Staying in Business as a Reseller

HostingGuru · #1 (**permalink**) 11-04-10, 06:19 AM

It's hard. We all know it's hard. There is virtually no way we can keep up with the big boys, because they have the millions of dollars to throw at hardware and rack space, etcc. so they take some outrageous plan (200GB storage and 1.6 TB bandwidth, for example) and price it at 5.99 a month. Why? because they can afford to.

Can we as resellers? Obviously not. If so, we wouldn't be buying reseller packages. We'd be buying our own hardware and CoLo space. But yet we always fall into the same hole. We sink all our resources into a low level package, drop package to 1.99 a month and then when everyone buys that package, and we run out of space, we have a heart attack because we are out of space and still owe another 10.00 a month for the reseller account.

Why is this? Because we need to remain competitive. I've seen it a thousand times over. In fact, I steer clear of hosts that have those "LOW LOW PRICES" packages because I honestly feel sorry for them.

So what can we do? What can we possibly do to stay competitive, and still maintain a higher profit margin?

The only way that seems to be effective is Value Added Hosting. What is Value Added Hosting? It's taking your services, charging a decent price for them (for example, 20GB space, 20GB Bandwidth for, lets say... 9.99 a month,) and then, doing something special for the customer, be it designing a site for them, backing up their services for them once a day, giving out your cell number for emergency support, anything.

So the question of the day class, is "What can you do for your clients to keep them coming, yet still be willing to pay a little extra for your services?"

**Sanersone** · #2 (**permalink**) 13-04-10, 09:40 AM

Answering to your question, I would make sure that they get the best level of services. If they stuck anywhere and need any kind of assistance, they should be answered as quickly as possible. If the server is down and it might take a long time, inform them accordingly, so that they trust you and never think of leaving your services.

IanSmithISA · #3 (**permalink**) 13-04-10, 11:52 AM

Good morning,

Another thing that I would add is slow down and understand what the customer wants, not what you think he wants or what you want to do and then do it right first time.

Right doesn't just mean the bit that you think you agreed to do, it means ensuring that all parties know what they need to do. As a host you will be doing all day what most people do perhaps once every few years, your customer probably won't know what is his bit, your bit and possibly another hosts bit.

This is all very hard if you have no contact with him, just a web form and a link to paypal. It may cost you a month's hosting fees in time, talking to the customer, but if he stays then that is money well spent.

Once you get it wrong from the customer's perspective you've lost him, you may be in the right legally and contractually but this isn't the issue. Quite often the customer will be wrong, but it is not normally the customer's intention to buy the wrong thing, he will have misunderstood what he thought he was buying.

Take care of your existing customers, this is not as obvious as it sounds.

For example I have had a small VPS here for about 8 months and I had a difficult start, yet nobody has followed up on this to see how things are now, it could of course mean that they want me to go.

Don't have a forum unless you can manage it, generally they devalue your service as they get filled up with junk postings and unhappy customers, if you remove all of these they can end up empty.

Bye

Ian Smith

**WH-Garry9** · #4 (**permalink**) 13-04-10, 09:54 PM

If you would like to stay in the hosting business for a long time, the first point to remember is never claim what you cannot provide.

There are many hosting companies which claim to offer unlimited disk space and bandwidth with the hosting plans which is actually not possible. Due to this reason, they are unable to get potential customers and the customers they get do not stay for a long time with them as they realize that they do not get unlimited disk space and bandwidth and it is merely a statement made to attract customers.

Pongers · #5 (**permalink**) 14-04-10, 11:18 AM

@Ian Smith :- Take care of your existing customers, this is not as obvious as it sounds.

Yes, I do agree with you Ian....Customer retention is most difficult part in any business no matter whether it's Online business or traditional one.
Customer are volatile if you don't care them

**WH-Garry9** · #6 (**permalink**) 15-04-10, 10:41 PM

Indeed. If you wish to have more customers for your business, you need to make sure that your existing customers are satisfied with the products and services you offer as if they aren't, it'll be very difficult for you to stay in the business

One of the other reasons for which you should make sure that your existing customers are satisfied with the products and services you offer is the fact that existing customers play a very important role in building client base of your company by referring and convincing customers about the products and services offered by your company