Advantages of hosting with a reseller?

[bandboy]

Going through a few posts here, i felt we need to shed more light on a reseller hosting module and its advantages.

Lets share our views on how we perceive reseller web hosting and are there any advantages of hosting with a reseller, rather than their upstream provider?

 

[swizi]

Going through a few posts here, i felt we need to shed more light on a reseller hosting module and its advantages.

Lets share our views on how we perceive reseller web hosting and are there any advantages of hosting with a reseller, rather than their upstream provider?

Depending on the reseller's host, it could be cheaper for the buyer.
But there's also the cons, like having restrictions on what the buyer can host, and cpu usage etc.

It's possible for the buyer to have more 1-1 contact, or a personal approach, as generally resellers aren't that big and are just starting out in the industry.

It's also possible to have faster connections depending on the resellers host.

 

[Blue]

When I first started in this business I was a reseller.
That being said I can safely say that there is NO advantage in going with a reseller.

That doesn't mean that it's a bad idea to go with a reseller, but in reality, if you do your research you are always going to find superior hosting with a brick and mortar hosting service.
The best reseller out there is only as good as their host. If that host is outstanding then obviously it makes more sense to go to the source.

 

[hostzio]

If your on a budget its ok to go with a reseller, otherwise if you plan on making some profit go with a reseller plan.

 

[Jim2Macs]

Every host is a reseller of some sort, and to some degree, but I know what you mean. I would say one advantage of going with a reseller would be support. IF the upstream provider has a solid network and everything is fine at that end, then a reseller (usually with less clients) would be able to give better individual support. Although, that really is a generalization as every company is different. Besides, IF it is a good reseller for a good upstream host, then the reseller would (should) have a better relationship with the host than a individual possibly could. Another might be that the reseller might offer more services such as web design, seo, submissions, etc. Of course this is only one way of looking at things. There are of course plenty of cons with going with a reseller so it will be interesting to see what others have to say.

 

[bandboy]

Nice points there. Let me share what i feel about this.

We are into a hierarchy where every rank is important howseover big or small that may be. Like host is dependant on network provider and server provider, both of which may be same or different. Then reseller is dependant on host and hosted member is dependant on reseller. Thats one way of looking into the hierarchy. Seeing it another way, satisfied hosted members is what reseller depends on. Successful reseller is what host depends on and successful host is what server provider and network provider bank on. So, we are all into a symbiosis where each other's success is important and beneficial to our own existance.

Since reseller is providing a shared resource out of server, they are not in complete control of the server or environment. They themselves are dependant on host/server provider for certain problems requirring access to server. Having said that, if such a problem occurs, it is not isolated issue for that very reseller in most cases.

Now host may have to handle hundreds of clients, so having a reseller in place eases their support system also, because then they need to attend to the reseller who in turn handles those clients. In addition, should anything bad happen, it is reseller who is at risk because customers see reseller as the service provider. Having reseller in place, provides host a good channel to fill up their space in better possible manner. besides they do not have to run for clients or atleast this gets attended easily. In a way having a reseller is advantageous to the server provider.

Now how would customers benefit if they were to host with reseller rather than server provider directly? A few of you may argue it out but truth remains, resellers have much much better host-client interaction than server provider-client and also rapport. For sheer amount of work server provider needs to do, it is unreasonable to expect them to have time for this. Resellers have lesser responsibilities towards server maintenance and can easily use this to build up confidence and relatino with hosted clients. Over period of time resellers start providing multitude of services, something parent company would not be in position or may be charging for. This includes installing scripts, SEO, web designing and related. If not for free, atleast for cheap and then there is a community to develop and interact. So, reseller network in a way ends up in a closely knit community, something which parent host wouldn't have time and staff for. This is all general and not specific to any firm or reseller. Even from business standpoint, someone like me would wanna host with someone whom i can freely interact, seek support, and has lesser load to handle.

