Web Hosting Talk : Advertising Forums : Web Hosting Offers : Dedicated Hosting Offers : Dedicated Reseller Offer

[MikeA]

This is more of a question than an offer. WebAuthorities is considering offering a dedicated reseller deal. You lease the servers from us at a reduced rate, then purchase bandwidth in bulk and resell the servers to your clients. There will be no contracts. You will also be able to lease cpanel, plesk and hsphere at a reduced price.

How it works:

For $60 per month and a $100 setup fee you get the following:
Pentium Celeron 1.2 GHz (we may do the new 1.7GHz P4 Celerons)
512 MB RAM
60 GB EIDE HD
1U Rackmount
Switched 10/100 Port
up to 16 free justifiable IP's per server.

Add $40 per month for 1 year as a lease to own. This would be optional. At the end of a year, the cost would drop from $100 per month (this adds the $40 to the base cost) to $25 per month for rackspace.

Then you buy bandwidth in bulk. We would suggest starting small, around 512 kbps. You can get either or both of single homed (soon to be single but with backup) or multi-homed.

This would be an ideal way for someone who is limited on funds to get into the dedicated server market with very little startup cash.

Here is a demo company.

10 Initial Servers
$60 per month = $600
$100 setup fee = $1000
$150 for 1 mbps single homed

TOTAL FIRST MONTH = $1750
EACH MONTH THEREAFTER = $750

You sell each for $125 per month and a $100 setup fee.

TOTAL INTAKE FIRST MONTH -> $2250 ($1250 for servers + $1000 for setup fees)

INTAKE EACH MONTH THEREAFTER -> $1250

TOTAL MONTHLY PROFIT -> $500.00

Of course, in this demo company, I charged $125 per month, you could charge more or less and of course the setup fee is up to you as well.

Would anyone be interested in doing something like this? Any suggestions you could offer?

[kcdworks]

What are the bandwidth prices?

[MikeA]

It depends on how much you wanted and of what type. I've pasted it below:

SH = Single Homed MH = Multi Homed

1GB SH -> $1.00 MH -> $2.00

256 KBPS SH->$75.00 MH-> $175.00

521 KBPS SH -> $100.00 MH -> $250.00

1 MBPS SH -> $150.00 MH -> $400.00

The key when you look at the bandwidth pricing is to note that each dedicated server typically uses less than 100 GB of bandwidth. We have a client with 5 boxes and he is using around 94 GB per server and some of those servers have over 100 hosting clients on them. I have other hosts using less than 75 GB for 3 servers combined.

I know everyone sees things like Rackshack and Serverhost and even us offering 300 GB of bandwidth, but the fact is, if every host used that amount, we would be out of business faster than you could sit down. It's a simple fact, just like in the hosting business, in the server business you oversell your bandwidth.

If someone was interested in this, we will help you get going and make suggestions. Let me know your thoughts.

[MikeA]

Oh, I had someone ask in an e-mail. The bandwidth you buy is shared amoung all of your servers. You don't buy bulk bandwidth for EACH server, it will be calculated as a total.

So if you had 5 servers and each were doing 128kbps you would need to buy 1mbps of bulk bandwidth to cover them.

[kcdworks]

Do you have any minimum purchase amounts on this? I have a few clients that have been asking me about dedicated servers ... this may be something that I think about.

[MikeA]

Nope no minimums. You buy the server then get bandwidth in bulk using kbps. I listed GB and $1 and $2 and you could buy that way, but that was an error, you'd have to start with at least 256 kbps.

I've gotten a few e-mails about this. I'll try to throw a web page together with some more information and post a link here when it's done.

Also, we have two nocs, MAE Dulles in VA and Global Compass in GA. I'm thinking that about making it where you can have servers at either place. So it would be your choice where you wanted them.

Any other questions or comments?

[JamRover]

I'd be interested in it. When do you start selling?

[MikeA]

Ok, I created a page. Again, this is temporary. I want feedback. I appreciate everyone who has e-mailed me and posted on this. If everyone thinks what is on the site looks good, then I'll try to get the details finalized by Monday.

http://webauthorities.com/wa-reseller.html

I just uploaded a new page with more information (1:37 PM). I've been getting a few hits on the page. Be sure to hit your refresh throught the day as I tweak things.

