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  1. #1
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    How is this sustainable for the host?

    I have a reseller account right now for $7 a month. It includes a WHMCMS branded license. On top of that, I get half a TB of bandwidth and about 50GB of space. I mean, even if I didn't want the reseller, I'd keep it purely for WHMCS.

    How is this sustainable for the host? WHMCS is $15 a month. Aren't they losing money from this?

  2. #2
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    Quote Originally Posted by A Goat View Post
    I have a reseller account right now for $7 a month. It includes a WHCMS branded license. On top of that, I get half a TB of bandwidth and about 50GB of space.

    How is this sustainable for the host? WHMCS is $15 a month. Aren't they losing money from this?
    Simply put?

    It isn't.
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  3. #3
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    Quote Originally Posted by HostMantis View Post
    Simply put?

    It isn't.
    So do they got rocks in their head or is this some new futuristic business practice?

  4. #4
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    Quote Originally Posted by A Goat View Post
    So do they got rocks in their head or is this some new futuristic business practice?
    It could very well just be a limited time offer to drum up business, but is certainly not sustainable in the long run.
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  5. #5
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    Its not possible for them to be making any profit because the WHMCS license is likely to be more than what you're paying them.

  6. #6
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    Quote Originally Posted by GeneZSolutions View Post
    Its not possible for them to be making any profit because the WHMCS license is likely to be more than what you're paying them.
    Technically, it really all depends on the reseller tier they are on with WHMCS. If they are selling enough licenses, they may have a low tier amount.

    However, including the bandwidth and space into the calculation they are still losing money. So if it is not a promo, it's really not sustainable.
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  7. #7
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    Unless it's from a host with a rock-solid history, I'll stay away from such a promotion if I were you. It simply doesn't make any money so unless the host has a lot of cash to spare, say a big company like EIG (hate to mention this though), I doubt you will see light at the end of the tunnel.
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  8. #8
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    Quote Originally Posted by HostMantis View Post
    Technically, it really all depends on the reseller tier they are on with WHMCS. If they are selling enough licenses, they may have a low tier amount.

    However, including the bandwidth and space into the calculation they are still losing money. So if it is not a promo, it's really not sustainable.
    Yeah, of course. The lowest price point is $7.20 so they're definitely losing money per WHMCS license sold after any payment processing fees.

  9. #9
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    Quote Originally Posted by GeneZSolutions View Post
    Yeah, of course. The lowest price point is $7.20 so they're definitely losing money per WHMCS license sold after any payment processing fees.
    This is true, however, they may be calculating based on an assumption that only one in X amount of resellers will actually request the WHMCS license. However, in my experience almost all the resellers want the WHMCS license...

  10. #10
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    If it was one of the big name hosts, I wouldn't be surprised if their cost of WHMCS licenses was even lower than the published reseller prices.

    Companies can use capital to offer services for under their cost to grow a large user base, which will ideally help promote the company once they start selling sustainably-priced services.
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  11. #11
    Sounds like turnkey reseller promo? They are big company and have their own datacenter. Probably bought WHMCS in bulk.

    They explain in their website as well how they keep the price so low yet still profitable. Check it out.

  12. #12
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    Quote Originally Posted by Stevensst View Post
    Sounds like turnkey reseller promo? They are big company and have their own datacenter. Probably bought WHMCS in bulk.

    They explain in their website as well how they keep the price so low yet still profitable. Check it out.
    yes it's turnkey promo. bought it a couple weeks ago and plan to keep it

  13. #13
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    Simply put it's what's known as a loss leader in the industry. Realistically it's not sustainable or profitable. We have over 100 WHMCS licenses and our pricing is good but it wouldn't be worth our time at that price point.
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  14. #14
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    Quote Originally Posted by BrettB View Post
    If it was one of the big name hosts, I wouldn't be surprised if their cost of WHMCS licenses was even lower than the published reseller prices.

    Companies can use capital to offer services for under their cost to grow a large user base, which will ideally help promote the company once they start selling sustainably-priced services.
    ^ I have to agree with this as well.

    Not "every" reseller uses the license, even thought it's included in the plan. The ones that don't use it, make up for the ones who do with the small or no profit margin.

    Also, they could be owned licenses, not leased.
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  15. #15
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    Quote Originally Posted by A Goat View Post
    I have a reseller account right now for $7 a month. It includes a WHMCMS branded license. On top of that, I get half a TB of bandwidth and about 50GB of space. I mean, even if I didn't want the reseller, I'd keep it purely for WHMCS.

    How is this sustainable for the host? WHMCS is $15 a month. Aren't they losing money from this?
    TurnKey Internet own and operate their own DC and "green" power. So their operating costs are a fraction of the price most hosts pay.

    Its possible they get very special discounts with whmcs, as i guess they have a good few thousand licences.

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  16. #16
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    Quote Originally Posted by A Goat View Post
    So do they got rocks in their head or is this some new futuristic business practice?
    Probably.

    You are also putting risk on your business so take note of that.
    Specially 4 You
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  17. #17
    I wouldn't be too worried if the provider is Turnkey Internet as their costs are extremely low due to the fact that they have their own green datacenter, hardware, etc. and they probably do get WHMCS licenses for a lot lower than $7.20 too.

  18. #18
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    Verify that your WHMCS license is valid -> http://www.whmcs.com/members/verifydomain.php

    Likely your host will raise prices or fold when they can pay their next data center bill.
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  19. #19
    Depends on what billing tier they are with whmcs

  20. #20
    Quote Originally Posted by A Goat View Post
    I have a reseller account right now for $7 a month. It includes a WHMCMS branded license. On top of that, I get half a TB of bandwidth and about 50GB of space. I mean, even if I didn't want the reseller, I'd keep it purely for WHMCS.

    How is this sustainable for the host? WHMCS is $15 a month. Aren't they losing money from this?
    you are having less space, 50GB, n that is the trick

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