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  1. #1
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    What profit is realistic from reselling ?

    Is it possible to make a few grand a month from reselling, or is it an ulrealistic expectation ?
    Obviously I wouldn't assume to make this much over-night--

    If it isn't-- what is a realistic expectation ?

  2. #2
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    The maximum *profit* anyone should expect to make out of a single server, without overselling, is probably (in my opinion) around $300-$500. And this is if you have a full server at your disposal. This would also depend how powerful your server is though.

    If you've got a reseller account, the liklihood of making $1000 a month is probably quite low. Unless of course you plan to wildly oversell your resources
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  3. #3
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    multiple reseller accounts might get you there.

  4. #4
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    There a people that are making tens of thousands a month reselling services. The sky is the limit really.

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  5. #5
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    Oversell my resources ?

    So.. what does that mean ? If I buy a reseller account.. what percentage must main free of the resources I pay for in my plan ?

  6. #6
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    Quote Originally Posted by CD Burnt
    multiple reseller accounts might get you there.
    Do you mean purchasing multiple plans ?

  7. #7
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    Quote Originally Posted by ShootEmUp
    Oversell my resources ?

    So.. what does that mean ? If I buy a reseller account.. what percentage must main free of the resources I pay for in my plan ?
    No, you should have every right to use all of the resources given to you.

    Overselling is selling more resources than you have available. It's ok in small, managed amounts, but if not done correctly can end in disaster.
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  8. #8
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    There's no limit to how much you can make with any plan. If you get into a niche and properly market yourself, you can charge one heck of a premium for your services. You'd then be making as much profit on a few accounts, than someone with a dedicated server is doing.

    It's all relative to how hungry you are

  9. #9
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    Quote Originally Posted by ShootEmUp
    Do you mean purchasing multiple plans ?

    yes.


    as your first reseller account fills up, you can buy another. then another. ........

    they could be from different companies, if desired.

    all you need is customers to fill them up.

  10. #10
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    Quote Originally Posted by surrealer
    The maximum *profit* anyone should expect to make out of a single server, without overselling, is probably (in my opinion) around $300-$500. And this is if you have a full server at your disposal. This would also depend how powerful your server is though.

    If you've got a reseller account, the liklihood of making $1000 a month is probably quite low. Unless of course you plan to wildly oversell your resources

    Did you just pluck that figure out of your head?

    Its VERY easy to make a couple of thousand a month from each server, if your realistic.

    Offer a realistic plan like 5gb of bandwidth and 200mb of space (fine for most sites) for around $8-10 a month. Put just 200 accounts on a decent dual CPU system and thats $2000 a month assuming just 200 small accounts are on the server. Your not oversold and assuming you colo its going to cost around $100 a month for the colo.

    Now as you get bigger your economies of scale mean you can beef up the servers, add more accounts and reduce your colo costs.

    Its not unrealistic for a decent host to be making $2000-3000 a month from a well managed server with realistic plans and clients on it.
    Matt Wallis
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  11. #11
    Quote Originally Posted by UH-Matt
    Did you just pluck that figure out of your head?

    Its VERY easy to make a couple of thousand a month from each server, if your realistic.

    Offer a realistic plan like 5gb of bandwidth and 200mb of space (fine for most sites) for around $8-10 a month. Put just 200 accounts on a decent dual CPU system and thats $2000 a month assuming just 200 small accounts are on the server. Your not oversold and assuming you colo its going to cost around $100 a month for the colo.

    Now as you get bigger your economies of scale mean you can beef up the servers, add more accounts and reduce your colo costs.

    Its not unrealistic for a decent host to be making $2000-3000 a month from a well managed server with realistic plans and clients on it.
    You said Its VERY easy to make a couple of thousand a month from each server, i am going to buy a windows server from the planet and sell reseller plans from 9$ per month that contain a plan with 1000MB disk space and 20000Mb Band width and unlimited sql server and 10 Domain allowded. what do you think about this plan?
    Easy to earn mean easy to sell, but i think selling isnt easy because we should find customers, which marketing ways you offer? how many sales per month you think with that kind of marketing can find?

