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Good Division of a Plan




Posted by bluegoop, 05-19-2003, 08:59 PM
I plan on getting a reseller account with around 2GB of space and 40GB of bandwidth, for $26.00 a month at p4host.com or somewhere similiar. What would be a logical way to divide up the server into plans? How many and how big should I make them? Thanks. Eric Benson

Posted by ThePrimeHost, 05-19-2003, 10:54 PM
Hello Eric, You can divide 2 Gig's into 20 - 100 MB web hosting accounts. If you sell these accounts for $5.00 each, this will gross you $100.00 per month. That would be $74.00 profit per month if you sell all of the space. Just a thought to get you started. In the end, you will need to decide what is right for you and your customers. If you "attack" the local market, you can charge alot more than $5.00 per account. Kind Regards, -Darrell

Posted by ::K::, 05-19-2003, 11:10 PM
Depends what you want to do with the space, really. If I had a 2 GB space/40 GB bandwidth account I'd divide it into 200 MB by 4 GB sets, sell 8 at $5 each, and keep 400 MB space and 8 GB bandwidth for my own site. The result would be what's essentially 400 MB space and 8 GB bandwidth hosting, and a profit of $14 a month. Good deal for everyone involved, I'd say. Now, if you're doing it with the intent of making some serious money, you'd be better off dividing it into 100 MB space and 2 GB bandwidth accounts and selling them at $6. If you have your site elsewhere, you can sell 20, otherwise you could keep 1 to 4 (depending on your needs) for your own site. Even keeping 4, you'd still gain $70 a month overall, a fairly tidy sum, and you'd stay reasonably competitive. Once you're out, you can upgrade your account and sell more of them, increasing your profit.

Posted by bluegoop, 05-20-2003, 06:41 AM
So I shouldn't have more than one plan available? Just make it one? And by attacking the local market do you mean like putting up flyers and such around town?

Posted by mpalamar, 05-20-2003, 09:14 AM
I wouldn't waste my time selling plans less than $15/dollars per month unless your goal is to do hosting full time. It would take you three months of selling one $5/month plan per day before you even pull in a hundred dollars a week BEFORE expenses. Good luck selling one plan a day without some advertising. That to me would be a waste of time.

Posted by Melitaweb, 05-20-2003, 10:03 AM
If you don't plan on doing it full time don't become a reseller. Pick another industry. Anyone who wants to sell hosting 'part time' is not providing their customers with a very good service. This is why we constantly see 'need a host again' posts splattered all over the forum. With regards to splitting the plans the best way to go in my opinion is 100Mb 250Mb 500Mb 1Gb accounts work from 100% profit at 1Gb (2 customers = little work) up to about 300% profit at 100Mb (20 customers = more work) Take into account how much time and effort is involved on your part and price yourself accordingly. You can always increase disk space and bandwidth if you fill your plan up so don't be disheartened in the beginning at the thought of low profit.

Posted by drhonk, 05-20-2003, 10:18 AM
Or host closing down after 3 months ...

Posted by mpalamar, 05-20-2003, 10:26 AM
Actually, I should have said unless you plan to eat/drink bread and water for the next year don't price your plans too cheap. It would take years(probably never) to build a business of any value selling $5/month plans. You can do the math at selling one plan a day for a year. Then two plans a day for a year. I don't know the quality of your provider but my plans would be something like this: 150 megs space and 3 gigs transfer - $14.99/month 300 megs space and 6 gigs transfer - $19.99/month Add a small setup fee to cover your cost of a free domain registration and you might be able to build a business with time, hard work, and dedication.

Posted by bluegoop, 05-20-2003, 02:30 PM
mpalamar, don't those costs seem a little high? I would like at least some business, and I doubt I would get much business from a market like this where that is offered really cheap, but I guess if it was more local, it would be better. When reselling do you often offer other services along with hosting?

Posted by mpalamar, 05-20-2003, 04:38 PM
Hosting is like any other businesses. Marketing, sales, and a good product. If your marketing plan consists of WHT and some of the other forums, forget about turning your hosting company into a career with $5/month plans. If you have a good marketing plan along with good sales skills, you could sell a premium hosting plan to my neighbors flea market stand. The key is to develop a great marketing plan while fine tuning your sales skills. Most of the hosts that are charging $5-7/month are doing this part time or as a hobby. That's not bad, it just real hard(impossible) to change your company from part time/hobby into a career. It seems like some people think it's bad to charge for your time and a good service. I only do hosting part time but I do put a minimum value on my time. Last edited by mpalamar; 05-20-2003 at 04:50 PM.

Posted by bluegoop, 05-20-2003, 05:06 PM
I will only be able to do this part time also, more of a hobby and extra source of income. I will of course devote plenty of time to it, but I won't be doing it as something for a source of living off.

Posted by ~Lee~, 05-20-2003, 05:09 PM
I agree with mpalamar, Its all down to marketing, sales and a good product. From the marketing side a good crisp site to to market your goods is essential. going back a bit to what malitaweb said, more customers makes more support and this takes up lots of your time. Is it really worth it? Bigger packages attract bigger money and fewer more manageable customers, but then again the people lookig for the biger packages are all getting wiser to reseller accounts and buying them up purely for thier own use rather than hosting. Of course one of the benefits of having lots of customers paying smaller amount is that when you loose some it does not hurt the income as much. You have to put a hell of lot of thought into this before you leap in, dont just get a reseller account today and expect to attract customers tomorrow.

Posted by bluegoop, 05-20-2003, 05:40 PM
Yeah I am going to plan it out throughly.



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