Reseller - Breaking Even

[QubeHosting]

Apart from lauching a website, what other ways could a reseller break even and actually make some profit, what other 'marketplaces' are there to sell services on?

[aGigNETWORK]

Find a unique market and support it with your hosting offers.

A lot of people do this on eBay. They buy rights to some sort of program, and sell it very cheap on eBay just to get the new hosting client. I don't know this is the best way to do it, but it would be a start.

Also offering other services that have value will bring in traffic. SSL certs are a good example. Buy the Quick SSL for 10 buck and sell them for 20, or less. Some people thing is about how many you sell, not how much you sell them for, to me I'd rather sell 1 and make 10 bucks then sell 10 and make a buck each... Less to support.

Good luck.

Mark

[QubeHosting]

Thanks Mark,

Ive been putting my services up on eBay for about a month though. Im offering the cheapest price possible on eBay, still not many people have signed up with me as I first expected with such a cheap price. I also think feedback may play a part in this, becasue other guys also on there sell hosting, twice as much as i sell it for, quite a few people purchase from him - despite my prices. We are both offering the same thing.

I hope things get better for me, all I want to do is at least break even, I dont even mind offering free services as long as I get donations to cover my bills.

[Abush]

Advertise and offer specials and stuff. Put your webhost in your signature and also get some people to be your "partners" and make them get client. Think pyramid.

[QubeHosting]

Yep, the hostings in my sig now :)

As for the partners, if I bring on any partners, they are naturally going to want a bit of what I get. Right now, I havent even broken even. Im not interested in profit at this point, I just dont want to be losing anything.

[aGigNETWORK]

Webex,

No matter what anyone says... Hosting is a hard business to get in. So many people have a cheap dedicated server and think they can be a host. Then to get business they so under cut them selfs and over promise the world.

There are people who are willing to pay for good services, not just hosting. Find these people and sell your products to them.

Think about it this way. 10 hosting accounts for 5 dollars each = 50. 10% never pay thier bill, 30% are late with their bills. 15% need help atleast twice a month. Sure its not much work for 10 clients, but for 1,000 or 10,000 clients that it takes to pay the bills and live your self really adds up.

Find the clients who know what they are doing and know they get what they pay for. I'd rather support 100 clients at 20 dollars a month then 100 clients at 5 dollars a month. Time is money, and if a client at 5 dollars a month asks 3 questions he has wasted more time of yours then he or she might be worth.

I might sound like hard ---, but its the facts of hosting. Why do you think these big companies sell reseller accounts? I'd rather support 40 resellers then support 400 shared clients and make the same money.

Good luck.

Mark

[QubeHosting]

The main thing here is actually getting to those people who know what they are doing, and understand that they get what they pay for, thats seems to be the problem.

I also understand to get these people to come to you, you need reputation, for example, everyone knows to go to 'GoDaggy' or 1&1 for hosting simply because of their reputuation and the service they provide. These people's sites are probaly very small and simple and could be hosted with anyone...

Right now, Im working by the phrase, 'Its better to make a fast penny, than a slow pound'. As you can see, this is applies to the hosting I provide in my sig...

Its true about the service and time. I too would rather provide 100 clients at 20 dollars a month than 100 at 5 dollars a month. But to get the clients in the first place, you need to set resonable prices. I dont believe there is any use of some guy with a dedicated server setting the same prices as 1&1, it wouldnt make sense.

However, right now as Ive just been in it all for a few months, I think its about getting something in to make everything run smoothly. Ive also contacted a few free subdomain hosting companies for me to offer them free hosting to some extent to go with their free DNS services, something I was really looking forward too, they havent replied back to as yet :(

Hope everything goes well for the new upcoming month November....

[James]

Right now, Im working by the phrase, 'Its better to make a fast penny, than a slow pound'.

What on earth do you mean by that?

[krakjoe]

^^rofl

[QubeHosting]

What on earth do you mean by that?

It means,

By selling a package for £5 /month you may only get 3 customers which sign up. You earn £15

By selling the same package for £3 /month you may get 7 customers which sign up. You earn £21

[krakjoe]

It still doesn't make sense to me, which one is better ?

