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  1. #1
    Join Date
    Aug 2002
    Location
    Georgia, USA
    Posts
    4

    Reseller Business Questions

    Hello all,

    I have been thinking about becoming a reseller for a while now. I've frequented the WHT boards (unregistered) for several months and read a lot about the biz. I just have a couple of questions about the business/legal side of reselling. If anyone could answer these for me and/or provide some links to resources I would really appreciate it. Thanks in advance.

    1. Are there any SAMPLE business plans for reselling hosting services on the net? I'm going to search, but a lot of heads are better than one...

    2. Is a business license and tax I.D. number (for U.S. resellers) required to do business on the net? What are the specifics or links to resources discussing this?

    3. Does the credit card company/merchant account company/3rd party billing company handle currency conversions for non-U.S. customers? Ex: I'm in the US and accept payment by CC in US dollars only. A client from Australia signs up. Is currency conversion done automatically through whichever billing system I use? If not, what to do?

    This last question isn't about the business/legal end...and it's basic (and I'm a little embarrassed to be asking, but better to be safe than sorry).

    4. It makes sense to me that I would use a part of my own reselling space for my hosting website. I just want to make sure that this is the way it's done. Am I correct?

    Thanks for all responses.

  2. #2
    Join Date
    Feb 2002
    Location
    Australia
    Posts
    24,009

    Re: Reseller Business Questions

    Originally posted by Talented10th
    [B]Hello all,

    I have been thinking about becoming a reseller for a while now.
    Why?? It's a tough business to crack and to continue running. Make sure your motivations for starting the business are strong.
    I've frequented the WHT boards (unregistered) for several months and read a lot about the biz. I just have a couple of questions about the business/legal side of reselling. If anyone could answer these for me and/or provide some links to resources I would really appreciate it. Thanks in advance.

    1. Are there any SAMPLE business plans for reselling hosting services on the net? I'm going to search, but a lot of heads are better than one...
    Probably not. Just look at what your competitors are offering and do something completely different.
    2. Is a business license and tax I.D. number (for U.S. resellers) required to do business on the net? What are the specifics or links to resources discussing this?
    Can't answer that one. I'm from Australia. We are a registered business for tax purposes etc..
    3. Does the credit card company/merchant account company/3rd party billing company handle currency conversions for non-U.S. customers? Ex: I'm in the US and accept payment by CC in US dollars only. A client from Australia signs up. Is currency conversion done automatically through whichever billing system I use? If not, what to do?
    Most of them have multi currency. We just have everyone pay in US dollars. That's the unofficial currency of the net anyways, IMO.
    This last question isn't about the business/legal end...and it's basic (and I'm a little embarrassed to be asking, but better to be safe than sorry).

    4. It makes sense to me that I would use a part of my own reselling space for my hosting website. I just want to make sure that this is the way it's done. Am I correct?
    Yes, just have your site hosted on your reseller account and then when you get enough clients, move your site to your own dedicated server and move your clients to their own dedicated server. Consider a reseller account, a stepping stone towards having your own servers etc..
    AussieHost.com Aussie Bob, host since 2001
    Host Multiple Domains on Fast Australian Servers!!

  3. #3
    Join Date
    Jul 2002
    Location
    My Place
    Posts
    135

    Lightbulb Dick Smith

    What did the famous Australian entrepreneur, DICK SMITH, say?: "Want to take on your competitors?. Move next door and do it different and do it better!"

    MAX POWER
    COMPUTERS CAN DO THAT?
    http://www.computerscandothat.com

  4. #4
    Join Date
    Feb 2002
    Location
    Australia
    Posts
    24,009

    Re: Dick Smith

    Originally posted by MAX POWER
    What did the famous Australian entrepreneur, DICK SMITH, say?: "Want to take on your competitors?. Move next door and do it different and do it better!"

    MAX POWER
    My motto completely!!
    AussieHost.com Aussie Bob, host since 2001
    Host Multiple Domains on Fast Australian Servers!!

  5. #5
    Join Date
    Aug 2002
    Location
    Georgia, USA
    Posts
    4

    Re: Dick Smith

    Originally posted by MAX POWER
    What did the famous Australian entrepreneur, DICK SMITH, say?: "Want to take on your competitors?. Move next door and do it different and do it better!"

