is reselling profitable?
- Thread starter Natcoweb.
- Start date
web-project
Member
depends on provider of service and margin you want to take.
I personally haven't seen the VPS/Dedicated server reseller providers, normally it's partners/affiliate program where you will get % from sales.
HostLeet
Active member
+1 :thumbup:
Almost every single business, regardless of the industry, will be some kind of reseller themselves or depend on other resellers to conduct business.. Even multi-million dollar companies are simple "resellers".. *cough*NameCheap*cough*
Of course reselling CAN be a profitable business model, it is for my company. It all comes down to how well YOU can manage your business.
easyhostmedia
Well-known member
exactly. its like going into your local grocery store to purchase a tin of Heinz baked beans.
What is the store doing?
They are reselling Heinz baked beans that 9/10 then got from their supplier (wholesaler) who most likey was supplied to them by a distributor who would have got them from Heinz
euro-space
Account Disabled
Yes, it is. Though you have to be fully dedicated to this business, have a business strategy, offer great services with competitive prices and have a reliable hosting provider as a business partner.
UrgentHost
New member
Yes sure but it depends on your effort and concentration .
euro-space
Account Disabled
In this business reliability matters very much for both reseller and his customer, it means that lack of fast, knowledgeable support and good server / network performance could be crucial and may destroy new business. This is why you'd start this business with a wise choice of your hosting provider as business partner.
Some people think that one of the the easiest ways to begin your web hosting business is to make a decision of buying a reseller plan. Reseller package will suit you in the best way if you already have some customers who are ready to host their sites with your company. So, as soon as you purchase a big slice of server space and bandwidth, you can divide it up and sell on to customers according to their needs. Once you've found a suitable reseller package, decide for you if this plan benefits your potential customers.To do this, you will have to step into customers’ shoes.
For example, if you're going to provide hosting for small businesses, think what you'd want if you had a small business company and needed to host it somewhere: high uptime, lots of features. Moreover, if you want your customers to buy your best hosting plans, you need to compare the prices you set for your hosting packages with the market rates.
Once you've done all that, you'll need to create your own website and advertise it in places where your potential customers can appear.
Here are some examples of the advises given by the users of Webhostingtalk:
Three things you should check with the reseller plan:
Search domain whois to see how old the domain is.
Send pre-sales question to check response time.
Make sure reseller plans are reasonable in terms of price and quota comparing with other providers.”
“No point going with a reseller that is providing you with something that is too good to be true”
A lot of hosts that enable overselling at reseller level limit the number of domains which a reseller can host under one account.So this is better to avoid companies which offer overselling and want to attract attention by unlimited domains in their hosting packages. If every reseller starts overselling without control, it can perform the server load and even downtime. As the reseller accounts are growing day by day, they will try to upgrade their plans in future and that is when things can get really tricky for the reseller hosting provider.
Having a reseller account, you get disk space and bandwidth at a particular price and resell these resources at a higher price. The customers can easily find out your real provider’s name and they can directly go to this company, which will not be a good thing for you. Various methods exist for a reseller host to protect its resellers' anonymity. Private nameservers for example provide the highest level of anonymity and also project an image of professionalism.
The main advantage of a reseller package is that reseller plans are managed by the web host who provides the service to you and you do not have to worry about performing any server upgrades, server administration or security.
But sometimes it can become a disadvantage as you don’t fully control the server. A web hosting who does not keep security up-to-date, or oversells space on the server means that your reseller accounts are affected.Moreover, in case of the server failures, your clients’ accounts are badly influenced by the downtime and you can’t do anything about it as you don’t have control over your server. This is not necessarily a bad thing, but before making an order for a reseller plan, make sure your hosting provider is reliable.
What has been spoken?
This.
Although the OP's question is kind of too general, I think. Many things can be profitable. The model as such has been around for years and can be profitable. Whether your business will be or not is another matter...
easyhostmedia
Well-known member
The model as such has been around for years and can be profitable. Whether your business will be or not is another matter...
you can say this about any business.
Profit comes from
how much you sell your products/services for less any overheads ( rent/rates/tax/staff/wholesale costs etc.)
location and competitors will also be a factor
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