12 replies
What's better, being a reseller and re-selling the hosting service or being an affiliate? I don't really understand the advantages of being a reseller I suppose, anyone have success with it or any input? I'm interested in learning more.
#hostgator #reseller
  • Profile picture of the author pjCheviot
    Banned
    Andrew

    Most of the details are available on Hostgator's site - but as a reseller you get to keep ALL the money you charge your CUSTOMER - in effect, you become the web hosting company and can host "unlimited" (depending on your plan) sites using your own pricing structure etc.

    HTH
    {{ DiscussionBoard.errors[1456709].message }}
  • Profile picture of the author Loren Woirhaye
    The way hostgator is promoted, chances are very good
    you won't get your affiliate commission. I'm pretty sure
    it doesn't credit the last referring affiliate. All I know is
    that I promote it here and there and I've never earned
    a dime, even though people do tell me they trust my advice
    on these matters. I could be wrong but I think it drops
    a cookie and credits the introducing affiliate - the upshot
    of which is all the affiliates are mostly building HostGator's
    brand with little reward. If you had a course about how
    to make a website and marketed it at people who have
    never clicked on a Hostgator banner (ie. extremely green
    internet users or blog readers). then you'd get your
    commission.

    I could be wrong about the cookie. If I am HG conversion
    must be pretty poor because I've sent plenty of traffic
    their way.

    The downside or reselling is you have to support your customers.
    The upside is another affiliate isn't getting your commission
    and you get all the money.
    {{ DiscussionBoard.errors[1456727].message }}
  • Profile picture of the author monitorit
    I would say reseller just think if you get 10 clients every month and charge them $10 it would soon become very viable.
    {{ DiscussionBoard.errors[1456816].message }}
    • Profile picture of the author ExRat
      Hi Andrew,

      What's better, being a reseller and re-selling the hosting service or being an affiliate? I don't really understand the advantages of being a reseller I suppose, anyone have success with it or any input? I'm interested in learning more.
      Recurring income. Mark-up on price/charge for hosting management and installations. Long term profits from customer upgrading. Ability to cross-sell.

      In short - the customer is your customer, not their customer - something very close to the core of successful business/leverage.

      Hi Loren,

      The downside or reselling is you have to support your customers.
      ...which is why all hosting resellers (probably) work out how much a customer's portion of their hosting costs, and then charge them cost+mark-up. I would guess that for most resellers it's not a downside, it's probably something they get very well paid for, and fondly appreciate. Either they have an occasional issue which you deal with, or if it's continual you present your 'platinum level support' fees.
      Signature


      Roger Davis

      {{ DiscussionBoard.errors[1456870].message }}
      • Profile picture of the author Andy Money
        Originally Posted by ExRat View Post

        Hi Andrew,



        Recurring income. Mark-up on price/charge for hosting management and installations. Long term profits from customer upgrading. Ability to cross-sell.

        In short - the customer is your customer, not their customer - something very close to the core of successful business/leverage.

        Got it. Great point, great clarification, definitely going to be making some switches soon then Thanks
        {{ DiscussionBoard.errors[1456878].message }}
        • Profile picture of the author netkid
          Andrew,

          I am using Hostgator reselling account for my own number of websites and also hosting my clients blogs that I get hired for. I "pad" the individual monies into my monthly recurring charges I give to my customers.

          I also have Hostgator affilate banners on my own money blog and made $100 last month in commissions.

          It's a good deal all around.

          Hope that helps,

          Bruce
          {{ DiscussionBoard.errors[1456895].message }}
  • Profile picture of the author Loren Woirhaye
    I just meant you have to know enough about webmastering
    and solving common problems to support your own customers
    if you resell hosting. So the downside is you may need to
    take time away from your preferred activity to learn technical
    stuff you'd rather not be bothered with, but you need to
    because it troubles your clients.

    Hosting is pretty price competitive. I mean, $10 a month for
    basic hosting is all most folks need. If you're running your
    own support department and you don't know how to fix
    stuff fast you'll find yourself earning less than minimum wage
    for your time supporting hosting customers.

    Of course you could charge them $100 a month or something,
    but it's a rare customer who won't find such a price ridiculous
    and buy elsewhere.

    Once you get big enough that you can pay a geek $10 an hour
    to do the support you're good, but until that time you're buying
    a job. If you have the capital laying around to sell enough
    hosting packages right off to pay your support guy, great,
    but if you want to start small and grow you'll be getting your
    hands dirty doing stuff, on occasion, that is tedious. To outsource
    it when you're starting will probably have you running at a loss.

    I'm just saying this because, well, it's not too wise to
    ignore the numbers when selling a commodity that is very
    price sensitive and service-oriented.
    {{ DiscussionBoard.errors[1456922].message }}
  • Profile picture of the author rondo
    Reselling should be more lucrative long term but be aware that you will be expected to provide some level of customer support/tech support. You'll also want to check out any legal requirements. If these things don't phase you then go for it.

    Andrew
    Signature
    {{ DiscussionBoard.errors[1456929].message }}
    • Profile picture of the author ExRat
      Hi Loren,

      I think where we're seeing things differently is you might be viewing a reseller as selling hosting packages to other webmasters, whereas I am thinking of 'offline gold' type businesses (IE not internet savvy) who are often getting charged ridiculous amounts for antiquated hosting and domain renewals (if they're already online) or have no idea how cheap hosting is for a reseller, if they are truly an 'offline' business that is coming online.

      You might build a website for that business and sell them the hosting at the same time. The support is minimal as you are configuring the website for them.

      I see why you might be thinking that way due to the question - reseller vs affiliate - but if someone lands a deal to build a website for that 'offline' company, they have a choice - give them space on their own hosting or get them to buy it through an affiliate link - so they have the same question as Andrew, but in a different situation that could be highly profitable and easy to support.

      I would assume that being a reseller into a market like this one (an internet savvy one) would probably be a nightmare and not worth the effort.
      Signature


      Roger Davis

      {{ DiscussionBoard.errors[1456992].message }}
  • Profile picture of the author michellegreen
    Why don't you set yourself up to do both?

    Most of my profits come from reselling hosting, but I've still made some affiliate sales too.

    If you're building websites for people (like I do), then you can offer hosting as an addon, with an annual fee to keep their hosting with you going forward.

    On the other hand, if you're teaching people how to get started online and they want their own hosting account (I do this too!), then I refer them to my affiliate link.

    Either way I win!
    {{ DiscussionBoard.errors[1456982].message }}
  • Profile picture of the author Didge
    Im listening to all the good advice ... thanks for the information

    With the reseller account, when you set up hosting for your clients etc how do you set up the monthly payment process?

    Do you do this through Paypal or something else?

    Very interested in finding out.
    {{ DiscussionBoard.errors[1457275].message }}
    • Profile picture of the author michellegreen
      Originally Posted by Didge View Post

      Im listening to all the good advice ... thanks for the information

      With the reseller account, when you set up hosting for your clients etc how do you set up the monthly payment process?

      Do you do this through Paypal or something else?

      Very interested in finding out.
      I normally bill my clients 12 months in advance, then follow them up once a year. Alternatively you could set up recuring billing through paypal or similar if you wish.
      {{ DiscussionBoard.errors[1457278].message }}

Trending Topics