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  Post #1 (permalink)   01-28-2012, 04:05 PM
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What's the best way to go if you want to offer VPS plans? Is reseller better or is it better to get your own server and set up your own?
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  Post #2 (permalink)   01-28-2012, 04:11 PM
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Its better to have own web server and then one should start selling vps
 
 
 


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  Post #3 (permalink)   01-28-2012, 04:27 PM
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It's better to setup your own as nobody will mess up your services unless it's your fault.
 
 
 


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  Post #4 (permalink)   01-28-2012, 05:08 PM
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I'm against the other two postings actually

In many ways, reselling someone elses VPS service that they're already known for can be a great way of kick starting your entry into the VPS world. Think of it like this;

You mark up the VPS pricing by 10-30% (whatever you wanted), pick up full managed VPS machines, and then resell it to your client. You can then choose to do the work yourself, or better yet, when a client enters something to your helpdesk, if you don't have a quick answer, or need extra guidance, contact your reseller location.

Reselling another established hosts VPS services can be a very easy entry. It'll give you time to learn all the various aspects too. At the same time, if you're working with an established company, you can utilize multiple machines at their location. This can help offset your SINGLE VPS machine going offline, and all your clients contacting you at the same time and threatening to leave while you attempt to figure out the problem.

From an initial startup point of view, being able to diversify over multiple machines can be a huge benefit.

Having your own machine will allow you to charge your own markup, and possibly undercut the competition. Be aware that one machine going offline can cripple your business model within a few hours. (this is true of all hosting reselling though)
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  Post #5 (permalink)   01-28-2012, 06:30 PM
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Quote:
Originally Posted by handsonhosting View Post
I'm against the other two postings actually

In many ways, reselling someone elses VPS service that they're already known for can be a great way of kick starting your entry into the VPS world. Think of it like this;

You mark up the VPS pricing by 10-30% (whatever you wanted), pick up full managed VPS machines, and then resell it to your client. You can then choose to do the work yourself, or better yet, when a client enters something to your helpdesk, if you don't have a quick answer, or need extra guidance, contact your reseller location.

Reselling another established hosts VPS services can be a very easy entry. It'll give you time to learn all the various aspects too. At the same time, if you're working with an established company, you can utilize multiple machines at their location. This can help offset your SINGLE VPS machine going offline, and all your clients contacting you at the same time and threatening to leave while you attempt to figure out the problem.

From an initial startup point of view, being able to diversify over multiple machines can be a huge benefit.

Having your own machine will allow you to charge your own markup, and possibly undercut the competition. Be aware that one machine going offline can cripple your business model within a few hours. (this is true of all hosting reselling though)
Some good thoughts there. I was thinking it would be easier to enter VPS hosting by reselling also. In fact, it may sound strange but the VPS I have from my upstream provider is actually a resold VPS. They are a large reseller, over 10,000 clients and don't own any hardware. I want to stay away from owning hardware also.
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  Post #6 (permalink)   01-28-2012, 08:14 PM
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What's the best way to start a brain-surgery business ?

You'll get 2 answers
a. drill holes in your own head and learn as you go
b. partner with an existing decent brain surgeon

I know which one I'd choose ...

Entering any new business area should be viewed in a similar manner IMHO
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  Post #7 (permalink)   01-28-2012, 08:24 PM
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Quote:
Originally Posted by othellotech View Post
What's the best way to start a brain-surgery business ?

You'll get 2 answers
a. drill holes in your own head and learn as you go
b. partner with an existing decent brain surgeon

I know which one I'd choose ...

Entering any new business area should be viewed in a similar manner IMHO
Although you may have a good point, I don't think we can compare apples and peaches. I do agree with partnering with someone to start off, but I also think brain surgery is a whole nuther arena
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  Post #8 (permalink)   01-29-2012, 07:22 AM
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Quote:
Originally Posted by handsonhosting View Post
I'm against the other two postings actually

In many ways, reselling someone elses VPS service that they're already known for can be a great way of kick starting your entry into the VPS world. Think of it like this;

You mark up the VPS pricing by 10-30% (whatever you wanted), pick up full managed VPS machines, and then resell it to your client. You can then choose to do the work yourself, or better yet, when a client enters something to your helpdesk, if you don't have a quick answer, or need extra guidance, contact your reseller location.