[fireshark]

Re OP: Technical skills are useful when you are a one man ship and need to provide support

[James]

It means,

By selling a package for £5 /month you may only get 3 customers which sign up. You earn £15

By selling the same package for £3 /month you may get 7 customers which sign up. You earn £21

Do you really think more people will just choose the 3 pounds a month package just because it's 2 pounds cheaper? :tired2:

[QubeHosting]

Do you really think more people will just choose the 3 pounds a month package just because it's 2 pounds cheaper? :tired2:

Indeed, especially if someone else if offer exactly the same thing.

Why, wouldnt they?

[James]

Please report back to FWS in a few months on how you did with those strategies.

[QubeHosting]

Please report back to FWS in a few months on how you did with those strategies.

Well, Ive been using it for about a month or two.

It hasnt been worked as I expected. Thats why Im here to try and get some tips, I want to use them for the new month of November.

[Marky]

I think its best if you build your reputation first, do that by providing the best support you can... then offer plans that won't give you little to no profit.

After your more established and people know your name and start referring you... boost up your plans and give a reason for it :P

[Richard]

QubeHosting,

For one reason, you are not being honest with your clients, from an exact quote from your website, you state this:
The Qube Advanced Unlimited consists of unlimited resources such as web space, bandwidth,

As everyone knows, or should know, apart from you it would seem, is that Unlimited web space and bandwidth is impossible, you simply cannot have an unlimited hard drive, and even if you keep adding new hard drives, you still have a limit... Bandwidth is also limited, it's not a set cost, it changes to the amount you use.

The reason you don't get many customers, is because you are a scam artist, you scam people with your unlimited space and transfer without caring about the customer. The problem with this, is only the idiots are going to fall for your scam, the reason you don't get many customers is because people laugh when they see your hosting, as they know it's a scam.

The problem does not come in the fact that you are running a scam, it comes in the fact that it seems that you do not know you are running it... If you where stupid enough to fall for an "Unlimited Reseller" account, then more fool you, your business deserves to fail because the owner does not know the first thing about hosting, or the current hosting market.

Try treating your customers, or potential customers, with respect, don't offer what you can't.

PS; If you are going to argue, please search this forum for unlimited disk space and bandwidth, everyone agrees with me.

Your just a Grade A scammer.

[James]

Your just a Grade A scammer.

That's a bit harsh, some reputable companies do offer unlimited resources. To be agressing onto a member calling him a scam is way out of line.

[GamePhreak]

No company can offer unlimited resources, especially hosts, but I wouldn't call it a scam, either. It's just a technicality.

[Decker]

Buy a big box of socks, advertise and get a big group of people to buy one sock each, then get them to sell one sock each to another big group and you get 50% :D

Sounds silly - so does money without working for it, if it was an answer would anyone tell you???

[Richard]

That's a bit harsh, some reputable companies do offer unlimited resources. To be agressing onto a member calling him a scam is way out of line.

Well we seem to see things in a differant way.

[QubeHosting]

That's a bit harsh, some reputable companies do offer unlimited resources. To be agressing onto a member calling him a scam is way out of line.

Exactly, like is said in reply to your pathetic PM:

If you feel strongly about this, please direct your comments to the following unlimited providers:

http://www.heartinternet.co.uk/reseller-h.shtml
http://www.webfusion.co.uk/reseller/
http://www.ixwebhosting.com/index.ph...anUnlimitedPro
http://www.fasthosts.co.uk/dedicated...ted-bandwidth/

...Just to name a few. And those arent crappy companies, the are well-known throughout.

To be honest, I dont think you understand what a provider means by unlimited. People know its not unlimited, i know thats impossible.

You dont even know how many accounts I hold, what rubbish are you talking. If at all, people are looking for unlimited accounts, think about it.

Search before you speak, attack the providers, not the resellers.

Additionally, no one uses hundred of gigabites for their website, customers like to feel comfortable with the word 'unlimited' becuase there isnt any stated restriction, and they cant exceed anything.


