When is it time to move from a reseller account to your owned dedicated server? Many resellers just think that as soon as they have additional $99.00 (example) of income a month that they should go and get their own dedicated server. But is this the right step at the right time? I am not sure if just the income justifies the purchase of your own dedicated server (or to lease one). A dedicated server comes with much more responsibility for the reseller. Unless a reseller gets a fully managed dedicated server much more work and risk is waiting for him. Can you afford to have your server hacked and do you know what to do?
You should get a dedicated server at least a month or two in advance before moving your own site or even customer sites to it. Maybe even wait a little longer if you do not feel comfortable with the added responsibility. Get the server early enough and play with it. Make sure you understand your new tasks and that you are able to handle them properly. The damage to your business done by a hacked server might break your business into pieces. Hire an administrator and have the server made secure. Don't leave the server unsecured on the Internet for more than a few hours. Even hours can be too long and the server gets attacked.
Having your own server(s) also means to have additional work. All the work your reseller host has done in the background now needs to be done by you. Talk to your reseller host and ask what they do invisible working in the background. Do you have the time and the resources available to do all this yourself? You might have to hire someone to have some helping hands. Hiring help will mean a smaller piece of the pie for you (less income). Are you ready for it?
Oh, you're a Server Admin yourself? Congrats. This will save you some money. But who is doing sales and support while you work on the server? Just keep in mind - a server means more work and requires much more attention. Checking log files, talking to the data center when things go wrong, fixing damage done by a SPAMMER on your server yourself.
Are you only ready for your own server when you have $99.00 of additional income a month? Your business plan should reflect when to look for your own server and you should have a detailed plan ready to get you going. Make a list of the additional tasks and the risks and prepare yourself and acquire resources. Learn to administer a server well in advance before getting one. Even if you hire a technician or an administrator - knowing how the server OS works is crucial to your success.
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