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Affiliate hosting or reseller?

by clintK
5 replies
Hi,
I have a small, local web design company, just me doing the lot.
My question is, should I be hosting the customer sites through my VPS or should I, as I do now, get the customer to use my affiliate link to purchase the hosting and take the one off affiliate commission?
My worry is what would happen to my customer's sites if I were to die or something?
I feel it is easier to do the site and then they are finished dealing with me unless they want any more services from me later down the line.
I am aware that I am leaving a nice passive income on the table but I am 58 and I won't be here forever, I have no one that I can pass it all on to in the event of my death.
Do I just carry on as I am making one off profits or should I build the customer base along with the extra billing etc that it will involve but have a continuous income?
Anyone else looked at things this way?
Clint
#affiliate #hosting #reseller
  • Profile picture of the author Avocado Plugins
    Originally Posted by clintK View Post

    Hi,
    I have a small, local web design company, just me doing the lot.
    My question is, should I be hosting the customer sites through my VPS or should I, as I do now, get the customer to use my affiliate link to purchase the hosting and take the one off affiliate commission?
    My worry is what would happen to my customer's sites if I were to die or something?
    I feel it is easier to do the site and then they are finished dealing with me unless they want any more services from me later down the line.
    I am aware that I am leaving a nice passive income on the table but I am 58 and I won't be here forever, I have no one that I can pass it all on to in the event of my death.
    Do I just carry on as I am making one off profits or should I build the customer base along with the extra billing etc that it will involve but have a continuous income?
    Anyone else looked at things this way?
    Clint
    Here would be my suggestion - if you have kids you love/trust who also know how to run a business then you could do a knowledge transfer starting now so you could easily pass it on to them. Then they could build it up even more and so on and so forth creating a huge asset in the future given they don't mess it up.

    If this is not your case I would say go with affiliate route since it is less hassle, if their site goes down you are not liable since you have only recommended it to them and now it is hosting company's problem, and as you said they wouldn't have to deal on your side since the affiliate company is hosting their website.

    Those would be my tow choices if I were you if anybody has anything else that I overlooked please do share I would like to read them all. This is a pretty interesting situation and I personally never had to look at it that way!

    On a more happier note I wish you health and so that you finish strong what you have started All the best my friend!
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    • Profile picture of the author clintK
      Originally Posted by Avocado Plugins View Post

      Here would be my suggestion - if you have kids you love/trust who also know how to run a business then you could do a knowledge transfer starting now so you could easily pass it on to them. Then they could build it up even more and so on and so forth creating a huge asset in the future given they don't mess it up.

      If this is not your case I would say go with affiliate route since it is less hassle, if their site goes down you are not liable since you have only recommended it to them and now it is hosting company's problem, and as you said they wouldn't have to deal on your side since the affiliate company is hosting their website.

      Those would be my tow choices if I were you if anybody has anything else that I overlooked please do share I would like to read them all. This is a pretty interesting situation and I personally never had to look at it that way!

      On a more happier note I wish you health and so that you finish strong what you have started All the best my friend!
      Thank you for your input and your kind thoughts.
      I did have a son who was a genius with computers and web stuff but he passed away in 2008 at just 30 years old.
      If he was here then I wouldn't hesitate and I would not have to ask the questions.
      Thanks for your thoughts on the matter, it was pretty much the same decision I had come to but I just wanted a second opinion.
      I will continue making the sites and taking the affiliate commission, I really don't want the thought that people will be relying on me, some say "what does it matter if you are dead" but that's not the way it should be.
      Thanks again.
      Clint
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  • Profile picture of the author JohnnyPlan
    I can understand your concern. And, of course, you don't want others to be stranded in the event of your passing. However, you could easily train a protege to take over your business in the event of your death. This person does not have to be related to you either. There are so many deserving people out there that could fill this role for you.
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  • Profile picture of the author razorz18
    Hi,
    Here my suggestion, basically what you can do is to give them optional on not to choose your hosting services. If you decided to host it, charge for your host would make extra income. You can use Reseller account which save more than VPS. The pro of hosting clients website by your own mean you can earn more but it will need extra work in case have problem with the hosting services. In this case you better ask client to use their own hosting service preferably via your affiliate link as it will help you to concentrate your main objective of the company.
    About the company, you may ask your sons to help you. 2nd best option would be closes family members. Hire them! If you don't have both, I would consider you can hire someone else to look after business and you could/maybe can tell them your intention after gaining trust in few years.
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  • Profile picture of the author Lightlysalted
    58 doesn't make you old at all if anything you've got another 20 to 30 years of life ahead of you! Therefore I'd advise to self host as a reseller because profit margins are much greater than just a one off fee. You Can also benefit from annual reseller new renewal charges and get commission on those too! All the best!
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