  12. #12
    If you are good with designing, SEO, integration, marketing, or simply offer good managed service for companies that are not knowledgeabe within the IT area one can easily make several hundred off one clientele.



    The sky is limit simply upsell using your talent and skills.
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  13. #13
    Quote Originally Posted by clanosiris
    If you are good with designing, SEO, integration, marketing, or simply offer good managed service for companies that are not knowledgeabe within the IT area one can easily make several hundred off one clientele.



    The sky is limit simply upsell using your talent and skills.
    We are good in designing and SEO and integration but marketing is the thing that i am not sure which way is better in international sales. can you please explain some marketing ways that you have experienced and got answer?
    Is google adwords good way for advertisement ? which other marketing way you offer?
    what's the meaning of "The sky is limit simply upsell using your talent and skills"

  14. #14
    Its not unrealistic for a decent host to be making $2000-3000 a month from a well managed server with realistic plans and clients on it.
    Thank goodness a voice of reason piped in here...

    Matt is absolutely correct with those numbers, and I would say they are conservative. You can make alot more per server if you offer some sort of value add - I think Matt's numbers are bang on for straight hosting of reliable and still non-oversold services...

    Is it possible to make a few grand a month from reselling, or is it an ulrealistic expectation ?
    Obviously I wouldn't assume to make this much over-night--
    If you have a value add, your earning potential is limitless. For example - a good web designer with a strong SEO skillset can offer a package with hosting, design ongoing maintenance and SEO optimation for significant monthly recurring revenue (we see resellers selling such packages for $200-$2000/month).

    If you are just selling hosting, with no value add, and you are trying to compete on price alone, I am not sure how successful or profitable you can be as a reseller.

  15. #15
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    Quote Originally Posted by CartikaHosting
    Thank goodness a voice of reason piped in here...

    Matt is absolutely correct with those numbers, and I would say they are conservative. You can make alot more per server if you offer some sort of value add - I think Matt's numbers are bang on for straight hosting of reliable and still non-oversold services...



    If you have a value add, your earning potential is limitless. For example - a good web designer with a strong SEO skillset can offer a package with hosting, design ongoing maintenance and SEO optimation for significant monthly recurring revenue (we see resellers selling such packages for $200-$2000/month).

    If you are just selling hosting, with no value add, and you are trying to compete on price alone, I am not sure how successful or profitable you can be as a reseller.
    You're also absolutely correct

    At this point there are so much providers that it's hard for a newcoming company to actually sell at all.
    You HAVE to offer value added services if you want to make a chance of surviving in my opinion.

    The profit you make depends on what kind of clients you have, "just" consumers or companies who are willing to pay for knowledge or value added services.

  16. #16
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    This is another of those questions that just can't be answered. If you're selling hosting to a niche with deep pockets and small needs, you could be making thousands per customer and they only take a tiny percentage of a tiny reseller account. You could also host hundreds of low paying accounts, there is no way to predict a number.

  17. #17
    I currently have two reseller accounts and you can certainly make money. As stated in previous post, you need to fine a niche. I market locally, clients like that they can speak with me directly and they know the face behind the host, I also provide web design.This also allows me to charge a higher rate.

    Talk to your friends, I was surprise to find out how many of them had a website or wanted on. The ones that already had hosting I offered to meet or beat the price they were currently paying.

    Some Pointers:

    Find your niche, offer more than just ice cream also provided the toppings.

    Find a reliable reseller, this way you can focus more on growing your business.

    Have a business plan. It does not have to be elaborate, but more of something that you can look over from time to time, in order to make sure your business is growing.

    Set realist goals

    Be persistent.

    Someday I hope to get a server, but like my grandmother use to say don’t hang your hat were your hand can’t reach.
    Last edited by shazer7; 01-17-2007 at 10:22 PM.

