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Home »Industry and market 'The rebirth of resellers hosting

The revival of resellers hosting

fenix Coincidentally, I have read in several places on the future of resellers with the advent of the term "unlimited" in the hosting market. Also, Silas raised the issue by e-mail. Here's a translation / adaptation of the text on the subject that I found in the Reseller Guide.

Resale is a fictional concept. It is a marketing term, not a technical specification

Unlike other hosting terms like "accommodation", "vps", "dedicated", "managed hosting" or "economic plans" and "e-commerce," the term resale need the technical specifications so that we can distinguish your type . But at the same time, retailers are a million dollar industry.

Why? The reason is simple. A relatively small change in an automation system that allows individuals who can not afford the investment in a framework of self-hosting or do not have skills in management servers can be set as a hosting company. Hosting, VPS, dedicated, any type of hosting service can be resold. Everything the beginner needs is ambition and ability to advertise on the network.

As a reseller born two hosting companies?

I have a managed hosting company for 7 years. I entered the market as a small web design company, founded by two guys in Bulgaria. There was no working capital or other significant investment behind our beginning. We needed to find a hosting service to our address (fouthcolor.com) and initially signed with a company called Addr. However, it was not acceptable to wait 48 hours for the response to a support ticket. It sounds ridiculous now, but my first host responded to our tickets within 24-48 hours.

There were so many hosts there were not many options. One day we received an email from someone claiming to be able to provide a decent service and promised to respond promptly to our tickets. Before long we make a decision. The guy who sent us the e-mail began his business as Alabanza Reseller. Today, he owns a company in good standing, ICDSoft. His company also responds well to our tickets, fulfilling a promise many years ago. However, we decided to leave because of the growing portfolio of clients. We needed a dedicated and RackShack - ThePlanet today - was the one that attracts our attention for aggressive pricing model. The dedicated host gave birth to the color (the author's original company), a popular name in hosting.

This is my story. You can see how an e-mail sent to someone 8 years ago made it possible for a hosting company was created. The e-mail was sent by someone with a reseller account. When he began looking for customers, he did not operate their own equipment and did not know much about server administration. But that did not stop to create your host.

The above story is not unique in the industry. If we decide to interview 100 owners of hosting companies, we find that many started as resellers. even if not unique, the story is a good example of how someone with entrepreneurial skills and some sales and marketing can generate a certain online company, a hosting company in particular.

The unlimited plans are ending with the dealers?

The resale market is tied to shared hosting. Much of the operating dealerships sell hosting at low cost. Your business is about to go to a niche (industry / audience), as part of the evolution of the hosting industry.

Since 2006, the hosting market has grown substantially and thousands of new companies emerged. Prices fell dedicated. Today you can get a server can less than $ 70 a month and have your own host.

Virtualization and accelerated development of various technologies VPS allowed the dealers would be "outdated". However, that has claimed the reseller is the "unlimited" offered by hosting companies. When hosts have begun to offer unlimited space and unlimited traffic for $ 7 per month or less, it becomes less necessary to buy a reseller package.

It is impossible to compete with the shared hosting unlimited when you (as a reseller) has only limited resources in his pocket. If someone buys a reseller package that has 50 GB of server space and 250gb of transfer, you can create 10 accounts 5 GB/25GB. So the resale may try to sell these 10 accounts, but will be more difficult to compete because they can not offer unlimited.

The revival of resales

A small change, but signicant in the concept of production and delivery of computer resources saved the niche of hosting resale. Is cloud computing. The new model is a network infrastructure highly available to leading retailers to another level. Dealers are reborn!

The cloud is a great for anyone working with retailers to abandon the traditional way of selling hosting and become part of the industry of the cloud. And those who decide to move forward may be on the resale market and grow as a company. Those who decide to stay in the same direction selling hosting the way "old" may realize that your business is gone.

And you? Tá prepared to put their feet in the clouds?

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sobre O renascimento das revendas de hospedagem Comments 14 on The rebirth of resellers hosting

Nowadays, the suit "cloud" has grown too, but only for large. I do not think that small can still taste financially (say, sell) these types of products and services. The term maintenance is a little different in the U.S. than it is today in Brazil. There, in short, resellers are people who get discounts with companies hostings in all its services and resell at a price slightly less than what they sell. The advantage for the company, even win a value manor, has the burden of having to make the sale.

