Typical Reseller Story ... How Many Of U agree ?

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Posted by ihostex, 03-14-2014, 02:30 AM
A young passionate X gets an idea To Earn Money Online. He Searches On Google For Making Money Online And Some How Finds Re-seller Hosting with Y at an Attractive Price. After a Purchase He Starts Reading Books And Watching Videos how to develop a hosting company. now he builds a website with zeal to beat the competition and he will surpass the sign up rate of "y" and he makes his 100 clients with some $ 300 monthly profit .. then comes a mail from Y stating that {ur so called unlimited space and plans have reached to their peak resource limit so now u have to limit ur clients resources or we will enforce restrictions on your clients} then X starts thinking that his business is insecure now X has two options they are ... to listen to Y's terms and obey them and downgrade the clients resources or buy a new server and host on his own server with his terms . X finally decides to transfer his account to his brand new server and asks Y to help giving him access to transfer his accounts . however y declines it and X decides to follow manual transfer and gets plenty of problems with php and mysql ... finally clients leave x . in many cases they are retained by Y with out x permission. what can X do Now . is there any way to overcome such problems by resellers .. how many of the hosting companies offer reseller agreement?
Posted by Time4VPS, 03-14-2014, 03:06 AM
Sad story. Let me correct one sentence: " After a Purchase He Starts Reading Books And Watching Videos how to develop a hosting company...." to "Before a Purchase He Starts Reading Books And Watching Videos how to develop a hosting company..." This line would save you a lot of time dealing with the situation you described.
Posted by ihostex, 03-14-2014, 03:33 AM
sir, what i feel is many people deal it after purchasing it because there is no scope for geting a whm panel with out purchase.. and many people feel the necessity only when the problem comes . so i wrote "after" not "before" .
Posted by foobic, 03-14-2014, 03:35 AM
As it's by no means specific to the hosting business, I'd simplify the story a bit: [any kind of business]. X knows nothing about [any kind of business] and ends up not making any money - instead he loses all the money of his own that he put in. Moral of the story: Do something that you understand / care about / are passionate about and maybe, just maybe, you'll make some money from it. If you find yourself searching Google for "how to earn money online" then forget it - go flip burgers at a local fast-food outlet instead.
Posted by LDHosting, 03-14-2014, 05:00 AM
I certainly wouldn't call it typical. Sure, some people fall into the trap of believing that "unlimited hosting" is actually unlimited. However, there are also many that choose a plan from a host with advertised limits which match their needs and then simply upgrade the account as required. All very friendly with very little fuss. No matter what, no host is going to allow you to fill their $x00/month server with your $5/month hosting account. No host is going to let you use up mass amounts of bandwidth, which they pay for, on your $5/month hosting account. It's just not feasible. Any business is there to make money, even the 'unlimited everything' ones. Once your account gets anywhere near to costing more than it makes, their TOS will come out and you will be hunting for a new host. If you've had enough of playing that game, simply choose a host with decent limits and upgrade options for when you need them. Or, grab yourself a dedicated server and set up your own limits. Good luck, whichever way you decide to go.
Posted by HostingBig, 03-14-2014, 06:30 AM
is your new server hosted with Y? I would not say it is typical Last edited by HostingBig; 03-14-2014 at 06:34 AM.
Posted by ihostex, 03-14-2014, 06:48 AM
This post Is a simple Example .. why no one Express their views on Agreement?
Posted by DWS2006, 03-14-2014, 11:01 AM
ihostex, I can see where the scenario could play out as described, however this could be avoided with a few considerations. 1). Use a reseller account that utilizes a standard Control Panel (WHM/cPanel, DirectAdmin, Plesk, etc.). 2). Ask your provider up front if the backup capabilities inherent to the chosen CP are altered or disabled. 3). Monitor the above and move to a new reseller provider ASAP should policies change regarding backup capabilities. 4). Move to a managed Dedicated machine or at the very least pickup management from a third party (Even low cost options like PSM can be a great help in initial setup, hardening, and migration to those with limited administration experience). If the above hold true, there shouldn't be an issue moving from a reseller account to VPS / Dedicated.
Posted by Lazarus Web, 03-14-2014, 02:24 PM
I agree. I am currently making sure this doesn't happen to me!
Posted by StarWebHosting, 03-16-2014, 09:25 AM
I'm sure provider Y would give you options to upgrade to VPS or Dedicated Server in order to retain your custom. They would then help you to copy accounts over to the new server but if even for a small fee would be worth it.
Posted by Doze Host, 03-16-2014, 10:42 AM
I will buy one Master reseller. from where i can buy? Scared after reading this post.
Posted by jrianto, 03-19-2014, 03:56 PM
X should protect his business by having an offsite backup of all his clients outside the reseller provider. X should never be dependant on one entity for the life of his business. If one entity failed to provide X expectation, he should always have an executable exit plan ready to deploy at any given time. X should also keep learning, how to manage a VPS/Server to go to the next level so he is not totally under mercy of a reseller provider's policy. I think that would help X's worries reduced a bit. Last edited by BeZazz; 03-22-2014 at 01:27 PM.
Posted by Muchtar_GIGEhoster, 03-19-2014, 10:55 PM
1. X forgot to read from google how to perform migration of the accounts. 2. X forgot that there are managed dedicated/vps providers out there if X take 50% of $300/mo profit to have a managed dedicated/vps. 3. X did not plans for future, that is why X see this as a problem. Looks like that Y is not offering VPS or Dedicated Server and did not plan to grow big as Y is offering unlimited and X was trapped with Unlimited things. This is my opinions. please use your own discretion, opinions.
Posted by rcchang, 03-22-2014, 03:32 AM
Good story. Not very typical though. Let me correct one thing: If you search make money, the passionate X would most likely start filling out surveys and selling his stuff on ebay as opposed to getting into the hosting business. X would find something like this.