  18. #18
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    Quote Originally Posted by hamed23100
    You said Its VERY easy to make a couple of thousand a month from each server, i am going to buy a windows server from the planet and sell reseller plans from 9$ per month that contain a plan with 1000MB disk space and 20000Mb Band width and unlimited sql server and 10 Domain allowded. what do you think about this plan?
    Easy to earn mean easy to sell, but i think selling isnt easy because we should find customers, which marketing ways you offer? how many sales per month you think with that kind of marketing can find?
    No that doesnt sound like a good business plan.

    You need to spend time working out where you want to be in the market, and where your going to find your market.

    How did you decide on starting at $9 a month for a reseller plan? Are you really willing to provide a client reselling your service with that much resource, and support them 24/7 with any problems at all for $9?

    You need to be realistic and decide:

    1. Shall I compete on price

    or

    2. Shall I find myself a market or something value added which will allow me to price myself realistically.

    If you take option one then you need to rely on selling thousands of accounts over hundreds of servers in order to pull in a decent profit, because your pricing will have to be VERY low to compete.

    If you take option 2 then you can charge more per month and not need to find yourself as many clients. Find a market which hosting doesnt currently cater well for, or a local market where people dont have websites and need that extra hand. Or find value added products to bundle with your hosting in order to charge that bit extra, such as SEO.

    Either way, option 2 is certainly the best way to go, due to the competativeness of the hosting industry and the fact that your a new player going up against some really big guns. If you are will to spend the time to find that little something for your business, it will reap rewards well into the future..... or sell yourself out, take option 1, and be gone from the industry in 3 months.
    Matt Wallis
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  19. #19
    Quote Originally Posted by UH-Matt
    No that doesnt sound like a good business plan.

    You need to spend time working out where you want to be in the market, and where your going to find your market.

    How did you decide on starting at $9 a month for a reseller plan? Are you really willing to provide a client reselling your service with that much resource, and support them 24/7 with any problems at all for $9?

    You need to be realistic and decide:

    1. Shall I compete on price

    or

    2. Shall I find myself a market or something value added which will allow me to price myself realistically.

    If you take option one then you need to rely on selling thousands of accounts over hundreds of servers in order to pull in a decent profit, because your pricing will have to be VERY low to compete.

    If you take option 2 then you can charge more per month and not need to find yourself as many clients. Find a market which hosting doesnt currently cater well for, or a local market where people dont have websites and need that extra hand. Or find value added products to bundle with your hosting in order to charge that bit extra, such as SEO.

    Either way, option 2 is certainly the best way to go, due to the competativeness of the hosting industry and the fact that your a new player going up against some really big guns. If you are will to spend the time to find that little something for your business, it will reap rewards well into the future..... or sell yourself out, take option 1, and be gone from the industry in 3 months.
    it seems that you have many experience in market? dont you?
    so explain marketing way for web hosting reseller that you offer, i dont want to offer add ons, i am going to work on web hosting and reseller plans,
    i know that i can offer good support because in the place i live everything is cheap so i can hire persons with 200$ per month for support.
    can you please explain me ways for marketing on web hosting and reseller plans, if i found a way that i can sell with more prices then i will do that. what do you think about google adwords?
    How many of plans do you think with same specification and prices i mentiond i can sell each month?

  20. #20
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    Marketing...hmmmm, let's see

    Word of mouth: this will be hands down your number one source of new customers (if your service and support shine.) Whether or not your company lives up to it's word can easily be discovered from exisiting customers through word of mouth. You should spend much more time on retaining existing customers than you should on seeking new ones.

    Search Engines: Search engines is highly overlooked by startups IMHO but believe it or not, they can really be a powerful marketing channel. It is also important to remember that Search engines have come along away and now even have localized search which small business can target alot easier.

