Question for Site Flippers on Hosting

3 replies
Hi Warriors,

Got a simple question - at least I think it's a simple one. I've had a reseller account at HostGator for a while with the intention of setting up and flipping sites on the side, but have never quite gotten around to doing it (amongst other things).

What I'm wondering though is, do you find it easier to use a reseller account and make some residual income from hosting after the sale, or to just buy a new hosting account - like the baby account for the $1 first month, and then transfer the account to the new owner when flipping the site?

I'm sure there are advantages to both - just trying to weigh my options.

Thanks in advance.
#flippers #hosting #question #site
  • Profile picture of the author Diana Lane
    This question came up for discussion in a recent thread which you might find useful. Quite a few people chipped in with differing views and experiences...

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  • Profile picture of the author Rob Thayer
    It's a matter of economy, really. You're paying $25 or so for a reseller account. Assuming you're charging $7 a month for hosting after the flip, you only need 4 clients who take you up on it before you're in the red. If you're not going to be very active with your flipping, then it doesn't pay to have reseller hosting.

    One method I've had some success with in the past is just offering free hosting for the first year (or six months) and then $X per month after that. It's easier for people to buy a site and move it right away then to get settled in with your hosting and move it somewhere else later, especially if you provide quality hosting service.

    If you're dealing with really tech-savvy people, they're probably going to want to use their own hosting. But if you're selling sites to noobs or people less technical, the rolled-in hosting is a fantastic selling point for them. It costs you almost nothing, but to them it's worth $100 or more for a year.

    By the way, you should also consider upselling after the sale. It's a great time to offer SEO services and the like. Again, it depends on your client base.
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  • Profile picture of the author Michael Hackett
    Thanks for pointing me to the other thread Diana. I new it probably been discussed many times before.

    And thanks also Rob. You're right about it being more advantageous to utilize the reseller account to the fullest over the long term. I had just wondered if it was more of a "hassle" to do so. Most of what I'd be setting up would Wordpress and video sites that might appeal to the first-time buyers - so the hosting deal would probably have a greater appeal the the buyer.
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