For resellers: Just curious

[chungmike]

I'm a "Matrix Reseller" on the Morpheus plan. I have about 21 users and 35 domains.

I just realized what the $4 setup for additional users means after getting my last bill. :-)

I'm curious to know what other resellers are doing:
What plan are you on, how many users, and how many domains do you administer on your plan?


Thanks.
Mike

[admin]

Remember the user fees are one time not per month, so its some times cheaper to stay on the plan and just pay the $4 per user then upgrade and pay more per month.

[generic]

some use multiple accounbts to save a few $$, but IMHO I would stick with upgrading the plan and maintaining only 1 account. just pass the 4 on to the customer as a setup fee, raise your prices, or eat it.

[rdpnet]

Ya gotta charge a setup fee. If you're not already doing so, you're losing $ at least in your time to answer the questions a new customer inevitably has and helping them get up and going.

Look at the average time you spend with a new account plus any expenses that you throw in and set a reasonable fee. Unless you're doing a lot of extra stuff for "free", a setup fee equal to 50% to 100% of the monthly fee seems to be pretty palatable to customers. I have a few managed hosting accounts that include a lot of expenses and actually charge a 200% setup fee, but most of mine are equal to one month's fee.

[generic]

if I could only figure out which clients were gonna ask sooooo many questions ahead of time, i would be a lot happier

[cleonard]

Originally Posted by tracewebspace

if I could only figure out which clients were gonna ask sooooo many questions ahead of time, i would be a lot happier

Amen Brother!!! :eyecrazy:

[craigdunlop]

I thought about setup fees which is clearly the best way to help cover setup costs and initial support but decided not to due to:

1. Much competition uses free setup costs
2. Since my billing can't be fully integrated and I am offering several payment methods. It would complicate my payment (recurring & one-offs) routines and my plans. EG: someone already signed up wants to start a recurring payment method with 2co. In 2co I would have to create another recurring product for each plan (x 5) which didn't have a setup fee. I already have dozens of recurring products setup in 2co - each plan x 5. 1 for each payment period (monthly, yearly, etc) and 1 with tax, 1 without, etc. I'd go crazy if I had to setup any more products in there. 2cos' fault really.... ...and mine for creating too many plans... :-(

I don't have many clients at the moment so I'll wear the costs untill such time as it looks like its hurting me and/or clients increase and then I'll probably introduce a one-off $4.00 fee.

[Brangwyn]

I charge a setup fee if they're signing up monthly but waive it if they prepay 12 months in advance (along with a 2 month discount).

[Curt]

Another option I've been thinking about is building the setup fee into the first year's charges. Then, once a client has been with me for 12 months, apply a "loyalty discount" to their monthly charges, dropping my price down to what I wanted to charge in the first place anyway. This has the added benefit of making a client feel appreciated and encouraging them to stay with you long-term.

[generic]

Originally Posted by Curt

Another option I've been thinking about is building the setup fee into the first year's charges. Then, once a client has been with me for 12 months, apply a "loyalty discount" to their monthly charges, dropping my price down to what I wanted to charge in the first place anyway. This has the added benefit of making a client feel appreciated and encouraging them to stay with you long-term.

oftern thought about that, but never really figured uot how to advertise that. Always felt people wanted the discount now.

Originally Posted by craigdunlop

1. Much competition uses free setup costs

I agree, but you really cant price your hosting based upon competition alone because your competition is also free hosting sites and I dont believe you are going to offer free hosting. They must want to use you. Catch them with your graphics, your content, word of mouth, or whatever else you use, but dont sell yourself short.

[cambodia]

think so free hosting or cheap hosting seem not much give me confident to host my commercial site or my database ( i never sell myself even online or real life )