Story image

The naked truth about reselling

01 Jul 06

WebFarm’s general manager, Adrian Sole, explains the opportunities for your business in reseller hosting partnerships.

Is your business missing out on these easy sales?

Your customers see you as the expert on all web related and/or IT matters and trust your advice implicitly. Yet why, when they ask for a recommendation for online services such as domain name registration, web hosting or e-commerce, do many IT professionals refer them to another company? With an ongoing revenue stream of over 60 % in margins to be made (yes that’s right 60 %) it’s an opportunity worth investigating. Here are some typical perceived barriers to reselling and the basic truths of today’s industry.

Time: I don’t have time to set up a separate arm of the company.

Did you know that setting up a reseller account is as easy as adding a bullet point to your services page? At WebFarm you fill out a simple online application to establish your status and then you’re set up with an account that gives you control to manage your client’s domain, hosting, e-mail and eCommerce needs. As with the retail side of the business, accounts are set up quickly to allow you to provide timely services that your customers depend on.

Cost: I don’t have the money to invest in a hefty set-up fee.

There’s no need to worry about upfront capital to set up an account, for most accounts there’s no deposit, setup fee or revenue sharing. You can simply add hosting to your customer’s current invoice and collect your margin. WebFarm invoices on a monthly basis giving you the opportunity to have ample cash flow. With the convenience of outsourcing you’re freed from purchasing servers, dedicated data rooms, stand-by air conditioning and generators, multi-tiered firewalls, 24/7 security, disaster recovery and more.

Knowledge: I don’t know much about the hosting industry.

You probably know more than you think and the timing is perfect to become an expert in this area. As a reseller, customers will most likely want to know how to set up a POP email account in Outlook or their control panel, what domain extensions are available to them and how to update their site. WebFarm provides resellers with an introductory manual and support staff to walk you through the process.

With a gain of 3.96 million new web sites in May 2006 (Netcraft survey) alone, there’s a huge profitable reseller market just waiting for you. It’s also an excellent opportunity to provide your existing customers with a broader portfolio of services that can assist with the growth and productivity of their business.

Just to give you an idea of the profit potential let’s look at two sample situations:

Situation 1: Reseller sells on average 4 hosting plans, 2 domain names, and 1 email only account monthly for a 12 month period. At the year’s end reseller has 48 hosting plans, 24 domain names & 12 e-mail only accounts for a grand total yearly profit upwards of $2,500.

Situation 2: Reseller sells on average 10 hosting plans, 5 domain names and 2 e-mail accounts monthly for a 12 month period. At the year’s end reseller has 120 hosting plans, 60 domain names & 24 e-mail only accounts for a grand total yearly profit upward of $9,500.

*These prices are assuming a low resell amount of $14.95 per hosting plan, $39 per domain name, and $4.95 per e-mail account. Meaning that there’s ample room for even greater profit and these numbers will compound as your business grows

How Schneider Electric aims to simplify IT management
With IT Expert, Schneider Electric aims to ensure secure, vendor agnostic, wherever-you-go monitoring and visibility of all IoT-enabled physical infrastructure assets.
Pitfalls to avoid when configuring cloud firewalls
Flexibility and granularity of security controls is good but can still represent a risk for new cloud adopters that don’t recognise some of the configuration pitfalls.
Cisco dominates record-high Ethernet switch & router markets
While the market is flourishing, it’s tough-going as Cisco has increased its majority share of the pie.
Why total visibility is the key to zero trust
Over time, the basic zero trust model has evolved and matured into what Forrester calls the Zero Trust eXtended (ZTX) Ecosystem.
Gartner names Proofpoint Leader in enterprise information archiving
The report provides a detailed overview of the enterprise information archiving market and evaluates vendors based on completeness of vision and ability to execute.
QNAP introduces new 10GbE and Thunderbolt 3 NAS series
The new series is supposedly an all-in-one NAS solution for file storage, backup, sharing, synchronisation and centralised management. 
Tensions on the rise after Huawei CFO arrest
“Recently our corporate CFO, Meng Wanzhou, was provisionally detained by the Canadian authorities on behalf of the United States of America."
CyrusOne investing in new Amsterdam data centre
CyrusOne is continuing its rapid and relentless investment into Europe, with news emerging of a new facility in the Netherlands.