Reselling another established hosts VPS services can be a very easy entry. It'll give you time to learn all the various aspects too. At the same time, if you're working with an established company, you can utilize multiple machines at their location. This can help offset your SINGLE VPS machine going offline, and all your clients contacting you at the same time and threatening to leave while you attempt to figure out the problem.

From an initial startup point of view, being able to diversify over multiple machines can be a huge benefit.

Having your own machine will allow you to charge your own markup, and possibly undercut the competition. Be aware that one machine going offline can cripple your business model within a few hours. (this is true of all hosting reselling though)
Great post! I agree to that 100%. I do the same and can say it works well when starting up. Consumer gets same VPS setup for same price (maybe a little cheaper if promo was used) BUT they get much more personal support due to a small team they have to work with, rather than some big company that has 20k+ customers.

I'll look into having my own node soon though. The con to reselling VPSs is less profit and having to pay separate invoices to name a few. With your own node you can maximize profit by making sure there are hardly any unused resources left on the server.

The reselling method has worked fine for me since 2009 though, and I haven't seen one negative review on the net about us yet.

Edit: and yes, I've learnt a lot along the way!
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Last edited by HostXNow : 01-29-2012 at 07:25 AM.
 
 


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  Post #9 (permalink)   01-29-2012, 09:01 AM
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Just want to add another small point: for having your own hardware, you will need to make sure to know what you are doing.

If you cannot optimize your hardware, the VPSs can run less optimal. So, you end up with less customers on the same hardware. Even worst if you provide managed vps to get higher profit. You will get angry customers very soon.
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  Post #10 (permalink)   01-30-2012, 07:16 AM
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As many of them said it is better to have your own servers but sometimes if you do not have the adeguate knowledge you may see your self in a loot of troubles and unpleased clients.
 
 
 


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  Post #11 (permalink)   01-30-2012, 10:23 AM
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Not only that well established providers offering fully managed servers tend to be able to offer internal cPanel licenses a lot cheaper, due to the amount they have. cPanel licenses with unmanaged provider usually costs double the amount.
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  Post #12 (permalink)   01-30-2012, 02:03 PM
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I have an unmanaged VPS and was quoted $20 for cpanel. i just got my own licence for only $15
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  Post #13 (permalink)   01-30-2012, 03:42 PM
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VPS Licenses are different.

As an NOC Partner, the lowest price we can get is $25 for a dedicated server and I believe $12 for VPS machines. These are for INTERNAL Licenses (servers within our network and IPs only). Licenses purchased for external network or Ips are more expensive.
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  Post #14 (permalink)   01-31-2012, 12:24 AM
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Quote:
Originally Posted by sady92 View Post
As many of them said it is better to have your own servers but sometimes if you do not have the adeguate knowledge you may see your self in a loot of troubles and unpleased clients.
That's why before you dive into something you need to learn first how deep is it. It doesn't mean that others would choose having their own server, they didn't make any study about what they're into.
 
 
 


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  Post #15 (permalink)   01-31-2012, 03:22 AM
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Quote:
Originally Posted by ceekeigh View Post
That's why before you dive into something you need to learn first how deep is it. It doesn't mean that others would choose having their own server, they didn't make any study about what they're into.
I was trading as a webhost 5 to 6 years before i took the plung and got my own VPS, after being let down badly by a host i had used for 4 years with reseller then master reseller accounts.
Beforew getting a VPS (managed) as i had no clue how to manage a VPS, but had knowledge of csf (firewall) etc. i picked up the basics really quickly and have now 3 servers all managed as it is handy to have the to backup of the managed services if needed.
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