if it was me (becasue i did it before)
i would resell plans i wouldnt want to buy a chunk of space because you might not use it if you resell already made plans you will make money if you buy a chunk of space you could loose money for a while before you make it
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It completely depends on if you are a risky person. If you get it at a discount rate then you can't lose money but if you buy a chunk of pcae theres a chance you will lose money. Though in the end if you get customers buying a chunk of space will get you a much larger profit.
i resell accounts (thru hostnexus.com) this way i dont have to outlay any cash (unless a client wants an account - plus my markup), and if a client cancels his service i just delete the domain in plesk so i never get stuck paying for stuff that isnt being used.
i think this is the best way to go unless you can afford your own servers
After having sold "someone else's plans" for almost the last 2 yrs, I can definitely say that I prefer to buy my services in bulk and make my own packages. I ran into the problem where the Resellers plans where not kept competitive and I was losing a lot potential sales because of it.
Having my own allocation of resources provides me with the flexabilty to offer customizied plans, specials, and in general, change packages to keep competitive. If I knew how to run a Dedicated I would. Since I don't, I prefer the one step down option; Managed Server. This is where I think big money will be made -- for both the parent company and the smaller guy who wants to make some money and have some fun.
It's more of a true business relationship, when a person buys Wholesale and sells for Retail. Also true, it's more of a risk venture, but that, for me, is where I prefer to be.
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