Here is my 3rd tutorial on wht, this is about finances how to manage them and get them if you are a new host.
Something you have to remember "the customer will never pay what YOU want" , if your reseller or server costs 100$ and you plan to sell 10 plans..10$ each to cover your expenses...think again nobody will buy it unless you oversell your *** off like servage.net
IF you oversell then trust me you are digging your own grave…here is a worst case scenario:
You bought a 4gb space reseller
You marketed as a 500gb dedi server/s
You sold 50gb space for 5$
You sold 10 accounts and you are now making enough to pay for the reseller
A spike occurs in space usage
Your hosting account is now full
Now your bandwidth is drained
Your customers are furious
Your paypal has 5-9 disputes
You get sued
You gat bashed on forums like this one
You are finished..end of story
Now here is what you should to to make some profit and have a healthy business
Now this is the only tried and tested way to get money actually there are 2 but the other one is really really lame and takes longer… now what you should do is DEVELOP sites on normal shared hosting I mean even if you are the brokest person in the world you must have 10$ each month get hosting from hostgator or bluehost or godaddy and develop a site, now do not tell me you don’t want to develop you want to host this is where you are tested if you cant run / build a site how the hell will you run a host?
So just suck it up and get to work – designs – coding and advertise it as much as possible (ONLY FREE ADVERTISING NONE PAID)
If you start going on paid ads you will blow your budget
The best thing to do is either open a proxy site or get money via adsense OR open teen communities have huge traffic then sell the place.
That will give you enough money to get started I suppose, if not then design templates sell for 10$ per template.
OR make articles and sell them on webmaster articles.
Now I will NOT list the url for those webmaster sites because that would be advertising and its against wht policy plus its good for you guys to find such places on your own.
NEVER take your payment dates as a joke if its 1st jan then its 1st jan not the 2nd and not the 3rd
prompt payments to your provider is the only way of getting good services/response.
Always keep a track of your customers and at least 1 week before your payment date make sure that they ARE gonna pay you and not dump you for a cheaper host.
Always stay 20$ ahead of your budget.
Now if you are already a successful host then try to have double of what you are spending and keep enough money for refunds that is if only you offer refunds and for a a certain period only but if you take yearly payments then yea you need to hang on to the money for the whole year not the whole amount just keep deducting each month from it
Notify your customers that their payment is coming up in 1-2 days and they need to pay you or send invoices upto 4 days before their payment dates.
That’s it for for my 3rd tutorial, this is just getting started there are a lot more things to consider while beginning a host.