Need many answers please..

Discussion in 'Site & Server Administration' started by nxtftrdirector, Aug 21, 2007.

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  1. #1
    Ok, I'm sorry if I sound dumb asking any of the following, but I really don't know too much about this stuff, which I guess is why I'm asking.

    Here it goes, I want to know how I can open/buy an online server that I can operate from anywhere to use for selling webspace and bandwidth, unless if they're the same thing. I have a friend that has been doing this for several years and I myself would like to get in the bussiness, money and time are not an issue, I just really want to know all the possibilities.

    Thanx
     
    nxtftrdirector, Aug 21, 2007 IP
  2. sarahk

    sarahk iTamer Staff

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    #2
    Have you sat down with your friend and discussed the billing, administration and technical requirements (time, $, staff) required to run a respectable hosting company?
    I'm guessing you haven't - given that you have someone to mentor you I'd take advantage of that - but don't underestimate the commitment required to do it properly.
     
    sarahk, Aug 21, 2007 IP
  3. nxtftrdirector

    nxtftrdirector Peon

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    #3
    Yeah..my friend refuses to share his "secrets" with me or anyone else I know, so I'm still left in the dark.
     
    nxtftrdirector, Aug 21, 2007 IP
  4. cyanide

    cyanide Peon

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    #4
    Your best bet would probably be to pickup a reseller account.
    That way you can learn the ins and outs of running the business, while allowing your host to look after the tech side, until you get a grasp of it
     
    cyanide, Aug 21, 2007 IP
  5. nxtftrdirector

    nxtftrdirector Peon

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    #5
    What's a reseller account?
     
    nxtftrdirector, Aug 21, 2007 IP
  6. sarahk

    sarahk iTamer Staff

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    #6
    If you visit a big webhost (eg hostgator, dreamhost, orange) they'll sell you a reseller account - which means you can sell accounts to anyone.

    Here are the gotchas from your perspective:
    • You're not handling support so you can't actually fix problems and have to fob off your customers with "I'll escalate the problem"
    • You don't have 100% control over the "terms of service" so you can't allow a proxy/adult/warez site even if it's your mother running it
    • Unless you go for a dedicated server you have no control over the number of sites running on the server and therefore can't give performance guarantees

    Here are the gotchas from your customer's perspective:
    • The reseller probably has a day job and isn't around to honour SLA's when your site goes down in the busy part of your day
    • The reseller won't be able to fix technical problems with MX codes, zone files on the spot and will have to escalate them
    And when buying your reseller account ensure that the company you buy from owns the server. It's not unknown for someone with a reseller account to sell a reseller account. Then when they (or one of their other customers) break the TOS with the main hosting company you all get booted off.

    Oh, and your friend isn't your friend, at best he's an acquaintance.
     
    sarahk, Aug 21, 2007 IP
  7. nxtftrdirector

    nxtftrdirector Peon

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    #7
    Yeah, I guess I should have worded it better.
    But after buying a reseller account from a server, what steps do I take in selling webspace and bandwidth?
     
    nxtftrdirector, Aug 21, 2007 IP
  8. sarahk

    sarahk iTamer Staff

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    #8
    You choose - who did you think you would be selling to?

    Offline
    You can door knock in your community to drum up business
    Get on the phone and do some cold calling
    Advertise in newspapers
    Put fliers in letterboxes

    Online
    Create a hosting front page and promote that and sell that way
    Buy adwords advertising space

    I suggest that before you spend a cent that you research how to write a business plan and get one written down. You'll have lots of questions to ask and find answers for before you finish but as someone so new to this game it's essential or you could find yourself seriously out of pocket for things like breach of contract.
     
    sarahk, Aug 21, 2007 IP
  9. nxtftrdirector

    nxtftrdirector Peon

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    #9
    ok, what's a bussiness contract and how do I make one? What's this talk of contracts? And again, for selling Bandwidth and web space, besides advertisement, how does it get sold from my reseller account? Do the customers just click to my site and click a button saying, "Buy Now!" and link to the servers IP, or is it more technical? And, (I know it's not really this easy) but would I create this "Buy Now", so to speak, button for customers?
     
    nxtftrdirector, Aug 21, 2007 IP
  10. sarahk

    sarahk iTamer Staff

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    #10
    Yes you would - but if you don't understand the concept of a contract between a supplier and a buyer then you have some basic business protocol to learn before you even worry about the type of business you are getting into.