    MAX POWER
    I was talking about an actual business plan..on paper with mission statement and all of that. I wasn't talking about looking at my competition and modeling my plans after theirs and providing better service. That's a given. Thanks, though.

  6. #6
    Join Date
    Apr 2002
    Location
    USA
    Posts
    5,779

    Re: Re: Dick Smith

    Originally posted by Talented10th


    I was talking about an actual business plan..on paper with mission statement and all of that. I wasn't talking about looking at my competition and modeling my plans after theirs and providing better service. That's a given. Thanks, though.
    I think what Bob is trying to tell you is make your own, why take someone elses mission statement or business plan? What works for them may not work for you. It is your business you are the one that is supposed to know where it is going and where you are going to lead it.


    2. You normally need that for a business checking account.

    3. Charge in US $$ they will get the conversion done by their credit card company.

    4. Yes, at least that is the way I set it up. Different providers do it different ways I set up a reseller only account that is not a real domain has no email nuthin it is for WHM access only, then the resellers main site is created by their own reseller account, they can then control its space transfer limits like any other account they create.
    Others create the main site and then give it resell priviliages, and deduct the amount of space and transfer allocated to that site from the amount they can resell. Best to ask who you host with how they do it.

  7. #7
    Join Date
    Feb 2002
    Location
    Australia
    Posts
    24,009
    Business plans sound good on paper and you might get a warm and fuzzy feeling from having completed such a task. But when the rubber hits the road, and you're on your way with your business, they're about as useful as WorldCOM stock certificates.

    You'll probably find that 12mths into the life of your business, you are nowhere near what your "business plan" projected.
    AussieHost.com Aussie Bob, host since 2001
    Host Multiple Domains on Fast Australian Servers!!

  8. #8
    Join Date
    Jul 2002
    Posts
    288
    I disagree with that. A business plan is worth a lot, and a properly maintained business plan is worth it's weight in gold. A business plan isn't something you write once, put in a drawer and forget, it's something that is continually evolving and being modernised. Every 6 months a business plan should be revisited and reviewed, taking stock of what did go as planned, what didn't, where the strengths and weaknesses were, and how things may be modified for the upcoming 6 months.

    A properly written business plan is an evolutionary medium that grows with the company for whom it was written for.

  9. #9
    Join Date
    Feb 2002
    Location
    Australia
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    Originally posted by reseller
    I disagree with that. A business plan is worth a lot, and a properly maintained business plan is worth it's weight in gold. A business plan isn't something you write once, put in a drawer and forget, it's something that is continually evolving and being modernised. Every 6 months a business plan should be revisited and reviewed, taking stock of what did go as planned, what didn't, where the strengths and weaknesses were, and how things may be modified for the upcoming 6 months.

    A properly written business plan is an evolutionary medium that grows with the company for whom it was written for.
    That all sounds nice and you're using all those nice buzzwords that folks love to hear, but we know reality doesn't work that way.

    I have a 180 day cashflow projection which projects all my income and expenditure. My costs are fixed. I know when I receive money, I know when I have to spend money, so it's simple to build and maintain. If I add another server, then I add more costs to my projection. It's all about the cashflow!!

    Ok, now - let's be honest - who here started out in the hosting business with a whipfandangle business plan and has kept to it?
    AussieHost.com Aussie Bob, host since 2001
    Host Multiple Domains on Fast Australian Servers!!

  10. #10
    Join Date
    Jul 2002
    Posts
    288
    Probably very few have kept to their business plan, actually probably very few actually have a business plan.

    I'm not sure if I'm "buzzwords" but I do know that the ideal business plan is to be revised every 6 months.

    I guess it comes down to people ultimately. People get lazy.

  11. #11
    Join Date
    Aug 2002
    Location
    Georgia, USA
    Posts
    4

    Re: Re: Re: Dick Smith

    Originally posted by Monte


    I think what Bob is trying to tell you is make your own, why take someone elses mission statement or business plan? What works for them may not work for you. It is your business you are the one that is supposed to know where it is going and where you are going to lead it.
    I never had any intention of taking someone else's mission statement or business plan and using it for my own. I am SO much smarter than that.

    I just wanted an example for structure, style of language, what to include/not include, etc.. for when I write my OWN plan.

    Thanks for answering the other questions.

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