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One World Hosting?
| Posted by bmhill, 07-15-2001, 12:06 AM |
| Hello All,
Could I get your opinions/experience with reselling One World Hosting (oneworldhosting.com)?
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| Posted by BeDifferentSolutions, 07-15-2001, 02:06 AM |
| For what it is worth - they are an Alabanza Reseller.
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| Posted by checkall, 07-15-2001, 02:09 AM |
| What's the commission rate that host pays?
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| Posted by bmhill, 07-15-2001, 01:48 PM |
| Regarding commission rate, they simply give the reseller a discount; Here are their plan costs with reseller's price in parentheses:
$14.95($10) 75 megs
$24.95($20) 150 megs
$39.95($30) 300 megs
$64.95($50) 500 megs
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| Posted by checkall, 07-15-2001, 02:54 PM |
| It doesn't look attractive to me.
Here below are the gross profit margins for each plan you mentioned:
$14.95($10) 75 megs - 33%
$24.95($20) 150 megs - 19.8%
$39.95($30) 300 megs - 24.9%
$64.95($50) 500 megs - 29.9%
Acturely you won't get that profit 'cause you have to pay your merchant service fees, which range from 3~10% of total amount processed depending on what kind of service you use. So what you may acturely make must be much lower than those numbers above.
Plus: you have to do a lots of work like supporting, billing, and communicating with your customers... You also have to handle those issues like credit card fraud and charge basck...
And sometimes I do feel that it may not easy to sell a hosting plan if it looks expensive itself.
The following message is quoted from this forum:
"I don't quite understand this whole reseller process. They claim that you can make "as much as 100 or 200% profit per plan", now I'm thinking that they could as well sell these themselves and keep all that "profit." So is it really difficult to sell plans, and they just would like to get some sucker to pay $45 to join their reseller plan, or what?"
From http://www.webhostingtalk.com/showth...285#post116285
Now I understand of what he talked about.
Finally, I have to say that it doesn't look attractive to me only, but may look attractive to somebody else because different people may have different tastes.
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| Posted by JayC, 07-15-2001, 03:21 PM |
| Your gross profit margin, actually, could be whatever you want it to be. You're making the mistaken assumption that a reseller would have to sell each plan for the same amount that the upstream host does; but that's normally not the case.
It's why a reseller in many businesses is sometimes called a "Value Added Reseller." Price your plans according to the value the have when purchased from you, not their value when purchased from somebody else.
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| Posted by checkall, 07-15-2001, 03:48 PM |
| Hi JayC,
Thanks for your message.
Of cause I know that you can price your plan much higher as you like to get higher profit margin. I just calculated those numbers he provided with to explain why it doesn't look attractive to me.
But on the other hand, if you price it very high, your plan will be hardly sold and also you cannot keep your customers with you very long.
Don't forget this is a very competitive business, and your competitors out there are selling the same or even better feature plan at a cheaper price. So you cannot price your plan too expensive if you want to succeed in hosting business.
You don't need to agree with me, and just do whatever you do in pricing you plan.
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