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  1. #1
    Join Date
    Nov 2003
    Location
    Paris
    Posts
    10

    Question Breakeven & review packages

    Hi,

    I bought a reseller package one month ago.
    Since, I have spent a lot of time with Excel to check if my business plan sounds good.
    With my reseller account, my unbranded WHMCS licence and Demowolf subscription, I plan to be breakeven with 7 customers (webhosting only, no domain names margin) on a monthly basis.
    Do you think it's ok?

    And could you review my packages please?

    Basic
    10 GB Storage
    100 GB Bandwidth
    10 Domains
    10 MySQL Database
    10 Email Accounts
    Unlimited Subdomains
    4,95 (~$6.30)

    Normal
    25 GB Storage
    250 GB Bandwidth
    25 Domains
    25 MySQL Database
    25 Email Accounts
    Unlimited Subdomains
    9,95 (~$12.64)

    Super
    60 GB Storage
    600 GB Bandwidth
    60 Domains
    60 MySQL Database
    60 Email Accounts
    Unlimited Subdomains
    19,95 (~$25.34)

    Extra
    100 GB Storage
    1.000 GB Bandwidth
    Unlimited Domains
    Unlimited MySQL Database
    Unlimited Email Accounts
    Unlimited Subdomains
    29,95 (~$38)

    Thanks for your feedback
    I'm french, sorry for my bad english
    My Project : Teamspeak Hosting

  2. #2
    Join Date
    Feb 2003
    Location
    NY
    Posts
    11,498
    Do we think it's okay? We aren't the one's that need to pay the bills and keep the lights on, you are. Are you okay with your break-even being 7 customers?

    7 customers is also generic, is it 7 customers on plan "Basic" is it 7 customers on "Extra"? Most Break-even's are done at a dollar threshold, not necessarily a headcount because each client can pay for different things. Especially add-on features and other things that might come with additional cost or have different margins.
    Doug, Sales Leader
    VPS | KVM SSD & SATA VPS | Dedicated Servers | Colocation
    99.999% Uptime | 24x7x365 Support | Global Data Centers
    www.bigbrainglobal.com | Big Brain Global Networks

  3. #3
    Join Date
    Nov 2003
    Location
    Paris
    Posts
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    Quote Originally Posted by Techy View Post
    Do we think it's okay? We aren't the one's that need to pay the bills and keep the lights on, you are. Are you okay with your break-even being 7 customers?

    7 customers is also generic, is it 7 customers on plan "Basic" is it 7 customers on "Extra"? Most Break-even's are done at a dollar threshold, not necessarily a headcount because each client can pay for different things. Especially add-on features and other things that might come with additional cost or have different margins.
    Ok, my question was probably too generic.
    I can afford 0 customers for a lot of time, it's not my primary source of income. My calculation was on the basic plan, so you could see that I'm breakeven at $44 (on monthly basis).
    I'm the guy who pay the bills, it's right

    And what do you think on the packages?
    I'm french, sorry for my bad english
    My Project : Teamspeak Hosting

  4. #4
    You will find it difficult to compete with other shared hosting providers on forums like WHT. Many well-known providers are offering unlimited everything. However, you may be very successful catering to the local market where consumers might be a little less savvy about the web hosting industry. Good luck with your venture!

  5. #5
    Join Date
    Feb 2003
    Location
    NY
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    11,498
    Quote Originally Posted by NineConnect View Post
    You will find it difficult to compete with other shared hosting providers on forums like WHT. Many well-known providers are offering unlimited everything. However, you may be very successful catering to the local market where consumers might be a little less savvy about the web hosting industry. Good luck with your venture!
    How do these hosts find these unlimited drives and unlimited bandwidth connections?

    I keep visiting Office Max, Office Depot, Best Buy and all these other stores asking about the unlimited drives, but they never have them. Do they exist?
    Doug, Sales Leader
    VPS | KVM SSD & SATA VPS | Dedicated Servers | Colocation
    99.999% Uptime | 24x7x365 Support | Global Data Centers
    www.bigbrainglobal.com | Big Brain Global Networks

  6. #6
    Join Date
    Apr 2012
    Posts
    133
    First,
    I thought it was against the rules to offer Unlimited Plans? If i read the rules right, you cant even have unlimited on your web page? I guess i am wrong.

