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How many accounts will fit into my X9 Mini-R package and how much money can I make? |
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Overview If you follow the X9 pricing policies and if you work with the Mini-R, the smallest reseller account available, this should generate a yearly turnover of £2,790 at a cost of only £94.80 per year. If you decide not to host cheaply and sell a personal service to local businesses, you could charge £19.95 per month. Of course you will have to offer a dedicated service and will need to be available by telephone, as they may call during office hours to request that you set up another email account for a new employee. The mini reseller account can easily host 50 fairly large accounts and at £20 per month produce an annual turnover of nearly £12,000. You can upgrade whenever you need more space. Example
1 - Find your clients on the Internet
and encourage sign-ups by selling cheap.
Sign up with web hosting review sites and
pay per click programs such as Google
Adwords. Selling cheap requires no
marketing thoughts as the cheap price does
all your selling. There are some
disadvantages, do not expect to make a
good income soon with this sales model.
Expect no profit from a new sign-up for
the first year. You will earn from year
two onwards, if you looked after this
client and he/she renews. The
Advantage: These clients are more
forgiving if it takes more than a day for
you to reply to their support issues.
Typical clients include home users, new
one man business start-ups, churches,
schools and established businesses with
less than 5 employees.
Sell
75 accounts at £9 per
year
£675
turnover pa.
Sell
65 accounts at £25 per
year
£1,625
turnover pa.
Sell
10 accounts at £49 per
year
£490
turnover pa.
Total
yearly turnover
£2,790
Cost
of your MINI-R
£94.80
pa.
Profit
£2,695
Example
2 - Find your clients locally by
advertising yourself in local papers as a
dedicated Personal Professional Internet
Hosting specialist on the other end of a
telephone line, with a "pop in for a chat"
service. Add a local domain, such as
PlymouthWebHost.co.uk
or myLondonHost.co.uk
etc (both
domains are for sale at £9.95
each)
to indicate that you are indeed a local
web host and print and distribute a
brochure or flyer to local businesses.
NO professional business will take
a chance on a £9 a year web host, or
any host which offers such a hosting
package, so nearly all your clients will
be established high profile businesses
such as new car showrooms, wholesalers,
manufacturers, councils etc. Typically,
businesses with 5 and more employees.
The Drawback: These clients will
expect you to reply to their support
emails on the same day.
Sell
50 accounts at £19.95 a
month
£11,790
pa.
...or
sell 50 accounts at £9.95 a
month
£5,970
pa.
Cost
of your MINI-R
£94.80
pa.
Profit
£11,695
or £5,875
The difference between the two business models shown above are: Example 1 allows you to operate this business part-time at first, letting it grow over time, until it reaches a level where you can afford to employ someone to help deal with support and maintenance of your business. The founder of X9 had no problem dealing with 2000 clients on his own without any hired help, back in the year 2000. Most clients never needed support because everything is working so well. No major crisis will present itself if you took a couple of weeks holiday and only occasionally serviced your hosting business from an Internet Cafe during this time. But example 2 requires a full-time commitment. Most resellers who include example 2 in their business plan, use reselling for someone else as a platform to launch them into the hosting business and often earn more than £50,000 in their third year, and many of these end up running their own independent dedicated servers, no longer reselling for other hosting providers. NOTE: If you specifically target high resource demanding sites such as estate agents (who publish lots of images of all their properties), and large ecommerce shops, the above figures will not apply and you should watch your available resources from time to time and upgrade before you reach your quota limits. |
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