Profitable?

S

SoaCahToa

New member
Im hoping some fellow members here can help me decide on something. If i am planning to start with a reselling business how should i go about deciding on prices per account i resell? Do you usually make an estimate of how many accounts you will resell and then add a percentage of profit to each or is there some other method?

Hopefully you can enlighten me with your insights!

Thanks
 
can you answer the below questions?
- do you have an office? how much does it cost to rent?
- how much for your internet connection?
- do you have any other staff? if yes, how about their salary?
- how many sales per month do you think you will get? which payment method will you use? how much does it cost to process per transaction?

etc.

It's not only in hosting reseller business, but also in any business. You will need to calculate your fee, then % for profit, then you can have the price
 
Thats true gate2vn, i havent even looked at how much i would end up spending. I definately need to look into expenses before i just jump in.

Kylebionhosting, right, i know its not as much as i can make with my own servers, but its also much cheaper to start off.
 
I don't think you need big infrastructure and large investment for starting up hosting business with reseller account. To determine best price you should study the prevailing marketing condition of your target market and competitors.
 
If you go in knowing how much you're spending (for the reseller account, billing solution, advertising, everything), you'll have an idea of how much you'll need to make to be profitable.

When I started off, I had minimal costs, so I just figured out how much the accounts were costing me, calculated in a percentage for time to set up, and so forth. Otherwise, you're just kind of flying blind. You might end up pricing your plans so that you make sales, but aren't really profitable. Your business plan will end up being "as long as I'm bringing in money, I'm doing okay"...which is not a very good business plan.
 
Most people start off with a reselling account as they let their reptutation and standing build up in the hosting industry and when they start turning a profit they will usually upgrade to servers.

To determine your prices try to think of a fair number that'll help you turn profits but won't be ripping off the clients
 
Do you have any prior experience in the hosting business? From what I have seen in market trend prices for the hosting business, its not exactly easy. Combined with resellers and everyone else, this is a cut-throat business with rock bottom prices. It would be extremely wise to perform as much research as possible.

I have seen that many of our clients like multiple options in which country they would like to be hosted in. What keeps our prices down is that we own all of our boxes.
 
iastaff said:
Do you have any prior experience in the hosting business? From what I have seen in market trend prices for the hosting business, its not exactly easy. Combined with resellers and everyone else, this is a cut-throat business with rock bottom prices. It would be extremely wise to perform as much research as possible.

I have seen that many of our clients like multiple options in which country they would like to be hosted in. What keeps our prices down is that we own all of our boxes.
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100% agreed. If you doesn't have any previous hosting experience, things wouldn't be easy for you. I would suggest you to work for some webhosting companies for some time either as a sales/support representative that will give you some good idea about the market and its operational methods.
 
oc-scott said:
100% agreed. If you doesn't have any previous hosting experience, things wouldn't be easy for you. I would suggest you to work for some webhosting companies for some time either as a sales/support representative that will give you some good idea about the market and its operational methods.
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UtropicMedia.net is the company that can be helpful in this.
They focus on providing a robust global platform.And their clients' interests are the priority of this company.
 
Reselling web hosting is very tricky and your competitive market is very big.

The only advice I would give you is go with a company who can help you out with the reselling in giving tips, business advice and hosting advice. This way you can maximise your profit and success.

Hope this helps you.

Kind Regards
 
Most of the point mentioned by gate2vn are relevant, but a reseller quite can be a one-man band if a host selling reseller services offer support as well.
I think it's essential to try and evaluate host's services before you plunge into business with him thoroughly, that's why it may be worth trying those hosting providers' services who offer some trial period, in the case of HostWW.net it's the first month that you can get for free http://www.hostww.net/inner.php
 
miKael said:
Most of the point mentioned by gate2vn are relevant, but a reseller quite can be a one-man band if a host selling reseller services offer support as well.
I think it's essential to try and evaluate host's services before you plunge into business with him thoroughly, that's why it may be worth trying those hosting providers' services who offer some trial period, in the case of HostWW.net it's the first month that you can get for free http://www.hostww.net/inner.php
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Trial period is always a big plus for the company as the clients may test them and decide what to do later.
 
One of the biggest differentiators between being profitable or not when you are starting up is whether you have to pay yourself a salary. If you're doing this after work and can afford to not take money out of your new business, it can be easier to show a profit. If, on the other hand, you're doing this full-time, then you need to include your salary in your profit/loss.
 
The Hosting Team said:
One of the biggest differentiators between being profitable or not when you are starting up is whether you have to pay yourself a salary. If you're doing this after work and can afford to not take money out of your new business, it can be easier to show a profit. If, on the other hand, you're doing this full-time, then you need to include your salary in your profit/loss.
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Quite an outstanding point here.

The beauty of running your own business allows for some movement, accounting-wise. What I would have recommended is this. You look at your personal income tax rate and corporate tax rate. You adjust your salary (considering your company is profitable) to either show larger or lower profit to reduce tax you pay.
 
Brilliant idea, Atrashes and The Hosting Team!

I agree, you need more experience before you jump in. I was planning to jump in just a few weeks ago but when I realized that the experience that I thought was good was actually a very small amount of experience so I took a job at another hosting provider. It's been wonderful since.
 
Brilliant idea, Atrashes and The Hosting Team!

I agree, you need more experience before you jump in. I was planning to jump in just a few weeks ago but when I realized that the experience that I thought was good was actually a very small amount of experience so I took a job at another hosting provider. It's been wonderful since.
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Well I think that you need to start at least and then only make a decision and choose the concern. IMO
 
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