Reseller Plan Help
Hi everybody. I am trying to think of a new reseller plan for InterSurge, a hosting service that will launch officially on August 1 (hopefully). Here's what we thought of so far, please share any feedback on whether this sounds good:
1. Clients will be able to resell plans at a 25% discount
2. Each plan will have a point value, for example 1 point is worth $1. For example:
$10 plan - 1 point
$15 - 2 points
$25 - 3 points
$45 - 4 points
$60 - 5 points
3. These points would then be added up, and the reseller could request either credit to their account or a check from us after the point value reached $20 or so.
4. The plans that allow reseller accounts are the $25, $45, and $60 plans. On all plans, the client would have the ability to customize their clients' control panel. On the $45 and $60 plans, they would have custom name servers as well.
Does this sound like a good reseller plan? We are open to suggestions regarding point values, how many points per plan, etc.
Thanks,
Brian Farkas
Anonymous posted this at 03:52 — 26th July 2000.
They have: 5,633 posts
Joined: Jan 1970
Sounds like an interesting twist between a reseller program and an affiliate/referral plan.
Brian Farkas posted this at 04:16 — 26th July 2000.
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Thanks, we thought of that idea based on the fact that we couldn't do a sliding discount scale... And we thought the points credit might make up for that. We figured it would make them want to sell more accounts, as well as more _higher-end_ accounts
Anybody else have any suggestions/feedback?
Thanks,
Brian
NSS posted this at 12:55 — 26th July 2000.
They have: 488 posts
Joined: Feb 2000
It's a good plan for resellers. I would suggest that if you can also offer say 5-10mb webspace with basic features at $4 per month would be a bonus for resellers.
Some resellers like me also provide all-in-one package(Free domain registration, 5 pages webpage and webspace)deals to customers, so having such a plan for resellers will definitely attract a lot of web designers looking for such a plan without having to rent a server and the hassle of maintaining one.
I will want to sign up with such a host as it's really convenient and I can concentrate more of my time on web designing and looking for prospective customers.
[Edited by NSS on 07-26-2000 at 08:57 AM]
Brian Farkas posted this at 18:21 — 26th July 2000.
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Well... we do have a package that is $7.50/month, but we were thinking about not allowing that package to be resold, simply because the resellers would be able to get it at $5.62/mo... which is barely any profit for us.
However, if there is a web designer, they could create subdirectories, and park domains on their account for something like $25 setup, then use a script to redirect the domain to that subdirectory... That's if they really needed a domain, though. I know when I'm designing a web site, I would just put the client's draft in a subdirectory and ask them to order hosting if they want a domain.
Thanks,
Brian Farkas
Jes posted this at 19:42 — 26th July 2000.
They have: 120 posts
Joined: Apr 1999
I agree with Adam and think it looks like a well made hybrid between reseller and affiliate program.
Will the points be awarded immediately after sale or after a longer period of time? Some resellers might want to give their clients a "30-day refund if not happy" guarantee or something like that.
Jes
Brian Farkas posted this at 20:23 — 26th July 2000.
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Joined: Apr 1999
Hi, we're thinking that after the first month of service the points will be rewarded. However, I'm not sure we'll be able to offer a 30 day guarantee to resellers- I don't think you'll find many hosts that will do that, as it is not necessarily the hosting company's fault if a client leaves from the reseller.
Anonymous posted this at 20:29 — 26th July 2000.
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Joined: Jan 1970
Perfectly true. Plus the host cannot be responsible for errors on the resellers end. For example skipping town and not providing technical support to the client. Ultimately the reseller is responsible for attracting, pleasing, and supporting the client. The host just provides the space and support to the reseller.
NSS posted this at 07:38 — 4th August 2000.
They have: 488 posts
Joined: Feb 2000
Hi Brian,
You might want to study http://www.dzones.com reseller plan.
As a reseller, we are provided a virtual nameserver(DNS) and for their zone3 plan which cost $9.95 per month, we only pay $3.50 per month as a reseller.
If you are able to match their price and features or offer better incentives or benefits for resellers, you probably may get more sign ups for your reseller plan.
Just my views and suggestions.
Brian Farkas posted this at 08:45 — 4th August 2000.
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Joined: Apr 1999
Hello NSS.
Thank you very much for your suggestion, your input is valued. However, after looking at their program, it is not clear to me how they make much of a profit. If we were to offer something like that, it simply would not be very profitable for us at all. At a price like $3.50 a month the account would probably cost more to the host than you're getting it for, or would be at the point where no profit was gained. That's why it's confusing to me how they offer that- if a client used even half a gig of transfer on that plan it would still probably cost them more than the price you're getting it for.
In any event, we can't offer that low of a price because we wouldn't be making a profit. We're not aiming to be an extremely inexpensive host, but rather a reasonably-priced host that offers quality service and support.
chicken posted this at 13:23 — 4th August 2000.
They have: 98 posts
Joined: Jan 2000
You really won't be able to compete against the lowest price anyhow (nor would you want to, as you said, no profit), so don't bother! What you said is what counts, at least as far as what I and most of the people I know.
They are looking for reasonable prices coupled with good support, that can do what needs to be done, quickly and professionally. This doesn't come cheap, and we all realize this.
Live Hosting Chat! at http://www.HostHideout.com
CWebNetCo posted this at 21:29 — 4th August 2000.
They have: 93 posts
Joined: Apr 1999
Hey Brian Farkas,
On your web hosting main site, theres a error that says 4000MB web hosting, you must metioned its 400MB! I would say many people will get crazy if its for $60
Though you would fix it !
Joseph
-----------------------
Sarasota Web Services
www.sarasotaweb.net
[email protected]
ICQ: 15047260
<=== That's Me!
Brian Farkas posted this at 21:35 — 4th August 2000.
They have: 1,015 posts
Joined: Apr 1999
Hi Joseph,
Thanks very much for pointing out that error!
- Brian
CWebNetCo posted this at 21:37 — 4th August 2000.
They have: 93 posts
Joined: Apr 1999
No problem, in credit you should give me free hosting hee hee
Actually I always like to help people too...
Have a nice one !
Joe
Medrecki posted this at 07:53 — 5th August 2000.
They have: 53 posts
Joined: Jul 2000
simple advice.
If I were a reseller, I would want to know the bottomline costs.
I would think about this:
How many and at how much do I have to pay for acc's at one time?
How will i sell them? merchant acc?
How much can i sell them on for?
Will my clients know you exist?
Advertising costs? e.g. in back of magazine.
* Try and build up some sort of alliance with a merchant acc provider so you can offer resellers a cheaper deal. What else may they need? try approaching companies that may be of use to your resellers and see if you can get some sort of deal where by you suggest their services to your resellers for a big discount price. Benefits every1 that way. Use maximum discretion in choosing companies that may be of use, u don't want your resellers getting a bad deal. Remember the resellers are a big part of your company, treat them as well as posible - never try to rip them off or your just ripping yourself off.
Don't steal, the government hates competition.
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