    Forums and communities: As you can see forums can be a very powerful outlet to expand the "word of mouth" channel. Also they are very valuable for information. Forums are generally divided into sections where business owners and even for web hosting companies to expand their knowledge of the industry as a whole. Thousands of people visit web hosting forums to look for new hosts, get useful tips and expand their knowledge. Get involved with forums and communities that are industry related in some way shape or form.

    Hosting Directories: Hosting directories are just that, they list web hostings firms from all over the world. Consumers generally visit these directories for needs of a new web hosting company. Most hosting directories will allow you to add your company for free.

    Those are just some free channels of advertising. There is also local ads and even the yellow pages that are a great source of advertising your web hosting company.
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  21. #21
    or sell yourself out, take option 1, and be gone from the industry in 3 months.
    LOL - wrong forum for that discussion

    If you take option 2 then you can charge more per month and not need to find yourself as many clients.
    Exactly - I would take 1 customer paying $100 over 10-15 paying $10 - but, thats just me

  22. #22
    With multiple reseller acocunts, or your own server, I would say you could make in the area of $1000 dollars a month if you get your company started right. A lot of advertising and promotions helps getting it going.

  23. #23
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    Quote Originally Posted by ShootEmUp
    Is it possible to make a few grand a month from reselling, or is it an ulrealistic expectation ?
    Obviously I wouldn't assume to make this much over-night--

    If it isn't-- what is a realistic expectation ?
    Definitely not an unrealisitic expectation, there are tons of web hosts here (that started out as resellers) that are earning a few thousand a month. If you're new to sell web hosting though, it won't come easy. Be prepared for a lot of hard work
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  24. #24
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    Thanks everyone for the information !
    Now the hardest part so far is choosing my first reseller provider ! I almost am 100% sure on one, then I find one that looks even better !

    I look forward to participating in the forum =)

    Jen

  25. #25
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    Excellent Jen, glad to have you here at WHT. Finding a web hosting provider is indeed difficult, but you will reap the rewards of your resource I am certain.
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  26. #26
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    Now the hardest part so far is choosing my first reseller provider !
    Just make sure you don't hurry into this. IMO the hardest part should be finding a market to target, finding a way to tap into it efficiently and tailoring your services to fit the needs of these potential customers. Since choosing a host would partially be influenced by what your future customers are after, shopping for reseller hosting should probably be done after you put all the details of your business plan in order.

    Then again, I'm not a host, not even a reseller.

  27. #27
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    All hosts repackage purchased services, to create inventory, and onsell that to their clients. We hosts create inventory, and then sell that inventory in smaller chunks to our end user clients. You could be a host with a cabinet full of your own servers, and you're leasing datacenter space, using your servers to create inventory, to package a product to your client. So depending where you are on the hosting food chain, determines pretty much what you can offer.

    If your inventory supply is a reseller account (which is the context of this thread and would represent the first step in the hosting ladder) then set an income goal to achieve from selling your inventory. When you reach that goal, setup more inventory and don't oversell your current inventory too much. In other words, don't get too greedy and load up your reseller account.

    A realistic ratio could be if your reseller account costs you $50/mth, then you could look to a revenue/mth level of $250/mth, from that reseller account. That's not too bad. When you reach that revenue level, you can either upgrade your reseller account, thus opening up more inventory to sell, or create new inventory elsewhere. Multiple Reseller accounts with different providers can be an advantageous and cautious supply of inventory. Your product is a combination of supply from your reseller account/s and your support that you provide your clients. Both are equally important.

    As a reseller, the sooner you can source inventory from your own dedicated server, then the better. So you've upgraded from sourcing inventory from a reseller account, to sourcing inventory from a dedicated server. The same rules apply, and you should have a revenue/mth goal to attain from that dedicated server, before you get your next server. I started httpme with a humble reseller account, and 3mths later I had my first dedicated server. Then the game was about adding new servers as growth continued, right up til the point where I sold the business, at 33 servers.

