Reseller Hosting

Why are the reseller packages so small and so expensive? There is no bandwidth for such a package. If I buy 20gigs of space for 99.00 a month how could I compete with any other web host? If you split 20gigs between 20 people that is 1gig each @ 10.00 a month with no bandwidth. That is 200.00 and 99.00 goes for the server. That leaves 100.00 and I provide the support and try to sell packages and so-on. What happens if I go over the bandwidth provided?


Hostgator is making out like a bandit!!!!!!!! While the reseller gets a pile of sh*t!!


Is Hostgator a reseller for someone else?

[quietFinn]

Originally Posted by Unregistered

Why are the reseller packages so small and so expensive? There is no bandwidth for such a package. If I buy 20gigs of space for 99.00 a month how could I compete with any other web host? If you split 20gigs between 20 people that is 1gig each @ 10.00 a month with no bandwidth. That is 200.00 and 99.00 goes for the server. That leaves 100.00 and I provide the support and try to sell packages and so-on. What happens if I go over the bandwidth provided?


Hostgator is making out like a bandit!!!!!!!! While the reseller gets a pile of sh*t!!


Is Hostgator a reseller for someone else?

The prices are what they are, if you don't like them just go somewhere else.

And no, resellers can not oversell.

EDIT:
And yes, there are MANY hosting providers that give their resellers almost unlimited bandwidth and diskspace, and let their resellers oversell. But the fact is that it never lasts long.

[Serra]

Originally Posted by Unregistered

If you split 20gigs between 20 people that is 1gig each @ 10.00 a month with no bandwidth. That is 200.00 and 99.00 goes for the server. That leaves 100.00 and I provide the support and try to sell packages and so-on.

Check your math. 20 people with 1 gig each, all with 10 gig of bandwidth, so it is not nearly as bad as you make it out.

Can you compete with HG at that rate? No, they offer 3.5 gigs for about $7.00 a month. At that rate, you lose about $60.00 a month "selling" hosting.

So, basically, if you want to sell, very low cost hosting, like HGs plans, you will need to a lot larger amount of money than just $99.00 a month. Basically, it is economy of scale. If you can support 200 customers right now, then HG reseller plans are not for you! If you can only sell 1 or 2 right now, then spending a few thousand on space and bandwidth right now isn't a very good idea.

What happens if I go over the bandwidth provided?

You can buy more, if you need it.

Is Hostgator a reseller for someone else?

Yes. (in that they don't actually have their own datacenter)

Originally Posted by Serra

You can buy more, if you need it.

Yes. (in that they don't actually have their own datacenter)

HG is reselling servers from datacenter which they don't own, but they don't resell servers from another hosting company like Planet or Lunar, am I correct?

[Serra]

Originally Posted by Unregistered

HG is reselling servers from datacenter which they don't own, but they don't resell servers from another hosting company like Planet or Lunar, am I correct?

I'm under the impression that my dedicated server is located at ThePlanet, not here in Florida.

[mediahosting]

HostGator is a colocation reseller for the data center "The Planet" just like any of their clients (like everyone in this forum). HostGator is located in Florida?, and all their servers are in Houston Texas.

So they purchase dedicated servers only I imagine, and break them up to sell (AKA, dedicated, semi-dedicated, reseller, shared). Which they take a profit off doing this, in bulk.

What they offer is the "Support" to take all online requests/orders, and full 24 hour help line via phone, and the good marketing skills to sell the services online to make a lot of cash. The amount of overhead to rent all the servers from The Planet would be HUGE, but as you could imagine very profitable, as Host Gator is doing well.

Someone must have been backing HG, or is still to get where they are.

Good job HG, envious!

Kris
Media Hosting