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Pricing Hosting Profitably Print

  • resellerbusinessbuilding, reseller, billing, domain, guide, howto, solution, zillionkinghost
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Working out what to charge.

WHAT IT COSTS YOU

Your reseller plan, divided by the number of clients you can realistically fit Your time supporting them Billing and payment fees Your own domain and tools

THE TIME COST IS THE REAL ONE

If a client generates one support request a month and you spend twenty minutes on it, that is four hours a year.

At any reasonable value for your time, a low monthly fee does not cover it.

THE CALCULATION

Take your monthly reseller cost. Divide by the number of clients you can support well, not the number the allocation permits.

Add your time. Add a margin.

That figure is usually higher than people expect, and higher than the cheapest hosts advertise.

COMPETING WITH CHEAP HOSTS

Do not. You cannot win on price against operations at scale.

Sell what they do not: personal support, local presence, knowing the customer's site.

ANNUAL BILLING

Better for cash flow and it reduces churn. Offer a discount for it.

RAISING PRICES LATER

Difficult. Price correctly at the start rather than planning to increase.


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