    You can start from a reseller account, and work your way right up to wherever you want to go. It's just a matter of climbing that ladder, day in day out. Here's the great thing too, if you want to stop climbing, you can. If you're happy with where you're at now, you don't have to keep climbing if you don't want to.
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  28. #28
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    If you choose the right provider who knows quality over quantity, you can target your client base who are willing to pay a premium for your product. I've seen $20 monthly for 5MB space, 200MB transfer. Enough of those and you're not far off the mark.
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  29. #29
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    Quote Originally Posted by UH-Matt
    ...Its not unrealistic for a decent host to be making $2000-3000 a month from a well managed server with realistic plans and clients on it.
    Sounds about right for the average for an established host offering realistic plans. Throw in some value added services, and bump that number up to $6,000 - $8,000 per month per server (with less than 200 accounts per server).

    We have resellers making many thousands per month, and more with included design and SEO services.

    - John C.

  30. #30
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    Quote Originally Posted by ldcdc
    Just make sure you don't hurry into this. IMO the hardest part should be finding a market to target, finding a way to tap into it efficiently and tailoring your services to fit the needs of these potential customers. Since choosing a host would partially be influenced by what your future customers are after, shopping for reseller hosting should probably be done after you put all the details of your business plan in order.

    Then again, I'm not a host, not even a reseller.
    Agreed. Perhaps because you're not a host, you have a certain wisdom we hosts don't have. If you step into the hosting market with everything planned out, you will be far more successful (and will be making that $2000 - $5000 per month) than if you don't plan. Not to sound like a broken record, but take time choosing your provider: it is difficult to move a reseller account with many clients from one host to another.
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  31. #31
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    Can you give some examples for "value added services" for an new webhosting company who does not specialize in webdesigning or SEO?

    thanks

  32. #32
    Are people throwing out figures they know someone is actually making or are they just estimating?

    Obviously some people do make money, but it's tough when there are so many free hosting sites and others offering hosting for $1/month.

  33. #33
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    Quote Originally Posted by PermaNoob
    Obviously some people do make money, but it's tough when there are so many free hosting sites and others offering hosting for $1/month.
    Simple, don't compete on price.

  34. #34
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    Making LOTS of MONEY is the dream of most people who enter the business of selling web hosting and domains as a reseller.

    For every story of making $1,000 to $3,000 a month profit there are 1000 plus failures.

    It takes MUCH MORE than buying/unselling servers. As was mentioned and IMHO it takes:

    1. Finding the right niche market.
    2. Being on the up swing of the market in your area.
    3. HARD WORK.
    4. Knowing somebody.
    5. MORE HARD WORK.

    Anyone who says it is EASY, the money just pours in over night is not being open and honest about ALL the details.

    In my area there are 100's of "Web Designers" and "Web Hosting Companies"

    Do a simple Google search on "Web Hosting in NYC" (or your town) and see the market.
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  35. #35
    Hi Ireland,

    I dont think anyone said it was easy - nothing is easy in this life - it takes hard work (and more hard work as you mentioned) - capabilities, intelligence, good skillset, etc... this isnt any different then any other business...

    I think the point people are making is that if all you are selling is $10 hosting accounts and trying to compete on price, chances are you will have a tough time making money and will be one of those going out of business....

    If you want to succeed in this business and you want to make money - you need to add value and you need to sell higher valued services/solutions. The problem is, most people do not know how to accomplish this, and as such, get desparate for customers, slash their pricing in order to attract customers then find themselves failing and going out of business...

    Can you give some examples for "value added services" for an new webhosting company who does not specialize in webdesigning or SEO?
    Sure, typical value added services include - IT Consultants, PC Administrators, Developers who have developed a script for the public or a specific vertical or a specific nich, web site designers, SEO Consulting, People who specialize in and sell hosting and associated services for specific point solutions - ie CMS, CRM, eCommerce, etc... People/Companies which sell ISP services, Merchant Accounts, etc People or companies which sell ANY business related service/product and feel they can add value to their customers by also selling web hosting and associated services to their client base... the list really goes on and on...

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