Venting about reseller hosting - Your opinion is helpful

E

Edwart

New member
I have noticed over and over, the more people purchase reseller accounts from us that they are looking to offer the cheapest prices and the highest amount of space possible to make themselves look better to the consumer then all the "leading web hosts"

When a person with very little knowledge searches for web host, the first thing they do is search for the cheapest package. This leads them to searching google for "cheapest reseller hosting" or even "unlimited reseller hosting" and leading them to that new reseller. This reseller gets a client and automatically thinks they know what they are doing, without actually knowing what they are getting into. This may happen 20 or 30 times before any problems arise which desires support from there end.

When its time for them to offer support, they don't know how to do it and they pack up and either purchase a new domain or quit and walk away with the money they think they "earned".

This is not at all the way web hosting is supposed to be done. Web hosting is supposed to be a legit business offering services that the consumer needs. Web hosting is so easy to start these days that people without knowledge are starting them. Its ruining the industry.


I believe it is quite immature for someone to purchase a reseller to just "get rich" fast and then walk away.

What i want to know is what is everyone's incites on this?
 
After several years in a hosting industry. I have seen a lot of changes, most for the worst. But one thing I've seen, there are some decent reseller web hosts available in the market who properly running their business without facing any serious trouble.

Those people regularly fail in this business sector are most probably unaware about many things. The lack of knowledge and unprofessional nature cause the damage.

IMO, if resellers target right audiences, and remain honest with their clients and offer something that no one else does (What that is I don't know) then they would be more successful than even their primary web hosts.
 
I think there was a time for hosts to start, get customers, disappear, and start again, but the golden days of that modus operandi are pretty much gone (though many still try). Today however, getting customers is much harder, the competition is increased, advertising very expensive, while the customer can find really cheap hosting easier.

What we end up with is lots of start-ups that disappear within months, all the while having few customers -- if any.
 
Your're absolutely spot on, Dan. I'm amazed at how many hosts I'd seen share that they have been in business 6 months or longer and have zero clients.
 
ldcdc said:
What we end up with is lots of start-ups that disappear within months, all the while having few customers -- if any.
Click to expand...
Just looking through some of the hosts that have contacted me about selling their "business" (aka cheap whmcs template, unlimited uber-master-alpha-reseller and free enom domain account, plus the 2 "customers" who signed up), I concur.

A few years ago, all the potential acquisitions I looked into had been around for 2-5 years, and people were getting out of the business due to lowering amrgins, increased datacentre costs, support overheads, or looking to move in a different direction with specific projects.

Now they're all just 6 months old, minimal clients, cookie-cutter business and wondering why it's so hard to grow !

And the number of "repeat sellers" is increasing - who start a host, get a few clients onboard from habbo forums etc on 90% off coupons off the $1.99/year for all-you-can-eat hosting and then try and sell as soon asthey cant afford the OVH cheap server rental anymore.
 
i have to agree with othellotech.

It does seem like a lot of people get a reseller and go about everything the wrong way. There should be pride and joy in this business. I know things can get difficult sometimes, as do all of you who are in the business. There are different hoops to jump through and different bumps in the road you have to drive over. This just makes the web host stronger though. The people who are in it just to make a few quick bucks then leave dont understand that they do make the rest of the industry look horrible. What can you say though, what can you do? the answer is simple...nothing. There will always be customers that will fall for it and be sucked into the "overnight" hosts. I can say that it will only happen once to a customer hopefully. i know what i said is a little off subject of what you said othellotech but as the thread said, im just doing a little bit of venting.

I have a question for everyone. For what reasons do you think:

1. That a web host fails, even when they have multiple clients.

2. People create overnight web hosts

3. What a client thinks when they get ripped off by that overnight web host.
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also me and my developers are thinking about creating some sort of database/website that only web hosts have restrictive access to. This will have information submitted by hosts (moderated of course) of clients who purchase with stolen credit cards, use your service then do charge backs. I know this is a big problem in the industry as well. it won't hold credit card info but it will hold all other information about the client. What do you guys think of that idea?
 
To be successful in this business one has to be patient and offer their clients amazing offers and discounts from time to time.
 
1paket.com said:
To be successful in this business one has to be patient and offer their clients amazing offers and discounts from time to time.
Click to expand...

that is only the beginning of "how to be successful" in the industry.

You can run the business without offering "discounts and amazing offers"

to be a successful web host you must offer 24/7 support, that means when you are sleeping and your phone rings or live chat goes off you must answer it, no matter what time. You must be able to provide quality, fast and secure services. The way i always explain it to my customers that talk to me about how to become a successful reseller is.

"if you can see yourself sitting at your computer everyday, all day that is a start. You have to see yourself sitting at your computer weekdays and weekends, and that means when you get a text message from your friends saying they are going to the bar to have a good night you have to tell them NO because you can't give your customers the support they need if you are at the bar or partying. You must have knowledge of all the new technology and all of the old technology. You must be professional and curious to your customers. You can't expect to put up a site and advertise and the website run your business for you."

