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  1. #1
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    Question What to do if i get a chargeback...

    I plan to start a hosting company, i was wondering what i do in case of a chargeback...
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  2. #2
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    not much you can do. That's part of doing business.
    Gary Jones

    BlueFur.com - Canada Web Hosting
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  3. #3
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    but if i sell like a cert or something i am only a kid and dont really have the money... like i will be screwed if someone is paying for a domain and a year of hosting, i would lose a ton of money.... could i file some kind of complaint through my business?
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  4. #4
    dont host if you are just a kid
    Linux/cPanel How-To's - cPanelPlanet.com
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  5. #5
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    why?
    i feel that getting expeirience in the business is a good idea.... i could file Tradename Registration with the state of vermont, i dont believe there is an age restriction... and if there is then i can do it through my dad... i already know web design and make money with that.... i could customize a template, add Whois.Cart and have all the money go to a credit card my dad sets up... i could buy all the shiz with my dad... template, web space (ddi hosting), interspire's active kb for support, demodemo tutorials, hostvoice advertising and some google..., and i already built a new computer for my "to be" hosting biz... i don't have to worry about taxes beause there are none for hosting... (i think). Therefore i see no reason not to start a hosting business as a teenager, i could put away 10% of profits for college...
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  6. #6
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    You going to be up 24/7 to support your clients?

    A new computer? You hosting from your ISP account?

    Andrew
    NetHosted - UK based hosting solutions.
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  7. #7
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    What to do if there is a chargeback?

    1. Delete the account in question.
    2. Forget about it and move on.

    It will happen, and it will be come more regular as you get bigger.
    Matt Wallis
    United Communications Limited
    High Performance Shared & Reseller | Managed VPS Cloud | Managed Dedicated
    UK www.unitedhosting.co.uk | US www.unitedhosting.com | Since 1998.
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  8. #8
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    Originally posted by Hostaholic
    I don't have to worry about taxes beause there are none for hosting... (i think).
    Dang, I KNEW I was getting screwed by the IRS

    Anyway the sad truth is that there is often little you can do about a chargeback. If you cannot afford to loose one years' hosting fee then don't offer yearly payment options.

    If you cannot afford to loose eight bucks for a domain name then for the protection of your future customers you really should not go into business.
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  9. #9
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    If you cannot afford to loose eight bucks for a domain name then for the protection of your future customers you really should not go into business.
    Plus the chargeback fee.
    Matt Wallis
    United Communications Limited
    High Performance Shared & Reseller | Managed VPS Cloud | Managed Dedicated
    UK www.unitedhosting.co.uk | US www.unitedhosting.com | Since 1998.
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  10. #10
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    i got the new computer so that i can efficiently respond to my clients questions and needs and keep the company site running smoothly, i would have had to do all that on a old dell infested wit alot of virus... pentium III 450 mhz 256 mb ram and cd drive... ugh
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  11. #11
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    and i woudnt be hosting from my isp account... here is a chart of what my expenses would be... Entry Level reseller


    4 GB Space
    50 GB Bandwidth
    1 IP Addresses
    Plesk Control Panel
    cPanel Control Panel
    24 x 7 Online Technical Support
    Only $14.95 Per Month! x 6 = $89.7

    -----------------------------------------------------------------------
    Whois.Cart to handle domain registration, signup, and billing. $35.00

    -----------------------------------------------------------------------

    Template number: 5738 at templatemonster.com $59.00

    -----------------------------------------------------------------------

    DemoDemo tutorials that cover cpanel (control panel for shared hosting), WHM (web host manager, control panel for reseller hosting) - includes extra $20.00 to rid the "created by demodemo.com" in the last few frames: $ 149.95

    -----------------------------------------------------------------------

    HostVoice, to generate targeted leads[already looking for a service which has the services i provide] :$40.00

    -----------------------------------------------------------------------

    Tradename Registration (11 VSA, Ch. 15) $40.00

    -----------------------------------------------------------------------

    Active KB (support) $150.00

    -----------------------------------------------------------------------
    -----------------------------------------------------------------------
    -----------------------------------------------------------------------
    -----------------------------------------------------------------------
    -----------------------------------------------------------------------