Well we seem to see things in a differant way.

Obviously, your probaly having difficulty selling your servies. Don't take your anger out on me, go to the providers.

[Richard]

Obviously, your probaly having difficulty selling your servies. Don't take your anger out on me, go to the providers.

Far from it QubeHosting. Galaxy-Solutions and Galaxy-Hosts have exceeded there expected sales rate for the last 3 months running.

Offering UNLIMITED GB of storage space is a lie, how can you? There is ALWAYS a PHYSICAL limit, and that limit cannot be removed. Therefore, you are advertising something you cannot offer, as there is in actual fact a limit to the amount of space you can use up. In my book, that is just plain Illegal.

On a reply to your PM, I think I replied with something like this:
The resellers are just as bad as the providers.

The fact that you know you are advertising what you can't offer, and are planning to make money out of that fact, makes you a scammer. You run a scam business and all the time you offer unlimited Disk Space, you always will.

On a better note; The reason your sales are falling or not getting any bigger would be that fact that people are getting a little wiser on the net, last year, Unlimited was the next best thing, everyone wanted it and most people had an unlimited account somewhere.

At this current point in time, the unlimited market is a dieing trade, more people are becoming wiser to the scam. If you are serious about this hosting lark, get a limited reseller and offer not recourses, but support and other factors; you may not understand the reasoning, but there is more money in offering expensive small limited accounts than offering the world (or unlimited) for less than $5/month.

[oates151]

Well what you need Qube is a good looking website, not just a template. People that see unique and well built websites with lots of options, but easy navigation will believe before they even look at your packages that you are a decent company. Second off, hosting-shack is right about the whole "No such thing as unlimited space blah blah blah" since their is a physical limit to how much space you can use. If your datacenter offers unmetered bandwidth, use the word unmetered, not unlimited, because their is actually a limit to how much bandwidth anyone can offer or use. Instead of unlimited features, use larger numbers so people feel that they are getting what they want and need to run their businesses without going over into the "This has to be a scam" area.

I myself found it hard to begin a web hosting company with all these larger companies around. My suggestion is to sell to people you know and offer personalized attention. They will then tell their friends about your services and how great you were, and you will end up breaking even and probably making some nice tips aswell. If you haven't already, offer web design services and frontpage/dreamweaver help free to all your clients if you know the programs and how to design/code websites. Its good practice for now, and can make you some extra money that you can use as profits if the hosting selling itself doesn't break even or just hits the mark.

Basicly to sum it up, don't make yourself look like a n00b, offer personalized attention and support, sell to friends and family at first, and don't expect to make any real profits for the first few months :beer:

Also, comment to hosting-shack: Don't call the poor fellow a "scammer" just because you're a big shot host. Let the dude breath, some nice advice that people will think thats a scam would be nice, but hell, he ain't no grade A scammer, if anything offers from big companies offering 200GB is a scam :P
Almost everything in life has an exception, this guy was just trying to make some money to get started, I think we all - or at least most of us - did the same when we got started.

[DavidsAwesome]

I don't think he's a scammer... but if you dont have unlimited resources, don't offer them.

Also, raise your prices a little... I know you want to be competitive, but you'll actually turn people away.

Think of it this way... I can buy a Mercedes for 80,000 or I can buy a Hyundai for 5,000.... which am I likely to buy?

Most people would think the cheaper model would be the better bet, but the smarter people will realize that buying a cheaper car gives you cheaper quality and cheaper support.
The same goes for hosting. I'll get less support, I'll be valued less.... and its all to save a couple of dollars.

Just... keep your prices competitive, but so low that you're giving it away.

[Richard]

I don't think he's a scammer... but if you dont have unlimited resources, don't offer them.

Also, raise your prices a little... I know you want to be competitive, but you'll actually turn people away.

Think of it this way... I can buy a Mercedes for 80,000 or I can buy a Hyundai for 5,000.... which am I likely to buy?

Most people would think the cheaper model would be the better bet, but the smarter people will realize that buying a cheaper car gives you cheaper quality and cheaper support.
The same goes for hosting. I'll get less support, I'll be valued less.... and its all to save a couple of dollars.