    When someone signs up to buy something from you and pay you money there is an inherent or implied contract - ie they sign something or there's a gentlemen's agreement. If either party breach the contract then there are penalties. Therefore if you sell something you shouldn't spend the revenue until after the warranty or guarantee period is over - so if there is a problem you can put things right with ALL your customers.

    In the case of webhosting - if they are paying you monthly you should hold their fees "in trust" until the end of the month so that if you get kicked off, your server explodes etc then you can refund your clients.

    You also need to look at your service level agreements (SLA) and ensure that you are able to meet them. If you promise a 6 hour response time to any problems during working hours then you need to be sure that you can meet that.

    As for the basics of business. You need to understand the issues with dealing with people who may not be in the same country as you - if you are willing to do so in the first place. If the other party is a minor then you may need to get a guarantor for the contract or to have it legally ratified.

    I have no doubt your acquaintance makes it all seem very easy - but being in business involves more than chucking up a buy now button and waiting for the money to pour in.

    This thread is long but it's a good example of the hot water you can get into as a reseller: http://forums.digitalpoint.com/showthread.php?t=393439
     
    sarahk, Aug 22, 2007 IP
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  11. cyanide

    cyanide Peon

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    #11
    Excellent info, sarah - repped :)
     
    cyanide, Aug 22, 2007 IP
  12. nxtftrdirector

    nxtftrdirector Peon

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    #12
    Wow! When you say, "Hot Water", you made it seem like something bad was going on, but this guy's offering a great deal! Am I missing something?
     
    nxtftrdirector, Aug 23, 2007 IP
  13. sarahk

    sarahk iTamer Staff

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    #13
    Aaah, you need to read the thread again.
     
    sarahk, Aug 23, 2007 IP
  14. nxtftrdirector

    nxtftrdirector Peon

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    #14
    I have one final question, I noticed some people sell bandwidth in chunks while others sell it in mb/s, now that I know how to sell it in chunks, how would I sell it in mb/s?
     
    nxtftrdirector, Aug 23, 2007 IP
  15. randomIntellections

    randomIntellections Well-Known Member

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    #15
    If you want you want to start a serious business and money not a issue then try doing this:

    Buy a dedicated server with cpanel/whm
    Hire a webdesigner and get a site designed , setup hosting packages , buy clientexec/modernbill and integrate it with site and server for automated account setup .

    Then outsoource support to a good third party provider . Then Advertise your services through different channels.
     
    randomIntellections, Aug 24, 2007 IP
  16. nxtftrdirector

    nxtftrdirector Peon

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    #16
    Sweet, thanks for the help Random Guy, but I still need my previous question answered.
     
    nxtftrdirector, Aug 26, 2007 IP
  17. randomIntellections

    randomIntellections Well-Known Member

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    #17
    what do you mean chunks ?
     
    randomIntellections, Aug 26, 2007 IP
  18. nxtftrdirector

    nxtftrdirector Peon

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    #18
    Like just selling say, a package with like 1000 GB of Bandwidth, but I see other people online selling bandwidth by the MB/s.
     
    nxtftrdirector, Aug 26, 2007 IP
  19. randomIntellections

    randomIntellections Well-Known Member

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    #19
    if they are selling MB/s they are selling dedicated bandwidth , and the speed is limited to that much MB per second , mostly people who own a rack buy this kind of bw and share it between servers , if you are really interested in this , contact me , could make you my partner if you are ready to invest $$
     
    randomIntellections, Aug 26, 2007 IP
  20. sarahk

    sarahk iTamer Staff

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    #20
    You would want a partner who didn't know the basics of business?
     
    sarahk, Aug 26, 2007 IP
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