Starting Reseller Hosting

[Osprey]

Hey Guys,

I'm looking at getting a reseller hosting package with a friend soon and starting reselling hosting as a business.

I hope there are people here who have followed the same lines? I'm wondering about getting customers initially. Should i expect to be spending more money than i am taking in in the first 1 or 2 months?

Naturally my highest priority will be keeping customers happy with customer support etc. - a happy customer reffers friends and sticks with your hosting!

Thanks,

- Osprey

(I did spot a similar topic on this page but didn't want to steal it -)

 

[deleted984054565403]

Should i expect to be spending more money than i am taking in in the first 1 or 2 months?

Absolutely. That's the case with all businesses or basically anything you want to do to make money. You put down an investment and you do something smart with it. It may even be a year until you break even and start making money. Keep in mind you'll need money for the hosting account itself, time committed for the website and support, money if you pay anyone to maintain that for you, money to market and advertise your website, and money lost for whatever reason. I'd recommend starting off by giving clients a free domain for a year or something that will attract them to your service to prove to them it's better than the rest, that's the biggest challenge in hosting.

If you're persistent, patient, and professional at the same time, you will be successful in hosting.

Good luck!

Steve

 

[RickyG]

Welcome to NamePros!

I stated out with webspace, then I got a reseller account mostly to stop so much out of pocket trying to get each domain some space. I then started to sell some space off to get the feel of having customers.
I just recently took the plunge and got my own dedicated server. I got my server from Layerd Tech. I am sure you will find a lot of praise here for them! I also hired a 3rd party managment company to help with the server. I can tell you that was the best thing I did! I think they are loosing money on me to start, but if any one here needs to know who they are PM me and I wil be happto to send you thier URL. Just a hint....people here use them also
I am trying not to take to many resellers at once. I think this will help me have beter control and get to know not only my customers, but my server and the buisness.

PM me if you want to chat some more.
RickyG

 

[efriese]

I wouldn't resell; I would get a managed dedicated server. When I first started my company, I resold hosting for Aplus.net. My experience with Aplus was somewhat less than amusing...I switched to a managed dedicated server from 1and1.com and I am much happier. Your bottom line for hosting is practically fixed as opposed to reselling where your bottom line grows with every account you sell. It will take longer to get into the green with a dedicated server, but I like it better.

My 2 cents...

 

[RickyG]

Efriese,
The reseller you had @ Aplus....was it one you sold space for them and they gave you a commision? I just went to thier site and they seem high in thier pricing. Or space that was yours to resell and had control of?
I have to disagree and say, taking it slow is the best way to go about this.
Your 2 cents and raising you with my 2 cents,
RickyG

 

[Osprey]

Thanks for the replys guys.

I was looking at getting a dedicated server, but it seems more complex? Really i want something easy to manage. (WHM/Cpanel Kinda thing).

Need to go, will write longer reply later.

- Osprey

 

[PolurNET]

Starting with a reseller, and moving to a VPS or dedicated server in the future, sounds like a reasonable plan. Many of our customers follow the same path, but obviously, the hardest part if the developing/advertising of your webhosting site. Other issues can be support and email handling, so it's always good to have excellent experience with the services you're going to offer if you plan to support it yourself. If you have all that sorted out, and ensure your main hosts' terms of service agreements are met by your customers (ie. you monitor for abuse of your subaccounts on a daily basis) then you're all set for starting with a reseller, IMHO