| Posted by bawalker, 07-07-2004, 05:49 PM | | I am planning to offer a select few people the ability to resell webhosting on my webhosting server. My business owns the rack server and in order to keep overselling down I plan to only offer 3 people in 3 geographically different locations the ability to resell on limited reseller plans.
Anyway I want to know the best way to go about doing this so that neither the reseller is getting screwed in pricing and that I am not giving away service that I should be selling.
My question is, what is the best way to do this? Should I:
1.) Make the reseller pay $xx.yy/mon for say 5GB storage-50GB bandwidth letting them split up the packages anyway they want.
2.) Have pre-set plans that the resellers can use but charge them say 25-50% discount off retail and letting them resell them to their customers with their own markup?
3.) Have pre-set plans that resellers charge whatever they want to for their customers, but I take a % off each package they sell to earn my profit from.
Which of those is the best way to go about reselling. Does anyone have experience in this and can offer the best suggestions?
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| Posted by BF-Gary, 07-07-2004, 05:55 PM | | My only question back for you before replying is best for who?
There is best for the customer, the reseller and the host. Let us know which one you want the best for.
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| Posted by bawalker, 07-07-2004, 06:00 PM | | Since I am the main business owner everything should seek to reflect profit gain for my business. Being that my business is hosting the resellers ability to generate revenue for themselves with their own customers. Overall the 'best' should be for me as the business who is providing these capabilities, but secondly best for the end customer who is getting service. There is a delicate balance that if a reseller does a good job reselling they have to purchase more from me to resell more so I gain financially at their hard work.
Mainly I am wondering which of those three plans is the best for me to succeed? This is the first time I have ventured into this realm of hosting and I do not want to make the mistake that some have by setting up reselling that is difficult that it doesn't attract resellers.
Or rather what is the way that most webhosting companies setup reselling plans?
Advice..?
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| Posted by grace5, 07-07-2004, 06:39 PM | | 1. gives them more control,which is what they want.If it makes you feel better limit the account creation to the allotted space /BWand allow no over selling(you have some control too)
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| Posted by bawalker, 07-07-2004, 06:42 PM | | I'm not so much worried about the control they will have, but the best way to charge a reseller for being a reseller. Infact the DirectAdmin control panel is very good about allowing me to limit very precise things that a reseller can or can not do. So my focus is relating to which of the above options is the best way to charge the reseller?
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| Posted by zinet, 07-07-2004, 06:55 PM | | It depends on if the reseller is private label. If the customer knows that they are getting hosting from you I would have set plans, especially if you plan on supporting the reseller. If you are giving the reseller private label hosting you should let the reseller sell what ever plans they like.
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| Posted by bawalker, 07-07-2004, 07:02 PM | | Actually let me reask this because I think things are straying off my intial question. What is the best way to charge the reseller? I wil be very flexible in letting them set up plans or how they want to do that, but...
1.) Do I charge them for allocated BW/Space in bulk ahead of time leaving it upto them to sell off what they have before buying more? Meaning I would charge them $99.99/mon for X BW/Y Space?
2.) Do I charge a percentage of only what they sell? Meaning they are alloted X BW/Y Space, but only sell a fraction of it. Is it better to charge xx% of each sale they make rather than having them pay upfront each month?
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| Posted by zinet, 07-07-2004, 07:52 PM | | Maby give the reseller the choice. Also, unless you are charging their end user it would be difficult to know what they are charging. The reseller could tell you that they are charging $10 while they are really charging $70
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