Resellers? What?

[Raistlin]

Ok, I think I understand the concept of reselling.

I buy 30Gb of webspace from a webhost for say £30pcm

I sell that webspace in 1Gb chunks for £2pcm, total £60pcm (so I'm making £30pcm) .

Ignoring the fact that I've obviously made the figures up.....

Have I got that about right? Is there anything more to it than that? Is it really as easy as it sounds? If it is, why isn't everybody doing it?

Has anybody got any experience with reselling? How easy/difficult is it to do? What are the pitfalls (if any) and what's the best way to get started?

Oh, if I've got totally the wrong end of the stick please take it off me and beat me with it - thanks

[Strzelecki]

Plus you have to add in the cost of processing payments, however you intend to do it, and if you're serious, registering a company. Plus you have to add in time for customer support and possibly software costs. But yes you have the basics right. The difficulty depends on the host you go with, some provide full reseller features, including payment processing, and all you have to do is click a few things in your resller control panel to set a customers account up.

[MrBen]

Also generally disk space is cheap (and not required in large such large quantities), it's bandwidth that will cost you more.

You'd be better to work on a cost per gig of bandwidth rather than cost per gig of webspace.

Ben

[Millay]

Its the support and administration time that gets you, this is what the customer pays for, it takes a lot of time to run the show succsfully and make any money of it, needless to say a willing customer base.

I resell web space but I run it as a natural expansion to my core business. But its certainly worth while doing if you can find a market for it..

[KingPhoenix]

Originally Posted by Raistlin

Ok, I think I understand the concept of reselling.

I buy 30Gb of webspace from a webhost for say £30pcm

I sell that webspace in 1Gb chunks for £2pcm, total £60pcm (so I'm making £30pcm) .

Ignoring the fact that I've obviously made the figures up.....

Have I got that about right? Is there anything more to it than that? Is it really as easy as it sounds? If it is, why isn't everybody doing it?

Has anybody got any experience with reselling? How easy/difficult is it to do? What are the pitfalls (if any) and what's the best way to get started?

Oh, if I've got totally the wrong end of the stick please take it off me and beat me with it - thanks

I-Web have quite a few resellers here already (dont they millay )

I would agree with all the others, the financial side of it isnt that important, its the time you have to be able to respond to clients etc... How long can you sustain your new business financially if you dont get the signups you thought you would etc....

Originally Posted by MrBen

Also generally disk space is cheap (and not required in large such large quantities), it's bandwidth that will cost you more.

You'd be better to work on a cost per gig of bandwidth rather than cost per gig of webspace.

Ben

Its actually the other way round

[SMHarman]

Originally Posted by MrBen

Also generally disk space is cheap (and not required in large such large quantities), it's bandwidth that will cost you more.

You'd be better to work on a cost per gig of bandwidth rather than cost per gig of webspace.

Ben

I think that has changed in recent times, I know the useless stats part of CF indicated that CF use 3% of their allocated bandwith, and a lot more of their allocated HDD space.

EDIT - What ^ said.

[Bifta]

Originally Posted by Raistlin

Ok, I think I understand the concept of reselling.

I buy 30Gb of webspace from a webhost for say £30pcm

I sell that webspace in 1Gb chunks for £2pcm, total £60pcm (so I'm making £30pcm) .

Ignoring the fact that I've obviously made the figures up.....

Have I got that about right? Is there anything more to it than that? Is it really as easy as it sounds? If it is, why isn't everybody doing it?

Has anybody got any experience with reselling? How easy/difficult is it to do? What are the pitfalls (if any) and what's the best way to get started?

Oh, if I've got totally the wrong end of the stick please take it off me and beat me with it - thanks

No, you have the right end of the stick, I have two reseller accounts and charge my customers a set fee per year, I don't restrict them to bandwidth or space as they're not interested in that sort of thing they just want the site hosted and to be able to phone someone should they need to. If the available space or bandwidth is running low then I just up it a notch.

[Millay]

I would whole hartedly suggest looking at I-Web solutions if you fancy dipping your toe.. there support is 100% which is where the real value comes in!