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  1. #1
    Join Date
    Aug 2001
    Posts
    287

    Question regarding Creating reseller accounts.

    Hello,

    Currently we only offer shared-hosting service and plan on offer Cpanel Reseller accounts. There seems to be 2 methods of how reseller cpanel accounts are offered.

    One is offering the reseller space/ bandwidth WITH overselling enabled.

    The other is offering space/bandwidth with NO overselling.

    It’s quite hard to suggest which is the better offer, but for the client, I would assume overselling abilities is the better deal. But on the other note companies like Hostgator which from what I see, the largest reseller host, does no-overselling. Which begs me to ask, what is the norm?

    I was thinking of doing something like:

    10GB space 200GB bandwidth with Overselling enabled. $21.95 (similar to resellerzoom offer)

    or

    25GB space 250GB bandwidth with NO OVERSELLING. $21.95
    (similar to hostgator offer)

    I ran both through the profit calculator I made via spreedsheet and it seems the overselling method would allow for 45% more revenue per server. But the question is what are clients looking for?

  2. #2
    Join Date
    Feb 2002
    Location
    Australia
    Posts
    24,009
    Generally the overselling not enabled reseller suppliers have their plan allocations set very high, compared to the overselling enabled reseller providers. From my experience an overselling enabled host could offer 5GB disk and 50GB data, and that would be comparable to a non overselling host offerring 50GB disk and 500GB data, from a reseller's perspective.

    That ratio could vary a little (or a lot) but that's been my experience. So you'll find the reseller suppliers offerring a LOT of resources, are the ones generally not allowing overselling. For a reseller, it is far better to have overselling enabled than not enabled, but that comes back to how much resources they have to start with, and if you think of the above ratio of 1:10, that would be pretty equal comparing overselling and non overselling enabled reseller accounts.

    To answer your question what are clients looking for? I'd say overselling enabled with as much resource allocation as possible, then support speed quality, server quality etc etc etc.
    AussieHost.com Aussie Bob, host since 2001
    Host Multiple Domains on Fast Australian Servers!!

  3. #3
    Join Date
    Nov 2007
    Location
    Oregon
    Posts
    156
    MMH-Moe,

    Just a quick thought - it's one thing to oversell your services to direct customers, but ANOTHER to enable your resellers to do the same. In the end, it's your company whose credibility is on the line. Looking at the manner in which our own resellers are able (or not) to look after their apportioned resources, we'd be opening ourselves up to far too much risk for that "extra 45% revenue" potential indicated by your research.

    Thanks,

    David
    Canvas Host, LLC - http://www.canvas.host - 800.574.4299
    cPanel shared and reseller plans. Softaculous, RVSiteBuilder.
    200% renewable wind power offset, sustainable practices, certified B Corporation.
    30-Day Money-Back, 99.9% Uptime, No-Oversell.

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