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  1. #1
    Join Date
    Aug 2001
    Location
    Connecticut
    Posts
    242

    Reselling Packages, or just getting your own server?

    Reselling Packages, or just getting your own server?

    Which method will bring in the profit?

  2. #2
    Join Date
    May 2001
    Posts
    1,593
    It all depends. If you have the technical knowledge and you have enough clients, getting your own server is generally going to bring in more profits, since the diskspace and transfer costs at ther server level is much cheaper.

    However, time and effort are also costs to consider. If you don't have the time, getting packages and reselling them will be better. Or if your number of clients is small, no reason to get a server just to have it underused.

    Peter

  3. #3
    Join Date
    Jan 2002
    Location
    UK
    Posts
    1,541
    In the long run your own server will probably bring in the most profit.
    However you cant just buy a server and expect the profit to come rolling in, you need customers and lots of them, its probably best to start with a reseller package until you build up your customer base and then move to a server when you need too. Don't forget the market is pretty crowded these days, you need to be competetive to get the customers they wont all just appear.

    And dont forget other things, you need to advertise, pay staff etc they all cost money and over spending on things like a half empty server at the beginning may lead to your downfall

  4. #4
    Join Date
    Aug 2001
    Location
    Connecticut
    Posts
    242
    Could anyone suggest any good companies that offer competative reselling plans that allow adult content?

    Thanks

  5. #5
    Greetings:

    "Reselling Packages, or just getting your own server?

    Which method will bring in the profit?"

    It is a time scale based on time and volume.

    If you are just starting out then reselling packages will bring in the most gross margin (which is different than profit).

    When you have enough accounts, presuming you have the skill base or can outsource managed services, then getting your own server can reduce the cost per account and increase your margins.

    When you have enough servers, presuming you have the skill base or can outsource the equipment management, then getting a rack to house your servers in a co-located environment can reduce the cost per server and increase your margins.

    When you have enough racks, presuming you have the skill base or can outsource the management of a data center, then building your own data center can reduce the cost for racks and servers, and thereby increase your margins.

    Thank you.
    ---
    Peter M. Abraham
    LinkedIn Profile

  6. #6
    Join Date
    Dec 2001
    Location
    Arizona
    Posts
    460
    I would get a reseller package and move to a dedicated server when you have around 30 or so clients.

  7. #7
    Join Date
    Jul 2001
    Posts
    256
    One thing to consider is that when you have your own server you can design more attractive plans (more space, transfer etc), due to having more resources. Therefor, you will grow much faster likely do to these better offerings.

    On the other hand, of course, have a reseller plan allows you to start small with limited resources and slowly grow.

    So, I would suggest it depends on your personality, your willingness to take risks, and the amount of energy you wish to put into this now.
    Old man of the hosting world..

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