Mainly I got this reseller account for the ease of managing my 20 domains plus any others I registered in the future or any I let go.

However, the possibility is there for me to be a reseller but I would like to know some pros and cons first I guess before I decide.

I know there are quite a few hosts here and it is you I would most like to hear from but anyone can pipe in if they have a comment.

and somehow I just know conkermaniac is going to post a reply in this thread too *grin*

Depends on who you are hosting I suppose... while it might be nice to have some additional income, if it was me I would be sure to offer accounts only for those that don't need support and those I can trust not to abuse the service. So, most likely I would limit sharing my account with people I know wouldn't ask me for support - it wouldn't be worth the hassle otherwise.

It only takes one bad apple...

Depends on what your goals are. We started out designing sites for friends and decided that if we're going to do this we might as well make a couple of bucks at it. Now we have our own servers and have almost 300 sites on them. The money can be good but the time it takes to handle support issues can be consuming. Most of our support issues are simple things like "how do I add an email account?" or "How do I add a link?". But overall I'm having a blast!

Good Luck!

Have you considered getting a dedicated server rather than being a reseller? We started out as a reseller and had so many problems with our host that we went to dedicated servers exclusively. You can get great prices on servers from many companies. I use Cobalt Raq3 and 4 servers with great results, few problems. At one time we had 12 servers in operation, but due to a spamming problem caused by our major client, we had to back off and currently are running just three. You can put as many as 250 domains on a single Raq, and make money. My dedicated server web site is currently down for a complete overhaul, or I could send you there and you could see what we charge for a dedicated server. If you want to drop me an email at bob@sunwestnet.com, I can give you some details and prices. My advice - don't be a reseller for anyone, you can do much better on your own!

Hi Drachewyn-

I would definitely not get a dedicated server at this point. There is much that goes into system administration that has nothing to do with reselling.

In my opinion, here is the most important issue to think about: support. If you do not give good, quick support, you will get a bad name in the industry. There is no going on a vacation for a week and picking up support when you get back. Lot's of people want support on weekends and holidays. Yes, we were asked for support on Christmas morning, Thanksgiving, Easter, Halloween, 4th of July, etc.

If you are prepared for the committment, I say go for it. If not, don't. It is really a lot to think about. Most people think it is easy money, until they find out differently. That is why so many hosting companies come and go. I have relatives that love to say to me, "It must be nice to sit around playing on a computer, emailing people, and chatting....and get paid for it." They have no idea.

At first you will have almost no support requests. It grows exponentially.

I am not trying to scare you from it, but would not have you enter it not knowing.

-Lamar

This is exactly why we use Raq 3 and Raq4 servers exclusively. They are practically trouble free, and the few minor problems that occasionally crop up are easily resolved. Our tech support is fast and responsive, not like you get with some reseller host. We resold for a company called CIHost, which in my opinion is the worst collection of thieves and liars on the face of the earth. It was because of this, that we went to dedicated servers, and have not regretted it for a minute.

As in any business, you will always get requests for assistance when it is the most inconvenient, but that's part of the price you pay for being in business.

Obviously, this is a decision that can only be made by the person seeking the best method of doing business. I had absolutely no experience with server administration when I got my first dedicated server, but it went so smoothly that I was amazed at how simple it really was.

I simply want to point out that there is a better way to go than reselling. Why let your host make all the money, while you bring in the business? And let's face it, as long as you are paying someone else to host your clients, which you are as a reseller, they are the ones making the money.

