| Posted by Edgar-FS, 02-04-2013, 07:19 PM | | I'm curious how hosting companies offer so many perks.
I've seen some offer free whmcs, ssl, ip, etc... at like $25 a month. How is this all possible?
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| Posted by MikeTrike, 02-04-2013, 07:19 PM | | Loss leaders and tight profit margins?
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| Posted by TrentaHost, 02-04-2013, 07:20 PM | | they play with their pricing their profit margins are not really broad and they just resell the WHMCs license when your done with it to someone else.
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| Posted by SajanP, 02-04-2013, 07:26 PM | | Of the three things you mentioned...
SSLs - There's many of us that have deals getting unlimited SSLs signed. We used to have one with GlobalSign.
IPs - This is something that is being tightened up now, but larger companies are able to get IPs dirt cheap.
WHMCS - If I remember correctly, WHMCS is the biggest cost and resellers can get them as low as $9/mo.
So out of your $25, really only $10-13 goes into the perks. The rest goes to what they actually provide you, which is made profitable through overselling a bit.
Last edited by SajanP; 02-04-2013 at 07:33 PM.
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| Posted by Edgar-FS, 02-04-2013, 07:38 PM | | Thanks for the info. I figured out the whmcs shortly but to get the lowest discounts you'd have to be spending $900 dollars monthly on whmcs license to get the discount lol
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| Posted by SSD-Greg, 02-05-2013, 11:34 AM | | They also buy whmcs licenses in bulk amount at discount price the more you buy the less you pay. As for IPs sane thing and for SSL they get unlimited these days.
Not a lot of host make to much profit of reseller plans.
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| Posted by Site-Host, 02-06-2013, 04:13 AM | | i think they just barely make money, very little profit margins..
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| Posted by Chase78, 02-06-2013, 04:17 AM | | On very simple economic concept allows them to do so:
Economies of scale
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| Posted by StarWebHosting, 02-07-2013, 06:34 AM | | Some of the perks are provided to the hosting provider for free or at a lower than normal charge but this depends on the number you buy and the number you buy depends on the size of your business.
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| Posted by JixHost, 02-07-2013, 10:53 AM | | Its a volume business, the more they sell the lower the cost is. Its like that with domains, servers and anything else including whmcs licenses.
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