Multiple domain hosting packages and price plans.

LeaUK · 22nd October 2007

Hi Guys

Currently running Plesk 8.1

I'm seeking your wisdom with regards to billing and packaging of domain hosting bundles for clients that wish to purchase multiple hosting accounts. Assume they already own their domains or purchase through a third party.

I'm specifically targeting those wishing to purchase a number of hosting domains, such as web designers in a hope to reduce support levels to a manageable size and of course attract regular revenue.

However price plans appear to become tricky when one begins to decide upon a billing/payment/package strategy for these customers. In fact it appears to me mutually exclusive.

Here's the scenario:

Web designer wants to purchase 50 domains on shared hosting to achieve discount. Therefore they are deemed by Plesk as 'Client' status and are allocated said 50 domains + associated bandwidth, etc, etc.

However, the 50 domain hosting package has a finite life of say 1 year. But immediately time is running out and therefore this leads to a reduced life of individual hosting accounts dependant upon ther time between when the 50 package was purchased and when the hosting account was created.

The web designer would assume even if they have purchased a '50off' package each domain space (no matter when created) would be granted one year's life. However this isn't how the Client package model operates.

I can see only two alternatives:

1. Allow clients unlimited domains but restrict bandwidth/mail accounts etc..

As millions of others..

or

2. Forget the Plesk Client role model and use the billing software to simply discount at certain key volumes. i.e. web designer reaches 15 domains and all new purchases are at a discounted rate of x%.

I really don't want to go the 'unlimited' route as this isn't really a suitable business model for me.

So your thoughts and advice would be greatly appreciated as always.

Thanks
Lea

burble · 22nd October 2007

Fwiw, I feel the price per domain/mail address system is unfair. A fair pricing model is one where if I cost you something, you pass it on (at a suitable profit). I'd be happy to pay when registering/renewing a domain, using xGB of hard drive space or bandwidth, but adding a few lines to a configuration file for a new virtual host or mail alias just seems a bit sneaky. I know you say that's not really a suitable business model for you, but in the past I've been happy to pay more up front for the flexibility down the line. Might be worth considering?

LeaUK · 22nd October 2007

I understand your comments, however as you will know there is almost no money in hosting for the smaller host, and what there is it's instantly eaten by support - so one has to differentiate. Some do this by leveraging their support, some via their brand name, but businesses ultimately have to pay something.

Here's a typical example:

Client purchases domain and hosting package - client can't set up FTP, can't use the Control Panel, can't set up their outlook, can't manage their name server control Panel - it just goes on and on.

I feel strongly about NOT underselling this market, as business resellers (even with online video, step by step instruction etc...) ultimately require at least two key components:

1. Quality support
2. Business continuity

So I feel justified in charging per domain to recover components 1 + 2. In fact most of my clients expect it

Whoops, sorry, gone on my business model defencive

Lea

burble · 22nd October 2007

Well it's fair enough, lots of hosts do it like that - I just personally don't like it

I paid more per month for an unlimited account than I would have if I'd gone for a per-domain account, mostly because if the host is being up-front about how much they need to keep going, they're more likely to be up-front about other things. That and I don't feel that I'm being screwed every time I want to try out a new idea.

But then I could use a control panel and command line...

LeaUK · 22nd October 2007

Yeah, I do understand where you're coming from, trust me. But when you're on the other end of the phone/email for all those who can't work out how things should operate - well hey, that's one of my differentiators.

There are (like yourself) some very savy bulk purchasers and I suspect they won't head my way, but for those less experienced a little hand holding goes a long way.

I also have a few more differentiators up my sleeve but we'll see, see if the market is responsive.

Quote:

That and I don't feel that I'm being screwed every time I want to try out a new idea.

Of course you can always try things out using Virtual Directories - that wouldn't cost a penny

Thanks for your thoughts burble - appreciated.

Anyone else re pricing models?

burble · 22nd October 2007

Mmm, I guess it's a different market these days - bah, when I was a lad, we had to write to our sysadmin to ask them to install our perl modules; that or jump up to a dedicated. Anyone competent these days will probably just pick up a virtual server for less than what I was paying, so I guess you've got to assume most shared clients are going to be clueless and need hand-holding.

From that point of view, I'd have thought your second option sounds fair; being able to save money as I build my business (esp without having to commit before I had the clients) would certainly appeal to me if I was in that market.

Sorry for taking your thread off on a tangent, I'll shut up now

LeaUK · 24th October 2007

Quote:

I'll shut up now

Please don't, it's good to talk

Of course if I were a web designer then a VPS may well suit especially as the client volume increases, however I would suspect the manageability of said system to detract from the main-line design business. My target customers are generally those operating in 1-3 man partnerships/Ltd's that haven't got time and need significant support to manage their projects.

Shared hosting (on servers that have low throughput/CPU use) can be an economical way for new web designers to bring their client's websites up and of course email/webmail etc. But why pay more? Well here's a scenario:

Client wants email to remain with current provider, but web designer needs to host website somewhere familiar.

Web designer may not understand DNS to the required level, so calls host for help, host generally explains politely (or not in some cases) "sorry it's out of our control" however this hasn't resolved designer's issue. Help could be provided by accessing the designer's client's DNS control panel to amend DNS settings. Done. Everyone's happy

I hope?

That's my theory. I suspect this model fails with the addition of numerous clients, but I'm small and intend to remain that way.

You're right, I need to also get back on thread...

I notice none of the well respected members haven't joined the debate and that's rather disappointing as I was hoping for a little assistance from those well experienced.

Oh well, perhaps I'm bonkers!

Still, pushing ahead is the only way...

Come on chaps, what's your views/experience on per domain hosting for resellers/bulk package purchasers - if you would prefer PM then please do, would be appreciated.

Regards
Lea

othellotech · 24th October 2007

Quote:

Originally Posted by LeaUK2

Client wants email to remain with current provider, but web designer needs to host website somewhere familiar.

Web designer may not understand DNS to the required level, so calls host for help, host generally explains politely (or not in some cases) "sorry it's out of our control" however this hasn't resolved designer's issue. Help could be provided by accessing the designer's client's DNS control panel to amend DNS settings. Done. Everyone's happy

I hope?

All I can say is Good Luck with that :P

LeaUK · 25th October 2007

I sense a touch of sarcasm and more likely experience Rob? Care to share?

othellotech · 28th October 2007

In most of those sorts of cases adding entries to your server/dns wont help, as the client will still have the nameservers on the domain set to the original host. and then if/when the designer getsthe client to change the details so you're running the DNS and pointing the MX back to an A for mail. to the original host, and the mail host renumbers/moves server/whatever, you'l be getting the "why doesnt my mail work" support job ...

LeaUK · 29th October 2007

Hi Rob

Yeah I understand. However in this case we offer a complete service, as long as the web designer knows the NS CP credentials we can login and manage it. Simply point the domain to our servers, leaving the DNS an mail to the previous provider.

Cheers
Lea