Just... keep your prices competitive, but so low that you're giving it away.

As you will see from the start of this thread, he's aiming to sell hosting on Ebay more than on his site, someone who looks for hosting on ebay does not care about support, they are looking at the price alone. Mostly they are under the age of 18.

In this case, his price is good, as the other scammers on Ebay selling unlimited diskspace keep to around that level.

[Richard]

I don't think he's a scammer... but if you dont have unlimited resources, don't offer them.

So him offering what he does not have is not a scam?

FFS! What the hell is a scam then?


A confidence trick, confidence game, or con for short (also known as a scam) is an attempt to intentionally mislead a person or persons

Yes, he misleads a person about what they get.


a person who scams you by means of deception or fraud

Yes, he is using deception with his unlimited Disk space that can never exist.

Another below, which is from a computer magazine and many websites:


Avoiding Hosting Scams
Recently, one of my friends found a web host that provided fantastic facilities, including unlimited data storage and unlimited data transfer, for only $1 per month.

What are three of the surest signs that a hosting company is a scam?

If you don't know the answer to that question, read the first sentence of this section again.

Three of the surest signs that a hosting company is a scam are a promise of "unlimited" (or unusually high) data storage, a promise of "unlimited" (or unusually high) data transfer, and an unusually low price. Paying $1 a month for hosting works out to $12 a year. Can you really expect a hosting company to survive with an income like that? They'd only get a lunch or two each year out of your $12.

Providing "unlimited" data storage and "unlimited" data transfer is technically impossible. No computer system can keep storing information forever - if you wrote a program that continuously uploaded 10 kilobytes of data to your host every second of the day, you'd upload 843.75 gigabytes of data in a 24-hour period. In a week, you'd have almost 6,000 gigabytes. Most hosts would not be able to store that!

Data transfer costs money, even for hosting providers. If a hosting provider promises you unlimited data transfer, it's a sign of a scam. If it costs them money, how can they afford to give it to you for free?

I'm sorry QubeHosting, but by buying one of these so called "Unlimited Reseller" accounts, you are now just as bad as the host hosting your sites... They are committing Fraud, and so are you.

As stated on many sites, and many quotes above, giving unlimited bandwidth or storage space is a scam.

You ARE a scammer, you scam people for money, and THAT is the reason your failing as a host.

[QubeHosting]

No one's site will exceed more than a few GB max, depending on their site content ofcourse. So requiring TB in space or more in practically impossible anyway. The terms and conditions of majority of these host mention that files stored on the server must be related to the site content. Addtionally, no distribution sites are allowed.

I disagree, about the providers. How can they be on the same level. The providers are supposed to know better. The resellers to them are just another customer, but someone who is reselling their services. Infact, the provider is actually incouraging the fact that we can set unlimited resources as they are making this option available to the resellers.

As for eBay, I have sold most account on there. So do other resellers. No, they're are not under 18. If you have no experience then you should comment on these things. Majority of my customers that have bought an account from eBay are web developers well over 18 and they know EXACTLY what they are doing. They hardly ask for support at all.

This is the 3rd time Im saying it now. I insist you to contact all those companies listed above. Tell them or paste that quote regarding the 'scam' and lets all see what they say. Im sure we are all egar to hear their comments.
Also mention that you are another host concerned about what they are providing, Im sure they'll slap you silly back in your place.

Hek, look at yourself. You dont even have a secured server for your client login: http://www.galaxy-solutions.net/whmcs/clientarea.php

And it doesnt look right for you to be using your own services which you provide to resellers to power your own website. It just goes to show you are incapible of producing your own system and dependant on other software, as a result, it just suggests your unprofessional and probaly some guy which two or three normal PC's in his bedroom.

Oh, it looks like something has happened to your bullet points on this page http://www.galaxy-solutions.net/special.php can you even web design? Oh look, even the 'support' link is missing on that page in the top right corner. What kind of a joke are you? What kind of cheap support do you offer when your own site is a mess...Your the scammer. I really feel sorry for those who have bought off you. At least I can host my customers sites with reputable world-known web hosts.

