Results 1 to 12 of 12
  1. #1
    Join Date
    Mar 2004
    Posts
    42

    * How to price Multi-Domain and Reseller Accounts?

    I'm leaning towards specializing in quality multi-domain and reseller accounts. However, like in any business, pricing is a serious issue. I'm pretty much sold on ThePlanet services and managed servers, however $300.00+ is the cost for a good box. I'm determined to avoid overselling my accounts, and profit is king like in any business.

    So my questions are simply this. On a decent dual xeon box with at least 1GB memory, 160GB HD and 2,000GB BW, what are good formulas for pricing out Multi-domain and reseller plans. And, what is really an attractive and/or competitive price?

  2. #2
    Join Date
    Feb 2002
    Location
    Australia
    Posts
    24,009
    You could populate that server with 30 "Reseller" or "Multi-domain" accounts. Charge $35/mth/account and you have your $1050/mth in revenue/server. I would cap the number of domains per account, and if you allow overselling on those accounts or not, is another major factor to consider.
    AussieHost.com Aussie Bob, host since 2001
    Host Multiple Domains on Fast Australian Servers!!

  3. #3
    Join Date
    Mar 2004
    Posts
    42
    Is $35 per month for a 5GB account a competitive price for this kind of server?

    I don't mind if my clients oversell, within their own resources. Is there actually a reason to cap the number of domains per account? What should be the maximum domains on a server like this?

  4. #4
    Join Date
    Mar 2004
    Location
    Motorcity
    Posts
    150
    5 GB a month space, heck yeah depends again on how bandwidth you give them, now if your talking 5 GB a month data that is around $1 -$5 anywhere.

  5. #5
    Join Date
    May 2001
    Location
    Colorado, USA
    Posts
    812
    Compare pricing of businesses like Voxtreme/HTTPME and others and do the math. If you are new and need to break into the market - make your packages a little more attractive to clients. They are buying the unkown (you) - so, a certain percentage in better features or in lower prices might be a good thing to put into consideration. Once you prove yourself, you can adjust pricing. Do not go too low, as it will attract problem customers.
    Web Hosting Resource Kit - Web Hosting Reviews & Hosting Tutorials

  6. #6
    Join Date
    Mar 2004
    Posts
    42
    Until I establish my reputation as a host provider, would $7.00 to $10.00 per GB (drive space) be a good starting point to formulate prices from (considering the server)?

  7. #7
    Join Date
    Oct 2002
    Location
    EU - east side
    Posts
    21,913
    There are two "right" ways IMHO: allow overselling and limit the number of domains or don't allow overselling and let the customer host as many domains as possible withing its allotment.

    Is there actually a reason to cap the number of domains per account?
    Aussie Bob should be able to respond to this. He has first hand experience.

  8. #8
    Join Date
    Mar 2004
    Posts
    42
    I had hoped that Aussie Bob had made it this way and responded to this. But I got impatient and went to your site ldcdc (which I liked), where I found this valuable link to Aussie Bob's words on the subject: http://www.httpme.com/showthread.php?threadid=11536

    I found this very interesting and worth while for any hoster and reseller alike to read. I hope you don't mind.

  9. #9
    Join Date
    Feb 2002
    Location
    Australia
    Posts
    24,009
    Originally posted by ldcdc
    There are two "right" ways IMHO: allow overselling and limit the number of domains or don't allow overselling and let the customer host as many domains as possible withing its allotment.

    I would agree on that. IMO, don't allow overselling and also cap the number of domains per WHM account. But a domain number cap is a good middle ground.
    Aussie Bob should be able to respond to this. He has first hand experience.
    Just slightly.
    AussieHost.com Aussie Bob, host since 2001
    Host Multiple Domains on Fast Australian Servers!!

  10. #10
    Join Date
    Feb 2002
    Location
    Australia
    Posts
    24,009
    Originally posted by 000000000
    Is $35 per month for a 5GB account a competitive price for this kind of server?

    Is that 5GB of disk space? I would maybe lower that a tad, down to around 2 to 3GB. If you allow overselling, then lower it. If you don't allow your clients to oversell, then keep it at the 5GB. Suppliers that don't allow overselling can give 2 to 3 times more resources, as this is comparable to a supplier that allows overselling, but gives less resources.

    Dathorn is a supplier that doesn't allow overselling, hence they can offer a lot more resources, than a supplier tha allows overselling.
    I don't mind if my clients oversell, within their own resources. Is there actually a reason to cap the number of domains per account?

    Capping the number of domains per Reseller/Multi-domain account, just keeps away the bad element client, who is running a cheapo hosting business and overselling like mad. I would get sales emails with these hosts (and checking out their site, they're selling $10/yr hosting and promising the earth) and they would want to add 400+ domains to a $35/mth account. Those types of clients are not suited to a reseller platform, that uses domain number limits on accounts. So they go somewhere else, and crap on someone else's server.
    What should be the maximum domains on a server like this?
    Less domains per server is always best, but a server's stability is not based around the number of domains on it. Depends on what those domains are demanding from the server's resources.

    But with the reseller/multi-domain model, and adding 30+ such accounts to a server, you'll probably end up with 750 to 900 actual domains on the server. Keep in mind that the multi-domain model allows folks to get very experimental with domains, and because it doesn't cost them anymore to host extra domains, and the cost of a domain is cheap as chips, they tend to have a lot of personal domains hosted, that aren't doing much.

    Folks get inspired to buy a certian domain, build a site and upload it to that domain, merely for the pleasure of creating something new. So there's going to be a lot of those such very small resource usage domains, with a multi-domain/reseller account.

    If you offer unlimited domains and allow overselling, then you've opened your server/s up to the chance of attracting the unwanted element of cheapo hosts (with no feasible business model) and that inturn attracts an unwanted element in their clients, which come into your server/s.

    Capping the number of domains per reseller account, will mean you'll attract less clients, but you increase greatly the chance of server stability, than offering unlimited domains.

    So my advice to you is, cap the number of domains per Reseller account, and allow overselling. Look for about 1k/mth/server. It's not a perfect business model (hosting is not perfect, and reseller plans just up the anti a bit more) but it's one that can work, if you're watchful and vigilant.
    AussieHost.com Aussie Bob, host since 2001
    Host Multiple Domains on Fast Australian Servers!!

  11. #11
    Join Date
    Mar 2004
    Posts
    42
    Aussie Bob

    That was a great post! Thank you!

    Between that post and the one I refernced earlier by you from HTTPme.com forums provides a lot of very rich and useful information.

    I started this thread dazed and confussed on this simple topic. Now, between this and a previous thread, I have acquired more useful knowledge about hosting than I ever imagined (and in only 3 days). I am grateful to everyone that replied.

    I hope that other people will benefit as much from this thread as I have.

  12. #12
    Join Date
    Feb 2002
    Location
    Australia
    Posts
    24,009
    No worries at all. Glad to have helped in some small way.
    AussieHost.com Aussie Bob, host since 2001
    Host Multiple Domains on Fast Australian Servers!!

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •