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Is reseller hosting a pyramid, like Amway?
Posted by drillerboy, 07-31-2006, 11:57 PM |
some companys are letting you be a reseller, they charge a fee and you only get discounted services, so the make mooney off your sales. Is this right?
If so it would work like a Pyramid. Just trying to figure out how to run my hosting company. I'm a newb and I want to do this the best way.
Thanx
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Posted by ntfu2, 08-01-2006, 12:09 AM |
Not exactly, depends on where you get it from.
The hosting company isnt making anything off your sales most the times. The sell to you for a said price, and its your responsibilty to break that down, and sell the said amount for a profit.
example: Hosting company gives you 500MB and 5GB of bandwidth for $10.
You'd have to figure out a way to split that, and make your $10 monthly back to be a succesfull reseller.
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Posted by morehost, 08-01-2006, 01:08 AM |
Hi! drillerboy,
it sounds similar but it isn't... infact its very different from pyramid thing.. a typical reseller hosting works like this...
A company XY buys one (or many) dedicated servers..
XY than resells space directly to retail consumers (generally these accounts are allowed to host one site only and they cant resell)
XY also sells reseller account to reseller PQ at a fixed price.. (price for a reseller account is generally higher than individual account because PQ can host several sites and XY will need more resources to manage that.. )
PQ then sells to retail customers.. PQ directly provides support to his customers.. though he can always get back to XY if he is stuck or needs help.. PQ decides what price to sell (XY has nothing to do with it)..
PQ gets a control panel to manage his and his customer's accounts..
Simple.. isnt it?
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Posted by Shaw Networks, 08-01-2006, 02:14 AM |
I suppose you could think of it that way, but you could use that same logic for anything; your shoes were sold to you down a pyramid, or your clothes, etc.
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Posted by ldcdc, 08-01-2006, 08:13 AM |
Technically, Amway isn't a "pyramid", it uses multilevel marketing.
For more about these terms: http://en.wikipedia.org/wiki/Pyramid_scheme
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Posted by drillerboy, 08-01-2006, 08:09 PM |
Thanx for the advice. I am just getting my business set up and will sell reseller accounts and have nothing to do with my resellers custumers, only my reseller custumer. Just don't want to start out on the wrong foot.
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Posted by The Stealthy One, 08-02-2006, 07:34 AM |
If this setup bothers you, perhaps offer something in the way of what Bulixhost and ResellersPanel are offering - "free" reseller accounts, where the reseller is charged only when a client signs up.
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