You've got some issue to sort our yourself. You should be thanking me that Ive just picked out those defects in your site. Yet, Im still expecting another round of attacks.

[oates151]

I thought this whole topic was about how to help Qube, not flame him. Hosting-Shack, I understand your point, but doesn't every company in the world scam people out somehow? Look at Dell, huge computer corp, but take a look at their contact. On their commericals they basicly state that I can do anything with their computers. Truth is, the computer fell apart that I got and I have gotten the full PC replaced 4 times in the first year of warrenty. Also look at their contact, they offer refurbs as replacement, ain't that a jip?

I would call them scammers, but seriously they're not truly scamming, at least not on a grade A level scam like you're saying. Like I said before, all companies have to start off like this because they don't know better, or they think it is a way to convince clients that they are very well priced. All-in-all
this convo is susposed to be about how to help him, not flame at him and tell him hes a scammer, no thats not very nice now is it ;)

Qube - take the good advice you have gotten and run with it. Also you would make a very good lawyer, nice points on that last post, I beleive you defended yourself very well in a mature way ;)

[Hazard Pro]

Hi all, Im a newbe on this forum but have been a Heartinternet reseller for sometime.

I find the features/service is good.

However one of my clients websites was disabled due to 'excess bandwidth' (on an unlimited bandwidth account :doh!: ).

I was told the client would need to remove the files that caused the 'problem' (a 32mb video file) otherwise they would not re-enstate the website.

It showed that the video was downloaded 48 times within 1 hour and used a total of 1.46GB. for this reason it was dissabled.

I then spent 1hour going backwards and forward trying to get some answers as to what was an exceptable level of usage and why does it state unlimited..... (I dont want to advertise something I cant offer) Of course I never got a proper answer (the guy should be a politicion).

This means, no matter whether you put 10gig, 100gig, 10000gig or unlimited data transfer... if you hit a certain level they will cut you off anyway! :eek2:

You have been warned.....

[[JSH]John]

That's what happens to you if you choose a reseller from hosts like that, nothing is really unlimited. You can get unmetered but never unlimited.

[moneyballs2]

if something is "unlimited" there is usually a fair usage policy. like broadband. if you download too much they limit you to downloading at certain times so that everybody can enjoy good speeds.

[Decker]

If something is 'unlimited' it's a false claim, nothing to do with policy or TOS.
Read the rest of the forum posts on this and you'll see a load of let downs.
If you have a copy of their terms you can 'demand' they open the account up to be active.
They will probably try and be evasive but don't give in just quote their own sales pitch at them.

[krakjoe]

I was told the client would need to remove the files that caused the 'problem' (a 32mb video file) otherwise they would not re-enstate the website.

It showed that the video was downloaded 48 times within 1 hour and used a total of 1.46GB. for this reason it was dissabled.



To me, that's not even excessive, you should put it to them that when thier network starts to misbehave, instead of just suspending all the most active accounts that they should actually pay attention to what's going on, there's no way that that short period of very low load should have any affect on operations at all, they aren't doing thier job properly.

[QubeHosting]

To me, that's not even excessive, you should put it to them that when thier network starts to misbehave, instead of just suspending all the most active accounts that they should actually pay attention to what's going on, there's no way that that short period of very low load should have any affect on operations at all, they aren't doing thier job properly.

What do you mean by when their network starts to misbehave?

I dont think its the fact that the load is having an affect on other things, they simply dont support file sharing. Hence, their system seems to be picking out those files which are being downloaded alot and comsumes more bandwidth.

[QubeHosting]

If you have a copy of their terms you can 'demand' they open the account up to be active.
They will probably try and be evasive but don't give in just quote their own sales pitch at them.

Ive actually tried that, Ive even put it up to the directors which I didnt receive a reply back for.

All they do is pick out the part in their TOS stating they do not support file distribution. And of you think about it, thats why the account has run up up to 1GB in an hour.

However, if they disable the account for excessive bandwidth for something other than file distribution, then there are questions to be asked on how they distribute their service.