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Reseller Hosting VS. Hosting Affiliate?

by Tony Wagner
8 replies
I realize that selling your own hosting through a reseller package would be way more profitable than setting up a new client with a hosting company as an affliliate, but, if the relationship goes south, do the headaches outway the profit?
#affiliate #hosting #reseller
  • Profile picture of the author Mike Grant
    IMO, go reseller but do it with a VPS and not shared.

    There's not much of a heacache if the relationship goes south, as you won't have to deal with the support. Hosting companies do not move files from themselves to other hosting companies, only from others to themselves.
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  • Profile picture of the author auradev
    I've found it to be very low maintenance (if you know what you are doing).

    A lot of the small hosts out there are doing it this way:

    1) Cpanel VPS at vps.net - you get all the benefits of a dedicated server, plus scalability.
    2) Outsourced support - there are people that will do it for $1 per cpanel account per month.

    By doing it this way and a vps.net you get admins for $10 per incedent and someone else to handle your customer tech support.

    If you charge $5-10 per month it should work.
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  • Profile picture of the author Mike Grant
    I strongly urge against VPS.net

    I follow their twitter and they're always having downtime.
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  • Profile picture of the author Tony Wagner
    Anyone else have any information on the pros and cons?
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  • Profile picture of the author Alfred Shelver
    Hers is my suggestions, I started by doing my offline sales with affiliate commissions .... then I opened a reseller account and I Will never look back.

    I think affiliate programs for hosting are only worthwhile on Autopilot I.E. on your site as a banner etc ..... when you are making the sale face to face or email to email rather push for a long term solution like hosting with recurring income.
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  • Profile picture of the author cjseven
    I started my "Internet endeavor" in 2005 with a reseller account.

    After 3 or 4 months of headaches (downtimes) I moved to a VPS. Until recently I summed up 5 VPS. Finally I move everything to a dedicated. Running now about 250 sites (mine and clients).

    Pros

    - Recurrent earnings
    - Up-sells and cross-sells
    - Better and continuous customer relations

    Cons

    - Running your own hosting biz needs some technical knowledge. If things go "south" the money you earn could not pay those headaches.
    - 24/7. Next time you go on vacations Internet access is a priority. Oh, and forget about destinations without internet or bad Internet connections. You don't want to experience a server downtime specially when you can't connect to solve things... Yes, it happened to me!

    A reseller account is different from a VPS or dedicated. However for your client is the same. You are the responsible person and technical guy (even if you get your provider support).

    Hope this helps.

    Cheers!
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  • Profile picture of the author donb01
    any recommendations as to how to set up host gator reseller account to sell hosting on?
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    • Profile picture of the author Bill Jenkins
      Banned
      Reseller all the way! I've found it to be very easy with minimal complaints from clients. Plus you creating a business you can sell later. It's similar to having a membership site with monthly payments coming in.

      If you get 200 clients paying you $10 a month you have an asset that can be sold for big money if you ever want to. Affiliate sales are one hit wonders.

      Bill
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