Results 1 to 10 of 10
  1. #1

    advice to a new reseller?

    Hi, i am currently a 19 years old student, and have a strong ambition, in which I would like to start a reseller business. My current budget are roughly $10,000. Currently I own 4 dedicated servers, and was deciding to start my own business being a reseller. Also if i become a reseller with layeredtech I will be recieving roughly 5% discounts on their servers.

    Anyhow, I have browsed around the forum and It seems that servstra is a layeredtech reseller. I was wondering If there are any cheap prices on dedicated servers like layeredtech that would offer managed service, knowing that layeredtech provides an unmanaged service. Or alternative methods to get cheap dedicated managed servers.

    I was planning to find some sort of server management from people from platinumservermanagement or geeks4help. It seems as if these services would require an additional $30. Which would be added to the price of the server, causing it to be uncompetitive pricing. For example a AMD SEMPRON 2600 that would cost $65 monthly, with services from geeks4help it would cost about $95 a month. So could anyone tell me how I would be able to offer competitive pricing and managed service like servstra.

    As for the billing, how does reseller usually get billed? you rent an server annually and then set the prices and resell it to your clients? What would happen if your client overuses bandwidth, would company such as layeredtech charge your client, or would the billing be your responsibility?

    Another question is that i want to start webserver hosting as well, browsing through most of the webserver offer. Most of the provider uses an automation system, modernbill/WHMAUTOPILOT. I was wondering if I own four dedicated servers, if modernbill/WHMAUTOPILOT would be capable of filling up the spaces in these four servers to create new webhost upon old clients leaving. or would I have to reconfig modernbill/WHMAUTOPILOT when each server fills up manually. and which program do you prefer?

    -Thanks in advance
    Last edited by animedown; 10-14-2005 at 12:53 PM.

  2. #2
    Join Date
    Dec 2004
    Location
    New York, NY
    Posts
    10,574
    It may not be a very good idea to bundle server management from a remote company with dedicated servers you resell. How would clients get managed support? Who would they e-mail? Would you just simply pass on e-mails to the server management provider? This isn't a good idea. It'd be best to hire your own staff members to take care of the issues as that will allow you to offer cheap pricing in the end.

    Lastly, I would not suggest using a cheap provider such as Layered Tech and trying to be competitive. You should get a high quality provider that can respond to tickets very quickly. It doesn't matter how much you charge, it matters how good your service is.
    MediaLayer, LLC - www.medialayer.com Learn how we can make your website load faster, translating to better conversion rates for your business!
    The pioneers of optimized web hosting, featuring LiteSpeed Web Server & SSD Storage - Celebrating 10 Years in Business

  3. #3
    Yeah i understand that it would be hassle to find sites that would offer to manage the server, so I would probably hire my own staff. But are there providers out there that offers managed service for their reseller clients, that would provide support. Kind of like dropship for a fairly affordable cost.

    could someone please give me some opinions on some good/competitive pricing managed/unmanaged dedicated server provider that offer reseller accounts?

  4. #4
    Join Date
    Feb 2001
    Location
    USA
    Posts
    866

    Smile Re: advice to a new reseller?

    Elix made some very good points in regards to offering dedicated servers to your customers.

    All of us have to start somewhere, you're lucky enough to have 10 grand to start a business, you should take advantage of that amount of money and properly invest it in your hosting business. Granted 10g's may not be a lot but you can do a lot of things with it with proper and careful planning.

    Important stuff to be aware of is that you must have a solid well thought out, TOS/AUP/SLA agreement. Also, require them to notify you 30 days in advance prior to cancelling. You don't want to bear the burden of cost when a client cancels the dedi and you're stuck paying your provider the monthly fees.

    I suggest paying by the month and your clients as well, to reduce overall cost in the event of a chargeback.

    As for bandwidth, MRTG works wonders.

    In regards, to server management, If you can admin the box yourself the better. It can drastically lower your overhead = money in your pocket to take your girlfriend out to dinner and whatnot.

    If you have an old desktop, try installing linux and learn to admin it kind of like your mini test lab/test box.

    Have a good day.


  5. #5
    for a company like layered tech, when you sign up for reseller with them, when the servers gets over charged cause of bandwidth. Would you have to find your own collectors agency and what not, or would providers such as layeredtech supply it to you?

  6. #6
    Join Date
    Dec 2004
    Location
    New York, NY
    Posts
    10,574
    Originally posted by animedown
    for a company like layered tech, when you sign up for reseller with them, when the servers gets over charged cause of bandwidth. Would you have to find your own collectors agency and what not, or would providers such as layeredtech supply it to you?
    I doubt they would supply something like that.

    Once again, I don't think you should resell LayeredTech's server solely because their cheap. Instead, you should resell a company's offering because of their good service...
    MediaLayer, LLC - www.medialayer.com Learn how we can make your website load faster, translating to better conversion rates for your business!
    The pioneers of optimized web hosting, featuring LiteSpeed Web Server & SSD Storage - Celebrating 10 Years in Business

  7. #7
    if you were to open a online dedicated server business, based on reselling servers from providers such as layeredtech. Would you be looking for managed service? i mean afterall wouldnt it be you that would be the one responsible for providing the service to your clients. With that in mind wouldnt it be complex if I were to find a provider that offers a better service when I wouldnt be using their service since I would have to hire staff either way to provide support for my client? anyhow, anyone have suggestions on which provider would suit my situation?

  8. #8
    Join Date
    Dec 2004
    Location
    New York, NY
    Posts
    10,574
    Originally posted by animedown
    if you were to open a online dedicated server business, based on reselling servers from providers such as layeredtech. Would you be looking for managed service? i mean afterall wouldnt it be you that would be the one responsible for providing the service to your clients. With that in mind wouldnt it be complex if I were to find a provider that offers a better service when I wouldnt be using their service since I would have to hire staff either way to provide support for my client? anyhow, anyone have suggestions on which provider would suit my situation?
    If I were you I wouldn't resell dedicated servers at all. It's very time consuming and there's very little money to be made.
    MediaLayer, LLC - www.medialayer.com Learn how we can make your website load faster, translating to better conversion rates for your business!
    The pioneers of optimized web hosting, featuring LiteSpeed Web Server & SSD Storage - Celebrating 10 Years in Business

  9. #9
    oh wells, someone has to start from scratch, its expected that im bound to make lots of mistakes along the way.

  10. #10
    Join Date
    Dec 2004
    Location
    New York, NY
    Posts
    10,574
    Originally posted by animedown
    oh wells, someone has to start from scratch, its expected that im bound to make lots of mistakes along the way.
    ...Okay say you start and for the management of each server...

    How are your clients going to get support when you signup for the management UNDER YOUR NAME?

    You would need to make a custom deal with the management company you choose. Quite a few won't honor it as they would also need to be the person handling hardware failures and reboots.
    MediaLayer, LLC - www.medialayer.com Learn how we can make your website load faster, translating to better conversion rates for your business!
    The pioneers of optimized web hosting, featuring LiteSpeed Web Server & SSD Storage - Celebrating 10 Years in Business

Posting Permissions

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