Just my opinion

 

[Harry]

Well I've noticed usually resellers are cheaper in price. Support can go both ways, just because either there aren't many support issues, so they bring their support level to a low. I've seen some reseller hosting forums with a fe threads and that's it. "Usually" resellers don't have many issues, as mentioned above due to less clients. I was a reseller my self and mabye had 1 issues or none per a month.

I think you can go either way, it doesn't seem to matter based off facts. As long as the owner and staff are treating customers right, why not give them a chance

 

[ldcdc]

Well I've noticed usually resellers are cheaper in price.

Personally, I believe that was true a while ago, but these days, it's the huge providers that drive the prices to ever lower points (or rather increase allocations to ever higher levels).

 

[Harry]

True, but I've seen MANY people on hosting forums with offers such as:

1000MB Space
100GB Bandwidth
Unlimited MYSQL, EMAIL, SUBDOMAINS
CPANEL


etc.....

All for $2 per a month! or even under $10

Now that's cheap, though I bet the host will scam everyone or shutdown. I'm just talking about those types of deals. I can see a reseller affording that, but a high end company.... not a chance!

 

[bandboy]

True, but I've seen MANY people on hosting forums with offers such as:

1000MB Space
100GB Bandwidth
Unlimited MYSQL, EMAIL, SUBDOMAINS
CPANEL


etc.....

All for $2 per a month! or even under $10

Now that's cheap, though I bet the host will scam everyone or shutdown. I'm just talking about those types of deals. I can see a reseller affording that, but a high end company.... not a chance!

That is sheer sign of a company to collapse. It is not just overselling but a MASSIVE, MEANINGLESS OVERSELLING.

Any time you see some thing of that sort remember this :-

Average server capable of holding decent no. of clients would have say 80Gb disk and 1000Gb bandwidth. It is lower values i am considering, servers can be 2x160Gb disk and appropriate bandwidth, but lets focus on the parameter i mentioned. So, if they are going to give 100Gb bandwidth to one member, they are going to have 10 members, should they not oversell. Lets assume they are overselling and assuming they alot 50Gb bandwidth (which is alot compared to 100Gb/mth), still they are going to have only 40 clients.

If they charge $2/client, they will make only $80 if they are overselling 100%. Servers of that configuration with cPanel/fantastico installed do not come for less than $90 unless server is Celeron and from lesser known data center or you are paying for entire year. But again thats on assumption - 100% overselling. It means they are banking on theory that client though promised 100Gb/mth will never reach that value or evenif they do, its going to be one or two clients. Problems start when more clients start approaching that value which as of now is little difficult to believe unless clients are hosting movie files or gigs of files, something that may otherwise get them terminated from server. It is all under a fantasy that no one would exhaust or cross 50Gb bandwidth/mth though advertised is 100/mth. This is what hurts the industry most.

Such irrational plans push others to come out with more irrational plan or get washed away by competition. Atleast thats what many resellers base business on - overselling. Something that should have been used for benefit of all and to run ethical business, is being exploited all because they believe the advertised quota isn't going to be used any time, but monet it is, account gets terminated for any reason they wanna give or their own bndwidth allotment exceeds. And also remember we discussed this all keeping in mind that they had entire server and were taking loss of $10/server/mth on tht pricing for 100% overselling. My experience says, they have not more than 20-50Gb bandwidth and overselling to highest levels.

A parent company wouldn't do this because it has a business to care about. Resellers offering such plans will sooner or later get washed off and it all happens with click of mouse or payment getting lapse, so their business is hardly a point unless they have been in industry for years but then they wouldn't advertise such irrational plans.

 

[jimcpweb]

Going through a few posts here, i felt we need to shed more light on a reseller hosting module and its advantages.

Lets share our views on how we perceive reseller web hosting and are there any advantages of hosting with a reseller, rather than their upstream provider?

hi,
yes, there are many advantages but it depends on hoster

regard

 

[urka]

There are coupons that help you to get service for lower prices.

