Reseller Plan Help

Brian Farkas's picture

They have: 1,015 posts

Joined: Apr 1999

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

They have: 5,633 posts

Joined: Jan 1970

Sounds like an interesting twist between a reseller program and an affiliate/referral plan.

Brian Farkas's picture

They have: 1,015 posts

Joined: Apr 1999

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 Smiling
Anybody else have any suggestions/feedback?

Thanks,

Brian

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's picture

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Quote: 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.

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

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's picture

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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.

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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.

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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's picture

They have: 1,015 posts

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.

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Joined: Jan 2000

Quote: Originally posted by Brian Farkas
We're not aiming to be an extremely inexpensive host, but rather a reasonably-priced host that offers quality service and support.

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

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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 Smiling

Though you would fix it !

Joseph

-----------------------
Sarasota Web Services
www.sarasotaweb.net
[email protected]
ICQ: 15047260
Laughing out loud <=== That's Me!

Brian Farkas's picture

They have: 1,015 posts

Joined: Apr 1999

Hi Joseph,
Thanks very much for pointing out that error!

- Brian

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

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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