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Old 08-17-2009, 01:25 AM   #1 (permalink)
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Need professional advice regarding domain regitrar service for small hosting business

hi,

i am starting a small hosting business, i want to give my customer the option to register their domain through me, or transfer their domain name to my hosting company,

i heard it takes $75,000 capital to become a registrar, so i am thinking to become buy a domain reseller package instead, is this a good idea?

if yes, i have some questions,

1. which domain reseller is better for this kind of business, godaddy? enom? or reseller club and why?

2. as a domain reseller, do i own 100% profits for the domain sold through my reseller account? say, i sold 100 domain names at $7.99 each, do i earn $799?

any advice and suggestions are greatly appreciated, thank you.
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Old 08-17-2009, 05:16 AM   #2 (permalink)
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Ryan,

SO far as I'm aware it does require $75k or so as a bond to become a reseller. I have no idea who is the best reseller and would guarantee that they are going to want some of the revenue - afterall it costs them something to register the domains. I would anticipate a 60/40 split in your favour.

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Old 08-17-2009, 06:37 AM   #3 (permalink)
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Quote:
Originally Posted by ryan0124 View Post
hi,

i am starting a small hosting business, i want to give my customer the option to register their domain through me, or transfer their domain name to my hosting company,

i heard it takes $75,000 capital to become a registrar, so i am thinking to become buy a domain reseller package instead, is this a good idea?

if yes, i have some questions,

1. which domain reseller is better for this kind of business, godaddy? enom? or reseller club and why?

2. as a domain reseller, do i own 100% profits for the domain sold through my reseller account? say, i sold 100 domain names at $7.99 each, do i earn $799?

any advice and suggestions are greatly appreciated, thank you.
Dont even spend a penny on domain reseller accounts, stick with the hosting account and dedicate a page to your affiliate link which will link your customers to godaddy, etc....

if you sell 100 domains, you only earn comission on the % you add to the price they give you. Resellers will give you .com's for example for $7.49 US, you will need to add $2 to that price to cover paypal fee! and walk away with $1 profit! so if you sell 100 domains you make $100 profit - companies such as GoDaddy offer cheap prices for domains but they dont make any money from it, they make their money with their services which they spam the shit out of you before checkout! $100 profit will not even cover the yearly fee that you will owe for the reseller account!

Now, if you use the godaddy affiliate link and your customers buy a .com, you make $2 profit! you sell 100 domains = $200 and their is no yearly fee for this!

Their is no money in hosting! - if you do what i do with my customers and refer them to hosting companies, you will earn more money per deal - $65 US to $105 US commission

godaddy charges my client $88 for two years and pays me $105 US for the referal!
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