    Final: $523.654
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  12. #12
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    before i get started i am gonna have enough cash to fall back on to just in case... i already wrote my tos, i am gonna get a freinds dad to review it for me. oh yea... im not gonna be payin $8.00 per domain, $5.00.
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  13. #13
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    We almost had a $700 chargeback last week - luckily the guy who had his CC # stolen contacted us, as our name and phone # ended up with a $700 charge on his bill, so we refunded the money ourselves. We shut down the server, and never heard back from the scammer. We resold the server, and it's going to take a few months to recoup the money lost on the server, but luckily we pay for our server bills with a PayPal debit card that gives us 1.5% cashback, as that'll help cover the refund.

    Also, instead of getting a non-unique TM template, check out http://www.webhostingtalk.com/forumd...php?forumid=56 for some inexpensive exclusive templates - MainArea.com was designed by a member here, and so was FocalServers.com (our other site).

    -Josh
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  14. #14
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    thanks for your reply!
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  15. #15
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    Therefore i see no reason not to start a hosting business as a teenager, i could put away 10% of profits for college...
    ... that's if you make money. Client's don't grow on tree's. Likewise, I would advise reading up on DDIHosting.Com before purchasing an account there. While I don't have any first hand experiences here, I've heard numerous complaints about them.
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  16. #16
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    Originally posted by Hostaholic
    why?
    i feel that getting expeirience in the business is a good idea....
    If only one customer is saved……

    At whose expense? Will you promote yourself on the front page of your site as underage and "just trying to get some experience” or will you be deceptive and pretend to be something else? What exactly will your customers be paying for? Your years of experience in It management and data packet infrastructure? or perhaps it's the native business and marketing savvy that drives you toward a generic template and the control derived from ordering the services of another provider that leases their services in turn from yet another provider? Yes, certainly there is much value here for the potential customer...

    Get a paper route you'll learn business fundamentals without hurting anyone. If you still want to get into hosting get a job and learn the business front to back first hand.
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  17. #17
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    or perhaps it's the native business and marketing savvy that drives you toward a generic template and the control derived from ordering the services of another provider that leases their services in turn from yet another provider? Yes, certainly there is much value here for the potential customer...
    Best reply ever!
    Matt Wallis
    United Communications Limited
    High Performance Shared & Reseller | Managed VPS Cloud | Managed Dedicated
    UK www.unitedhosting.co.uk | US www.unitedhosting.com | Since 1998.
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  18. #18
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    There is much expense that is overlooked here, I won't even begin
    to get into it... Just head my advice and write a detailed business plan
    before you spend a dime.
    ---
    Dan Ushman
    Co-founder & CMO
    SingleHop, Inc.
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  19. #19
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    I used to start up by getting my old computer to be a server. I then, made sure of my ISP's AUP and TOS, and hooked it up to my DSL connection. That's how I got basic business experience. The cost involved is almost nothing. Did get a few payments though. However, I suffered DoS attacks, and thus had to stop it. The experience I gained was priceless. I'm now running a professional host that is not reselling. I did gert one or two chargebacks due to fraudent funds, but PayPal protected me. The fraudent funds were simply refunded so quickly that I didn't even get the time to create the account manually after 2 days. I'd suggest you gain experience though. Starting with a dedicated server and such will be a dead end if you don't get experience as a nonprofit sucky 20% downtime guarenteed host.
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  20. #20
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    to there expense? just because i am a teenager doesnt mea im not knowledgable... i would place my self in the top 1% for technical knowledge in my town... its not like i just became intereted in the business... i have been researching for over a year on how to run a hosting business. get a paper route? u have to be kidding me... the point is just because i am a kid i already know business fundimentals... i have done the research and i think that i have just as big of a shot as someone who is an adult... i already know about profits margin business expenses ect., there is a point when i should be able to move on regardless of my age and be regarded in the technicle/hosting community by my knowledge and not my age... e.g. if i am forgetful do i put that on my front page, no! it is the same for my age... Just because people assume that the owner is an adult with the same technical knowledge does not mean i am being deceptive. The clients will be paying for the services provided by me, people always do this in web design too... i create proffesional quality webstes and get paid less than $200 because of my age. if u go to a fastfood restaurant and order fries, are they gonna be the same no matter if a teenager or an adult gives them to you? it is the same for the services i will offer... I would even have a frigin staff page that had a bio of me (eventually i plan to hire some freinds that board at a high school nearby to...). Yet again i am being percieved as a minor and not a knowledgable member of the technicle community.
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  21. #21
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    i will have a 99% network uptime gaurentee and a 97% server uptime gaurentee (listed on my network page)
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  22. #22
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    Hostaholic,

