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SHared vs Reseller Prices : debatable?

J

JustinNoel

Active Member
Why is that Shared and Reseller prices greatly differ from each other, however they all came from the same server, consuming the same disk/BW...

what's really the reasons for this?.. why not just sell resellers for the same price of shared?..

sorry if i sound stupid, justy want to see the logic here.
 
cyberdog said:
Why is that Shared and Reseller prices greatly differ from each other, however they all came from the same server, consuming the same disk/BW...

what's really the reasons for this?.. why not just sell resellers for the same price of shared?..

sorry if i sound stupid, justy want to see the logic here.
Click to expand...


Let's check HostGator:

Shared ..price $9.95

Disk Space: 100gb
Bandwidth: 1000 Gb
Domains Allowed: unlimmited

Reseller: price $24.95

Disk Space: 12GB
Bandwidth: 125 Gb


Difference . On price $15

Features:


Our resellers have the ability to host UNLIMITED sites. As a reseller you create your own packages and prices. Being a reseller is completely anonymous allowing you to act as an independent hosting company. Your customers won't know that you are reselling our hosting unless you tell them.


All of our reseller plans come with a free billing manager by WHM AutoPilot, free hosting templates, and a free eNom domain reseller account. Combined with a free merchant account from PayPal this provides you with a completed web site that allows visitors to signup from your website, pay you instantly, and automatically have their account created within minutes.

So you pay another $15/monthly for WHM + WHM AutoPilot + eNom domain ress+ merchant acc



P.S Just noticed ..on shared they offer 1000GB banwith .. I suppose they think users cant fill it What about a site with funny videos + wallpapers :))
 
why not just sell every space/bandwidth as a Reseller... if it just consumes the same way as shared hosting..

resellers are shared too... hmmm..
 
A decent reseller account will not be oversold, so you'll get 100% of the resource you buy. In the quoted example, I suspect you'd have your shared hosting account closed quite quickly if you tried to use it all.
 
With shared, it's one person, there is less chance of them using up all that space or bandwidth.

On a reseller account, there is a higher chance that they will use up all that diskspace and bandwidth.

On a reseller account, the host needs to check more sites to see if they are agreeing with the TOS, rather than one on the shared account.

Overall - Shared uses less space/bandwidth normaly and resellers require more work from the server owner than shared accounts.
 
As H-S said above,

Resellers require usually a lot more resources and a lot more time spent going through clients accounts to check if there are any TOS violations. I for one used to be the same about, why should resellers cost more, but now i see why after running my own hosting business for a few years.
 
cyberdog said:
what's really the reasons for this?.. why not just sell resellers for the same price of shared?..
Click to expand...

Consider what you can do with a reseller account that you can not do with a shared one. An easy way is to login to your whm if you have a reseller account. Look at those menus you have at the left side. I don't think it should be given for a price par to a shared one. :classic2:
 
cyberdog said:
Why is that Shared and Reseller prices greatly differ from each other, however they all came from the same server, consuming the same disk/BW...

what's really the reasons for this?.. why not just sell resellers for the same price of shared?..

sorry if i sound stupid, justy want to see the logic here.
Click to expand...

From a web host's perspective, some random points

Shared hosting:
1: Many number of clients per server: Benefits such as more likelyhood of upgrading clients in the future.
2: More people referring your services to others.
3: Most clients use tiny resources, a fraction of their account. (Again if they have heavy sites, they'll have to upgrade!)
4: You directly control and know your clients.
5: More support to provide generally due to the higher numbers.

Reseller hosting:
1: You don't know what/who you are hosting: Larger possibilities of abuse going unnoticed. More abuse, more problems with your server, more downtime, lower reputation :(
2: Reseller hosting clients hardly ever refer you customers - they take them all. :D
3: A reseller client is always going to be a bigger pain in the butt compared to the relatively quiet shared clients, when problems happen: "I want my site back up now, my customers are killing me, I'm going to sue you.", you probably have the reseller client relaying you all their support questions.
4: There's nothing more annoying than a reseller, hosting 5 proxy sites and a free web host.
 
Look at the hosting industry and judge why resellers cost more - some hosting co's won't sell reseller accounts (a position I agree with now) as it's an added level of risk for the hosting company, more work usually between monitoring and policing, there's extra control made available through control panels such as WHM which any shared client would not get.

All that and the fact that a reseller is in a position to make a profit, representing themselves as a hosting company and having access to features such as branded nameservers.

So the price difference is justified and required or it would just be a messy free for all.
 
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