[311]

Originally posted by MikeA
Ok, I created a page. Again, this is temporary. I want feedback. I appreciate everyone who has e-mailed me and posted on this. If everyone thinks what is on the site looks good, then I'll try to get the details finalized by Monday.

http://webauthorities.com/wa-reseller.html

I just uploaded a new page with more information (1:37 PM). I've been getting a few hits on the page. Be sure to hit your refresh throught the day as I tweak things.

I'd be more than interested in this...

One question about the plesk liscenses (listed on the resellers page): Are they One-time fees or monthly fees?

Thanks.

[Jag]

Originally posted by MikeA
This is more of a question than an offer. WebAuthorities is considering offering a dedicated reseller deal. You lease the servers from us at a reduced rate, then purchase bandwidth in bulk and resell the servers to your clients. There will be no contracts. You will also be able to lease cpanel, plesk and hsphere at a reduced price.

How it works:

For $60 per month and a $100 setup fee you get the following:
Pentium Celeron 1.2 GHz (we may do the new 1.7GHz P4 Celerons)
512 MB RAM
60 GB EIDE HD
1U Rackmount
Switched 10/100 Port
up to 16 free justifiable IP's per server.

Add $40 per month for 1 year as a lease to own. This would be optional. At the end of a year, the cost would drop from $100 per month (this adds the $40 to the base cost) to $25 per month for rackspace.

Then you buy bandwidth in bulk. We would suggest starting small, around 512 kbps. You can get either or both of single homed (soon to be single but with backup) or multi-homed.

This would be an ideal way for someone who is limited on funds to get into the dedicated server market with very little startup cash.

Here is a demo company.

10 Initial Servers
$60 per month = $600
$100 setup fee = $1000
$150 for 1 mbps single homed

TOTAL FIRST MONTH = $1750
EACH MONTH THEREAFTER = $750

You sell each for $125 per month and a $100 setup fee.

TOTAL INTAKE FIRST MONTH -> $2250 ($1250 for servers + $1000 for setup fees)

INTAKE EACH MONTH THEREAFTER -> $1250

TOTAL MONTHLY PROFIT -> $500.00

Of course, in this demo company, I charged $125 per month, you could charge more or less and of course the setup fee is up to you as well.

Would anyone be interested in doing something like this? Any suggestions you could offer?

That scenario only gives each client about 30gig to use per month which isnt anything for a dedicated server. To give them each 100gig you need 4mbps. If you went with just a signle homed pipe (and prayed it didnt failed) then your net profit from that scenario is $50 not $500. If you went with multihomed your profit (or loss I should say) becomes - $1350 . And you've got to ask how many servers can you sell at $125 mo and $100 setup for 100gig of single homed bandwidth to make that $50 profit scenario work.

Sounds like you have a neat idea there but so many hosts play the bandwidth game and fail...just make sure you cover all your bases.

[MikeA]

The plesk fees are monthly. I'm trying to figure out a way to get them to be one time, but not to be a killer amount.

Jag, you are right. But if no one oversold, we wouldn't have people like Rackshack offering 400 GB for $100. Sure, if each server used 100 GB you would need 3 mbps or so of bandwidth, but the reality is they don't. I have plenty of servers who barely use 10 GB.

The reality is that our average server uses 50 GB's of bandwidth (I can show anyone the numbers who wants to see them) and based on that 1 mbps is plenty of bandwidth for 6 servers. For those of you worried, in the real world, you buy bandwidth by the mbps and rackspace by the U....not $100 for 400 GB of bandwidth, rackspace and a server.

But Jag is right. Be sure this is something you want to get into. While it seems great now, dedicated servers can be a major pain in the rear.

Again, this is for people who can't afford to buy $600 - $800 servers and want to get into dedicated servers. This isn't for the person trying to get the best bang for the buck for a dedicated server.

We have had lots of interest via e-mail. My plan is to make this all go live by Monday. Thanks to those of you who have given me postive feedback.

[Fahd]

Nice program!

Ill look into it further when Im sure Im ready!