Am I being stupid using separate hosting packages?

Bizzman

Looking for some advice here.

I do quite a bit of web design and have registered myself in order to keep everything above board. Now the question I have is that when a new client comes to me looking for a website, I purchase a new hosting package for them from an Irish hosting provider. I generally use the same provider all the time.

When another client comes to me I buy a second hosting package and so on. I incorporate them into the final charge. I then remove my payment details and the client will then be billed directly the following year. So basically, every client of mine has their own hosting package.

The reason for doing this is basically I'm not sure if I'm still going to be running this business in 12 months time. I have other ideas that I would like to pursue. I'm 50/50 and I guess a lot depends on what happens here over the next while.

So my question is: should I be putting all of my clients onto my hosting package and be billing them myself each year rather than the hosting provider billing them? Obviously it can be quite profitable for me if I do it but what if my web design company isn't in operation here in 12 months time? What are your thoughts?

Eoin

There is definitely a bit of money to be made by setting up as a reseller - the mark up can be pretty good.

But then you become the first line of support, and that can burn up a lot of time. Some hosting companies might be able to handle your own customers' support queries, but it doesn't look great if you've re-branded the reseller account and there's people from another company responding.

Plus, if you shut up shop in a year's time, you have to make sure that the accounts can be migrated to either a different host or back to individual accounts that the customers can start paying for themselves.

I don't think I'd really bother if I were you, given that you're not really committed to the business at the moment.

cormee

Bizzman wrote: »

Looking for some advice here.

I do quite a bit of web design and have registered myself in order to keep everything above board. Now the question I have is that when a new client comes to me looking for a website, I purchase a new hosting package for them from an Irish hosting provider. I generally use the same provider all the time.

When another client comes to me I buy a second hosting package and so on. I incorporate them into the final charge. I then remove my payment details and the client will then be billed directly the following year. So basically, every client of mine has their own hosting package.

The reason for doing this is basically I'm not sure if I'm still going to be running this business in 12 months time. I have other ideas that I would like to pursue. I'm 50/50 and I guess a lot depends on what happens here over the next while.

So my question is: should I be putting all of my clients onto my hosting package and be billing them myself each year rather than the hosting provider billing them? Obviously it can be quite profitable for me if I do it but what if my web design company isn't in operation here in 12 months time? What are your thoughts?

With any freelance work I do I do the same as you. Not sure why actually but it's just easier that way and I'm not the best bookeeper. Your reasoning behind it is pretty good - makes it easier to just make a clean break if you want to.

Boskonay

Get a cloud / virtual server. Get cpanel or plesk or similar on it.

Sell the hosting yourself at your own price (comparable to the hosting company)

Make decent margin

I take a different view. I'll provide my clients with hosting (a separate package for each client), or advise them on how to buy their own. I've been doing this for the last 3 years after reseller accounts turned out to be a major pain.

Ultimately, my business is about making websites. I'd rather provide the client with a truly independent hosting account, as I do not wish to be associated with issues caused by a service which is beyond my control.

While I'll always assist clients with hosting issues, in terms of mediating between them and the hosting company, it's important that the client know I have no control over hosting-related outages.

mneylon

Your way of doing things seems the sanest for everyone

Maybe after a year or two if you're still in business you might reconsider how you handle things, but what you're doing now seems to be very responsible. It protects your clients from any issues that might occur if you weren't in business when their hosting came up for renewal and you also don't have to worry about the technical support / customer service

Bizzman

Thanks for your replies everyone. I feel I will continue the way I'm doing it at the moment as It would just be too much hassle if I was tied to these hosting accounts if I did make a break.

Thanks again