    No one is saying you don't know what your doing... But technical
    knowledge is 1/5th the formula. You need business knowledge,
    and marketing knowledge. Many things you can't learn in school
    apply on a day-to-day basis in hosting.

    I'd say go for it but make sure you are careful and cover your rear.
    A fast food worker is not the person you are buying fries from, the
    company is the provider in the background, they are just a face to
    talk to.

    Another peice of advice: DO NOT HIRE OR WORK WITH FRIENDS OR
    FAMILY. Money and blood don't mix well, like oil and water. That is
    just asking for trouble, and lost friendship.

    Also, learn to spell Technical.
    ---
    Dan Ushman
    Co-founder & CMO
    SingleHop, Inc.
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  23. #23
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    With regards to the original question about chargebacks:

    FIGHT THEM. If they are not fraud, fight them, send them to collections
    and if the amount warrents, take them to court and fight for them there,
    you won't help your merchant percentage but you will recover some of
    the money, especially if your customer is outside of their money-back
    guarantee period.

    Fraud is the number one cause for chargebacks, bar none. Do everything
    you can to prevent fraud, if you accept to many fraud transactions most
    merchant providers will TMF (MATCH) list you and you won't be able to
    process cards ever again.

    Dan
    ---
    Dan Ushman
    Co-founder & CMO
    SingleHop, Inc.
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  24. #24
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    Another peice of advice: DO NOT HIRE OR WORK WITH FRIENDS OR
    FAMILY. Money and blood don't mix well, like oil and water. That is
    just asking for trouble, and lost friendship.
    eek!! my brothers been a business partner for nearly 6 years and we just took on our sister fulltime to do back office admin
    Matt Wallis
    United Communications Limited
    High Performance Shared & Reseller | Managed VPS Cloud | Managed Dedicated
    UK www.unitedhosting.co.uk | US www.unitedhosting.com | Since 1998.
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  25. #25
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    Originally posted by UH-Matt
    eek!! my brothers been a business partner for nearly 6 years and we just took on our sister fulltime to do back office admin
    Its not an iron clad rule but from my experience and from the advice
    of many people I know its just, in general, a bad move. However, the
    fact that you've made it work is good -- best of luck and I hope it stays
    positive...

    Dan
    ---
    Dan Ushman
    Co-founder & CMO
    SingleHop, Inc.
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  26. #26
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    Originally posted by Hostaholic
    if u go to a fastfood restaurant and order fries, are they gonna be the same no matter if a teenager or an adult gives them to you? it is the same for the services i will offer...
    That about sums it up. Really though, just do a few searches using "kiddie, fraud or rip off" this board is littered with the bitter harvest of many a child's good intent.
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  27. #27
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    thanks dan! about the word technical, i was typing fast 'cause i was pissed off... i forgot to mention that i also have an understanding of marketing ect., i am going to say that it isn't even comparible to my technical knowledge but i think i have enough to get by... i would use the following for advertising: hostvoice, overture, google adsence or is it adwords? forget which it is... manual adding, banner exchages, and plain old banner advertising. affirmative about the family and freinds. as for covering my rear, i will register a tradename first so that i cant be sued ect... and i already wrote the tos, i am still get it looked over bye a lawyer though ( a freinds dad). and generally i can keep people happy even if im having problems.
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  28. #28
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    Originally posted by Hostaholic
    i will have a 99% network uptime gaurentee and a 97% server uptime gaurentee (listed on my network page)
    If you're afraid of a chargeback (getting back on point) what about a small business user
    that sues you for downtime? You have no control over your uptime unless you have your own data center- buying resold hosting from a reseller (ddi or whomever, who buys hosting from another provider makes it an almost certainty
    that you cannot provide any from of uptime guarantee. Passing through a resold resold uptime guarantee does not even merit discussion.

