed...)between a dedicated/Vps, Vps/Reseller, Dedicated/Reseller?
    Thanks for your help
    Lewis,

    Yes, there is a difference. It all depends on the specifications of the servers, network and cpu usage. The more you spend, the more control you have. If you have the money, I would just go with dedicated server no questions asked. If you're wanting to start your own company, you must work. And by working I mean searching google on how to do stuff on your own when you purchase your dedicated server (assuming you're not super amazing with servers). But some companies have management services and can help you with a lot of things. I have a suggestion for you...

    Clint at LimeStoneNetworks (LSN) - he can help get you setup. He can offer great deals on dedicated servers they have at LSN and they also have either 1) ProActive Management or 2) LimeAid. If you have decent experience with servers and not lazy to google, you can just use their LimeAid service for when you really need it. If you know nothing about servers ProActive Management really helps.

    If you want a VPS or Reseller - HostGator is definitely known for having real time 24x7 support and always being able to talk to someone via live chat within minutes or phone. Ticket response times with them is usually 1-3 hours, but normally you can go on their live chat and ask for your ticket to be escalated right away (depending on emergency level of your ticket).

    Let me know if you have any other questions I can answer for you.
    Patrick Nett | E-mail: Patrick.Nett[at]Gmail.com

  14. #14
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    Quote Originally Posted by JohnMoberg View Post
    Yeah, I thought so too. I'm considering a dedicated server from Hetzner, however the costs are hefty. 212 USD setup cost, 70 USD per month for server and 39 USD per month for cPanel. That means that I can only afford running for one month unless I get a massive amount of customers.
    John,

    I would not recommend a company that offers pricing like that. They are in it for the short run as they seem to care more about having quick cash in their pockets asap. If I were you, I would find a budget provider, or as I always like to recommend GigeNET (high budget) or LimeStoneNetworks (low budget).

    $400/month will definitely get you a quad core, 12gb ddr3 ram, at least 1tb worth of hard drive space with raid 1 or higher at LSN. If you want proactive management (they handle almost everything for you) then you might have to throw in a few bucks or downgrade the ram or hard drive a little.

    If you don't need pro-active you can probably get a dual quad core e5504, 6gb ddr3 ram, 2x1tb with raid1 for around $300-350/month (including cPanel)

    but if $400/month is your budget for EVERYTHING I suggest:

    Xeon x3440, 4gb ddr3, 2x1tb hd with raid1 and cPanel which you could probably beg Clint at LSN for only $250/mo then you have $50 left over per month for 5 limeaid support

    $100/mo left to buy yourself a VPS to host your initial website, get whmcs license, and get live support.

    if you don't already have a website $400 is not enough.

    let me know if you need anymore help.
    Patrick Nett | E-mail: Patrick.Nett[at]Gmail.com

  15. #15
    Quote Originally Posted by PatrickN View Post
    John,

    I would not recommend a company that offers pricing like that. They are in it for the short run as they seem to care more about having quick cash in their pockets asap. If I were you, I would find a budget provider, or as I always like to recommend GigeNET (high budget) or LimeStoneNetworks (low budget).

    $400/month will definitely get you a quad core, 12gb ddr3 ram, at least 1tb worth of hard drive space with raid 1 or higher at LSN. If you want proactive management (they handle almost everything for you) then you might have to throw in a few bucks or downgrade the ram or hard drive a little.

    If you don't need pro-active you can probably get a dual quad core e5504, 6gb ddr3 ram, 2x1tb with raid1 for around $300-350/month (including cPanel)

    but if $400/month is your budget for EVERYTHING I suggest:

    Xeon x3440, 4gb ddr3, 2x1tb hd with raid1 and cPanel which you could probably beg Clint at LSN for only $250/mo then you have $50 left over per month for 5 limeaid support

    $100/mo left to buy yourself a VPS to host your initial website, get whmcs license, and get live support.

    if you don't already have a website $400 is not enough.

    let me know if you need anymore help.
    Oh, I think you misunderstood me (my fault). I have a $400 starting budget. That's it. Not per month. But I already have a decent VPS (512MB premium). Hmh.

  16. #16
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    $400 is simply not enough. If you could start a successful hosting company with a $400 budget, everyone would do it. It takes a lot of investment + risk to get into this industry. If I were you, I'd save up and wait. No point in spending your money now or you will just end up losing all of it in the end. I know you're eager to start a company right now, and you really want to find a way to do it. But TRUST ME, you WILL regret it in the end. It's hard to convince someone who really wants to do it, but you have to try and trust me. $400 will get you nowhere.

    You could do $400 IF you have amazing experience with networking, hardware, software, etc. Could make/design your own website, have amazing marketing skills, and enough time to dedicate yourself to be the only employee of the company. That's the ONLY way. Because you won't get customer signups right away, you need money left over for a few months to break even with your reseller hosting, vps, or dedicated server. And on average, you must wait a couple years before you even break even (with high capital companies)
    Patrick Nett | E-mail: Patrick.Nett[at]Gmail.com

  17. #17
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    Hi,

    Thanks for the wonderful help you are all giving, it is really very nice!

    What I would like to know is : If I start with a reseller, will the users see the difference than with a dedicated server. Are they going to feel it in the speed etc...
    I also have this thing, I just will not oversell.
    So is a reseller going to do the trick or is it too low in performance to really get appreciated by the users.
    I don't want to come into the business to think I am going to make a lot of money. I want to really be there and give the users quality and not quantity.
    I have got some experience with dedicated servers... the thing is, is it really worth it to start with a dedicated?

    Thanks for your help!

