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  1. #1
    Join Date
    Jan 2007
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    Kissimmee, FL
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    Question Advice from veterans of the business wanted

    Hello WHT,

    I was referred here from freewebspace.net, of which I've been a part for many years. My partner and I are interested in getting into the business and are wondering some things. We want to start with a reseller account, either reselling webhosting or domains (or both). We're not sure which would be more profitable and have less pitfalls.

    My experience on FWS.net taught me what makes and breaks a good host from reading lots of discussions, though I have no personal experience with this. So I'm not going in to this completely blind and unexperienced.

    We're prepared to spend no more than $200 a year for our reseller account. Again, that could include hosting and domains, or just one or the other. Domain reselling by itself doesn't really make as much sense to me, and hosting with the option of registering domains does make sense, but offering just hosting seems the safest.

    I'm putting a lot of thought into this and pondering what I can do to set this hypothetical business apart from the rest, but first I'd like some advice from you veterans on getting started.

    Any comments are welcome.

    Thanks!

    Drew

  2. #2
    Join Date
    Dec 2002
    Location
    Prince Edward Island
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    Well, limiting yourself at $200 a year for both a reseller account and for domain names certainly won't help. Its going to limit your budget big time.

    For instance, if you go with just a reseller account then thats $16.67 a month budgetted which is a half decent amount for a reseller account.

    But if you truely plan on making something of your business venture and want a good reliable reseller account then depending on the reliable company you go with you'll probably make it on $16, mind you its going to be a small reseller account.

    If your limit is $200 for both domains & a reseller account them your off to a bad start. You should never limit how much your going to spend on domains since it will depend on the amount of domains you sell.

    And in closing, if you and your partner are only willing to invest $8 a month to get your company going, go work at Mcdonalds because really a $8 investment is nothing. Its almost the same cost of a meal at McDonalds!

  3. #3
    Join Date
    Jan 2007
    Location
    Kissimmee, FL
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    OK, so if we forego the domain idea, and we're just reselling hosting, then $16 a month isn't bad for what it will get us?

  4. #4
    Join Date
    Jul 2001
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    .INdiana
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    as you get customers, would you pay for a larger reseller or a server? or are you definitely limiting your expenses to $200 per year?

  5. #5
    Join Date
    Jan 2007
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    Kissimmee, FL
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    Well, since this is our first venture, we're hoping that it's successful enough to expand once we get customers. We won't limit ourselves so much that our business stays small forever. $200/yr or $16/mo is our initial investment goal.

  6. #6
    Join Date
    Feb 2006
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    Swellyville
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    Quote Originally Posted by bitsmart
    OK, so if we forego the domain idea, and we're just reselling hosting, then $16 a month isn't bad for what it will get us?
    yes exactly, you want to start off with what you will use, and never really limit yourself when you do not need to do so.

    Your goals seem good to me, as it looks there.
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  7. #7
    Join Date
    Dec 2002
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    Prince Edward Island
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    Quote Originally Posted by bitsmart
    OK, so if we forego the domain idea, and we're just reselling hosting, then $16 a month isn't bad for what it will get us?
    It isn't bad. You'll be able to afford a hosting account and thats it, nothing else. Which leads me to your first problem, how do you plan on getting customers if you don't have a marketing budget? Which leads to my next question, how well have you guys though this out?

    Again, an $8 investment each is nothing.

  8. #8
    Join Date
    May 2005
    Location
    Alberta, Canada
    Posts
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    Domains are hard to profit from. To be competitive, you've got to offer them for around $9. If you're with eNom, then your cost is $7.95. So a profit of $1 per year isn't great, but by offering domains you will get clients who want hosting at the same place they register their domain.

    Start off with a small reseller plan, then as your client base grows, upgrade. My tip is to not waste money at the start with a large plan when you don't need it, just make sure to upgrade to a larger plan when needed.

  9. #9
    Join Date
    Sep 2005
    Location
    San Diego, California
    Posts
    865
    From my understanding, the $200 was to cover the costs of the reseller account (as stated in the initial post). Once you have your account setup, you can always market using some methods that are free or very low cost, for example, marketing to people you already know and your local city -- although with this, local clients may want more value-added services aside from just hosting, (often times wanting design and the likes), so depending on your target market, you'll have to have a different kind of marketing strategy.

    Domains are not a profitable business if you're not selling masses (in which cause you get large discounts for buying large amounts of domains which can allow you to compete with pricing). Domain registrars often times do not need to offer the same customer service as hosting (although this can be argued with), so people are often out looking for the best deal for domains, more so than for hosting, I would say (although some of the threads on this forum say otherwise ). Your best bet if you really want to sell domains would to be to sell them with hosting that way you are selling hosting that may offer a domain, not domains.

    In the end, it's all up to you! So hopefully your decisions will take your new ideas and allow them to prosper! Best of luck.
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  10. #10
    Join Date
    Dec 2002
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    Prince Edward Island
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    Quote Originally Posted by bitsmart
    We're prepared to spend no more than $200 a year for our reseller account. Again, that could include hosting and domains, or just one or the other.
    He wasn't exactly clear on that point actually.

  11. #11
    Ok we are looking Godaddy's reseller program which includes the ability to sell hosting and domain products. The initial cost per yr is $199.00 which basically provides the frame work for starting the business. To me this sounds like a good idea but would like opinions.

  12. #12
    Join Date
    Feb 2006
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    Swellyville
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    Well Godaddy's reseller program gives you very very very little room for innovation if any at all. In addition is provides no differentiation in your business.
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  13. #13
    Join Date
    May 2005
    Location
    Alberta, Canada
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    Stay away from GoDaddy's reseller plans.

    Here's an example of a GoDaddy reseller: http://www.domainspricedright.com

    Notice how it redirects to their site, you can't even keep your own domain in the url. That doesn't look good.

    Second, you're stuck using their banners, layout, everything. Once I saw the banner across a reseller's site that said "Save with GoDaddy.com", this banner came up on the homepage of all resellers. I'm sure it was an accident by them, but you are tied to what they want to show.

  14. #14
    Join Date
    May 2004
    Location
    Baltimore, MD
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    1,203
    Quote Originally Posted by jmweb
    And in closing, if you and your partner are only willing to invest $8 a month to get your company going, go work at Mcdonalds because really a $8 investment is nothing. Its almost the same cost of a meal at McDonalds!
    $8 for a meal at McDonalds?!??! What do you think it is, Burger King? Dollar menu for life!

    Although, $16 a month could get them a starter reseller for roughly $15... however quality may (depending on what's included) be an issue. When I started about 2 years ago I used RSHosting.com (and I still do) and it's $20 for 1 GB / 20 GB Transfer. However it all depends on the quality you want. I think they should charge $30-40 for 1 GB based on their uptime, support and quality in general. I can't argue with 5 minute response times 24/7 by real technicians.. I just can't :p

    It all depends on the approach. If you're going with budget hosting it may be a good starting point, but personally I think $30/month is a good starting point.
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