mwaraitch
February 19th, 2007, 16:48
This deals with the method of payments in the reseller hosting. Please note that it does not pertain to affiliate accounts but reseller account working under own brand name.
Old Concept.
The reseller would be charged with a monthly subscription for a particular usage of server resources. The parent host while showing generosities, should exercise control through following mechanisms:-
1. Fixing number of domains.
2. Charges to be paid by reseller on “allotted space” and not “used space” of his customers.
These mechanism had following disadvantages:-
1. These are invariably planned in a way that the reseller would need to run in a chain of continuously upgrading the account before he could reach some level of profit or immediately after reaching marginal profit levels.
2. The other option of keeping higher costs would also limit his marketing.
3. The reseller has to pay fixed amount irrespective of his growth ie number of customers.
** Overselling: Later a trend started where some of the hosting companies started allowing their resellers to oversell means they shall pay on “used space” and not what they allot to their customers.
This brought about tremendous downfall in prices and also caused to old companies to make hue and cry over “overselling” and confusing it with “over usage” (while both have different implications).
Later almost all hosting companies got into race of lower cost and exceptionally high offerings leaving very little for resellers or smaller companies to manipulate in this business thus ending up with.
New Concept
Lately the concept of reseller without any regular upfront payments have started ie the reseller pays nothing to start with, The billing mechanism is:-
1. The customer of the reseller pays to the reseller.
2. The reseller retains his share and pays to rest to the parent company.
3. Every thing done in a billing application ie automatically without hustles.
4. Complete branding and automation.
** Advantages
1. Reseller has nothing to loose here.
2. Unlike the first case he has to pay irrespective of the fact that he has some customer on his inventory or not.
3. Offering normally include domain names and few other applications to reseller like thus a wider scope of sale.
So free reseller offers are the name of the day now which shall sooner or later be replacing other method.
Old Concept.
The reseller would be charged with a monthly subscription for a particular usage of server resources. The parent host while showing generosities, should exercise control through following mechanisms:-
1. Fixing number of domains.
2. Charges to be paid by reseller on “allotted space” and not “used space” of his customers.
These mechanism had following disadvantages:-
1. These are invariably planned in a way that the reseller would need to run in a chain of continuously upgrading the account before he could reach some level of profit or immediately after reaching marginal profit levels.
2. The other option of keeping higher costs would also limit his marketing.
3. The reseller has to pay fixed amount irrespective of his growth ie number of customers.
** Overselling: Later a trend started where some of the hosting companies started allowing their resellers to oversell means they shall pay on “used space” and not what they allot to their customers.
This brought about tremendous downfall in prices and also caused to old companies to make hue and cry over “overselling” and confusing it with “over usage” (while both have different implications).
Later almost all hosting companies got into race of lower cost and exceptionally high offerings leaving very little for resellers or smaller companies to manipulate in this business thus ending up with.
New Concept
Lately the concept of reseller without any regular upfront payments have started ie the reseller pays nothing to start with, The billing mechanism is:-
1. The customer of the reseller pays to the reseller.
2. The reseller retains his share and pays to rest to the parent company.
3. Every thing done in a billing application ie automatically without hustles.
4. Complete branding and automation.
** Advantages
1. Reseller has nothing to loose here.
2. Unlike the first case he has to pay irrespective of the fact that he has some customer on his inventory or not.
3. Offering normally include domain names and few other applications to reseller like thus a wider scope of sale.
So free reseller offers are the name of the day now which shall sooner or later be replacing other method.