    To OP:
    You should bring a 1GB plan to action as well. Most sites wont go over 1GB storage.
    WebTonight.co
    Master Reseller|Reseller|cPanel Shared|Unlimited.
    Softaculous|Fantastico|RVSiteBuilder Pro|Free R1Soft Backups.
    Powered By CloudLinux servers|RAID10| 99.9% Network Uptime.

  7. #7
    Join Date
    Mar 2007
    Location
    USA
    Posts
    4,905
    Quote Originally Posted by Techy View Post
    How do these hosts find these unlimited drives and unlimited bandwidth connections?

    I keep visiting Office Max, Office Depot, Best Buy and all these other stores asking about the unlimited drives, but they never have them. Do they exist?
    I'll stop by in a bit, I'm leaving right now anyway. However last time I asked, I got a funny look.

    Looks like I'll keep catering to my local, stupid clients.

  8. #8
    Join Date
    Feb 2003
    Location
    NY
    Posts
    11,498
    Quote Originally Posted by sajanNOPPIX View Post
    I'll stop by in a bit, I'm leaving right now anyway. However last time I asked, I got a funny look.

    Looks like I'll keep catering to my local, stupid clients.
    Thanks, if you find them, buy the lot, i'll pay for shipping as well. You do paypal?
    Doug, Sales Leader
    VPS | KVM SSD & SATA VPS | Dedicated Servers | Colocation
    99.999% Uptime | 24x7x365 Support | Global Data Centers
    www.bigbrainglobal.com | Big Brain Global Networks

  9. #9
    Join Date
    Mar 2007
    Location
    USA
    Posts
    4,905
    Quote Originally Posted by Techy View Post
    Thanks, if you find them, buy the lot, i'll pay for shipping as well. You do paypal?
    For the unlimited drives? We'll have to do something shady like Nigerian bank transfer, or neteller or any of those.

    I think it's against PayPal policy to transact on items of the unicorn variety.

  10. #10
    Join Date
    Nov 2003
    Location
    Paris
    Posts
    10
    Quote Originally Posted by NineConnect View Post
    You will find it difficult to compete with other shared hosting providers on forums like WHT. Many well-known providers are offering unlimited everything. However, you may be very successful catering to the local market where consumers might be a little less savvy about the web hosting industry. Good luck with your venture!
    I will not compete with WHT members. I'm in the french market. There are some very well known hosting companies in France but I consider that it's less competitive than the UK/US market.

    To OP:
    You should bring a 1GB plan to action as well. Most sites wont go over 1GB storage.
    I have thought about that but I don't like the idea to provide support (time) to customers that only pay $1/month... But I understand that this package would be suitable to a lot of customers.

    Concerning unlimited packages, I don't like the idea. I think that it would bring to you a lot of customers abusing. With a reseller account, I can't afford a customer with 50% of my diskpace.
    I'm french, sorry for my bad english
    My Project : Teamspeak Hosting

  11. #11
    Quote Originally Posted by WebTonight View Post
    First,
    I thought it was against the rules to offer Unlimited Plans? If i read the rules right, you cant even have unlimited on your web page? I guess i am wrong.
    You can't post ads in the shared offers section if you offer unlimited disk or bandwidth. As I read the rules, unlimited MySQL databases, unlimited domains, etc. is fine.

    They all come out of your limited disk anyway
    My advice and reviews of VPS providers based on my personal experience: VPSadvice.com

  12. #12
    Join Date
    Feb 2003
    Location
    NY
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    11,498
    Quote Originally Posted by adviser View Post
    I will not compete with WHT members. I'm in the french market. There are some very well known hosting companies in France but I consider that it's less competitive than the UK/US market.
    You realize WHT is global and not specific to US/UK market?
    Doug, Sales Leader
    VPS | KVM SSD & SATA VPS | Dedicated Servers | Colocation
    99.999% Uptime | 24x7x365 Support | Global Data Centers
    www.bigbrainglobal.com | Big Brain Global Networks

  13. #13
    Join Date
    Nov 2003
    Location
    Paris
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    Quote Originally Posted by Techy View Post
    You realize WHT is global and not specific to US/UK market?
    Yes, I know but the most of the offers are for those two markets, isn't it?

    My answer was about competing against WHT offers with unlimited stuff. Check the shared offers forum, it's not a lot in France, that's why I talked about Uk/Us :-)

  14. #14
    Join Date
    Dec 2009
    Location
    Greece
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    Quote Originally Posted by sajanNOPPIX View Post
    For the unlimited drives? We'll have to do something shady like Nigerian bank transfer, or neteller or any of those.