    Ok enough beating up on kids for one day. I would once again entreat you to rethink this- and also for your parents to explore the realm of legal liability and guardianship.
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  29. #29
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    that is why i would be putting my network uptime at 99% (advertised on home page) and my network uptime at like 96 or 97 %...(on network page)
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  30. #30
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    Take this as constructive criticism.

    Save your money, the hosting world is saturated. Buy a spellchecker, get a job doing support or sales for an existing company, install a local server and try to break and fix it within five minutes. If you get by all that you'll be ready to go.
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  31. #31
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    i think that the hosting market is going to fluctuate, with such a large number of hosting companies i think that there is going to be a halt in the creation of hosting companies amd a huge drop in the number of hosting companies, when the demand rises i plan to be there to get a few clients...
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  32. #32
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    Does anyone agree or disagree with me?
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  33. #33
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    It's hard to predict the future. But there are a lot of good points made in this thread. And there is MUCH more behind running a successful business - in hosting or any other technical industry - than knowledge alone.

    Marketing & sales will make a huge difference in your ability to get customers - and your ability to successfully support, service and manage them will make a huge difference in your ability to KEEP those same customers.

    Do like Dan says and write out a complete business plan. This way you will have the opportunity to think out all of the details on paper before investing any money. And then... get someone to play Devil's Advocate and try to beat up on your plan and then work through those problem areas and refine it yet further.
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  34. #34
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    ok thanks for the advice
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  35. #35
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    Silly me paying taxes, I must be in the wrong country time to move to the states
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  36. #36
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    I agree, things go in circles I remember when I was in school it was seasonal things for example in winter Yoyo's were the thing, in summer Marbels. It's the same with the internet Web Hosting is the "in" thing at the moment.

    People posting here saying they earn X per day has led to children becoming webhosts and then running off with people's money. The industry needs regulation.
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  37. #37
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    Originally posted by Hostaholic
    i could buy all the shiz with my dad... template, web space (ddi hosting), interspire's active kb for support, demodemo tutorials, hostvoice advertising and some google..., and i already built a new computer for my "to be" hosting biz... i don't have to worry about taxes beause there are none for hosting... (i think). Therefore i see no reason not to start a hosting business as a teenager
    Ahh, the age-long formula for success.

    To be honest, there isn't really anything preventing you from starting this, but most likely you will lose the money you invested into the business, as clients are not as easy to get as you think (that's really the main flaw in the plan - you don't plan what you'll do if you get 0 clients in 1-3 months).

    To be perfectly honest, you will make more money and have an easier time by working part-time for somebody else (at least for now, until you gain the knowledge and the capital for starting the business).

    Boris
    - AdWatcher - From the founders of HostVoice, comes the first ad management and tracking service created with web hosts in mind. Track Google AdWords, Overture, hosting directories, local advertising, etc. Compatible with ModernBill, WHM AutoPilot, ClientExec, PayPal, 2CO and others.
    - Pay Per Click Marketing Book - Don't spend another dollar on PPC ads before you read this book.
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  38. #38
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    i am going to buy 6 months of hosting soo not getting any clients for 3 months wont be that bad... it might give me time to get everything on it's feet and double check all designs ect. After i start the business i can continue building websites for people
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  39. #39
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    and u said that i would most likely lose the money i invested in it... well not reallly because most of what i bought i would be able to keep no matter what...
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  40. #40
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    Anyone else have any ideas?
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