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  1. #1
    I'm baaaaaaaaaaaaack! Fluffykins's Avatar
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    Eh oop (that's Yorkshire for "hello") fellow SitePointers.

    I've been wondering something. What's the deal with hosting services these days? It seems that everyone and his mother are setting up a webhost by leasing servers and selling space on them, or by reselling the services of another host.

    Is this some new super profitable industry that I've not caught onto yet?

    If you are selling hosting, how are you finding it bearing in mind the market is pretty saturated? If you're doing well, what can you attribute to your success? and also, why are you doing it in the first place?

    Enquiring rabbits need to know

    Ady
    v-technologies - Freelance Goodness.

  2. #2
    SitePoint Member
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    Hi Ady,
    I provide hosting services because my clients want it. It's also nice to be able to provide an entire package to someone when they aren't really quite sure of all that's involved in getting set up on the web. I'm a reseller because it's not wortth the hassle of maintaining my own machines and I've found a reliable source that I've been with for two years now.
    Dave Perry
    www.dpgrafix.com
    design@dpgrafix.com
    off: 540-345-0455
    cell: 540-293-7626

  3. #3
    I'm baaaaaaaaaaaaack! Fluffykins's Avatar
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    Originally posted by dp351
    Hi Ady,
    I provide hosting services because my clients want it. It's also nice to be able to provide an entire package to someone when they aren't really quite sure of all that's involved in getting set up on the web. I'm a reseller because it's not wortth the hassle of maintaining my own machines and I've found a reliable source that I've been with for two years now.
    I'm in about the same boat. I offer hosting via a reseller account to clients I design for. What I was thinking of was people who set up dedicated, large-scale web hosts and marketing them. Being able to offer a 'complete package' is fantastic though, and making a tidy profit on hosting services is also nice

    Ady
    v-technologies - Freelance Goodness.

  4. #4
    SitePoint Zealot JamesCross's Avatar
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    Hi Ady,

    There is money to be made in reselling, but competition is fierce. If you'd asked me same question in 1999 I'd have said go for it. The average company going on line hadn't got a clue as to how much they should be paying for hosting. You could sign up with a mid range host, rent some server space and sell it on for a huge profit.

    I know several guys, that from 1999-2000 built up client bases to around the 250 mark and then sold them off to the likes of verio. They did this several times over!

    Times have changed though, in the last 6 months the market has begun to mature and the average client has now been on line for a year or more. They now know where to go to compare several companies prices in one place, and in doing so are able to negotiate the lowest prices.

    Its not all doom and gloom though. You can still make a success from reselling if you focus on a niche market. The large hosts don't offer such a high level of focus, personal service is worth paying for and if you offer expertise in a certain field they will pay over the odds for your products.

    Good luck,


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