Originally Posted by jkies00
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?
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)
Plan 2 ($10)
Plan 3 ($15)
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)