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Understanding Your Actual Margin Print

  • resellerbusinessbuilding, reseller, billing, domain, guide, howto, solution, zillionkinghost
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Whether the business is profitable.

WHAT TO COUNT

Revenue from all clients Your reseller plan cost Billing system and tools Payment gateway fees Your own domain and services Your time

THE TIME COST

The one people omit, and the largest.

If you spend six hours a month on support across all clients, and your time is worth anything, that is a real cost.

A useful calculation: revenue divided by hours spent. Compare that to what you charge for other work.

THE COMMON DISCOVERY

Hosting is generating less per hour than design or development work.

That is not a reason to stop. It is a reason to price it properly, or to treat it as the relationship that produces the other work.

PER CLIENT

Some clients generate far more support than others. Identify them.

A client paying the least and demanding the most is costing you money.

WHAT TO DO ABOUT THEM

Raise their price, move them to a maintenance plan that covers the time, or let them go.

REVIEWING

Annually. Costs change and client behaviour changes.


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