  18. #18
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    Lewis,

    of course it's worth it to start with a dedicated, but ONLY if you have the budget for it. If you struggle paying that much then don't. Think of it this way, go the route that you can afford to pay a full years worth without having a single client. And yes quality matters and the customers can tell a difference. It really depends on who you're reselling from though. To guarantee yourself quality, I would just find a reputable dedicated server provider and go from there. Reselling should only be for those without much hosting experience and on a limited budget. When choosing reselling the only real time skill you'll need is business management. I'm only done with my undergrad right now for business management and will begin my MBA next year, but it doesn't mean much really. You can obtain this knowledge by doing two things...

    1) observing
    2) researching

    back to the topic of quality and hosting
    just do what your budget allows, obviously the higher your budget the better. But this doesn't necessarily mean that you can't succeed starting out with a reseller package, it's just harder. There's always those few people of thousands to tens of thousands that succeed with limited budgets, and let's just say they got in at the right time and were lucky.

    good luck!
    Patrick Nett | E-mail: Patrick.Nett[at]Gmail.com

  19. #19
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    Thanks Patrick!

    So :

    If I go with a reseller, who do you recommend?

    If I go with a dedicated, who do you recommend?

    I will have a look at my budget. Thanks for your help!

  20. #20
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    Lewis,

    I've never actually used reselling before. I've purchased reselling packages, but just to see what it's like (so I could offer it in my company in the future). I've done research since 2003, and JUST NOW 2011 opening up a new provider quite soon. I'm just sharing my thoughts to you, that's all. I will try my best to answer your questions though.

    Reseller: HostGator, Site5, Web Hosting Buzz...I've purchased from all these and all seem to be fine. Look into them, ask pre-sales questions and see which works best for you. They all 3 have 24x7 live sales support...literally 24x7.

    Dedicated: GigeNET or LimeStoneNetworks. I can't share my pricing with either of those companies, but I can assure you that LimeStoneNetworks WILL work with you to give you a custom deal. Just message Clint from LimeStone or ask for his e-mail address. GigeNET provides a few things that LSN doesn't, but if you're talking about quality and services...they're both equal and LSN is definitely WAY cheaper.

    np, feel free to ask me anything, i'm quite open and LOVE to answer questions
    Patrick Nett | E-mail: Patrick.Nett[at]Gmail.com

  21. #21
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    Ok! Thanks a lot! Will have a look at LSN!

  22. #22
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    Great, be sure to update us on how things go with him. If you want the best deals, wait until Clint from LSN is available. He's one of the best people in the industry I've ever worked with. It's like he can read your mind on what you're wanting and looking for, for your budget.

    If LSN doesn't work out for you I have a few other suggestions. Just let me know!
    Patrick Nett | E-mail: Patrick.Nett[at]Gmail.com

  23. #23
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    Sounds like you had the same idea i did, i went with hostgator's reseller, start out slow, my goal is in 2 years to offer vps, dedicated servers within 5 years. Hostgator has been great to me.

  24. #24
    dont want to hijack your thread. Since Patrick has been so helpful here I want to ask him a few questions:

    1. What difference would it make to the end user in terms of speed, uptime, performance etc. whether he is selling through a reseller or a vps?

    2. What difference would it feel like to the client regarding the look, interaction and feel of the website in a reseller vs a vps?

    3. You said he could make out. How would a general small business owner make out if the service is a reseller package or a vps?

    If he has a budget for a vps, why should he go with it and not a reseller account from hostgator?

    Thanks Patrick for all the info in this thread.
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  25. #25
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    Quote Originally Posted by farhan713 View Post
    dont want to hijack your thread. Since Patrick has been so helpful here I want to ask him a few questions:

    1. What difference would it make to the end user in terms of speed, uptime, performance etc. whether he is selling through a reseller or a vps?

    2. What difference would it feel like to the client regarding the look, interaction and feel of the website in a reseller vs a vps?

    3. You said he could make out. How would a general small business owner make out if the service is a reseller package or a vps?

    If he has a budget for a vps, why should he go with it and not a reseller account from hostgator?

    Thanks Patrick for all the info in this thread.
    1. Let's take a look. It also depends on the company he's with and their upstream provider. If you're on a VPS you have a little more control than you would on a reseller plan. Some reseller plans are strictly limited. If you put more stress on the server, of course the performance will weaken.

    2. If you're talking about the clients website, it would still depend on how the servers are being managed. You can't really guarantee 100% what your performance will be like if you're a reseller or using a VPS. With a dedicated server, only you have control over the whole machine and the only thing you'll have to worry about is the network speed of the server that it's connected to. The client can "feel" the performance difference if any servers are surpassing recommended CPU usage in which the VPS or reseller user may have not much control over, and only their upstream provider will be able to provide such details.

    3. If I'm understanding your question correctly, and you're pretty much asking me how he's going to break even and start gaining profits...Time, patience and dedication. If you can talk with your upstream provider on guaranteeing quality then all you have to worry about is your operations in your business. Be sure you have a business plan and everything is going according to plan. Always be available and working hard around the clock (when you're not sleeping or doing something more important). Customers won't notice if you're a reseller or on a VPS if you do a good job and research/prepare/plan before you start selling.

    4. strictly because he will have a little more control over what's going on and getting more for his budget. Besides, didn't we hear someone mention that HostGator limits cPanel accounts? If he plans to do a little bit of overselling, that will hurt his business.

    no problem, let me know if you have any other questions.

    Let me state something real quick - I would not trust me 100% on my information that I am providing because I am not a certified engineer. Everything I say is based on my experience and not research. I am a business management administrator and most of my jobs I own. I do more business administration than the technical side of the companies that I work with. I only know my basics when it comes to web hosting.
    Patrick Nett | E-mail: Patrick.Nett[at]Gmail.com

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