In Brazil, as we all know, dealer is someone who thinks about setting up a hosting company (or think you can earn easy money) and has to start somewhere. Today, the Brazilian entrepreneur who manages resellers has a head much more evolutionary than Americans (detail: I'm talking about the same entrepreneurs, those who want to play the market).

As Silas also told the e-mail, small should not enter the wave of the cloud (except to host their services) with the intent to sell clouds, but rather to provide a preferential service to its customers. The hosting of national market is full of great companies that offer unlimited disk space, unlimited traffic, etc.. But who are unable to provide a quality service.

The Brazilian takes into account the value in the first instance, but it is important to your company (or Eupresa - Angélica ;) ) Stay in the "appeal" which is one customer who leaves the first host large unsatisfied with the service, already have your site up and a basic knowledge of what is web hosting. It is this that you should invest, mainly because he (a) be prepared (a) to pay a little more for the service.

Great post Angelica
I believe that 90% of people here who have a host already been or resale, and these people are being seriously hampered by these unlimited plans. Plus many customers are not fans of "unlimited" term de clients that came to my company were criticizing some company that offers that.

When I started as a reseller thank God there were no plans yet unlimited : D . Today I own my own servers, it does not adhere to this policy "unlimited" after HD unlimited does not exist. Today VPS and Clouds being the best options for those in retail stores because they are solutions baicha cost compared to 100% dedicated servers. One of the other big reason is the "prostitution" of reselling hosting, today is hosting a $ 1.99, that's a big devaluation of services, and has been a villain against retailers who can not offer such large spaces by that value.

Angelica Great post, congratulations.

This story of "unlimited" irritates me because deep down we know that is not unlimited.
I keep thinking I'm leaving here soon resale pra ai a VPS will be like? I can not offer unlimited.

Surely there is unlimited, behind them there a long contract.
I particularly do not offer unlimited plans. I prefer to offer a hosting with 1 GB than an unlimited plan, after all, who now has a site with over 1 GB?

Carlos
I loved this article. But I know that it refers to a reality that is not quite equal to ours.
The Brazilian has a very interesting entrepreneurial profile when they saw dealers (as you said, the serious).

They speak so badly of dealers, and the author above highlighted the key role that the sale is in learning who gets the "floor" of the hosting industry.

And with that, adds services outsourcing first-level ", ie, basic solutions for small additional :-)

It should be like that, start low and grow, grow, grow!
Few start with dedicated and VPS!

Thanks!

I think the unlimited plans will suffer a mutation. In another post, I speak of my suggestions / alternatives to the limit.

This is where the difference becomes the support, support ... have to turn now to make a difference in the market.

Angelica found fantastic yesterday when you sent me this link. More amazing still the comments above!

To all sides I talk to are saying that Cloud is the future, both to reduce costs while for high availability. As Carlos has cited the now Cloud is more affordable for large companies, but I'm sure 2010 will be a watershed in that category for small and medium enterprises.

With respect to resale, I have nothing against, I've had one, I grew up and ended up selling the customer base, but there are still many who have now hosting open (cnpj), registered employees and dealers use, but I know they could ever have dedicated servers or VPS at least, but the question is "Every jack to his trade," the owner of this company is a great entrepreneur with no technical expertise or dedicated server control panels so he keeps a structure of sp ...

NOTE: Zamora could not answer your e-mail yet for sheer lack of time! Forbid

Tranquil Silas, do not worry :-)

Many start without ever having even a resale, are "affiliates" of hosting companies end up seeing that makes money and then sign the first resale.

Is progressive process!

I found the text too bad, I know it has been translated more like that bla bla bla American who speaks very little and can, everyone knows that cloud computing is slow and that virtualization is for 1 site heavy and not hundreds of small sites, the retailers always will sell well and what remains is the light of actual knowledge explained by technicians who know how to install the machines and the software required to create pra Internet work and not a lot of lay people trying to earn "easy money" Sizzling a service that they themselves know and not even 1 % of the business itself, moreover want to turn in hosting "beak to earn more money" or if typing merge, ai is the end ...

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This post was written by Angelica Coast on November 23, 2009. Angelica has written 240 posts on Portal Host. Learn more about Angelica Costa »

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