Why does WHM Master Reseller packages/offers usually sold cheap?

ZiriusPH

I've been seeing providers giving away cheap (i.e. ARacks is just offering 250GB/$15/year unlimited account master reseller) offers.

I always stumble upon them on WHT.
cPanel license is not cheap, moreso reselling them?

So why? Hope somebody from the industry can enlighten us.

Thanks!

nhocconan

Oversold, hundreds / thousands of clients / resellers in 1 node and you know what'll happen next :-)

Francisco

I can't speak for Alpharacks, but generally when I see master resellers that cheap, it's to try to cover costs as quickly as possible.

If you don't slab your node, you're $25~$35/month on cPanel, another $2/month on Softaculous, and another $40/month if you want Litespeed to try to save your ass. You have hardware costs in that and the likes. You add backups at around $5/month (if you offer them) and you're bordering on $100/month.

You then have to count hardware costs in there and if you're renting, you'll never make enough to cover it short of using something like WSI E5 2670 nodes or similar. They would have to sell nearly 200 plans at $15/year just to cover costs.

Owning gear is a lot easier since you can get very clean (hard time telling its even used) servers that are complete minus drives, but after drives you're still $1000 or so into it.

Francisco

hostdare

The key here is to put xxxx customers per node , so I am avoiding this right now and servers have been stable .

BecomeWebHost

@Francisco said:
I can't speak for Alpharacks, but generally when I see master resellers that cheap, it's to try to cover costs as quickly as possible.

If you don't slab your node, you're $25~$35/month on cPanel, another $2/month on Softaculous, and another $40/month if you want Litespeed to try to save your ass. You have hardware costs in that and the likes. You add backups at around $5/month (if you offer them) and you're bordering on $100/month.

You then have to count hardware costs in there and if you're renting, you'll never make enough to cover it short of using something like WSI E5 2670 nodes or similar. They would have to sell nearly 200 plans at $15/year just to cover costs.

Owning gear is a lot easier since you can get very clean (hard time telling its even used) servers that are complete minus drives, but after drives you're still $1000 or so into it.

Francisco

multi million $ business secrets of buyshared. hmm

Francisco

BecomeWebHost said: multi million $ business secrets of buyshared. hmm

You know, given the crap we've seen over the years being sold on these forums, yes, basic math is a secret it seems.

Francisco

raindog308

Francisco said: I can't speak for Alpharacks, but generally when I see master resellers that cheap, it's to try to cover costs as quickly as possible.

But why alpha/master/overlord/dear leader resellers, instead of just regular subscribers?

I think I'd rather fill my node full of direct subscribers (who are unlikely to use much of any package I sell them) than resellers, who will try to cram as many people in.

netpioneer

They are selling Limbo space. Thousands of sites but dozens of visitors.

MichaelCee

@raindog308 said:

Francisco said: I can't speak for Alpharacks, but generally when I see master resellers that cheap, it's to try to cover costs as quickly as possible.

But why alpha/master/overlord/dear leader resellers, instead of just regular subscribers?

I think I'd rather fill my node full of direct subscribers (who are unlikely to use much of any package I sell them) than resellers, who will try to cram as many people in.

Opportunity Cost?

raindog308

Ho-ost said: Opportunity Cost?

I know what opportunity cost means, but I don't understand how that applies here - ?

AuroraZ

I have never sold cheap cheap. Not worth the risk. Rather have fewer clients than the headaches.

ZiriusPH

thanks for sharing guys

akhfa

@raindog308 said:

Francisco said: I can't speak for Alpharacks, but generally when I see master resellers that cheap, it's to try to cover costs as quickly as possible.

But why alpha/master/overlord/dear leader resellers, instead of just regular subscribers?

I think I'd rather fill my node full of direct subscribers (who are unlikely to use much of any package I sell them) than resellers, who will try to cram as many people in.

Because reseller can bring more customers and money than if you sell directly I assume. Like more people (as reseller) referring or promoting your product

BecomeWebHost

@Francisco said:

BecomeWebHost said: multi million $ business secrets of buyshared. hmm

You know, given the crap we've seen over the years being sold on these forums, yes, basic math is a secret it seems.

Francisco

You don't understand their math.

it happens to be that service is such crap that users will never put their clients on it and it will never be used much... easier for them to oversell(too much) in the end.

WSS

@BecomeWebHost said:

@Francisco said:

BecomeWebHost said: multi million $ business secrets of buyshared. hmm

You know, given the crap we've seen over the years being sold on these forums, yes, basic math is a secret it seems.

Francisco

You don't understand their math.

it happens to be that service is such crap that users will never put their clients on it and it will never be used much... easier for them to oversell(too much) in the end.

Welcome to the EIG family!

BecomeWebHost

@WSS said:

@BecomeWebHost said:

@Francisco said:

BecomeWebHost said: multi million $ business secrets of buyshared. hmm

You know, given the crap we've seen over the years being sold on these forums, yes, basic math is a secret it seems.

Francisco

You don't understand their math.

it happens to be that service is such crap that users will never put their clients on it and it will never be used much... easier for them to oversell(too much) in the end.

Welcome to the EIG family!

Not targeting any provider. also I didn't knew EIG companies also sell master/alpha reseller

KermEd

Mmm, well as to why they are so cheap... Alpha Racks (and a couple other super cheap players in that space) lost a bunch of peoples data this month - in alphas case they have been refusing to refund and unable to restore my service.

I wasn't really using it for much anyways, but that is what those "too-good-to-be-true" sale deals count on . If it is too good to be true, and you care for the data, pick a reliable dude. Lots of awesome folks on here I've used over the years that is worth the extra few dollars.

Francisco

raindog308 said: But why alpha/master/overlord/dear leader resellers, instead of just regular subscribers?

Alpha/Master plans are in high demand, especially if you give large volumes of resources. Alpha/Master give you about as close of an experience to having actual root as you can get.

The problem is that the amount of accounts you have to deal with goes up exponentially with each layer. Lets say on average most users buying a reseller plan have 30 - 40 accounts under them. But what if that alpha/master reseller actually sold 10 resellers, and each of those did 30 - 40 each? You now have 300 - 400 accounts that will bloat your httpd.conf and make your AutoSSL/LE requests take that much longer to process the whole node. Nevermind the additional IO & CPU load you're now on the hook for.

Alpha/Master stuff is fine if you're charging enough to drop your standard load out by 50% or even 75%. Doing a plan with so much potential to murder your node without the cash flow to deal with issues when they come up doesn't help anyone.

Francisco