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.
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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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.
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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 ..
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
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.
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.
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