Reseller v. Affiliate

sime · #1 11-08-2007, 10:03 AM

Hey folks,
I have been poking around this forum for about 4 days now checking out the ins and outs of hostgator. After an extensive search and many hours of comparing and researching multiple aspects of reseller hosting, I have pretty much decided to jump in with HostGator.

I am running a web design company and initially just wanted to get enough space so that I could handle all aspects of hosting for my clients. Reseller hosting was definitely that path I was heading down.

However, after reading a bit more today, I am a little hesitant to take on the extra task of being responsible for hosting, although I thought doing it seems to be an easy and honest way to increase how much I charge for certain web packages, and if it would not add too much in the form of headaches, I would like to do it.

The main thing that got me reconsidering this approach was a few mentions of the affiliate program. I have spent no time researching this aspect, and would like to avoid having to, especially if I am not going to be trying it.

Could anyone help me out here....maybe highlight the pros and cons of Reselling vs Affiliate...from the perspective of time spent setting up and maintaining, and revenue potential.

Initially I will simply be using one or the other to solve my client's hosting needs. However, for the long term, I am looking in to investing a bit more time into one approach (resell/affiliate) as a way to increase my income.

Any thoughts are greatly appreciated!!
Thanks!
sime

gwyneth · #2 11-09-2007, 01:31 PM

Quote:

Originally Posted by sime

Initially I will simply be using one or the other to solve my client's hosting needs. However, for the long term, I am looking in to investing a bit more time into one approach (resell/affiliate) as a way to increase my income.

Long term, you are probably better off concentrating on the reseller stuff. If you're doing anything with your clients' sites, you've got to support them, anyway (which means getting a reseller account in the first place).

Also it depends a lot on what kind of ongoing relationship you have or want with your clients.

But I believe people here have succeeded with both approaches--and they don't preclude each other.

sime · #3 11-09-2007, 09:49 PM

Thanks, Gwyneth.
I appreciate your input.
-sime

Goddess Dix · #4 11-09-2007, 10:10 PM

Quote:

Originally Posted by sime

I am running a web design company and initially just wanted to get enough space so that I could handle all aspects of hosting for my clients. Reseller hosting was definitely that path I was heading down.

However, after reading a bit more today, I am a little hesitant to take on the extra task of being responsible for hosting, although I thought doing it seems to be an easy and honest way to increase how much I charge for certain web packages, and if it would not add too much in the form of headaches, I would like to do it.

I'm with Gwyn on this one. If you design the sites, you're going to get the support requests anyway. Heck, you probably already do, right? But it's another way to get a residual income from your design clients, you will know the hosting setup they have (thus simplifying things for your work on their sites), and you be able to please the folks who want "one stop shopping." As a reseller, you don't have to know that much from the hosting end, and you can learn as you go. As time goes on, you might decide to expand your hosting biz and grow up to a dedicated...

I wouldn't personally suggest affiliate approach unless it's for someone who just doesn't want to get their hands dirty with support ever or aren't comfortable with that end. But if you do the websites, it will help you with the site design, even if you don't expand your hosting later, by better understanding the hosting end anyway. You're expanding your skillset and that's never a bad thing.

sime · #5 11-12-2007, 10:20 PM

RIGHT ON!!!!!!!!!!

you people are good.

sime · #6 11-14-2007, 01:52 PM

Quote:

Originally Posted by Serra

My two cents worth....
Your reseller prices should reflect that goal, in other words, don't settle for $7.00 a month, go for something like $15.00. As soon as you move to a dedicated box, it will be worth $15.00.

Hey Serra, thanks a lot for the knowledge drop. My one question is...when you say , "don't settle for $7.00/mo, go for $15/mo...are you referring to how much I should charge my web site clients for their hosting needs? (i know you are not saying CHARGE $15 EXACTLY) but as a general approach....is that what you are speaking of? thanks man. sime!