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Hosting Discussion > Web Hosting Forums > Web Hosting Reselling > Advantages of hosting with a reseller?
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  Post #16 (permalink)   11-02-2007, 07:52 AM
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Quote:
Originally Posted by bandboy
That is sheer sign of a company to collapse. It is not just overselling but a MASSIVE, MEANINGLESS OVERSELLING.

If they charge $2/client, they will make only $80 if they are overselling 100%. Servers of that configuration with cPanel/fantastico installed do not come for less than $90 unless server is Celeron and from lesser known data center or you are paying for entire year.
I dont tend to agree with this YOu mentioned in the thread as well (note quoted above) that they tend to shut down. Google, Yahoo, Microsoft, Rediff , Godaddy are NOWHERE near shutting down today or tomorrow or 10 years later.

Based on marketing strategies you forgot the important factor STRATEGY of the Second Provision.

Let me explain -

Godaddy sells domains. They earn considerable revenue from that. There are also outside investors who fund Godaddy and Partners like Google who buy domains through Godaddy. Basically Godaddy has enough profits where they can now use some of it and invest into servers and offer "the too good to be true" offers. They generally increase BRAND in the process and help improve their name status as a provider for many services.

Microsoft and Googles' GMail as well ...they provide unlimited free email though its def. overselling of what they really have. (or Yahoo's Unlimited Storage Emails)...but they make sure the earnings from the other sources (ads,etc) are utilized to offer more to the customer. They increase brand and they are no where near closing down.

So I can assure you overselling is not going to end up - again the MOST CONTROVERSIAL topic we know today is that of overselling. I can assure you, we don't oversell - however I can also assure you that overselling is not evil either - its mainly in the eyes of the beholder of the opportunity.

There is definitely points worth considering about a seconday income flow and then tuning those profits to provide low cost services for something else. That allows them to offer the "real good pricing" that everyone else feels is too good to be true.

Further if you build your own server and co-locate it Or even just buy your own server you pay the one time cost and not the monthly cost. getting a one time cpanel license as well (optionally) will break the overhead costs .... so a good server may cost you 300$ one time and nothing more than that. add 50$ bandwidht per month (or so). You again your deduction is flawed - though may be correct in terms of "Smaller companies" with "Lesser experience in the hosting business" but definitely not all.

This is based on a lot of analysis - business and marketing for the same.

Regards
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Last edited by indyamail : 11-02-2007 at 07:55 AM.
 
 
 


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  Post #17 (permalink)   11-02-2007, 07:54 AM
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Mods Remove this post (found the edit button to update my above thread)
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  Post #18 (permalink)   11-21-2007, 09:59 PM
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Originally Posted by bandboy View Post
Going through a few posts here, i felt we need to shed more light on a reseller hosting module and its advantages.

Lets share our views on how we perceive reseller web hosting and are there any advantages of hosting with a reseller, rather than their upstream provider?
The only real benefit could be personal service though a decent customer focused host should provide this already so i don't think there are that many benefits.. That said most hosts started off as a reseller
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  Post #19 (permalink)   11-22-2007, 03:52 AM
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If I were to start again I would not use a reseller account. A reseller account does have it's pro's and con's though.

Pro's
You do not need to manage the server.
Backups etc... are also handled by the reseller host (although clients and the reseller account holder would be wise to keep backups too).
Server crashes can happen but if you go with a reliable company then they do all the hardwork in restoring things.

Con's
Lack of control on what to install on the server
Lack of resources like CPU, RAM etc...
Less customisation in general
You often have to pass support requests on to the actual host as the reseller cannot do all things on the server. This increases support time.

Although it's a cheaper start in to the hosting business I personally would save up and get enough to purchase 2 servers in a good data center and have a backup elsewhere and start with a good foundation.

I started as a reseller back in 2001 and with in 6 months moved to dedicated due to not having enough control over things.
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  Post #20 (permalink)   12-17-2007, 11:25 AM
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Would you go for VPS or dedicated, Matthew?
 
 
 


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  Post #21 (permalink)   12-17-2007, 12:53 PM
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Quote:
Originally Posted by XNL0 View Post
Would you go for VPS or dedicated, Matthew?
Dedicated.
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  Post #22 (permalink)   12-23-2007, 04:31 AM
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I started in the hosting business straight on a dedicated server, i now have 3 of them , all running smoothly with a big bunch of happy clients.

just my 2 cents
 
 
 


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  Post #23 (permalink)   12-26-2007, 03:17 AM
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I think the greater part of the web hosting companies oversell. The question is in its control.
 
 
 


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  Post #24 (permalink)   12-27-2007, 04:34 PM
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Well resellers often provide services some small 1-3 man companys can't provide. For example they can usualy provide server technicians arround the clock to provide better uptime as well as discounts for example I offer my resellers discounts with enom they have a subaccount under my account. Sometimes they even have deals on whmcs which make it cheaper then getting all this stuff yourself.

Quote:
Originally Posted by Matthew View Post
If I were to start again I would not use a reseller account. A reseller account does have it's pro's and con's though.

Pro's
You do not need to manage the server.
Backups etc... are also handled by the reseller host (although clients and the reseller account holder would be wise to keep backups too).
Server crashes can happen but if you go with a reliable company then they do all the hardwork in restoring things.

Con's
Lack of control on what to install on the server
Lack of resources like CPU, RAM etc...
Less customisation in general
You often have to pass support requests on to the actual host as the reseller cannot do all things on the server. This increases support time.

Although it's a cheaper start in to the hosting business I personally would save up and get enough to purchase 2 servers in a good data center and have a backup elsewhere and start with a good foundation.

I started as a reseller back in 2001 and with in 6 months moved to dedicated due to not having enough control over things.
Thats why I dont offer resellers just VPS. They have muc hstronger cpu,ram, and more control of the server.
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