Web Hosting Talk : Web Hosting Main Forums : Reseller Hosting : Two Quick Questions from a Reseller Rookie

[jkies00]

Hi All,

I'm trying to figure out if I should become a reseller. Here are two questions I can't figure out.

The first is more of a customer relations question:

When explaining to a potential customer that I'm a reseller, why would they want to go through me, instead of going direct to the hosting company? How do I approach that conversation?

The second question is also one I might need to explain to a customer, but is also something I don't understand personally:

If I buy a reseller account that has 75GB storage and 600GB bandwidth, how much of that does each client get?

Thanks!

[kapz01]

Originally Posted by jkies00

Hi All,

I'm trying to figure out if I should become a reseller. Here are two questions I can't figure out.

The first is more of a customer relations question:

When explaining to a potential customer that I'm a reseller, why would they want to go through me, instead of going direct to the hosting company? How do I approach that conversation?

The second question is also one I might need to explain to a customer, but is also something I don't understand personally:

If I buy a reseller account that has 75GB storage and 600GB bandwidth, how much of that does each client get?

Thanks!

1) I personally wouldn't go around advertising the fact that I am a reseller. If a [smart] client was to come to me and ask me about my infrastructure, I might elaborate on the fact that we resell services as opposed to owning the hardware.

2) These plans are for you to decide. I suggest you sit down on a nice quiet day and write up a business plan that would cover your entire business. Make sure you include all your costs. If you want to become a registered business (highly recommended), such as an LLC or something of the sort, that'll cost some money as well. If you feel that you can handle all the client support tickets, you won't have the need for outsourcing or hiring your own staff. However, if you do not think you can provide adequate support help, you may wish to consider those services.

There are some webhosts out there that offer free end-user support. In other words, if your client's submit a ticket, your web host would handle/take care of it for you (the most "basic" explanation). You'll have to consult these hosts to find their limitations.

All in all, you really want to cover any expense you can find. Whether that be advertising, hosting, services, software (Billing and control panel), etc.

Here's just a basic scenario (using approximate values).

Reselling cost = $30
Disk Space = 75GB
Bandwidth = 600GB

Plan 1 ($5)
2GB Disk
10GB BW

Plan 2 ($10)
5GB Disk
20GB BW

Plan 3 ($15)
10GB Disk
50GB BW

Again, I just pulled these values out of the blue, but you will have to decide what is best for your company. You'll also want to decide whether or not you will be overselling your resources (if your host permits). This means, you'll host more clients than your given space. (Having 8+ "Plan 3" clients, although you only have 75GB)

[jkies00]

Thanks for the reply. I don't plan on offering up the fact that I'm a reseller, but if it comes up, I was wondering how people talk about it. I like your take on it, about reselling services.

It seems the companies I'm looking at purchasing a reseller account from don't offer end-user support. So I'd be doing the support myself. What type of software do people typically use to manage their customers requests for support?

[kapz01]

Originally Posted by jkies00

Thanks for the reply. I don't plan on offering up the fact that I'm a reseller, but if it comes up, I was wondering how people talk about it. I like your take on it, about reselling services.

It seems the companies I'm looking at purchasing a reseller account from don't offer end-user support. So I'd be doing the support myself. What type of software do people typically use to manage their customers requests for support?

Not a problem.

There are several pieces of software out in the market.
For billing, the main ones used are ClientExec and WHMCS.They both include a "ticket" system in which your clients can submit a ticket (obviously) and you can answer it.

If you were looking for something that was solely for support, I'd say many people use Kayako. They have an excellent system that has various features that WHMCS and ClientExec lack or "fall" in. Kayako's SupportSuite also includes a Live Chat, as far as I know.

Take a look around and play with the demos. You should get a feel for what you like and what you don't like and weigh the benefits. You can purchase licenses directly through the company itself, or find resellers (often a few dollars cheaper). One that comes to mind for ClientExec, WHMCS, and Kayako is LicensePal

[gotlivechat]

I think it depends on the provider you're reselling through. If they're a top brand AND they allow you to price below their advertising pricing, mentioning that you resell for them could be a plus. Though I know many companies don't like their resellers undercutting their prices so you'll need to check first...