 

[indyamail]

Decent pricing, Personalized support and services (they generally know your name and a bit more about you to help you better), some added freebies that only the resellers give free (or get included)

Regards

 

[MisterV]

Overselling is always bad thing. It is marketing tool and nothing more and all potential customers must understand that.

 

[indyamail]

So your saying what Google, Microsoft,Yahoo and Rediff are doing with email storage is bad and makes them bad?

Its a controversial topic but Im not too sure if I can say Or not say against the topic of overselling - however since we dont oversell for the main reason - it becomes a Controversial thing ... I'll agree to the extent that its best not to oversell unless you are ready to hear from the lot

 

[indyamail]

That is sheer sign of a company to collapse. It is not just overselling but a MASSIVE, MEANINGLESS OVERSELLING.

If they charge $2/client, they will make only $80 if they are overselling 100%. Servers of that configuration with cPanel/fantastico installed do not come for less than $90 unless server is Celeron and from lesser known data center or you are paying for entire year.

I dont tend to agree with this YOu mentioned in the thread as well (note quoted above) that they tend to shut down. Google, Yahoo, Microsoft, Rediff , Godaddy are NOWHERE near shutting down today or tomorrow or 10 years later.

Based on marketing strategies you forgot the important factor STRATEGY of the Second Provision.

Let me explain -

Godaddy sells domains. They earn considerable revenue from that. There are also outside investors who fund Godaddy and Partners like Google who buy domains through Godaddy. Basically Godaddy has enough profits where they can now use some of it and invest into servers and offer "the too good to be true" offers. They generally increase BRAND in the process and help improve their name status as a provider for many services.

Microsoft and Googles' GMail as well ...they provide unlimited free email though its def. overselling of what they really have. (or Yahoo's Unlimited Storage Emails)...but they make sure the earnings from the other sources (ads,etc) are utilized to offer more to the customer. They increase brand and they are no where near closing down.

So I can assure you overselling is not going to end up - again the MOST CONTROVERSIAL topic we know today is that of overselling. I can assure you, we don't oversell - however I can also assure you that overselling is not evil either - its mainly in the eyes of the beholder of the opportunity.

There is definitely points worth considering about a seconday income flow and then tuning those profits to provide low cost services for something else. That allows them to offer the "real good pricing" that everyone else feels is too good to be true.

Further if you build your own server and co-locate it Or even just buy your own server you pay the one time cost and not the monthly cost. getting a one time cpanel license as well (optionally) will break the overhead costs .... so a good server may cost you 300$ one time and nothing more than that. add 50$ bandwidht per month (or so). You again your deduction is flawed - though may be correct in terms of "Smaller companies" with "Lesser experience in the hosting business" but definitely not all.

This is based on a lot of analysis - business and marketing for the same.

Regards

 

[indyamail]

Mods Remove this post (found the edit button to update my above thread)

 

[Crucial-Ijan]

Going through a few posts here, i felt we need to shed more light on a reseller hosting module and its advantages.

Lets share our views on how we perceive reseller web hosting and are there any advantages of hosting with a reseller, rather than their upstream provider?

The only real benefit could be personal service though a decent customer focused host should provide this already so i don't think there are that many benefits.. That said most hosts started off as a reseller

 

[Matthew]

If I were to start again I would not use a reseller account. A reseller account does have it's pro's and con's though.

Pro's
You do not need to manage the server.
Backups etc... are also handled by the reseller host (although clients and the reseller account holder would be wise to keep backups too).
Server crashes can happen but if you go with a reliable company then they do all the hardwork in restoring things.

Con's
Lack of control on what to install on the server
Lack of resources like CPU, RAM etc...
Less customisation in general
You often have to pass support requests on to the actual host as the reseller cannot do all things on the server. This increases support time.

Although it's a cheaper start in to the hosting business I personally would save up and get enough to purchase 2 servers in a good data center and have a backup elsewhere and start with a good foundation.

I started as a reseller back in 2001 and with in 6 months moved to dedicated due to not having enough control over things.

 

[XNL0]

Would you go for VPS or dedicated, Matthew?