    I think it's against PayPal policy to transact on items of the unicorn variety.
    Use Cyprus offshore accounts

  15. #15
    Join Date
    Dec 2009
    Location
    Greece
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    801
    Quote Originally Posted by adviser View Post
    Ok, my question was probably too generic.
    I can afford 0 customers for a lot of time, it's not my primary source of income. My calculation was on the basic plan, so you could see that I'm breakeven at $44 (on monthly basis).
    I'm the guy who pay the bills, it's right

    And what do you think on the packages?
    if you are breaking even on 44,and that is including whmcs and demowolf subscription,then this means that your reseller account is under 20usd. Overselling?
    Either way,the amount is low and you shouldn't have problems in breaking even.

  16. #16
    Join Date
    Feb 2004
    Location
    Scotland
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    2,830
    Quote Originally Posted by adviser View Post
    Hi,

    I bought a reseller package one month ago.
    Since, I have spent a lot of time with Excel to check if my business plan sounds good.
    With my reseller account, my unbranded WHMCS licence and Demowolf subscription, I plan to be breakeven with 7 customers (webhosting only, no domain names margin) on a monthly basis.
    Do you think it's ok?
    I think you have a major flaw in your business plan and it needs to be addressed. Your work out that your break-even cost is the same as approx 7 customer signups, but are you counting in all the costs associated with your company?

    • Your time (Are you going to support these people?)
    • Electricity
    • Insurance
    • Advertising
    • Rent
    • Internet Connection
    • Phone Calls
    • Office Supplies


    The above is a quick few I picked off the top of my head but every single one of them should be included in a properly drawn up business plan. Yes you may have the house and internet already but a business plan should detail what percent of each is going to be paid by the business, simply leaving rent out because you have a house already isn't how a properly drawn up business plan works.

  17. #17
    Join Date
    Feb 2003
    Location
    NY
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    11,498
    Quote Originally Posted by Wullie View Post
    I think you have a major flaw in your business plan and it needs to be addressed. Your work out that your break-even cost is the same as approx 7 customer signups, but are you counting in all the costs associated with your company?

    • Your time (Are you going to support these people?)
    • Electricity
    • Insurance
    • Advertising
    • Rent
    • Internet Connection
    • Phone Calls
    • Office Supplies


    The above is a quick few I picked off the top of my head but every single one of them should be included in a properly drawn up business plan. Yes you may have the house and internet already but a business plan should detail what percent of each is going to be paid by the business, simply leaving rent out because you have a house already isn't how a properly drawn up business plan works.
    I think you are severely over-estimating what the OP has for a "business plan" and plans for running the operation. However, you are 100% correct that every expense should be looked at and detailed in the BP, if you have one.
    Doug, Sales Leader
    VPS | KVM SSD & SATA VPS | Dedicated Servers | Colocation
    99.999% Uptime | 24x7x365 Support | Global Data Centers
    www.bigbrainglobal.com | Big Brain Global Networks

  18. #18
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    Feb 2004
    Location
    Scotland
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    Quote Originally Posted by Techy View Post
    I think you are severely over-estimating what the OP has for a "business plan" and plans for running the operation. However, you are 100% correct that every expense should be looked at and detailed in the BP, if you have one.
    My reply wasn't specifically for the OP, it was more to show others in the future reading it that the costs associated with you breaking even include a lot more than a simple cheap reseller account. Too many people forget that their time is money and don't factor it in with their costs.

  19. #19
    Quote Originally Posted by adviser View Post
    I will not compete with WHT members. I'm in the french market. There are some very well known hosting companies in France but I consider that it's less competitive than the UK/US market.
    You are competing with WHT members no matter what, it being directly or indirectly. The fact that you run a web hosting company makes you by default a competitor in one shape or another.

    Quote Originally Posted by adviser View Post
    Yes, I know but the most of the offers are for those two markets, isn't it?

    My answer was about competing against WHT offers with unlimited stuff. Check the shared offers forum, it's not a lot in France, that's why I talked about Uk/Us :-)
    Try US and Europe.

    Also I looked over your hosting plans in your op and have to say you must be packing a lot of terabyte drives in your dedicated servers or over selling. Also on your price point to what you get seems to be too good. This is a bad thing. You do realize most websites don't need more than a 1GB of space right? With what you are offering will also have you run a huge risk for wares and other such content.

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