I know a lot of customers that are looking to start a web hosting compnay (including me when i first started) thought, well everything is on autopilot. When a customer pays, there account is automatically setup and i can just sit back and earn money. That is not at all what it is like. In web hosting there is no "autopilot". You must have the patience and will to run it by hand. Even when you hire staff, you still have to work 24/7 to run the business. Why? Because you are truely the only person who knows everything about your business. Your employees cannot answer every question, sometimes questions require you to take control and answer them. No matter what, no matter how big your team is you must always be there to run your business.

So just offering promotions from "time to time" is not going to make you a successful web host. Running promotions only attract eyes, you must still secure the order and provide what you promised to your customers.
 
I think you have two kinds of customers, those who know very little and will just look for the cheapest deal, and those who are technically sound and can quickly sus out the seriousness of what they are being sold. The latter are no doubt in a better position to generate income and are therefore much better as customers. They can afford the $50/month minimum to pay for a dedicated server and they will understand the operation. So ye, basically, go for the techs and avoid the noobs..that's pretty much it..
 
While cPanel is a great tool. I can't help but attribute it to the decay in the business. This could potentially be the reasoning behind all the crying and whining about simplifying using Linux. The fear that it will lead to a bunch of people lacking in computer skills and understanding.

When I started in 1999 I had not heard of cPanel back then in fact the only control panel that I had heard of was Webmin. You had to actually know how to run a server, as well as handle the OS. Maybe what is needed is for the hosting companies to stop offering anyone and everyone a reseller account till they can produce something proves they know what they are doing. Bad thing about this is that it would create a new power structure and up the costs of engaging in business. Potentially leading to yet another good ole boy club.
 
I agree.. You often see these companies also selling out within 4-5 months of opening their doors. They work hard for 3-4 months then take that extra month to find another company willing to buy them out..
 
Certainly begs the question: Is offering reseller accounts even a good idea?
Seems like it could do more harm than good in terms of pricing, but I don't know - thoughts (w/o flaming plz)?
 
To be successful in "almost any business " this business one has to be patient and offer their clients amazing offers and discounts from time to time. I had to insert a word or two to 1paket's statement because that line is crucial to not only a successful company but also to an outstanding company. If a company doesn't have a solid reputation much less a good bit of longevity then why does anyone deal with that supplier? When will the consumer understand that a cheap product that is poorly conceived is going to fall apart? Build it and they will come rings a bell but the old adage never points out that if it stands today that doesn't mean it won't fall tomorrow. Reseller and reputation should always go hand and hand.
 
I agree. Websites or blogs hosted can be a dream for any person and so these should not b emisued by anyone just fo rmaking money

A good site needs a good host and So i would not prefer any illegal and bad Host but infact the host should be good and reliable

But bad is that there are many cheap fake hosts
 
Its true that a lot of people are trying to just get rich quick and then abandon their company. This shouldnt be the case especially with all the competition going on. Starting over could make it harder and harder if you continue that cycle. People should stick with their company and just work hard.
 
I am hoping that the customer are smart enough to stay far away from the I will do anything for $1 a month crowd.
I have seen many very low priced ads for hosting running around. I have seen support quality dropping as well with hosting providers. They have dropped their prices to attract as many people to their servers and then answer tickets at their leisure so that the response times are now going as long as an hour or more. And justifying it by the fact that you didn't pay much so you shouldn't expect much.
I think this is a horrible attitude.
To me if you can give top notch quality support at all times for what you are charging then that is your own fault not the customers.

This tactic is no different from a contractor giving you one price to get the job then jacking the bill up at the end to compensate for failure to properly price the job to begin with. To me it wreaks of dishonesty.

I think that it will be that some customers will leave their host to take advantage of the savings with someone cheaper due to the economy but when they see how lousy they really are they will see that it was not worth it and come back.
I would advice to be very helpful and cheerful and apologetic with customers for leaving that way they will be more likely to come back to you when they find out what mistake they just made.

I have been in business doing hosting since the late part of 1999 so don't feel bad. Even though I have been around for a long time that does not stop them from flocking over to some penny host with a flashy website that just started. It happens to the best of us.

It might be best to start two lines of marketing one avenue that emphasizes the cheapest rates around to catch those that can only see the price tag of the plan and not the actual value of what they are getting. And a premium line that emphasizes top notch services and support. That is a bit pricey but worth the value. At that point I would create two domains to market separately.
 
you just need to look at ebay the amount of unlimited reseller hosting for $0.99 a year or 5 yrs for $3.
being in the industry 11 yrs i know these prices are just a non starter, but being a bit cheeky sometimes if i am bored and see a new host seller on ebay i will ask them some simple questions that any host should know. i was amazed ad the replies from 2 of these cheap ebay hosts when i asked about DNS and dedicated IPs and on both counts the reply was "What is DNS and a dedicated IP"
 
Too many cut and run businesses are on the market. Unfortunately this does have a negative effect on legitimate hosting companies. These fly by nights will take in customer dollars, close after a time period and then open shop again under another domain. Industry professionals try to warn people that you can't get reliable hosting for less than the price of a cola but that doesn't seem to stop them from flocking to the lowest priced hosting. Experience is the best teacher and in time hopefully those in need of reliable service will see that good providers do exist for only a few dollars more. Too good to be true still holds as one of the ultimate truths.
 
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