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  1. #1

    Question Should I start off with a reseller package or a dedicated server?

    I am thinking of starting a small web hosting companys to makes some
    needed money. Should I start off with a reseller package or a dedicated server?

    I'm not sure please help me if you have been in this situation before.

    Thanks Guys

  2. #2
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    It depends on your general aproach to this new venture. If you have a serious advertising budget and expect to fill a server in a few months' time, go for a dedicated. Otherwise, start small to save some money.

    Just my opinion..

  3. #3
    Join Date
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    Reseller account first.

    The cost of the reseller account is less to start and you will not need to manage the server.

    If you need a customer with specialized needs you can aways more them to a dedicated server or VPS solution.
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  4. #4
    Reseller first, dont jump into a dedicated server unless you know what your doing. Theres a lot more work and money involved with a dedicated server.
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  5. #5
    Thanks For the tips guys i think i'll start of with a reseller package first and could you please tell me the best way to advertise your hosting.

  6. #6
    Join Date
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    We find many resellers start in their local market.

    If you can do any design or have the ability to modify or add in headers and navigation to programs like phpnuke, forums, advertising, ecommerce packages. Look to local merchants, realestate reps ect to sell them a solution.

    This breaks you out of the price war and gives them greater value to deal with you for an entire solution.
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  7. #7
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    Thread moved to Running a Web Hosting Business.

  8. #8
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    Re: Should I start off with a reseller package or a dedicated server?

    Originally posted by zeam
    I. . . Should I start off with a reseller package or a dedicated server?
    If money's tight, then start at the reseller level. It also depends how experienced you are in the hosting business.

    For my first hosting business (httpme) I started off with a simple reseller account. I then built a client base with that, and when I could afford it, I got my first ded server. Then if things keep growing, you start to think colo, instead of renting ded servers. So you just keep climbing that ladder until you have your own cage and own all the equipment . . . .

    It's a long ladder.
    • AussieHost.com • Aussie Bob, host since 2001 •
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  9. #9
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    Oh yeah, and each rung of that ladder is somewhat coated with vaseline. Make sure you're wearing your helmet.
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  10. #10
    I recommend dedicated server, managed dedicated server from interserver.net or liquidweb.com is all what you need, cost more .. yes .. but you always know what is happening, usually you will get cheap reseller account in crowded and slow server and will not be able to tell your users why their website is down, ..etc .. support will be forwarded to your provider and you will never know when they will reply you.

    if you serious about business then you need to take the control ..

  11. #11
    Join Date
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    Originally posted by VintageHost
    Oh yeah, and each rung of that ladder is somewhat coated with vaseline. Make sure you're wearing your helmet.
    lol, so true.
    • AussieHost.com • Aussie Bob, host since 2001 •
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  12. #12
    Join Date
    Feb 2005
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    If I were you then I would have first established myself as a reseller and then would have gone for a dedicated server.

    The positive side of doing this will be that when I am a reseller, I wont have to spend too much on a dedicated server.

    Also, as I will be a reseller, I wont have to care about server related issues the server will be looked after my host.
    So this is where I save cost and then can use the same revenue in marketting and gaining more client base

  13. #13
    Join Date
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    If you have enough customers lined up that would cover the cost of initial setup and first months payment, you could go dedicated. If you are not experienced with running a dedicated server, you should go with a managed solution. Otherwise, a standard dedicated server and control panel license (in most cases it is included with the monthly server fee) is pretty much all you will need to buy.

    However, if you're just starting out in web hosting, it would be wise to start with a reseller account. That way initial cost is low meaning less risk. Reseller accounts are also easier to manage than a full dedicated box. Once you feel you have enough customers or your current hosting solution cannot continue to support all of your clients, you can simply switch to a dedicated server and migrate over to the new real estate.

    Keep in mind that most hosts offer refunds for reseller accounts, but not for dedicated servers. This is to protect them self against abuse and fraud.

    Good luck

  14. #14
    Zeam,

    The best way to advertise at the beginning is to tell about your business to the people around you.

    Gaining the trust of people visiting your website is much harder than people that know you. The true fact about beginning a new business is that the first customers are mostly the people that know you for real.

    Tell 'em all time, what you can offer, how good you are (Do this if you really do) and ask for low prices at the beginning.

    As you gain more clients, your reputation will grow up and it'll help you to impress the visitors that don't even know you name.

    Good luck
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  15. #15
    slow at the start. dont expect too much, and value your first customer.
    but dont let hime know he's your first.

  16. #16
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    I am thinking of starting a small web hosting companys to makes some
    needed money.
    Web hosting is probably the worst thing you can do if your only goal is to make lots of needed money.
    MediaLayer, LLC - www.medialayer.com Learn how we can make your website load faster, translating to better conversion rates for your business!
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  17. #17
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    hmmm, elix I think you did what I do some days and read in a word that isn't there. I don't see "lots".

    But Elix does have a point. There is a definitive startup cost and continued expenses in hosting that must be paid. It can take time to gain customers.

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