In any case, the best of luck as you suffer through the agony of making this huge decision. If we can ever be of assistance, just drop me an email.

having a dedicated server is more than just setting up the space for someone else.
the main problem is, i agree, the support issues. if someone comes to you with a serious problem related to their MySQL database dumping data for no apparent reason, could you deal with it quickly, competantly, efficiently?
of course, if its a longer-term issue, you can post here and we'll help you out, but the best hosts are the ones who know what they're talking about, the ones who say to you "i'll look into that and it will be up within an hour" etc etc.
if you don't want this hassle, and the administration, and the 10+mb line that you need to host your server, then go for reselling. its cheaper in the short term, can yield good results, and makes you some cash. but still, you need to be able to support. build up a relationship with the company that you're reselling for, so that you know you can get quick and good advice from them if you get a support issue that you need to deal with. become familiar with their set-up so you can access it quickly and efficiently and make everything right for your clients asap.
the best hosts that i've used are www.lmhost.co.uk (where i am now) and www.hostone.co.uk (ranked 27th fastest growing host on the net, recent magazine). I have the email and AIM addresses of the owners, and I can 90% of the time get them if I need them on AIM, otherwise i use their tech support.
again, 90% of my issues are solved within minutes. these are the sort of hosts that i know i can depend on. if you can be as good as them as a reseller, then why not take the extra step and become a dedicated server holder?
its up to you. theres a big step between reseller and dedicated, lots of learning and admin. reselling can be fun, can be relatively simple if you do it well, and can make a pretty penny

I don't mean to continue to beat a dead horse, but let me make something clear about dedicated servers.

First of all, the last thing anyone attempting to enter the hosting business should do is buy a server and try to set it up at home. The very least connection you need would be a T-1 line (24 single phone lines) or DS1 as it is now called. Usually runs anywhere from $300-500 a month. Most major web hosts use a minimum of at least one DS3 (24 DS1 lines), very expensive!

No, no! The way to go is to lease your dedicated server from one of the major suppliers who already have in place numerous connections to the major carriers, Cable & Wireless, Qwest, etc. Your leased server is immediately on line with as much bandwidth as you have contracted for, should be a minimum of 50GB monthly. Now you have the system in place to sell portions of the server to your customers, and break it down however you wish. The server is yours to use as you see fit - sublease it in total to your own customer, or sign up users for websites on your server. It's really easier than it sounds. In my case my supplier has outstanding tech support, 24/7, and all I need do is contact them if a major crisis arises, and they clean it up. Minor server admin problems don't require a huge learning curve.

But once again, I stress anyone just starting out and wanting to try this method, don't let anyone talk you into anything other than a RaQ server. They are the easiest to learn and administer for a rookie. IBM type servers require much more attention, and abilities.

My biggest problem with reselling is that the majority of the hosts that promote reselling will not support you, and you're left hung out to dry.

Once again, these are all my personal opinions based on one year of reselling vs 2-1/2 years of using my own leased servers. About a year ago, I was approached by a major player in the online marketing business. He was looking for servers for his several business ventures. Had I been only a reseller, I would have had to pass his business off to my host. But since I could readily obtain leased servers, I was able to almost immediately supply him with 12 servers. This was a great deal, several thousand dollars a month, until he was caught spamming, and I had no recourse but to tell him I didn't need his business.

Sorry, I don't mean to ramble, but going the dedicated server route is a viable alternative to reselling.

Thanks for the time and the forum to discuss this issue.

Originally posted by azman
My biggest problem with reselling is that the majority of the hosts that promote reselling will not support you, and you're left hung out to dry.

I am glad you used the word "majority", because we are not all like this.

Allow me to give a few examples of issues that occur which a person new to the industry may see. These come from my personal experience.

1. A hosting client complains that yourdomain.com works, but www.yourdomain.com does not. What do you do?

2. Email messages keep getting split in half for a particular client. What is causing this?

3. A client wants their own ssl cert. Can you install it?

4. Your server load suddenly jumps to 100 (normally it is less than 1). How do you find what is causing it and how do you stop it?

5. A domain pointed to the main domain works just fine, but will not receive email. The mail simply sits in the queue. Where do you start looking?

6. Apache and Bind fail. They will not restart. What do you do?

Sorry, running out of time and can't post more.

On each question, would a newbie be able to handle those issues? If the answer is no, you will end up with dis-satisfied customers. There is more to server admin than clicking buttons, no matter what server you use.

-Lamar